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H0360...............................................by REVENUE AND TAXATION
PERSONAL PROPERTY TAX - Amends existing law to provide for state income tax
credits for the payment of personal property taxes by certain taxpayers; to
provide a schedule for phase in of the reimbursement; to provide a maximum
amount of the credit; to provide procedures; to provide for treatment of
the General Fund surplus; to provide for remittance of certain moneys to
the State Refund Fund; to provide for remittance to the General Fund; and
to provide that moneys in the State Refund Fund may be used for repaying
taxpayers for certain personal property taxes paid.
03/12 House intro - 1st rdg - to printing
03/13 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 360
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION POLICIES; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY
3 THE ADDITION OF A NEW SECTION 63-3024D, IDAHO CODE, TO PROVIDE FOR STATE
4 INCOME TAX CREDITS FOR THE PAYMENT OF PERSONAL PROPERTY TAXES BY CERTAIN
5 TAXPAYERS, TO PROVIDE A SCHEDULE FOR PHASE IN OF THE REIMBURSEMENT, TO
6 PROVIDE THE MAXIMUM AMOUNT OF THE CREDIT AND TO PROVIDE PROCEDURES;
7 AMENDING CHAPTER 35, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
8 TION 67-3529, IDAHO CODE, TO PROVIDE FOR TREATMENT OF A GENERAL FUND SUR-
9 PLUS AND TO PROVIDE FOR REMITTANCE OF CERTAIN MONEYS TO THE STATE REFUND
10 FUND AND TO PROVIDE FOR REMITTANCE TO THE GENERAL FUND; AND AMENDING SEC-
11 TION 63-3067, IDAHO CODE, TO PROVIDE THAT MONEYS IN THE STATE REFUND FUND
12 MAY BE USED FOR REPAYING TAXPAYERS FOR CERTAIN PERSONAL PROPERTY TAXES
13 PAID AND TO MAKE TECHNICAL CORRECTIONS; DECLARING AN EMERGENCY AND PROVID-
14 ING RETROACTIVE APPLICATION.
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. That Chapter 30, Title 63, Idaho Code, be, and the same is
17 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
18 ignated as Section 63-3024D, Idaho Code, and to read as follows:
19 63-3024D. INCOME TAX CREDITS FOR PERSONAL PROPERTY TAXES. (1) For taxable
20 year 2001 and each taxable year thereafter, subject to the transfer of suffi-
21 cient moneys to the state refund fund pursuant to section 67-3529, Idaho Code,
22 there shall be allowed as a credit against taxes due under this chapter one
23 hundred percent (100%) of the amount of taxes paid on class 2 property that
24 is machinery and equipment and is defined in section 63-204, Idaho Code, and
25 used solely in agriculture during that tax year.
26 (2) Subject to the transfer annually of sufficient moneys to the state
27 refund fund pursuant to section 67-3529, Idaho Code, there shall be allowed as
28 a credit against taxes due under this chapter the following:
29 For taxable year 2002, there shall be allowed as a credit against taxes
30 due under this chapter ten percent (10%) of the amount of taxes paid on class
31 2 property other than that machinery and equipment used solely in agriculture
32 and on personal property that is class 3 property defined in section 63-204,
33 Idaho Code, during taxable year 2002. For taxable year 2003, there shall be
34 allowed as a credit against taxes due under this chapter twenty percent (20%)
35 of the amount of taxes paid on class 2 property other than that machinery and
36 equipment solely used in agriculture and on personal property that is class
37 3 property as defined in section 63-204, Idaho Code, during taxable year 2003.
38 For taxable year 2004, there shall be allowed as a credit against taxes due
39 under this chapter thirty percent (30%) of the amount of taxes paid on class
40 2 property other than that machinery and equipment solely used in agriculture
41 and on personal property that is class 3 property as defined in section
42 63-204, Idaho Code, during taxable year 2004. For taxable year 2005, there
43 shall be allowed as a credit against taxes due under this chapter forty per-
2
1 cent (40%) of the amount of taxes paid on class 2 property other than that
2 machinery and equipment solely used in agriculture and on personal property
3 that is class 3 property as defined in section 63-204, Idaho Code, during tax-
4 able year 2005. For taxable year 2006, there shall be allowed as a credit
5 against taxes due under this chapter fifty percent (50%) of the amount of
6 taxes paid on class 2 property other than that machinery and equipment solely
7 used in agriculture and on personal property that is class 3 property as
8 defined in section 63-204, Idaho Code, during taxable year 2006. For taxable
9 year 2007, there shall be allowed as a credit against taxes due under this
10 chapter sixty percent (60%) of the amount of taxes paid on class 2 property
11 other than that machinery and equipment solely used in agriculture and on per-
12 sonal property that is class 3 property as defined in section 63-204, Idaho
13 Code, during taxable year 2007. For taxable year 2008, there shall be allowed
14 as a credit against taxes due under this chapter seventy percent (70%) of the
15 taxes paid on class 2 property other than that machinery and equipment solely
16 used in agriculture and on personal property that is class 3 property as
17 defined in section 63-204, Idaho Code, during taxable year 2008. For taxable
18 year 2009, there shall be allowed as a credit against taxes due under this
19 chapter eighty percent (80%) of the taxes paid on class 2 property other than
20 that machinery and equipment solely used in agriculture and personal property
21 that is class 3 property as defined in section 63-204, Idaho Code, during tax-
22 able year 2009. For taxable year 2010, there shall be allowed as a credit
23 against taxes due under this chapter ninety percent (90%) of the taxes paid on
24 class 2 property other than that machinery and equipment solely used in agri-
25 culture and personal property that is class 3 property as defined in section
26 63-204, Idaho Code, during taxable year 2010. For taxable year 2011 and each
27 taxable year thereafter, there shall be allowed as a credit against taxes due
28 under this chapter one hundred percent (100%) of the taxes paid on class 2
29 property other than that machinery and equipment solely used in agriculture
30 and personal property that is class 3 property as defined in section 63-204,
31 Idaho Code, during the taxable year.
32 (3) The maximum amount of the credit established by this section shall be
33 that enumerated in subsections (1) and (2) of this section. If taxes due are
34 less than the total credit allowed, the taxpayer shall be paid a refund. If
35 the credit or refund is not claimed for the year for which the individual
36 income tax return is filed, the right thereafter to claim such credit or
37 refund shall be forfeited. The state tax commission shall prescribe the method
38 by which the refund, if any, is to be made to the taxpayer.
39 (4) The refunds authorized by this section shall be paid from the state
40 refund fund in the same manner as the refunds authorized by section 63-3067,
41 Idaho Code. An application for any refund which is due and payable under the
42 provisions of this section must be filed with the state tax commission by the
43 due date, including extensions, of the return required under section 63-3030,
44 Idaho Code, if the applicant is required to file a return or the fifteenth day
45 of April of the year following the year to which the application relates if
46 the applicant is not required to file a return.
47 (5) The state tax commission may promulgate rules to implement the provi-
48 sions of this section. The commission may require such receipts and documenta-
49 tion from taxpayers and county assessors necessary to implement the provisions
50 of this section. If sufficient moneys are not available in the state refund
51 fund to pay in full credits or refunds, the state tax commission may grant a
52 pro rata share to all taxpayers based on the amount of the credit for personal
53 property taxes paid pursuant to the formula provided in this section to
54 ensure soundness of the fund.
3
1 SECTION 2. That Chapter 35, Title 67, Idaho Code, be, and the same is
2 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
3 ignated as Section 67-3529, Idaho Code, and to read as follows:
4 67-3529. TREATMENT OF GENERAL FUND SURPLUS -- MONEYS FOR PROPERTY TAX
5 RELIEF. Subject to the requirements of section 63-3203, Idaho Code, if the
6 state controller certifies that the fiscal year has ended with an unexpended
7 and unencumbered balance in the general fund, the unexpended and unencumbered
8 balance shall be treated as follows:
9 (1) The state controller shall deduct any funds to be transferred to the
10 budget stabilization fund in the following fiscal year, pursuant to section
11 57-814, Idaho Code.
12 (2)If any unexpended and unencumbered balance remains after the implemen-
13 tation of subsection (1) of this section, then the state controller shall
14 deduct this excess from the unexpended and unencumbered balance, up to a maxi-
15 mum of one percent (1%) of the general fund revenue collection for the fiscal
16 year just ended to be retained by the general fund.
17 (3) If any unexpended and unencumbered balance remains after the imple-
18 mentation of subsections (1) and (2) of this section, and this unexpended and
19 unencumbered balance represents more than one percent (1%) of the general fund
20 revenue collections for the fiscal year just ended, then seventy-five percent
21 (75%) of this remaining unexpended and unencumbered balance shall be remitted
22 to the state refund fund in section 63-3067, Idaho Code, for payment of the
23 income tax credits and refunds of personal property taxes pursuant to section
24 63-3024D, Idaho Code, for taxable years beginning during the calendar year
25 when the calculation pursuant to this subsection is made.
26 SECTION 3. That Section 63-3067, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 63-3067. REVENUE RECEIVED -- STATE REFUND ACCOUNT FUND. (1) A sum equal
29 to the amount withheld under section 63-3035A, Idaho Code, shall be distrib-
30 uted fifty percent (50%) to the public school income fund to be utilized to
31 facilitate and provide substance abuse programs in the public school system,
32 and fifty percent (50%) shall be distributed to the counties to be utilized
33 for county juvenile probation services. These funds shall be distributed quar-
34 terly to the counties based upon the percentage the population of the county
35 bears to the population of the state as a whole.
36 (2) All moneys except as provided in subsection (1) of this section, and
37 except as hereinafter provided, received by the state of Idaho under this act
38 shall be deposited by the state tax commission, as received by it, with the
39 state treasurer and shall be placed in and become a part of the general
40 account fund under the custody of the state treasurer. Providing however, that
41 an amount equal to twenty percent (20%) of the amount deposited with the state
42 treasurer shall be placed in the "state refund account fund" which is hereby
43 created for the purpose of repaying overpayments, for the purpose of repaying
44 taxpayers for personal property taxes paid as provided in section 63-3024D,
45 Idaho Code, for the purpose of depositing in the trust accounts specified in
46 section 63-3067A, Idaho Code, such amounts as may be designated by individuals
47 for the purpose of depositing in the Idaho ag in the classroom account an
48 amount as may be designated by the individual receiving a refund for such
49 overpayment, and for the purpose of paying any other erroneous receipts ille-
50 gally assessed or collected, penalties collected without authority and taxes
51 and licenses unjustly assessed, collected or which are excessive in amount.
52 Whenever necessary for the purpose of making prompt payment of refunds, the
4
1 board of examiners, upon request from the state tax commission, and after
2 review, may authorize the state tax commission to transfer any additional spe-
3 cific amount from income tax collections to the "state refund account fund."
4 There is appropriated out of the state refund account fund so much thereof as
5 may be necessary for the payment of the refunds herein provided. Claims for,
6 and payment of refunds under the provisions of this section shall be made in
7 the same manner as other claims against the state of Idaho.
8 Any unencumbered balance remaining in the state refund account fund on
9 June 30 of each and every year in excess of the sum of one million five hun-
10 dred thousand dollars ($1,500,000) shall be transferred to the general account
11 fund and the state controller is hereby authorized and directed on such dates
12 to make such transfers unless the board of examiners, which is hereby autho-
13 rized to do so, changes the date of transfer or sum to be transferred.
14 SECTION 4. An emergency existing therefor, which emergency is hereby
15 declared to exist, this act shall be in full force and effect on and after its
16 passage and approval, and retroactively to January 1, 2001.
STATEMENT OF PURPOSE
RS 11037
This legislation phases out Idaho's personal property tax over an
eleven-year period, beginning this year. It replaces lost personal
property tax revenue to local units of government from the general
account.
FISCAL IMPACT
In taxable year 2000, local units of government collected $142
million in personal property tax. The total collection of this tax
will escalate to $309 million in taxable year 2011 (the end of the
phase out period).
Contact
Name: Representative Celia Gould
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 360