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H0378...............................................by REVENUE AND TAXATION
TAXATION - Amends and adds to existing law to provide that certain tangible
personal property is exempt from taxation; to provide for remittance of
income tax moneys to replace property taxes on certain personal property
exempt from taxation; and to provide a formula.
03/26 House intro - 1st rdg - to printing
Rpt prt - rls susp - PASSED - 61-6-3
AYES -- Barraclough, Barrett, Bedke, Bell, Black, Bolz, Bradford,
Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy, Deal,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Gould, Hadley, Hammond, Hansen, Harwood, Higgins, Hornbeck, Jaquet,
Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
McKague, Montgomery, Mortensen, Moss, Moyle, Pearce, Pomeroy,
Raybould, Ridinger, Roberts, Sali, Schaefer, Sellman, Shepherd,
Smith, Smylie, Stevenson, Stone, Tilman, Trail, Wood, Young, Mr.
Speaker
NAYS -- Bieter, Boe, Chase, Henbest(Farley), Marley, Robison
Absent and excused -- Meyer, Pischner, Wheeler
Floor Sponsor -- Crow
Title apvd - to Senate
03/28 Senate intro - 1st rdg - to Loc Gov
Rpt out - rec d/p to 2nd rdg
Rls susp - PASSED - 32-2-1
AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
Cameron, Danielson, Darrington, Davis, Deide, Frasure, Geddes,
Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lodge, Noh,
Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Williams,
NAYS -- Dunklin, Whitworth
Absent and excused -- Lee
Floor Sponsors - Thorne, Hawkins
Title apvd - to House
03/29 To enrol - rpt enrol - Sp signed - Pres signed
03/30 To Governor
04/09 Governor signed
Session Law Chapter 356
Effective: 01/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 378
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW SECTION 63-602EE, IDAHO CODE, TO PROVIDE THAT CERTAIN TANGI-
4 BLE PERSONAL PROPERTY IS EXEMPT FROM TAXATION; AMENDING SECTION 63-3067,
5 IDAHO CODE, TO PROVIDE FOR REMITTANCE OF INCOME TAX MONEYS TO REPLACE
6 PROPERTY TAXES ON CERTAIN PERSONAL PROPERTY EXEMPT FROM TAXATION, TO PRO-
7 VIDE A FORMULA AND TO MAKE A TECHNICAL CORRECTION; DECLARING AN EMERGENCY
8 AND PROVIDING RETROACTIVE APPLICATION.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Chapter 6, Title 63, Idaho Code, be, and the same is
11 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
12 ignated as Section 63-602EE, Idaho Code, and to read as follows:
13 63-602EE. PROPERTY EXEMPT FROM TAXATION -- CERTAIN TANGIBLE PERSONAL
14 PROPERTY. The following property is exempt from taxation: class 2 property
15 that is agricultural machinery and equipment and exclusively used in agricul-
16 ture during the immediately preceding tax year. For purposes of this section:
17 (1) "Agricultural machinery and equipment" shall mean any machinery and
18 equipment that is used in:
19 (a) Production of field crops including, but not limited to, grains, feed
20 crops, fruits and vegetables; or
21 (b) The grazing, feeding or raising of livestock, fur-bearing animals,
22 fish, fowl and bees to be sold or used as part of a net profit-making
23 agricultural enterprise or dairy.
24 (2) Buildings shall not be considered to be agricultural machinery and
25 equipment.
26 SECTION 2. 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. (1) A sum equal to the
29 amount withheld under section 63-3035A, Idaho Code, shall be distributed fifty
30 percent (50%) to the public school income fund to be utilized to facilitate
31 and provide substance abuse programs in the public school system, and fifty
32 percent (50%) shall be distributed to the counties to be utilized for county
33 juvenile probation services. These funds shall be distributed quarterly to the
34 counties based upon the percentage the population of the county bears to the
35 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 under the custody of the state treasurer. Providing however, that an
41 amount equal to twenty percent (20%) of the amount deposited with the state
2
1 treasurer shall be placed in the "state refund account" which is hereby cre-
2 ated for the purpose of repaying overpayments, for the purpose of remitting to
3 counties and taxing districts for personal property exempt from taxation pur-
4 suant to section 63-602EE, Idaho Code, as provided in subsection (3) of this
5 section, for the purpose of depositing in the trust accounts specified in sec-
6 tion 63-3067A, Idaho Code, such amounts as may be designated by individuals
7 for the purpose of depositing in the Idaho ag in the classroom account an
8 amount as may be designated by the individual receiving a refund for such
9 overpayment, and for the purpose of paying any other erroneous receipts ille-
10 gally assessed or collected, penalties collected without authority and taxes
11 and licenses unjustly assessed, collected or which are excessive in amount.
12 Whenever necessary for the purpose of making prompt payment of refunds, the
13 board of examiners, upon request from the state tax commission, and after
14 review, may authorize the state tax commission to transfer any additional spe-
15 cific amount from income tax collections to the "state refund account." There
16 is appropriated out of the state refund account so much thereof as may be nec-
17 essary for the payment of the refunds herein provided. Claims for, and payment
18 of refunds under the provisions of this section shall be made in the same man-
19 ner as other claims against the state of Idaho.
20 (3) The state tax commission shall calculate the amount that each county
21 assessed in taxes in tax year 2000 on property that is exempt from taxation
22 pursuant to section 63-602EE, Idaho Code, and shall remit to the county trea-
23 surer for distribution to each taxing district in the county one hundred six
24 percent (106%) of the amount calculated as follows:
25 The county commissioners in each county shall certify to the state tax
26 commission by July 1, 2001, the year 2000 tax charge, applicable to the prop-
27 erty exempt from taxation pursuant to section 63-602EE, Idaho Code, provided
28 that such property was categorized in year 2000 as farm machinery, tools and
29 equipment pursuant to rules of the state tax commission, for the portion of
30 each taxing district or unit within the county. For nonschool districts the
31 state tax commission shall distribute one-fourth (1/4) of this amount certi-
32 fied quarterly to each county beginning in October 2001. For school districts
33 the state tax commission shall distribute one-fourth (1/4) of the amount cer-
34 tified quarterly to each school district beginning in October 2001. For non-
35 school districts, the county auditor shall distribute to each district
36 within thirty (30) calendar days from receipt of moneys from the tax commis-
37 sion. Moneys received by each taxing district for replacement shall be uti-
38 lized in the same manner and in the same proportions as revenues from property
39 taxation. The moneys remitted to the county treasurer for replacement of prop-
40 erty exempt from taxation pursuant to section 63-602EE, Idaho Code, may be
41 considered by the counties and other taxing districts and budgeted at the same
42 time, in the same manner and in the same year as revenues from taxation on
43 personal property which these moneys replace. If taxing districts are consoli-
44 dated, the resulting district is entitled to an amount equal to the sum of the
45 amounts which were received in the last calendar quarter by each district pur-
46 suant to this subsection prior to the consolidation. If a taxing district is
47 dissolved or disincorporated, the state tax commission shall continuously dis-
48 tribute to the board of county commissioners an amount equal to the last
49 quarter's distribution prior to dissolution or disincorporation. The board of
50 county commissioners shall determine any redistribution of moneys so received.
51 If a taxing district annexes territory, the distribution of moneys received
52 pursuant to this subsection shall be unaffected. Taxing districts formed after
53 January 1, 2001, are not entitled to a payment under the provisions of this
54 subsection. School districts shall receive an amount determined by multiplying
55 the sum of the year 2000 school district levy plus .001 times the market value
3
1 on December 31, 2000, in the district of the property exempt from taxation
2 pursuant to section 63-602EE, Idaho Code. For purposes of the limitation pro-
3 vided by section 63-802, Idaho Code, moneys received pursuant to this subsec-
4 tion as property tax replacement for property exempt from taxation pursuant to
5 section 63-602EE, Idaho Code, shall be treated as property tax revenues.
6 (4) Any unencumbered balance remaining in the state refund account on
7 June 30 of each and every year in excess of the sum of one million five hun-
8 dred thousand dollars ($1,500,000) shall be transferred to the general account
9 fund and the state controller is hereby authorized and directed on such dates
10 to make such transfers unless the board of examiners, which is hereby autho-
11 rized to do so, changes the date of transfer or sum to be transferred.
12 SECTION 3. An emergency existing therefor, which emergency is hereby
13 declared to exist, this act shall be in full force and effect on and after
14 passage and approval, and retroactively to January 1, 2001.
REVISED REVISED REVISED REVISED
STATEMENT OF PURPOSE
RS11300
Exempt tangible personal property used for agricultural purposes.
FISCAL IMPACT
Reduces the General Account by $12.4 million.
Contact
Name: Rep. Dolores Crow
Rep. Mike Moyle
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 37