2001 Legislation
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HOUSE BILL NO. 387 – Sales tax, food exmpt/grocery credt

HOUSE BILL NO. 387

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Daily Data Tracking History



H0387...............................................by REVENUE AND TAXATION
SALES TAX - FOOD - Amends, repeals and adds to existing law to increase the
"grocery" income tax credit; to provide an exemption from sales and use tax
for food sold for human consumption; and providing effective dates.
                                                                        
03/29    House intro - 1st rdg - to printing
03/29    Rpt prt - to 2nd rdg
    Rls susp - PASSED - 60-1-9
      AYES -- Barraclough, Barrett, Bedke, Bieter, Black, Boe, Bolz,
      Bradford, Callister, Chase, Collins, Cuddy, Deal, Denney, Ellis,
      Ellsworth, Eskridge, Field(13), Field(20), Gagner, Hadley, Hammond,
      Hansen, Harwood, Henbest(Farley), Higgins, Hornbeck, Jaquet, Jones,
      Kellogg, Kendell, Kunz, Langford, Loertscher, Marley, McKague, Meyer,
      Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Raybould,
      Ridinger, Roberts, Robison, Sali, Schaefer, Sellman, Shepherd, Smith,
      Smylie, Stone, Tilman, Trail, Wheeler, Wood, Young(Young), Mr.
      Speaker
      NAYS -- Stevenson
      Absent and excused -- Bell, Bruneel, Campbell, Clark, Crow, Gould,
      Lake, Mader, Montgomery
    Floor Sponsor -- Hansen
    Title apvd - to Senate
03/29    Senate intro - 1st rdg - to Loc Gov

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 387
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CERTAIN CREDITS AND REFUNDS AND SALES AND USE TAX;  AMENDING  SEC-
  3        TION  63-3024A,  IDAHO  CODE,  TO INCREASE INCOME TAX CREDITS, REFUNDS AND
  4        PAYMENTS FROM THE REFUND FUND FOR CERTAIN RESIDENTS AND TO MAKE  TECHNICAL
  5        CORRECTIONS;  REPEALING SECTION 63-3024A, IDAHO CODE; AMENDING CHAPTER 30,
  6        TITLE 63, BY THE ADDITION OF A NEW SECTION 63-3024A, IDAHO CODE,  TO  PRO-
  7        VIDE  FOR  CERTAIN  TAX  CREDITS  AND REFUNDS; REPEALING SECTION 63-3024A,
  8        IDAHO CODE; AMENDING SECTION 63-3029F, IDAHO CODE, TO STRIKE A  CODE  REF-
  9        ERENCE; AMENDING SECTION 63-3619, IDAHO CODE, TO PROVIDE AN EXEMPTION FROM
 10        SALES  TAX FOR CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION AND TO MAKE TECHNI-
 11        CAL CORRECTIONS; AMENDING SECTION  63-3621,  IDAHO  CODE,  TO  PROVIDE  AN
 12        EXEMPTION FROM USE TAX FOR CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION; AMEND-
 13        ING  SECTION  63-3638,  IDAHO CODE, TO PROVIDE FOR AN INCREASE IN THE PER-
 14        CENTAGE OF APPROPRIATED FUNDS DISTRIBUTED TO THE REVENUE  SHARING  ACCOUNT
 15        AND  TO  MAKE TECHNICAL CORRECTIONS; DECLARING AN EMERGENCY, PROVIDING FOR
 16        RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE DATES.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION 1.  That Section 63-3024A, Idaho Code, be, and the same is  hereby
 19    amended to read as follows:
                                                                        
 20        63-3024A.  CREDITS  AND  REFUNDS. (a) Any resident individual not entitled
 21    to the credit allowed in subsection (b)(1), who is required to file by law and
 22    who has filed an Idaho income tax return, shall be allowed  a  credit  against
 23    taxes due under the Idaho income tax act equal to the amount of fifteen forty-
 24    five  dollars  ($145.00)  for each personal exemption for which a deduction is
 25    permitted by section 151(b) and (c) of  the  Internal  Revenue  Code  if  such
 26    deduction  is  claimed  on  the taxpayer's Idaho income tax return, and if the
 27    individual for whom the deduction is claimed is a resident  of  the  state  of
 28    Idaho. If taxes due are less than the total credit allowed, the taxpayer shall
 29    be  paid  a refund equal to the balance of the unused credit. If the credit or
 30    refund is not claimed for the year for which the individual income tax  return
 31    is  filed,  the  right thereafter to claim such credit or refund shall be for-
 32    feited. The state tax commission shall  prescribe  the  method  by  which  the
 33    refund, if any, is to be made to the taxpayer.
 34        (b) (1)  A  resident  individual  who has reached his sixty-fifth birthday
 35        before the end of his taxable year, who is required to file by law and who
 36        has filed an Idaho income tax return, shall be allowed  a  credit  against
 37        taxes  due  under  the  Idaho income tax act equal to the amount of thirty
 38        ninety dollars ($390.00) for each personal exemption representing himself,
 39        a spouse over the age of sixty-five (65) years, or a  dependent  over  the
 40        age  of sixty-five (65) years, but shall be allowed a credit against taxes
 41        due under the Idaho income tax act equal  to  fifteen  forty-five  dollars
 42        ($145.00)  for  each personal exemption representing a spouse or dependent
 43        under the age of sixty-five (65) years. If taxes due  are  less  than  the
                                                                        
                                           2
                                                                        
  1        total  credit  allowed,  the  taxpayer shall be paid a refund equal to the
  2        balance of the unused credit. If the credit or refund is not  claimed  for
  3        the  year  for  which the individual income tax return is filed, the right
  4        thereafter to claim such credit or refund shall be  forfeited.  The  state
  5        tax  commission shall prescribe the method by which the refund, if any, is
  6        to be made to the taxpayer.
  7        (2)  A resident individual who has reached his sixty-fifth birthday and is
  8        not required by law to file  an  Idaho  income  tax  return  and  who  has
  9        received  no  credit or refund under any other subsection of this section,
 10        shall be entitled to a refund of  thirty  ninety  dollars  ($390.00).  Any
 11        refund  shall  be paid to such individual only upon his making application
 12        therefor at such time and in such manner as may be prescribed by the state
 13        tax commission.
 14        (c)  A resident individual of the state of Idaho who is:
 15        (i)   blind, or
 16        (ii)  a disabled American veteran of any war  engaged  in  by  the  United
 17        States,  whose  disability is recognized as a service connected disability
 18        of a degree of ten per cent percent (10%) or more, or who is in receipt of
 19        a pension for nonservice connected disabilities, in accordance  with  laws
 20        and regulations administered by the United States veterans administration,
 21        substantiated  by a statement as to status signed by a responsible officer
 22        of the United States veterans administration, or
 23        (iii) over sixty-two (62) years of age, and has been allowed none, or less
 24        than all, of the credit provided by subsection (a) or  subsection  (b)  of
 25        this  section,  shall  be entitled to a payment from the refund fund in an
 26        amount equal to fifteen forty-five dollars ($145.00), or  the  balance  of
 27        his  unused credit, whichever is less, upon making application therefor at
 28        such time and in such manner as the state tax commission may prescribe.
 29        (d)  Any part-year resident entitled to a credit under this section  shall
 30    receive  a  proportionate credit, in the manner above provided, reflecting the
 31    part of the year in which he was domiciled in this state.
 32        (e)  No credit or refund may be claimed for an exemption which  represents
 33    a person who has himself filed an Idaho income tax return claiming a deduction
 34    for  his  own personal exemption, and in no event shall more than one (1) tax-
 35    payer be allowed a credit or refund for the same exemption, or under more than
 36    one (1) subsection of this section.
 37        (f)  The refunds authorized by this section shall be paid from  the  state
 38    refund  fund  in the same manner as the refunds authorized by section 63-3067,
 39    Idaho Code.
 40        (g)  An application for any refund which is due and payable under the pro-
 41    visions of this section must be filed with the  state  tax  commission  within
 42    three (3) years of:
 43        (i)  the due date, including extensions, of the return required under sec-
 44        tion  63-3030,  Idaho Code, if the applicant is required to file a return,
 45        or
 46        (ii) the 15th day of April of the year following the  year  to  which  the
 47        application relates if the applicant is not required to file a return.
                                                                        
 48        SECTION  2.  That Section 63-3024A, Idaho Code, be, and the same is hereby
 49    repealed.
                                                                        
 50        SECTION 3.  That Chapter 30, Title 63, Idaho Code, be,  and  the  same  is
 51    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 52    ignated as Section 63-3024A, Idaho Code, and to read as follows:
                                                                        
                                           3
                                                                        
  1        63-3024A.  CREDITS AND REFUNDS. (a) Any resident individual  not  entitled
  2    to the credit allowed in subsection (b)(1), who is required to file by law and
  3    who  has  filed  an Idaho income tax return, shall be allowed a credit against
  4    taxes due under the Idaho income tax act equal to the amount  of  seventy-five
  5    dollars  ($75.00) for each personal exemption for which a deduction is permit-
  6    ted by section 151(b) and (c) of the Internal Revenue Code if  such  deduction
  7    is  claimed  on  the taxpayer's Idaho income tax return, and if the individual
  8    for whom the deduction is claimed is a resident of  the  state  of  Idaho.  If
  9    taxes due are less than the total credit allowed, the taxpayer shall be paid a
 10    refund  equal  to the balance of the unused credit. If the credit or refund is
 11    not claimed for the year for which the individual income tax return is  filed,
 12    the  right  thereafter  to claim such credit or refund shall be forfeited. The
 13    state tax commission shall prescribe the method by which the refund,  if  any,
 14    is to be made to the taxpayer.
 15        (b) (1)  A  resident  individual  who has reached his sixty-fifth birthday
 16        before the end of his taxable year, who is required to file by law and who
 17        has filed an Idaho income tax return, shall be allowed  a  credit  against
 18        taxes  due  under the Idaho income tax act equal to the amount of one hun-
 19        dred fifty dollars ($150) for each personal  exemption  representing  him-
 20        self,  a spouse over the age of sixty-five (65) years, or a dependent over
 21        the age of sixty-five (65) years, but shall be allowed  a  credit  against
 22        taxes  due  under  the  Idaho income tax act equal to seventy-five dollars
 23        ($75.00) for each personal exemption representing a  spouse  or  dependent
 24        under  the  age  of  sixty-five (65) years. If taxes due are less than the
 25        total credit allowed, the taxpayer shall be paid a  refund  equal  to  the
 26        balance  of  the unused credit. If the credit or refund is not claimed for
 27        the year for which the individual income tax return is  filed,  the  right
 28        thereafter  to  claim  such credit or refund shall be forfeited. The state
 29        tax commission shall prescribe the method by which the refund, if any,  is
 30        to be made to the taxpayer.
 31        (2)  A resident individual who has reached his sixty-fifth birthday and is
 32        not  required  by  law  to  file  an  Idaho  income tax return and who has
 33        received no credit or refund under any other subsection of  this  section,
 34        shall  be  entitled  to  a refund of one hundred fifty dollars ($150). Any
 35        refund shall be paid to such individual only upon his  making  application
 36        therefor at such time and in such manner as may be prescribed by the state
 37        tax commission.
 38        (c)  A resident individual of the state of Idaho who is:
 39        (i)   blind, or
 40        (ii)  a  disabled  American  veteran  of  any war engaged in by the United
 41        States, whose disability is recognized as a service  connected  disability
 42        of  a  degree of ten percent (10%) or more, or who is in receipt of a pen-
 43        sion for nonservice connected disabilities, in accordance  with  laws  and
 44        regulations  administered  by  the  United States veterans administration,
 45        substantiated by a statement as to status signed by a responsible  officer
 46        of the United States veterans administration, or
 47        (iii) over sixty-two (62) years of age, and has been allowed none, or less
 48        than  all,  of  the credit provided by subsection (a) or subsection (b) of
 49        this section, shall be entitled to a payment from the refund  fund  in  an
 50        amount  equal  to  seventy-five  dollars  ($75.00),  or the balance of his
 51        unused credit, whichever is less, upon making application therefor at such
 52        time and in such manner as the state tax commission may prescribe.
 53        (d)  Any part-year resident entitled to a credit under this section  shall
 54    receive  a  proportionate credit, in the manner above provided, reflecting the
 55    part of the year in which he was domiciled in this state.
                                                                        
                                           4
                                                                        
  1        (e)  No credit or refund may be claimed for an exemption which  represents
  2    a person who has himself filed an Idaho income tax return claiming a deduction
  3    for  his  own personal exemption, and in no event shall more than one (1) tax-
  4    payer be allowed a credit or refund for the same exemption, or under more than
  5    one (1) subsection of this section.
  6        (f)  The refunds authorized by this section shall be paid from  the  state
  7    refund  fund  in the same manner as the refunds authorized by section 63-3067,
  8    Idaho Code.
  9        (g)  An application for any refund which is due and payable under the pro-
 10    visions of this section must be filed with the  state  tax  commission  within
 11    three (3) years of:
 12        (i)  the due date, including extensions, of the return required under sec-
 13        tion  63-3030,  Idaho Code, if the applicant is required to file a return,
 14        or
 15        (ii) the 15th day of April of the year following the  year  to  which  the
 16        application relates if the applicant is not required to file a return.
                                                                        
 17        SECTION  4.  That Section 63-3024A, Idaho Code, be, and the same is hereby
 18    repealed.
                                                                        
 19        SECTION 5.  That Section 63-3029F, Idaho Code, be, and the same is  hereby
 20    amended to read as follows:
                                                                        
 21        63-3029F.  SPECIAL  CREDIT  AVAILABLE  --  NEW EMPLOYEES. (1) Any taxpayer
 22    shall be allowed a credit, in an amount determined  under  subsection  (2)  of
 23    this  section,  against  the  tax  imposed by this chapter, other than the tax
 24    imposed by section 63-3082, Idaho Code, for any taxable year during which  the
 25    taxpayer's  employment of new employees, as defined under section 63-3029E(1),
 26    Idaho Code, increases above the taxpayer's average employment for either:  (a)
 27    the  prior  taxable year, or (b) the average of three (3) prior taxable years,
 28    whichever is higher. No credit shall be allowed under this section unless  the
 29    number of new employees equals or exceeds one (1) person.
 30        (2)  The credit authorized in subsection (1) of this section shall be five
 31    hundred  dollars  ($500)  per new employee, but the total credit allowed shall
 32    not exceed three and one-quarter  percent  (3.25%)  of  net  income  from  the
 33    taxpayer's  corporate, proprietorship, partnership, small business corporation
 34    or limited liability company revenue-producing enterprise in which the employ-
 35    ment occurred. Additionally, the total of this and all other  credits  allowed
 36    under  this  chapter  except  for the credits allowed under sections 63-3024A,
 37    63-3025D and 63-3029, Idaho Code, taken during  any  taxable  year  shall  not
 38    exceed  forty-five  percent (45%) of the tax otherwise imposed on the taxpayer
 39    for the taxable year for which such credit is allowed.
 40        (3)  If the sum of the credit carryovers from the credit allowed  by  sub-
 41    section (2) of this section and the amount of credit for the taxable year from
 42    the  credit  allowed  by  subsection (2) of this section exceed the limitation
 43    imposed by subsection (2) of this section for the current  taxable  year,  the
 44    excess  attributable  to  the  current taxable year's credit shall be a credit
 45    carryover to the three (3) succeeding taxable  years.  The  entire  amount  of
 46    unused  credit  shall  be  carried  forward  to the earliest of the succeeding
 47    years, wherein the oldest available unused credit shall be used first, so long
 48    as the employment level for which the credit was granted is still maintained.
                                                                        
 49        SECTION 6.  That Section 63-3619, Idaho Code, be, and the same  is  hereby
 50    amended to read as follows:
                                                                        
                                           5
                                                                        
  1        63-3619.  IMPOSITION  AND  RATE  OF THE SALES TAX. An excise tax is hereby
  2    imposed upon each sale at retail at the rate of five per cent percent (5%)  of
  3    the sales price of all retail sales subject to taxation under this chapter and
  4    such  amount with the exception of food sold for human consumption which shall
  5    be exempt from sales taxation. The types and kinds of food  products  eligible
  6    for  sales  tax  exemption  shall be the same types and kinds of food products
  7    that are eligible for purchases made with coupons  issued  under  the  federal
  8    food  stamp  act  of 1977 and the food security act of 1985 and do not include
  9    restaurant sales of food. The excise tax as set forth herein shall be computed
 10    monthly on all sales at retail within the preceding month.
 11        (a)  The tax shall apply to, be computed on, and collected for all credit,
 12    instalment installment, conditional or similar sales at the time of  the  sale
 13    or, in the case of rentals, at the time the rental is charged.
 14        (b)  The  tax  hereby  imposed shall be collected by the retailer from the
 15    consumer.
 16        (c)  The state tax commission shall provide schedules  for  collection  of
 17    the tax on sales which involve a fraction of a dollar. The retailer shall cal-
 18    culate the tax upon the entire amount of the purchases of the consumer made at
 19    a  particular  time  and not separately upon each item purchased. The retailer
 20    may retain any amount collected under the bracket system prescribed  which  is
 21    in  excess of the amount of tax for which he is liable to the state during the
 22    period as compensation for the work of collecting the tax.
 23        (d)  It is unlawful for any retailer to advertise or hold out or state  to
 24    the  public  or  to  any customer, directly or indirectly, that the tax or any
 25    part thereof will  be assumed or absorbed by the retailer or that it will  not
 26    be  added to the selling price of the property sold or that if added it or any
 27    part thereof will be refunded. Any person violating any provision of this sec-
 28    tion is guilty of a misdemeanor.
 29        (e)  The tax commission may by rule provide that the amount  collected  by
 30    the  retailer from the customer in reimbursement of the tax be displayed sepa-
 31    rately from the list price, the price advertised on the premises,  the  marked
 32    price, or other price on the sales slip or other proof of sale.
 33        (f)  The  taxes  imposed  by this chapter shall apply to the sales to con-
 34    tractors purchasing for use in the performance of contracts  with  the  United
 35    States.
                                                                        
 36        SECTION  7.  That  Section 63-3621, Idaho Code, be, and the same is hereby
 37    amended to read as follows:
                                                                        
 38        63-3621.  IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise  tax
 39    is  hereby  imposed on the storage, use, or other consumption in this state of
 40    tangible personal property acquired on or after July  1,  1965,  for  storage,
 41    use,  or  other  consumption in this state at the rate of five percent (5%) of
 42    the value of the property, and with the exception of food sold for human  con-
 43    sumption  which shall be exempt from use taxation. The types and kinds of food
 44    products eligible for use tax exemption shall be the same types and  kinds  of
 45    food  products  that are eligible for purchases made with coupons issued under
 46    the federal food stamp act of 1977 and the food security act of  1985  and  do
 47    not  include restaurant sales of food. Aa recent sales price shall be presump-
 48    tive evidence of the value of the property unless  the  property  is  wireless
 49    telecommunications equipment, in which case a recent sales price shall be con-
 50    clusive evidence of the value of the property.
 51        (a)  Every  person  storing, using, or otherwise consuming, in this state,
 52    tangible personal property is liable for the tax. His liability is not  extin-
 53    guished until the tax has been paid to this state except that a receipt from a
                                                                        
                                           6
                                                                        
  1    retailer  maintaining a place of business in this state or engaged in business
  2    in this state given to the purchaser is sufficient to  relieve  the  purchaser
  3    from  further  liability  for  the tax to which the receipt refers. A retailer
  4    shall not be considered to have stored, used or consumed wireless telecommuni-
  5    cations equipment by virtue of giving, selling or otherwise transferring  such
  6    equipment at a discount as an inducement to a consumer to commence or continue
  7    a contract for telecommunications service.
  8        (b)  Every retailer engaged in business in this state, and making sales of
  9    tangible  personal property for the storage, use, or other consumption in this
 10    state, not exempted under section 63-3622, Idaho Code, shall, at the  time  of
 11    making the sales or, if storage, use or other consumption of the tangible per-
 12    sonal property is not then taxable hereunder, at the time the storage, use, or
 13    other consumption becomes taxable, collect the tax from the purchaser and give
 14    to  the  purchaser a receipt therefor in the manner and form prescribed by the
 15    state tax commission.
 16        (c)  The provisions of this section shall not apply when the retailer pays
 17    sales tax on the transaction and collects reimbursement  for  such  sales  tax
 18    from the customer.
 19        (d)  Every  retailer  engaged  in  business in this state or maintaining a
 20    place of business in this state shall register with the state  tax  commission
 21    and give the name and address of all agents operating in this state, the loca-
 22    tion  of all distributions or sales houses or offices or other places of busi-
 23    ness in this state, and such other information as the state tax commission may
 24    require.
 25        (e)  For the purpose of the proper administration of this act and to  pre-
 26    vent  evasion  of the use tax and the duty to collect the use tax, it shall be
 27    presumed that tangible personal property sold by any person  for  delivery  in
 28    this  state  is sold for storage, use, or other consumption in this state. The
 29    burden of proving the sale is tax exempt is upon the person who makes the sale
 30    unless he obtains from the purchaser a resale certificate to the  effect  that
 31    the  property  is  purchased  for  resale or rental. It shall be presumed that
 32    sales made to a person who has completed a resale certificate for the seller's
 33    records are not taxable and the seller need not collect  sales  or  use  taxes
 34    unless the tangible personal property purchased is taxable to the purchaser as
 35    a matter of law in the particular instance claimed on the resale certificate.
 36        A  seller  may  accept  a resale certificate from a purchaser prior to the
 37    time of sale, at the time of sale, or at any reasonable time  after  the  sale
 38    when necessary to establish the privilege of the exemption. The resale certif-
 39    icate  relieves  the person selling the property from the burden of proof only
 40    if taken from a person who is engaged in the business of  selling  or  renting
 41    tangible  personal  property  and who holds the permit provided for by section
 42    63-3620, Idaho Code, or who is a retailer not  engaged  in  business  in  this
 43    state,  and  who,  at  the  time of purchasing the tangible personal property,
 44    intends to sell or rent it in the regular course of business or is  unable  to
 45    ascertain at the time of purchase whether the property will be sold or will be
 46    used for some other purpose. Other than as provided elsewhere in this section,
 47    when  a resale certificate, properly executed, is presented to the seller, the
 48    seller has no duty or obligation to collect sales or use taxes  in  regard  to
 49    any  sales transaction so documented regardless of whether the purchaser prop-
 50    erly or improperly claimed an exemption. A seller so relieved of  the  obliga-
 51    tion  to  collect  tax  is also relieved of any liability to the purchaser for
 52    failure to collect tax or for making any report or disclosure  of  information
 53    required or permitted under this chapter.
 54        The  resale  certificate shall bear the name and address of the purchaser,
 55    shall be signed by the purchaser or his agent, shall indicate  the  number  of
                                                                        
                                           7
                                                                        
  1    the  permit  issued to the purchaser, or that the purchaser is an out-of-state
  2    retailer, and shall indicate the general character of  the  tangible  personal
  3    property sold by the purchaser in the regular course of business. The certifi-
  4    cate  shall be substantially in such form as the state tax commission may pre-
  5    scribe.
  6        (f)  If a purchaser who gives a resale certificate makes  any  storage  or
  7    use of the property other than retention, demonstration or display while hold-
  8    ing  it for sale in the regular course of business, the storage or use is tax-
  9    able as of the time the property is first so stored or used.
 10        (g)  Any person violating any provision of this section  is  guilty  of  a
 11    misdemeanor  and  punishable  by  a  fine not in excess of one hundred dollars
 12    ($100), and each  violation shall constitute a separate offense.
 13        (h)  It shall be presumed  that  tangible  personal  property  shipped  or
 14    brought  to  this  state  by  the purchaser was purchased from a retailer, for
 15    storage, use or other consumption in this state.
 16        (i)  It shall be presumed that tangible personal property  delivered  out-
 17    side  this state to a purchaser known by the retailer to be a resident of this
 18    state was purchased from a retailer for storage, use, or other consumption  in
 19    this  state.  This presumption may be controverted by evidence satisfactory to
 20    the state tax commission that the property was not purchased for storage, use,
 21    or other consumption in this state.
 22        (j)  When the tangible personal property subject to use tax has been  sub-
 23    jected  to  a  general  retail sales or use tax by another state of the United
 24    States in an amount equal to or greater than the amount of the Idaho tax,  and
 25    evidence  can  be  given  of such payment, the property will not be subject to
 26    Idaho use tax. If the amount paid the other state was less, the property  will
 27    be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
 28    the  other state. For the purposes of this subsection, a registration certifi-
 29    cate or title issued by another state or subdivision thereof for a vehicle  or
 30    trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
 31    cient evidence of payment of a general retail sales or use tax.
 32        (k)  The  use  tax herein imposed shall not apply to the use by a nonresi-
 33    dent of this state of a motor vehicle which is registered  or  licensed  under
 34    the laws of the state of his residence and is not used in this state more than
 35    a  cumulative  period  of  time  totaling  ninety (90) days in any consecutive
 36    twelve (12) months, and which is not required to  be  registered  or  licensed
 37    under the laws of this state.
 38        (l)  The  use  tax  herein imposed shall not apply to the use of household
 39    goods and personal effects by a resident of this state, if such articles  were
 40    acquired  by  such  person in another state while a resident of that state and
 41    primarily for use outside this state and if such use was actual  and  substan-
 42    tial,  but  if an article was acquired less than three (3) months prior to the
 43    time he entered this state, it will be presumed that the article was  acquired
 44    for  use  in this state and that its use outside this state was not actual and
 45    substantial. For purposes of this subsection, "resident" shall be  as  defined
 46    in section 63-3013 or 63-3013A, Idaho Code.
 47        (m)  The  use  tax  herein  imposed shall not apply to the storage, use or
 48    other consumption of tangible personal property which is or will  be  incorpo-
 49    rated  into  real  property  and  which has been donated to and has become the
 50    property of:
 51        (1)  A nonprofit organization as defined in section 63-3622O, Idaho  Code;
 52        or
 53        (2)  The state of Idaho; or
 54        (3)  Any political subdivision of the state.
 55    This  exemption applies whether the tangible personal property is incorporated
                                                                        
                                           8
                                                                        
  1    in real property by the donee, a contractor or subcontractor of the donee,  or
  2    any other person.
                                                                        
  3        SECTION  8.  That  Section 63-3638, Idaho Code, be, and the same is hereby
  4    amended to read as follows:
                                                                        
  5        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
  6    ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
  7    be distributed by the tax commission as follows:
  8        (1)  An amount of money shall be distributed to the state  refund  account
  9    sufficient  to  pay  current  refund claims. All refunds authorized under this
 10    chapter by the commission shall be paid through the state refund account,  and
 11    those moneys are continuously appropriated.
 12        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 13    ated and shall be distributed to the permanent building fund, provided by sec-
 14    tion 57-1108, Idaho Code.
 15        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 16    continuously appropriated and shall be distributed to the water pollution con-
 17    trol account established by section 39-3605, Idaho Code.
 18        (4)  An  amount  equal to the sum required to be certified by the chairman
 19    of the Idaho housing and finance association to the state tax commission  pur-
 20    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
 21    ated and shall be paid to any capital reserve fund, established by  the  Idaho
 22    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
 23    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
 24    of  the Idaho housing and finance association shall be repaid for distribution
 25    under the provisions of this section, subject to  the  provisions  of  section
 26    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
 27    possible, from any moneys available therefor and  in  excess  of  the  amounts
 28    which the association determines will keep it self-supporting.
 29        (5)  An  amount  equal  to  the  sum required by the provisions of section
 30    63-709, Idaho Code, is continuously appropriated and shall be paid as provided
 31    by section 63-709, Idaho Code.
 32        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 33    Code. of this section
 34        (7)  One  dollar  ($1.00)  on each application for certificate of title or
 35    initial application for registration of  a  motor  vehicle,  snowmobile,  all-
 36    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 37    transportation  department  excepting those applications in which any sales or
 38    use taxes due have been previously collected by a retailer, shall be a fee for
 39    the services of the assessor of the county or the Idaho transportation depart-
 40    ment in collecting such taxes, and shall be paid into the current expense fund
 41    of the county or state highway account established in  section  40-702,  Idaho
 42    Code.
 43        (8)  Thirteen  Sixteen  and three-quarters two-tenths percent (13.7516.2%)
 44    is continuously appropriated and shall be distributed to the  revenue  sharing
 45    account  which is created in the state treasury, and the moneys in the revenue
 46    sharing account will be paid by the tax commission as follows:
 47        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 48        ious cities as follows:
 49             (i)   Fifty percent (50%) of such amount shall be paid to the various
 50             cities, and each city shall be entitled to an amount in  the  propor-
 51             tion  that the population of that city bears to the population of all
 52             cities within the state; and
 53             (ii)  Fifty percent (50%) of such amount shall be paid to the various
                                                                        
                                           9
                                                                        
  1             cities, and each city shall be entitled to an amount in  the  propor-
  2             tion  that  the preceding year's market value for assessment purposes
  3             for that city bears to the preceding year's market value for  assess-
  4             ment purposes for all cities within the state.
  5        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
  6        ious counties as follows:
  7             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
  8             shall be distributed one forty-fourth (1/44) to each of  the  various
  9             counties; and
 10             (ii)  The  balance  of such amount shall be paid to the various coun-
 11             ties, and each county shall be entitled to an amount in  the  propor-
 12             tion  that  the  population of that county bears to the population of
 13             the state;
 14        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
 15        ated in this subsection (8) shall be paid to the several counties for dis-
 16        tribution to the cities and counties as follows:
 17             (i)   Each  city and county which received a payment under the provi-
 18             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 19             calendar year 1999, shall be entitled to a like  amount  during  suc-
 20             ceeding calendar quarters.
 21             (ii)  If  the  dollar amount of money available under this subsection
 22             (8)(c) in any quarter does not equal the amount paid  in  the  fourth
 23             quarter of calendar year 1999, each city's and county's payment shall
 24             be reduced proportionately.
 25             (iii) If  the  dollar amount of money available under this subsection
 26             (8)(c) in any quarter exceeds the amount paid in the  fourth  quarter
 27             of  calendar  year  1999, each city and county shall be entitled to a
 28             proportionately increased payment, but such increase shall not exceed
 29             one hundred five percent (105%) of the  total  payment  made  in  the
 30             fourth quarter of calendar year 1999.
 31             (iv)  If  the  dollar amount of money available under this subsection
 32             (8)(c) in any quarter exceeds one hundred five percent (105%) of  the
 33             total  payment  made in the fourth quarter of calendar year 1999, any
 34             amount over and above such one hundred five percent (105%)  shall  be
 35             paid fifty percent (50%) to the various cities in the proportion that
 36             the  population  of  the  city  bears to the population of all cities
 37             within the state, and fifty percent (50%) to the various counties  in
 38             the  proportion  that the population of a county bears to the popula-
 39             tion of the state; and
 40        (d)  Seven and seven-tenths percent (7.7%) of the amount  appropriated  in
 41        this subsection (8) shall be paid to the several counties for distribution
 42        to special purpose taxing districts as follows:
 43             (i)   Each  such  district  which received a payment under the provi-
 44             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 45             calendar year 1999, shall be entitled to a like  amount  during  suc-
 46             ceeding calendar quarters.
 47             (ii)  If  the  dollar amount of money available under this subsection
 48             (8)(d)  in any quarter exceeds the amount distributed under paragraph
 49             (i) of this subsection (8)(d), each special purpose  taxing  district
 50             shall  be  entitled  to a share of the excess based on the proportion
 51             each such district's current property tax budget bears to the sum  of
 52             the  current property tax budgets of all such districts in the state.
 53             The state tax commission shall calculate  district  current  property
 54             tax budgets to include any unrecovered foregone amounts as determined
 55             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
                                                                        
                                           10
                                                                        
  1             district  is situated in more than one (1) county, the tax commission
  2             shall determine the portion attributable to the special purpose  tax-
  3             ing district from each county in which it is situated.
  4             (iii) If  special  purpose  taxing  districts  are  consolidated, the
  5             resulting district is entitled to a base amount equal to the  sum  of
  6             the  base amounts which were received in the last calendar quarter by
  7             each district prior to the consolidation.
  8             (iv)  If  a  special  purpose  taxing  district   is   dissolved   or
  9             disincorporated, the state tax commission shall continuously distrib-
 10             ute  to the board of county commissioners an amount equal to the last
 11             quarter's distribution prior to dissolution or disincorporation.  The
 12             board  of  county commissioners shall determine any redistribution of
 13             moneys so received.
 14             (v)   Taxing districts formed after January 1, 2001, are not entitled
 15             to a payment under the provisions of this subsection (8)(d).
 16             (vi)  For purposes of this subsection (8)(d), a special purpose  tax-
 17             ing  district is any taxing district which is not a city, a county or
 18             a school district.
 19        (9)  Any moneys remaining over and  above  those  necessary  to  meet  and
 20    reserve for payments under other subsections of this section shall be distrib-
 21    uted to the general account fund.
                                                                        
 22        SECTION  9.  An  emergency  existing  therefor,  which emergency is hereby
 23    declared to exist, Section 1 of this act shall be in full force and effect  on
 24    and after passage and approval, and retroactively to January 1, 2001; Sections
 25    2  and 3 of this act shall be in full force and effect on and after January 1,
 26    2002; Sections 4 and 5 of this act shall be in full force and  effect  on  and
 27    after  January  1,  2003; and Sections 6, 7 and 8 of this act shall be in full
 28    force and effect on and after July 1, 2003.

Statement of Purpose / Fiscal Impact


		STATEMENT OF PURPOSE

                      RS 11256

	To increase the grocery tax credit to $45.00 for the 
calendar year 2001 and then increase the grocery tax credit to 
$75.00 for the calendar year 2002 and then repeal sales tax on 
food beginning July 1, 2003. The increased grocery tax credit 
would also be repealed effective January 1, 2003. The definition 
for "food" would be the same as for food stamps.


                     FISCAL IMPACT

	Increasing the grocery tax credit to $45.00 would have 
projected fiscal impact of $37.2 Million to the General Fund for 
fiscal year 2002. Increasing the grocery tax credit to $75.00 
would have an additional projected fiscal impact of $37.9 Million 
to the General Fund for fiscal year 2003.

	Repealing sales tax on "food" as of July 1, 2003 would 
have a General Fund impact of $129.4 Million for fiscal year 2004 
which would be offset by the $94.7 Million gained from repealing 
the increased grocery tax credit. This would result in a net 
projected fiscal impact of $34.7 Million to the General Fund for 
fiscal year 2004.



Contact
Name:	Rep. Bill Sali, Rep. George Eskridge, Rep. Julie
Ellesworth, Rep. Randy Hansen, Rep. Monte Pearce, Rep. Ken
Roberts, Rep. Mike Moyle, Rep. Cameron Wheeler, Rep. JoAn Wood
REP. Roper Chase	Phone 332-1000



STATEMENT OF PURPOSE/FISCAL NOTE                      H387