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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
|||| 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
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