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H0085...............................................by ROBISON AND SHEPHERD
SALES TAX - Amends existing law to delete the grocery tax credit on income
tax returns for certain residents; to provide an exemption from sales and
use tax for certain food sold for human consumption; to provide an increase
in the percentage of appropriated funds distributed to the Revenue Sharing
Account from the Sales Tax Account; and to provide, beginning July 1, 2002,
a three percent sales and use tax on food and an increase in the percentage
of appropriated funds distributed to the Revenue Sharing Account from sales
tax moneys.
01/23 House intro - 1st rdg - to printing
01/24 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 85
BY ROBISON AND SHEPHERD 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 ELIMINATE INCOME TAX CREDITS, REFUNDS AND
4 PAYMENTS FROM THE REFUND FUND FOR CERTAIN RESIDENTS AND TO MAKE TECHNICAL
5 CORRECTIONS; AMENDING SECTION 63-3619, IDAHO CODE, TO PROVIDE AN EXEMPTION
6 FROM SALES TAX FOR CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION AND TO MAKE A
7 TECHNICAL CORRECTION; AMENDING SECTION 63-3621, IDAHO CODE, TO PROVIDE AN
8 EXEMPTION FROM USE TAX FOR CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION; AMEND-
9 ING SECTION 63-3638, IDAHO CODE, TO PROVIDE FOR AN INCREASE IN THE PER-
10 CENTAGE OF APPROPRIATED FUNDS DISTRIBUTED TO THE REVENUE SHARING ACCOUNT
11 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 63-3619, IDAHO CODE,
12 AS AMENDED IN SECTION 2 OF THIS ACT, TO IMPOSE A THREE PERCENT SALES TAX
13 ON CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION; AMENDING SECTION 63-3621,
14 IDAHO CODE, AS AMENDED IN SECTION 3 OF THIS ACT, TO IMPOSE A THREE PERCENT
15 USE TAX ON CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION; AMENDING SECTION
16 63-3638, IDAHO CODE, AS AMENDED IN SECTION 4 OF THIS ACT, TO DECREASE THE
17 PERCENTAGE OF APPROPRIATED FUNDS DISTRIBUTED TO THE REVENUE SHARING
18 ACCOUNT; DECLARING AN EMERGENCY, PROVIDING FOR RETROACTIVE APPLICATION AND
19 PROVIDING EFFECTIVE DATES.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Section 63-3024A, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 63-3024A. CREDITS AND REFUNDS. (a) Any resident individual not entitled
24 to the credit allowed in subsection (b)(1), who is required to file by law and
25 who has filed an Idaho income tax return, shall be allowed a credit against
26 taxes due under the Idaho income tax act equal to the amount of fifteen dol-
27 lars ($15.00) for each personal exemption for which a deduction is permitted
28 by section 151(b) and (c) of the Internal Revenue Code if such deduction is
29 claimed on the taxpayer's Idaho income tax return, and if the individual for
30 whom the deduction is claimed is a resident of the state of Idaho. If taxes
31 due are less than the total credit allowed, the taxpayer shall be paid a
32 refund equal to the balance of the unused credit. If the credit or refund is
33 not claimed for the year for which the individual income tax return is filed,
34 the right thereafter to claim such credit or refund shall be forfeited. The
35 state tax commission shall prescribe the method by which the refund, if any,
36 is to be made to the taxpayer.
37 (b) (1) A resident individual who has reached his sixty-fifth birthday
38 before the end of his taxable year, who is required to file by law and who
39 has filed an Idaho income tax return, shall be allowed a credit against
40 taxes due under the Idaho income tax act equal to the amount of thirty
41 dollars ($30.00) for each personal exemption representing himself, a
42 spouse over the age of sixty-five (65) years, or a dependent over the age
43 of sixty-five (65) years, but shall be allowed a credit against taxes due
2
1 under the Idaho income tax act equal to fifteen dollars ($15.00) for each
2 personal exemption representing a spouse or dependent under the age of
3 sixty-five (65). If taxes due are less than the total credit allowed, the
4 taxpayer shall be paid a refund equal to the balance of the unused credit.
5 If the credit or refund is not claimed for the year for which the individ-
6 ual income tax return is filed, the right thereafter to claim such credit
7 or refund shall be forfeited. The state tax commission shall prescribe the
8 method by which the refund, if any, is to be made to the taxpayer.
9 (2) A resident individual who has reached his sixty-fifth birthday and is
10 not required by law to file an Idaho income tax return and who has
11 received no credit or refund under any other subsection of this section,
12 shall be entitled to a refund of thirty dollars ($30.00). Any refund shall
13 be paid to such individual only upon his making application therefor at
14 such time and in such manner as may be prescribed by the state tax commis-
15 sion.
16 (cb) A resident individual of the state of Idaho who is:
17 (i) blind, or
18 (ii) a disabled American veteran of any war engaged in by the United
19 States, whose disability is recognized as a service connected disability
20 of a degree of ten per cent percent (10%) or more, or who is in receipt of
21 a pension for nonservice connected disabilities, in accordance with laws
22 and regulations administered by the United States veterans administration,
23 substantiated by a statement as to status signed by a responsible officer
24 of the United States veterans administration, or
25 (iii) over sixty-two (62) years of age, and has been allowed none, or less
26 than all, of the credit provided by subsection (a) or subsection (b) of
27 this section, shall be entitled to a payment from the refund fund in an
28 amount equal to fifteen dollars ($15.00), or the balance of his unused
29 credit, whichever is less, upon making application therefor at such time
30 and in such manner as the state tax commission may prescribe.
31 (dc) Any part-year resident entitled to a credit under this section shall
32 receive a proportionate credit, in the manner above provided, reflecting the
33 part of the year in which he was domiciled in this state.
34 (ed) No credit or refund may be claimed for an exemption which represents
35 a person who has himself filed an Idaho income tax return claiming a deduction
36 for his own personal exemption, and in no event shall more than one (1) tax-
37 payer be allowed a credit or refund for the same exemption, or under more than
38 one (1) subsection of this section.
39 (fe) The refunds authorized by this section shall be paid from the state
40 refund fund in the same manner as the refunds authorized by section 63-3067,
41 Idaho Code.
42 (gf) An application for any refund which is due and payable under the
43 provisions of this section must be filed with the state tax commission within
44 three (3) years of:
45 (i) the due date, including extensions, of the return required under sec-
46 tion 63-3030, Idaho Code, if the applicant is required to file a return,
47 or
48 (ii) the 15th day of April of the year following the year to which the
49 application relates if the applicant is not required to file a return.
50 SECTION 2. That Section 63-3619, Idaho Code, be, and the same is hereby
51 amended to read as follows:
52 63-3619. IMPOSITION AND RATE OF THE SALES TAX. An excise tax is hereby
53 imposed upon each sale at retail at the rate of five per cent percent (5%) of
3
1 the sales price of all retail sales subject to taxation under this chapter and
2 such amount with the exception of food sold for human consumption which shall
3 be exempt from sales taxation. The types and kinds of food products eligible
4 for sales tax exemption shall be the same types and kinds of food products
5 that are eligible for purchases made with coupons issued under the federal
6 food stamp act of 1977 and the food security act of 1985 and do not include
7 restaurant sales of food. The excise tax as set forth herein shall be computed
8 monthly on all sales at retail within the preceding month.
9 (a) The tax shall apply to, be computed on, and collected for all credit,
10 instalment installment, conditional or similar sales at the time of the sale
11 or, in the case of rentals, at the time the rental is charged.
12 (b) The tax hereby imposed shall be collected by the retailer from the
13 consumer.
14 (c) The state tax commission shall provide schedules for collection of
15 the tax on sales which involve a fraction of a dollar. The retailer shall cal-
16 culate the tax upon the entire amount of the purchases of the consumer made at
17 a particular time and not separately upon each item purchased. The retailer
18 may retain any amount collected under the bracket system prescribed which is
19 in excess of the amount of tax for which he is liable to the state during the
20 period as compensation for the work of collecting the tax.
21 (d) It is unlawful for any retailer to advertise or hold out or state to
22 the public or to any customer, directly or indirectly, that the tax or any
23 part thereof will be assumed or absorbed by the retailer or that it will not
24 be added to the selling price of the property sold or that if added it or any
25 part thereof will be refunded. Any person violating any provision of this sec-
26 tion is guilty of a misdemeanor.
27 (e) The tax commission may by rule provide that the amount collected by
28 the retailer from the customer in reimbursement of the tax be displayed sepa-
29 rately from the list price, the price advertised on the premises, the marked
30 price, or other price on the sales slip or other proof of sale.
31 (f) The taxes imposed by this chapter shall apply to the sales to con-
32 tractors purchasing for use in the performance of contracts with the United
33 States.
34 SECTION 3. That Section 63-3621, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
37 is hereby imposed on the storage, use, or other consumption in this state of
38 tangible personal property acquired on or after July 1, 1965, for storage,
39 use, or other consumption in this state at the rate of five percent (5%) of
40 the value of the property, and with the exception of food sold for human con-
41 sumption which shall be exempt from use taxation. The types and kinds of food
42 products eligible for use tax exemption shall be the same types and kinds of
43 food products that are eligible for purchases made with coupons issued under
44 the federal food stamp act of 1977 and the food security act of 1985 and do
45 not include restaurant sales of food. Aa recent sales price shall be presump-
46 tive evidence of the value of the property unless the property is wireless
47 telecommunications equipment, in which case a recent sales price shall be con-
48 clusive evidence of the value of the property.
49 (a) Every person storing, using, or otherwise consuming, in this state,
50 tangible personal property is liable for the tax. His liability is not extin-
51 guished until the tax has been paid to this state except that a receipt from a
52 retailer maintaining a place of business in this state or engaged in business
53 in this state given to the purchaser is sufficient to relieve the purchaser
4
1 from further liability for the tax to which the receipt refers. A retailer
2 shall not be considered to have stored, used or consumed wireless telecommuni-
3 cations equipment by virtue of giving, selling or otherwise transferring such
4 equipment at a discount as an inducement to a consumer to commence or con-
5 tinue a contract for telecommunications service.
6 (b) Every retailer engaged in business in this state, and making sales of
7 tangible personal property for the storage, use, or other consumption in this
8 state, not exempted under section 63-3622, Idaho Code, shall, at the time of
9 making the sales or, if storage, use, or other consumption of the tangible
10 personal property is not then taxable hereunder, at the time the storage, use
11 or other consumption becomes taxable, collect the tax from the purchaser and
12 give to the purchaser a receipt therefor in the manner and form prescribed by
13 the state tax commission.
14 (c) The provisions of this section shall not apply when the retailer pays
15 sales tax on the transaction and collects reimbursement for such sales tax
16 from the customer.
17 (d) Every retailer engaged in business in this state or maintaining a
18 place of business in this state shall register with the state tax commission
19 and give the name and address of all agents operating in this state, the loca-
20 tion of all distributions or sales houses or offices or other places of busi-
21 ness in this state, and such other information as the state tax commission may
22 require.
23 (e) For the purpose of the proper administration of this act and to pre-
24 vent evasion of the use tax and the duty to collect the use tax, it shall be
25 presumed that tangible personal property sold by any person for delivery in
26 this state is sold for storage, use, or other consumption in this state. The
27 burden of proving the sale is tax exempt is upon the person who makes the sale
28 unless he obtains from the purchaser a resale certificate to the effect that
29 the property is purchased for resale or rental. It shall be presumed that
30 sales made to a person who has completed a resale certificate for the seller's
31 records are not taxable and the seller need not collect sales or use taxes
32 unless the tangible personal property purchased is taxable to the purchaser as
33 a matter of law in the particular instance claimed on the resale certificate.
34 A seller may accept a resale certificate from a purchaser prior to the
35 time of sale, at the time of sale, or at any reasonable time after the sale
36 when necessary to establish the privilege of the exemption. The resale certif-
37 icate relieves the person selling the property from the burden of proof only
38 if taken from a person who is engaged in the business of selling or renting
39 tangible personal property and who holds the permit provided for by section
40 63-3620, Idaho Code, or who is a retailer not engaged in business in this
41 state, and who, at the time of purchasing the tangible personal property,
42 intends to sell or rent it in the regular course of business or is unable to
43 ascertain at the time of purchase whether the property will be sold or will be
44 used for some other purpose. Other than as provided elsewhere in this section,
45 when a resale certificate, properly executed, is presented to the seller, the
46 seller has no duty or obligation to collect sales or use taxes in regard to
47 any sales transaction so documented regardless of whether the purchaser prop-
48 erly or improperly claimed an exemption. A seller so relieved of the obliga-
49 tion to collect tax is also relieved of any liability to the purchaser for
50 failure to collect tax or for making any report or disclosure of information
51 required or permitted under this chapter.
52 The resale certificate shall bear the name and address of the purchaser,
53 shall be signed by the purchaser or his agent, shall indicate the number of
54 the permit issued to the purchaser, or that the purchaser is an out-of-state
55 retailer, and shall indicate the general character of the tangible personal
5
1 property sold by the purchaser in the regular course of business. The certifi-
2 cate shall be substantially in such form as the state tax commission may pre-
3 scribe.
4 (f) If a purchaser who gives a resale certificate makes any storage or
5 use of the property other than retention, demonstration or display while hold-
6 ing it for sale in the regular course of business, the storage or use is tax-
7 able as of the time the property is first so stored or used.
8 (g) Any person violating any provision of this section is guilty of a
9 misdemeanor and punishable by a fine not in excess of one hundred dollars
10 ($100), and each violation shall constitute a separate offense.
11 (h) It shall be presumed that tangible personal property shipped or
12 brought to this state by the purchaser was purchased from a retailer, for
13 storage, use or other consumption in this state.
14 (i) It shall be presumed that tangible personal property delivered out-
15 side this state to a purchaser known by the retailer to be a resident of this
16 state was purchased from a retailer for storage, use, or other consumption in
17 this state. This presumption may be controverted by evidence satisfactory to
18 the state tax commission that the property was not purchased for storage, use,
19 or other consumption in this state.
20 (j) When the tangible personal property subject to use tax has been sub-
21 jected to a general retail sales or use tax by another state of the United
22 States in an amount equal to or greater than the amount of the Idaho tax, and
23 evidence can be given of such payment, the property will not be subject to
24 Idaho use tax. If the amount paid the other state was less, the property will
25 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
26 the other state. For the purposes of this subsection, a registration certifi-
27 cate or title issued by another state or subdivision thereof for a vehicle or
28 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
29 cient evidence of payment of a general retail sales or use tax.
30 (k) The use tax herein imposed shall not apply to the use by a nonresi-
31 dent of this state of a motor vehicle which is registered or licensed under
32 the laws of the state of his residence and is not used in this state more than
33 a cumulative period of time totaling ninety (90) days in any consecutive
34 twelve (12) months, and which is not required to be registered or licensed
35 under the laws of this state.
36 (l) The use tax herein imposed shall not apply to the use of household
37 goods and personal effects by a resident of this state, if such articles were
38 acquired by such person in another state while a resident of that state and
39 primarily for use outside this state and if such use was actual and substan-
40 tial, but if an article was acquired less than three (3) months prior to the
41 time he entered this state, it will be presumed that the article was acquired
42 for use in this state and that its use outside this state was not actual and
43 substantial. For purposes of this subsection, "resident" shall be as defined
44 in section 63-3013 or 63-3013A, Idaho Code.
45 (m) The use tax herein imposed shall not apply to the storage, use or
46 other consumption of tangible personal property which is or will be incorpo-
47 rated into real property and which has been donated to and has become the
48 property of:
49 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code;
50 or
51 (2) The state of Idaho; or
52 (3) Any political subdivision of the state.
53 This exemption applies whether the tangible personal property is incorporated
54 in real property by the donee, a contractor or subcontractor of the donee, or
55 any other person.
6
1 SECTION 4. That Section 63-3638, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
4 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
5 be distributed by the tax commission as follows:
6 (1) An amount of money shall be distributed to the state refund account
7 sufficient to pay current refund claims. All refunds authorized under this
8 chapter by the commission shall be paid through the state refund account, and
9 those moneys are continuously appropriated.
10 (2) Five million dollars ($5,000,000) per year is continuously appropri-
11 ated and shall be distributed to the permanent building fund, provided by sec-
12 tion 57-1108, Idaho Code.
13 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
14 continuously appropriated and shall be distributed to the water pollution con-
15 trol account established by section 39-3605, Idaho Code.
16 (4) An amount equal to the sum required to be certified by the chairman
17 of the Idaho housing and finance association to the state tax commission pur-
18 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
19 ated and shall be paid to any capital reserve fund, established by the Idaho
20 housing and finance association pursuant to section 67-6211, Idaho Code. Such
21 amounts, if any, as may be appropriated hereunder to the capital reserve fund
22 of the Idaho housing and finance association shall be repaid for distribution
23 under the provisions of this section, subject to the provisions of section
24 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
25 possible, from any moneys available therefor and in excess of the amounts
26 which the association determines will keep it self-supporting.
27 (5) An amount equal to the sum required by the provisions of section
28 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
29 by section 63-709, Idaho Code.
30 (6) An amount required by the provisions of chapter 53, title 33, Idaho
31 Code. of this section
32 (7) One dollar ($1.00) on each application for certificate of title or
33 initial application for registration of a motor vehicle, snowmobile, all-
34 terrain vehicle or other vehicle processed by the county assessor or the Idaho
35 transportation department excepting those applications in which any sales or
36 use taxes due have been previously collected by a retailer, shall be a fee for
37 the services of the assessor of the county or the Idaho transportation depart-
38 ment in collecting such taxes, and shall be paid into the current expense fund
39 of the county or state highway account established in section 40-702, Idaho
40 Code.
41 (8) Thirteen Sixteen and three-quarters two-tenths percent (13.7516.2%)
42 is continuously appropriated and shall be distributed to the revenue sharing
43 account which is created in the state treasury, and the moneys in the revenue
44 sharing account will be paid by the tax commission as follows:
45 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
46 ious cities as follows:
47 (i) Fifty percent (50%) of such amount shall be paid to the various
48 cities, and each city shall be entitled to an amount in the propor-
49 tion that the population of that city bears to the population of all
50 cities within the state; and
51 (ii) Fifty percent (50%) of such amount shall be paid to the various
52 cities, and each city shall be entitled to an amount in the propor-
53 tion that the preceding year's market value for assessment purposes
54 for that city bears to the preceding year's market value for assess-
7
1 ment purposes for all cities within the state.
2 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
3 ious counties as follows:
4 (i) One million three hundred twenty thousand dollars ($1,320,000)
5 shall be distributed one forty-fourth (1/44) to each of the various
6 counties; and
7 (ii) The balance of such amount shall be paid to the various coun-
8 ties, and each county shall be entitled to an amount in the propor-
9 tion that the population of that county bears to the population of
10 the state;
11 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
12 ated in this subsection (8) shall be paid to the several counties for dis-
13 tribution to the cities and counties as follows:
14 (i) Each city and county which received a payment under the provi-
15 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
16 calendar year 1999, shall be entitled to a like amount during suc-
17 ceeding calendar quarters.
18 (ii) If the dollar amount of money available under this subsection
19 (8)(c) in any quarter does not equal the amount paid in the fourth
20 quarter of calendar year 1999, each city's and county's payment shall
21 be reduced proportionately.
22 (iii) If the dollar amount of money available under this subsection
23 (8)(c) in any quarter exceeds the amount paid in the fourth quarter
24 of calendar year 1999, each city and county shall be entitled to a
25 proportionately increased payment, but such increase shall not exceed
26 one hundred five percent (105%) of the total payment made in the
27 fourth quarter of calendar year 1999.
28 (iv) If the dollar amount of money available under this subsection
29 (8)(c) in any quarter exceeds one hundred five percent (105%) of the
30 total payment made in the fourth quarter of calendar year 1999, any
31 amount over and above such one hundred five percent (105%) shall be
32 paid fifty percent (50%) to the various cities in the proportion that
33 the population of the city bears to the population of all cities
34 within the state, and fifty percent (50%) to the various counties in
35 the proportion that the population of a county bears to the popula-
36 tion of the state; and
37 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
38 this subsection (8) shall be paid to the several counties for distribution
39 to special purpose taxing districts as follows:
40 (i) Each such district which received a payment under the provi-
41 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
42 calendar year 1999, shall be entitled to a like amount during suc-
43 ceeding calendar quarters.
44 (ii) If the dollar amount of money available under this subsection
45 (8)(d) in any quarter exceeds the amount distributed under paragraph
46 (i) of this subsection (8)(d), each special purpose taxing district
47 shall be entitled to a share of the excess based on the proportion
48 each such district's current property tax budget bears to the sum of
49 the current property tax budgets of all such districts in the state.
50 The state tax commission shall calculate district current property
51 tax budgets to include any unrecovered foregone amounts as determined
52 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
53 district is situated in more than one (1) county, the tax commission
54 shall determine the portion attributable to the special purpose tax-
55 ing district from each county in which it is situated.
8
1 (iii) If special purpose taxing districts are consolidated, the
2 resulting district is entitled to a base amount equal to the sum of
3 the base amounts which were received in the last calendar quarter by
4 each district prior to the consolidation.
5 (iv) If a special purpose taxing district is dissolved or
6 disincorporated, the state tax commission shall continuously distrib-
7 ute to the board of county commissioners an amount equal to the last
8 quarter's distribution prior to dissolution or disincorporation. The
9 board of county commissioners shall determine any redistribution of
10 moneys so received.
11 (v) Taxing districts formed after January 1, 2001, are not entitled
12 to a payment under the provisions of this subsection (8)(d).
13 (vi) For purposes of this subsection (8)(d), a special purpose tax-
14 ing district is any taxing district which is not a city, a county or
15 a school district.
16 (9) Any moneys remaining over and above those necessary to meet and
17 reserve for payments under other subsections of this section shall be distrib-
18 uted to the general account fund.
19 SECTION 5. That Section 63-3619, Idaho Code, as amended in Section 2 of
20 this Act, be, and the same is hereby amended to read as follows:
21 63-3619. IMPOSITION AND RATE OF THE SALES TAX. An excise tax is hereby
22 imposed upon each sale at retail at the rate of five percent (5%) of the sales
23 price of all retail sales subject to taxation under this chapter with the
24 exception of food sold for human consumption which shall be exempt from sales
25 taxation taxed at the rate of three percent (3%) of the sales price. The types
26 and kinds of food products eligible for sales tax exemption taxation at the
27 rate of three percent (3%) shall be the same types and kinds of food products
28 that are eligible for purchases made with coupons issued under the federal
29 food stamp act of 1977 and the food security act of 1985 and do not include
30 restaurant sales of food. The excise tax as set forth herein shall be computed
31 monthly on all sales at retail within the preceding month.
32 (a) The tax shall apply to, be computed on, and collected for all credit,
33 installment, conditional or similar sales at the time of the sale or, in the
34 case of rentals, at the time the rental is charged.
35 (b) The tax hereby imposed shall be collected by the retailer from the
36 consumer.
37 (c) The state tax commission shall provide schedules for collection of
38 the tax on sales which involve a fraction of a dollar. The retailer shall cal-
39 culate the tax upon the entire amount of the purchases of the consumer made at
40 a particular time and not separately upon each item purchased. The retailer
41 may retain any amount collected under the bracket system prescribed which is
42 in excess of the amount of tax for which he is liable to the state during the
43 period as compensation for the work of collecting the tax.
44 (d) It is unlawful for any retailer to advertise or hold out or state to
45 the public or to any customer, directly or indirectly, that the tax or any
46 part thereof will be assumed or absorbed by the retailer or that it will not
47 be added to the selling price of the property sold or that if added it or any
48 part thereof will be refunded. Any person violating any provision of this sec-
49 tion is guilty of a misdemeanor.
50 (e) The tax commission may by rule provide that the amount collected by
51 the retailer from the customer in reimbursement of the tax be displayed sepa-
52 rately from the list price, the price advertised on the premises, the marked
53 price, or other price on the sales slip or other proof of sale.
9
1 (f) The taxes imposed by this chapter shall apply to the sales to con-
2 tractors purchasing for use in the performance of contracts with the United
3 States.
4 SECTION 6. That Section 63-3621, Idaho Code, as amended in Section 3 of
5 this Act, be, and the same is hereby amended to read as follows:
6 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
7 is hereby imposed on the storage, use, or other consumption in this state of
8 tangible personal property acquired on or after July 1, 1965, for storage,
9 use, or other consumption in this state at the rate of five percent (5%) of
10 the value of the property, with the exception of food sold for human consump-
11 tion which shall be exempt from use taxation taxed at the rate of three per-
12 cent (3%) of the value of the property. The types and kinds of food products
13 eligible for use tax exemption taxation at the rate of three percent (3%)
14 shall be the same types and kinds of food products that are eligible for pur-
15 chases made with coupons issued under the federal food stamp act of 1977 and
16 the food security act of 1985 and do not include restaurant sales of food. A
17 recent sales price shall be presumptive evidence of the value of the property
18 unless the property is wireless telecommunications equipment, in which case a
19 recent sales price shall be conclusive evidence of the value of the property.
20 (a) Every person storing, using, or otherwise consuming, in this state,
21 tangible personal property is liable for the tax. His liability is not extin-
22 guished until the tax has been paid to this state except that a receipt from a
23 retailer maintaining a place of business in this state or engaged in business
24 in this state given to the purchaser is sufficient to relieve the purchaser
25 from further liability for the tax to which the receipt refers. A retailer
26 shall not be considered to have stored, used or consumed wireless telecommuni-
27 cations equipment by virtue of giving, selling or otherwise transferring such
28 equipment at a discount as an inducement to a consumer to commence or continue
29 a contract for telecommunications service.
30 (b) Every retailer engaged in business in this state, and making sales of
31 tangible personal property for the storage, use, or other consumption in this
32 state, not exempted under section 63-3622, Idaho Code, shall, at the time of
33 making the sales or, if storage, use, or other consumption of the tangible
34 personal property is not then taxable hereunder, at the time the storage, use
35 or other consumption becomes taxable, collect the tax from the purchaser and
36 give to the purchaser a receipt therefor in the manner and form prescribed by
37 the state tax commission.
38 (c) The provisions of this section shall not apply when the retailer pays
39 sales tax on the transaction and collects reimbursement for such sales tax
40 from the customer.
41 (d) Every retailer engaged in business in this state or maintaining a
42 place of business in this state shall register with the state tax commission
43 and give the name and address of all agents operating in this state, the loca-
44 tion of all distributions or sales houses or offices or other places of busi-
45 ness in this state, and such other information as the state tax commission may
46 require.
47 (e) For the purpose of the proper administration of this act and to pre-
48 vent evasion of the use tax and the duty to collect the use tax, it shall be
49 presumed that tangible personal property sold by any person for delivery in
50 this state is sold for storage, use, or other consumption in this state. The
51 burden of proving the sale is tax exempt is upon the person who makes the sale
52 unless he obtains from the purchaser a resale certificate to the effect that
53 the property is purchased for resale or rental. It shall be presumed that
10
1 sales made to a person who has completed a resale certificate for the seller's
2 records are not taxable and the seller need not collect sales or use taxes
3 unless the tangible personal property purchased is taxable to the purchaser as
4 a matter of law in the particular instance claimed on the resale certificate.
5 A seller may accept a resale certificate from a purchaser prior to the
6 time of sale, at the time of sale, or at any reasonable time after the sale
7 when necessary to establish the privilege of the exemption. The resale cer-
8 tificate relieves the person selling the property from the burden of proof
9 only if taken from a person who is engaged in the business of selling or
10 renting tangible personal property and who holds the permit provided for by
11 section 63-3620, Idaho Code, or who is a retailer not engaged in business in
12 this state, and who, at the time of purchasing the tangible personal property,
13 intends to sell or rent it in the regular course of business or is unable to
14 ascertain at the time of purchase whether the property will be sold or will be
15 used for some other purpose. Other than as provided elsewhere in this section,
16 when a resale certificate, properly executed, is presented to the seller, the
17 seller has no duty or obligation to collect sales or use taxes in regard to
18 any sales transaction so documented regardless of whether the purchaser prop-
19 erly or improperly claimed an exemption. A seller so relieved of the obliga-
20 tion to collect tax is also relieved of any liability to the purchaser for
21 failure to collect tax or for making any report or disclosure of information
22 required or permitted under this chapter.
23 The resale certificate shall bear the name and address of the purchaser,
24 shall be signed by the purchaser or his agent, shall indicate the number of
25 the permit issued to the purchaser, or that the purchaser is an out-of-state
26 retailer, and shall indicate the general character of the tangible personal
27 property sold by the purchaser in the regular course of business. The certifi-
28 cate shall be substantially in such form as the state tax commission may pre-
29 scribe.
30 (f) If a purchaser who gives a resale certificate makes any storage or
31 use of the property other than retention, demonstration or display while hold-
32 ing it for sale in the regular course of business, the storage or use is tax-
33 able as of the time the property is first so stored or used.
34 (g) Any person violating any provision of this section is guilty of a
35 misdemeanor and punishable by a fine not in excess of one hundred dollars
36 ($100), and each violation shall constitute a separate offense.
37 (h) It shall be presumed that tangible personal property shipped or
38 brought to this state by the purchaser was purchased from a retailer, for
39 storage, use or other consumption in this state.
40 (i) It shall be presumed that tangible personal property delivered out-
41 side this state to a purchaser known by the retailer to be a resident of this
42 state was purchased from a retailer for storage, use, or other consumption in
43 this state. This presumption may be controverted by evidence satisfactory to
44 the state tax commission that the property was not purchased for storage, use,
45 or other consumption in this state.
46 (j) When the tangible personal property subject to use tax has been sub-
47 jected to a general retail sales or use tax by another state of the United
48 States in an amount equal to or greater than the amount of the Idaho tax, and
49 evidence can be given of such payment, the property will not be subject to
50 Idaho use tax. If the amount paid the other state was less, the property will
51 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
52 the other state. For the purposes of this subsection, a registration certifi-
53 cate or title issued by another state or subdivision thereof for a vehicle or
54 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
55 cient evidence of payment of a general retail sales or use tax.
11
1 (k) The use tax herein imposed shall not apply to the use by a nonresi-
2 dent of this state of a motor vehicle which is registered or licensed under
3 the laws of the state of his residence and is not used in this state more than
4 a cumulative period of time totaling ninety (90) days in any consecutive
5 twelve (12) months, and which is not required to be registered or licensed
6 under the laws of this state.
7 (l) The use tax herein imposed shall not apply to the use of household
8 goods and personal effects by a resident of this state, if such articles were
9 acquired by such person in another state while a resident of that state and
10 primarily for use outside this state and if such use was actual and substan-
11 tial, but if an article was acquired less than three (3) months prior to the
12 time he entered this state, it will be presumed that the article was acquired
13 for use in this state and that its use outside this state was not actual and
14 substantial. For purposes of this subsection, "resident" shall be as defined
15 in section 63-3013 or 63-3013A, Idaho Code.
16 (m) The use tax herein imposed shall not apply to the storage, use or
17 other consumption of tangible personal property which is or will be incorpo-
18 rated into real property and which has been donated to and has become the
19 property of:
20 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code;
21 or
22 (2) The state of Idaho; or
23 (3) Any political subdivision of the state.
24 This exemption applies whether the tangible personal property is incorporated
25 in real property by the donee, a contractor or subcontractor of the donee, or
26 any other person.
27 SECTION 7. That Section 63-3638, Idaho Code, as amended by Section 4 of
28 this Act, be, and the same is hereby amended to read as follows:
29 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
30 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
31 be distributed by the tax commission as follows:
32 (1) An amount of money shall be distributed to the state refund account
33 sufficient to pay current refund claims. All refunds authorized under this
34 chapter by the commission shall be paid through the state refund account, and
35 those moneys are continuously appropriated.
36 (2) Five million dollars ($5,000,000) per year is continuously appropri-
37 ated and shall be distributed to the permanent building fund, provided by sec-
38 tion 57-1108, Idaho Code.
39 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
40 continuously appropriated and shall be distributed to the water pollution con-
41 trol account established by section 39-3605, Idaho Code.
42 (4) An amount equal to the sum required to be certified by the chairman
43 of the Idaho housing and finance association to the state tax commission pur-
44 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
45 ated and shall be paid to any capital reserve fund, established by the Idaho
46 housing and finance association pursuant to section 67-6211, Idaho Code. Such
47 amounts, if any, as may be appropriated hereunder to the capital reserve fund
48 of the Idaho housing and finance association shall be repaid for distribution
49 under the provisions of this section, subject to the provisions of section
50 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
51 possible, from any moneys available therefor and in excess of the amounts
52 which the association determines will keep it self-supporting.
53 (5) An amount equal to the sum required by the provisions of section
12
1 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
2 by section 63-709, Idaho Code.
3 (6) An amount required by the provisions of chapter 53, title 33, Idaho
4 Code.
5 (7) One dollar ($1.00) on each application for certificate of title or
6 initial application for registration of a motor vehicle, snowmobile, all-
7 terrain vehicle or other vehicle processed by the county assessor or the Idaho
8 transportation department excepting those applications in which any sales or
9 use taxes due have been previously collected by a retailer, shall be a fee for
10 the services of the assessor of the county or the Idaho transportation depart-
11 ment in collecting such taxes, and shall be paid into the current expense fund
12 of the county or state highway account established in section 40-702, Idaho
13 Code.
14 (8) Sixteen Fourteen and two-tenths sixty-five hundredths percent
15 (16.214.65%) is continuously appropriated and shall be distributed to the rev-
16 enue sharing account which is created in the state treasury, and the moneys in
17 the revenue sharing account will be paid by the tax commission as follows:
18 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
19 ious cities as follows:
20 (i) Fifty percent (50%) of such amount shall be paid to the various
21 cities, and each city shall be entitled to an amount in the propor-
22 tion that the population of that city bears to the population of all
23 cities within the state; and
24 (ii) Fifty percent (50%) of such amount shall be paid to the various
25 cities, and each city shall be entitled to an amount in the propor-
26 tion that the preceding year's market value for assessment purposes
27 for that city bears to the preceding year's market value for assess-
28 ment purposes for all cities within the state.
29 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
30 ious counties as follows:
31 (i) One million three hundred twenty thousand dollars ($1,320,000)
32 shall be distributed one forty-fourth (1/44) to each of the various
33 counties; and
34 (ii) The balance of such amount shall be paid to the various coun-
35 ties, and each county shall be entitled to an amount in the propor-
36 tion that the population of that county bears to the population of
37 the state;
38 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
39 ated in this subsection (8) shall be paid to the several counties for dis-
40 tribution to the cities and counties as follows:
41 (i) Each city and county which received a payment under the provi-
42 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
43 calendar year 1999, shall be entitled to a like amount during suc-
44 ceeding calendar quarters.
45 (ii) If the dollar amount of money available under this subsection
46 (8)(c) in any quarter does not equal the amount paid in the fourth
47 quarter of calendar year 1999, each city's and county's payment shall
48 be reduced proportionately.
49 (iii) If the dollar amount of money available under this subsection
50 (8)(c) in any quarter exceeds the amount paid in the fourth quarter
51 of calendar year 1999, each city and county shall be entitled to a
52 proportionately increased payment, but such increase shall not exceed
53 one hundred five percent (105%) of the total payment made in the
54 fourth quarter of calendar year 1999.
55 (iv) If the dollar amount of money available under this subsection
13
1 (8)(c) in any quarter exceeds one hundred five percent (105%) of the
2 total payment made in the fourth quarter of calendar year 1999, any
3 amount over and above such one hundred five percent (105%) shall be
4 paid fifty percent (50%) to the various cities in the proportion that
5 the population of the city bears to the population of all cities
6 within the state, and fifty percent (50%) to the various counties in
7 the proportion that the population of a county bears to the popula-
8 tion of the state; and
9 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
10 this subsection (8) shall be paid to the several counties for distribution
11 to special purpose taxing districts as follows:
12 (i) Each such district which received a payment under the provi-
13 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
14 calendar year 1999, shall be entitled to a like amount during suc-
15 ceeding calendar quarters.
16 (ii) If the dollar amount of money available under this subsection
17 (8)(d) in any quarter exceeds the amount distributed under paragraph
18 (i) of this subsection (8)(d), each special purpose taxing district
19 shall be entitled to a share of the excess based on the proportion
20 each such district's current property tax budget bears to the sum of
21 the current property tax budgets of all such districts in the state.
22 The state tax commission shall calculate district current property
23 tax budgets to include any unrecovered foregone amounts as determined
24 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
25 district is situated in more than one (1) county, the tax commission
26 shall determine the portion attributable to the special purpose tax-
27 ing district from each county in which it is situated.
28 (iii) If special purpose taxing districts are consolidated, the
29 resulting district is entitled to a base amount equal to the sum of
30 the base amounts which were received in the last calendar quarter by
31 each district prior to the consolidation.
32 (iv) If a special purpose taxing district is dissolved or
33 disincorporated, the state tax commission shall continuously distrib-
34 ute to the board of county commissioners an amount equal to the last
35 quarter's distribution prior to dissolution or disincorporation. The
36 board of county commissioners shall determine any redistribution of
37 moneys so received.
38 (v) Taxing districts formed after January 1, 2001, are not entitled
39 to a payment under the provisions of this subsection (8)(d).
40 (vi) For purposes of this subsection (8)(d), a special purpose tax-
41 ing district is any taxing district which is not a city, a county or
42 a school district.
43 (9) Any moneys remaining over and above those necessary to meet and
44 reserve for payments under other subsections of this section shall be distrib-
45 uted to the general fund.
46 SECTION 8. An emergency existing therefor, which emergency is hereby
47 declared to exist, Section 1 of this act shall be in full force and effect on
48 and after its passage and approval, and retroactively to January 1, 2001; Sec-
49 tions 2, 3 and 4 of this act shall be in full force and effect on and after
50 July 1, 2001; Sections 5, 6 and 7 of this act shall be in full force and
51 effect on and after July 1, 2002.
STATEMENT OF PURPOSE
RS 10758
This legislation would eliminate the sales tax on groceries for
the fiscal year July 1, 2001 to June 30, 2002 and provide $107
million in tax relief, reaching nearly all Idahoans. It would
use both surplus revenue ($89 million) and ongoing revenue ($18
million). The share of sales tax revenue going to countries and
other local government would be increased to avoid any reduction
in revenue sharing for local government. The grocery tax credit
would be repealed effective January 1, 2001, except the credit
for senior citizens would continue in fiscal 2001 and thereafter.
This legislation would be a substitute for a proposed income tax
rebate and a small continuing income tax reduction. It does not
conflict with other proposed tax cut measures.
1. Provide tax relief to the nearly 30 per cent of households
with no tax liability, the households that receive nothing with
an income tax rebate or income tax cut.
2. Provide far more one-time tax relief in fiscal year 2002 than
a proposed $91 million income tax rebate. That proposal would
give an average of only $32 to 130,000 households with from zero
to $10,000 taxable income. This is more than one third of all
households with state income tax liability.
3. Provide more continuing tax relief to middle income and most
higher income taxpayers than a permanent income reduction.
4. Leave every tax relief dollar in the pockets of Idahoans
rather than have them see a large part of their relief sent to
Washington in added federal taxes.
5. Provide benefits to grocery retailers near Idaho's borders.
6. Give far more tax relief to people in rural Idaho where
average incomes are lower than in urban areas.
FISCAL IMPACT
Impact to the general fund would be $107 million in fiscal 2002.
In fiscal 2003 it would be $38 million.
Contact
Name: Rep. Robison
Phone: 332-1203
STATEMENT OF PURPOSE/FISCAL NOTE H8