Print Friendly HOUSE BILL NO. 91 – Wheat Comm, tax rate, maximum
HOUSE BILL NO. 91
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H0091...............................................by AGRICULTURAL AFFAIRS
WHEAT COMMISSION - Amends existing law to authorize the Idaho Wheat
Commission to establish the rate of tax imposed on wheat, not to exceed the
existing rate of two cents per bushel.
01/25 House intro - 1st rdg - to printing
01/26 Rpt prt - to Agric Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 91
BY AGRICULTURAL AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO TAXES IMPOSED UPON WHEAT; AMENDING SECTION 22-3315, IDAHO CODE, TO
3 AUTHORIZE THE IDAHO WHEAT COMMISSION TO ESTABLISH THE RATE OF TAX TO BE
4 IMPOSED NOT TO EXCEED THE EXISTING RATE AND TO MAKE TECHNICAL CORRECTIONS.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 22-3315, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 22-3315. IMPOSITION OF TAX AND PROVISION FOR LATE FEES. (1) From and
9 after the first day of July, 1992, there is hereby levied and imposed a tax of
10 not to exceed two cents (2) per bushel on all wheat grown in the state of
11 Idaho or given to Idaho growers under a crop reduction program, and sold or
12 contracted through commercial channels, and each and every crop grown or wheat
13 given to growers under a crop reduction program thereafter. The tax shall be
14 due on wheat given to growers under a crop reduction program and sold or con-
15 tracted through commercial channels, regardless of any deduction of the tax on
16 this same wheat prior to it being given to the grower. The tax shall be due on
17 or before the time when such wheat is first sold or contracted in the commer-
18 cial channels and shall be paid at such time or times as the commission may,
19 by rule, or regulation, prescribe, as hereinafter provided, but not later than
20 the 15th day of the month next succeeding the three (3) month period in which
21 such wheat is sold or contracted in commercial channels. The commission shall
22 designate the quarters (three (3) month periods) for the purpose of collection
23 of this tax.
24 (2) The tax shall be levied and assessed to the grower at the time of
25 delivery for sale and shall be deducted by the first purchaser from the price
26 paid to the grower at the time of sale or in case of a lienholder who may pos-
27 sess such wheat under his lien, the tax shall be deducted by the lienholder
28 from the proceeds of the claim secured by such lien at the time the wheat is
29 pledged or mortgaged. The tax shall be deducted as provided in this section
30 whether the wheat is stored in this or any other state. The commission may,
31 however, permit any federal corporation, such as the Ccommodity Ccredit
32 Ccorporation, to waive its responsibility for the collection of the tax, pro-
33 vided the amount of the tax is one dollar ($1.00) or less.
34 (3) It shall be within the discretion of the commission to establish the
35 amount of the tax to be levied. The amount of the tax to be levied shall not
36 exceed two cents (2) for any fiscal year. The decision whether to adjust the
37 amount of the tax to be levied and the time for which the adjusted levy shall
38 be in effect shall require the vote of a majority of the commission members.
39 (4) The tax constitutes a lien prior to all other liens and encumbrances
40 upon such wheat except liens which are declared prior by operation of a stat-
41 ute of this state.
42 ( 45) Any person or firm who makes payment to the commission at a date
43 later than that prescribed in this section may be subject to a late payment
1 penalty as set forth by the commission by rule. and regulation. Such penalty
2 shall not exceed the rate of fifteen percent (15%) per annum on the amount
3 due. In addition to the above penalty, the commission shall be entitled to
4 recover all costs, fees, and reasonable attorney's fees incurred in the col-
5 lection of the tax and penalty provided for in this section.
STATEMENT OF PURPOSE
This bill is to provide flexibility to the Idaho Wheat
Commissioners to adjust the wheat tax in conjunction with annual
production. The bill maintains the maximum wheat tax rate of
$0.02 per bushel previously established by the legislature, with
authority provided to the commissioners to reduce or increase the
tax up to the $0.02.
There is no impact on the General Fund of Idaho.
The current cash balance of the IWC is $5,164,300. IWC has
maintained an average annual budget for the past four years of
$2, 1000, 000.
When the wheat tax was increased to $0.02 in 1992, to address
projected shortfalls, it was based on an average annual wheat
production of 80,000,000 bushels. The very next year, Idaho
production increased to 100,000,000 million bushels and has
remained close to that amount ever since. Estimated production
levels for the near future indicate a continuing level close to
100,000,000 bushels per year, although any year could be
Due to the IWC s current fiscal condition and future wheat
production estimates, at this time the commissioners are
considering a reduction of the tax, most likely to $0.015 per
bushel. With the proposed reduction the wheat producers of Idaho,
as an aggregate, would realize, on average, a yearly income
increase of $500,000. There is no negative impact to the general
Name: Dave Sparrow, Idaho Wheat Commission
STATEMENT OF PURPOSE/FISCAL NOTE H91