Print Friendly HOUSE BILL NO. 105 – Sales tax, food exempt
HOUSE BILL NO. 105
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SALES TAX - Amends and repeals existing law to increase the grocery tax
credit on income tax returns for certain residents; to delete the grocery
tax credit, effective January 1, 2002; to provide an exemption from sales
and use tax for certain food sold for human consumption; and to provide for
an increase in the percentage of appropriated funds distributed to the
Revenue Sharing Account from sales tax moneys.
01/29 House intro - 1st rdg - to printing
01/30 Rpt prt - House desk
02/01 To Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 105
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 SECTION
6 63-3029F, IDAHO CODE, TO STRIKE A CODE REFERENCE; AMENDING SECTION
7 63-3619, IDAHO CODE, TO PROVIDE AN EXEMPTION FROM SALES TAX FOR CERTAIN
8 FOOD SOLD FOR HUMAN CONSUMPTION AND TO MAKE TECHNICAL CORRECTIONS; AMEND-
9 ING SECTION 63-3621, IDAHO CODE, TO PROVIDE AN EXEMPTION FROM USE TAX FOR
10 CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION; AMENDING SECTION 63-3638, IDAHO
11 CODE, TO PROVIDE FOR AN INCREASE IN THE PERCENTAGE OF APPROPRIATED FUNDS
12 DISTRIBUTED TO THE REVENUE SHARING ACCOUNT AND TO MAKE TECHNICAL CORREC-
13 TIONS; DECLARING AN EMERGENCY AND PROVIDING FOR RETROACTIVE APPLICATION,
14 AND PROVIDING EFFECTIVE DATES.
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. That Section 63-3024A, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 63-3024A. CREDITS AND REFUNDS. (a) Any resident individual not entitled
19 to the credit allowed in subsection (b)(1), who is required to file by law and
20 who has filed an Idaho income tax return, shall be allowed a credit against
21 taxes due under the Idaho income tax act equal to the amount of fifteen thirty
22 dollars ($ 1530.00) for each personal exemption for which a deduction is per-
23 mitted by section 151(b) and (c) of the Internal Revenue Code if such deduc-
24 tion is claimed on the taxpayer's Idaho income tax return, and if the individ-
25 ual for whom the deduction is claimed is a resident of the state of Idaho. If
26 taxes due are less than the total credit allowed, the taxpayer shall be paid a
27 refund equal to the balance of the unused credit. If the credit or refund is
28 not claimed for the year for which the individual income tax return is filed,
29 the right thereafter to claim such credit or refund shall be forfeited. The
30 state tax commission shall prescribe the method by which the refund, if any,
31 is to be made to the taxpayer.
32 (b) (1) A resident individual who has reached his sixty-fifth birthday
33 before the end of his taxable year, who is required to file by law and who
34 has filed an Idaho income tax return, shall be allowed a credit against
35 taxes due under the Idaho income tax act equal to the amount of thirty
36 sixty dollars ($ 360.00) for each personal exemption representing himself,
37 a spouse over the age of sixty-five (65) years, or a dependent over the
38 age of sixty-five (65) years, but shall be allowed a credit against taxes
39 due under the Idaho income tax act equal to fifteen thirty dollars
40 ($ 1530.00) for each personal exemption representing a spouse or dependent
41 under the age of sixty-five (65) years. If taxes due are less than the
42 total credit allowed, the taxpayer shall be paid a refund equal to the
43 balance of the unused credit. If the credit or refund is not claimed for
1 the year for which the individual income tax return is filed, the right
2 thereafter to claim such credit or refund shall be forfeited. The state
3 tax commission shall prescribe the method by which the refund, if any, is
4 to be made to the taxpayer.
5 (2) A resident individual who has reached his sixty-fifth birthday and is
6 not required by law to file an Idaho income tax return and who has
7 received no credit or refund under any other subsection of this section,
8 shall be entitled to a refund of thirty sixty dollars ($ 360.00). Any
9 refund shall be paid to such individual only upon his making application
10 therefor at such time and in such manner as may be prescribed by the state
11 tax commission.
12 (c) A resident individual of the state of Idaho who is:
13 (i) blind, or
14 (ii) a disabled American veteran of any war engaged in by the United
15 States, whose disability is recognized as a service connected disability
16 of a degree of ten per cent percent (10%) or more, or who is in receipt of
17 a pension for nonservice connected disabilities, in accordance with laws
18 and regulations administered by the United States veterans administration,
19 substantiated by a statement as to status signed by a responsible officer
20 of the United States veterans administration, or
21 (iii) over sixty-two (62) years of age, and has been allowed none, or less
22 than all, of the credit provided by subsection (a) or subsection (b) of
23 this section, shall be entitled to a payment from the refund fund in an
24 amount equal to fifteen thirty dollars ($ 1530.00), or the balance of his
25 unused credit, whichever is less, upon making application therefor at such
26 time and in such manner as the state tax commission may prescribe.
27 (d) Any part-year resident entitled to a credit under this section shall
28 receive a proportionate credit, in the manner above provided, reflecting the
29 part of the year in which he was domiciled in this state.
30 (e) No credit or refund may be claimed for an exemption which represents
31 a person who has himself filed an Idaho income tax return claiming a deduction
32 for his own personal exemption, and in no event shall more than one (1) tax-
33 payer be allowed a credit or refund for the same exemption, or under more than
34 one (1) subsection of this section.
35 (f) The refunds authorized by this section shall be paid from the state
36 refund fund in the same manner as the refunds authorized by section 63-3067,
37 Idaho Code.
38 (g) An application for any refund which is due and payable under the pro-
39 visions of this section must be filed with the state tax commission within
40 three (3) years of:
41 (i) the due date, including extensions, of the return required under sec-
42 tion 63-3030, Idaho Code, if the applicant is required to file a return,
44 (ii) the 15th day of April of the year following the year to which the
45 application relates if the applicant is not required to file a return.
46 SECTION 2. That Section 63-3024A, Idaho Code, be, and the same is hereby
48 SECTION 3. That Section 63-3029F, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
51 shall be allowed a credit, in an amount determined under subsection (2) of
1 this section, against the tax imposed by this chapter, other than the tax
2 imposed by section 63-3082, Idaho Code, for any taxable year during which the
3 taxpayer's employment of new employees, as defined under section 63-3029E(1),
4 Idaho Code, increases above the taxpayer's average employment for either: (a)
5 the prior taxable year, or (b) the average of three (3) prior taxable years,
6 whichever is higher. No credit shall be allowed under this section unless the
7 number of new employees equals or exceeds one (1) person.
8 (2) The credit authorized in subsection (1) of this section shall be five
9 hundred dollars ($500) per new employee, but the total credit allowed shall
10 not exceed three and one-quarter percent (3.25%) of net income from the
11 taxpayer's corporate, proprietorship, partnership, small business corporation
12 or limited liability company revenue-producing enterprise in which the employ-
13 ment occurred. Additionally, the total of this and all other credits allowed
14 under this chapter except for the credits allowed under sections 63-3024A,
15 63-3025D and 63-3029, Idaho Code, taken during any taxable year shall not
16 exceed forty-five percent (45%) of the tax otherwise imposed on the taxpayer
17 for the taxable year for which such credit is allowed.
18 (3) If the sum of the credit carryovers from the credit allowed by sub-
19 section (2) of this section and the amount of credit for the taxable year from
20 the credit allowed by subsection (2) of this section exceed the limitation
21 imposed by subsection (2) of this section for the current taxable year, the
22 excess attributable to the current taxable year's credit shall be a credit
23 carryover to the three (3) succeeding taxable years. The entire amount of
24 unused credit shall be carried forward to the earliest of the succeeding
25 years, wherein the oldest available unused credit shall be used first, so long
26 as the employment level for which the credit was granted is still maintained.
27 SECTION 4. That Section 63-3619, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-3619. IMPOSITION AND RATE OF THE SALES TAX. An excise tax is hereby
30 imposed upon each sale at retail at the rate of five per cent percent (5%) of
31 the sales price of all retail sales subject to taxation under this chapter and
32 such amount with the exception of food sold for human consumption which shall
33 be exempt from sales taxation. The types and kinds of food products eligible
34 for sales tax exemption shall be the same types and kinds of food products
35 that are eligible for purchases made with coupons issued under the federal
36 food stamp act of 1977 and the food security act of 1985 and do not include
37 restaurant sales of food. The excise tax as set forth herein shall be computed
38 monthly on all sales at retail within the preceding month.
39 (a) The tax shall apply to, be computed on, and collected for all credit,
40 instalment installment, conditional or similar sales at the time of the sale
41 or, in the case of rentals, at the time the rental is charged.
42 (b) The tax hereby imposed shall be collected by the retailer from the
44 (c) The state tax commission shall provide schedules for collection of
45 the tax on sales which involve a fraction of a dollar. The retailer shall cal-
46 culate the tax upon the entire amount of the purchases of the consumer made at
47 a particular time and not separately upon each item purchased. The retailer
48 may retain any amount collected under the bracket system prescribed which is
49 in excess of the amount of tax for which he is liable to the state during the
50 period as compensation for the work of collecting the tax.
51 (d) It is unlawful for any retailer to advertise or hold out or state to
52 the public or to any customer, directly or indirectly, that the tax or any
1 part thereof will be assumed or absorbed by the retailer or that it will not
2 be added to the selling price of the property sold or that if added it or any
3 part thereof will be refunded. Any person violating any provision of this sec-
4 tion is guilty of a misdemeanor.
5 (e) The tax commission may by rule provide that the amount collected by
6 the retailer from the customer in reimbursement of the tax be displayed sepa-
7 rately from the list price, the price advertised on the premises, the marked
8 price, or other price on the sales slip or other proof of sale.
9 (f) The taxes imposed by this chapter shall apply to the sales to con-
10 tractors purchasing for use in the performance of contracts with the United
12 SECTION 5. That Section 63-3621, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
15 is hereby imposed on the storage, use, or other consumption in this state of
16 tangible personal property acquired on or after July 1, 1965, for storage,
17 use, or other consumption in this state at the rate of five percent (5%) of
18 the value of the property, and with the exception of food sold for human con-
19 sumption which shall be exempt from use taxation. The types and kinds of food
20 products eligible for use tax exemption shall be the same types and kinds of
21 food products that are eligible for purchases made with coupons issued under
22 the federal food stamp act of 1977 and the food security act of 1985 and do
23 not include restaurant sales of food. A a recent sales price shall be presump-
24 tive evidence of the value of the property unless the property is wireless
25 telecommunications equipment, in which case a recent sales price shall be con-
26 clusive evidence of the value of the property.
27 (a) Every person storing, using, or otherwise consuming, in this state,
28 tangible personal property is liable for the tax. His liability is not extin-
29 guished until the tax has been paid to this state except that a receipt from a
30 retailer maintaining a place of business in this state or engaged in business
31 in this state given to the purchaser is sufficient to relieve the purchaser
32 from further liability for the tax to which the receipt refers. A retailer
33 shall not be considered to have stored, used or consumed wireless telecommuni-
34 cations equipment by virtue of giving, selling or otherwise transferring such
35 equipment at a discount as an inducement to a consumer to commence or continue
36 a contract for telecommunications service.
37 (b) Every retailer engaged in business in this state, and making sales of
38 tangible personal property for the storage, use, or other consumption in this
39 state, not exempted under section 63-3622, Idaho Code, shall, at the time of
40 making the sales or, if storage, use or other consumption of the tangible per-
41 sonal property is not then taxable hereunder, at the time the storage, use, or
42 other consumption becomes taxable, collect the tax from the purchaser and give
43 to the purchaser a receipt therefor in the manner and form prescribed by the
44 state tax commission.
45 (c) The provisions of this section shall not apply when the retailer pays
46 sales tax on the transaction and collects reimbursement for such sales tax
47 from the customer.
48 (d) Every retailer engaged in business in this state or maintaining a
49 place of business in this state shall register with the state tax commission
50 and give the name and address of all agents operating in this state, the loca-
51 tion of all distributions or sales houses or offices or other places of busi-
52 ness in this state, and such other information as the state tax commission may
1 (e) For the purpose of the proper administration of this act and to pre-
2 vent evasion of the use tax and the duty to collect the use tax, it shall be
3 presumed that tangible personal property sold by any person for delivery in
4 this state is sold for storage, use, or other consumption in this state. The
5 burden of proving the sale is tax exempt is upon the person who makes the sale
6 unless he obtains from the purchaser a resale certificate to the effect that
7 the property is purchased for resale or rental. It shall be presumed that
8 sales made to a person who has completed a resale certificate for the seller's
9 records are not taxable and the seller need not collect sales or use taxes
10 unless the tangible personal property purchased is taxable to the purchaser as
11 a matter of law in the particular instance claimed on the resale certificate.
12 A seller may accept a resale certificate from a purchaser prior to the
13 time of sale, at the time of sale, or at any reasonable time after the sale
14 when necessary to establish the privilege of the exemption. The resale certif-
15 icate relieves the person selling the property from the burden of proof only
16 if taken from a person who is engaged in the business of selling or renting
17 tangible personal property and who holds the permit provided for by section
18 63-3620, Idaho Code, or who is a retailer not engaged in business in this
19 state, and who, at the time of purchasing the tangible personal property,
20 intends to sell or rent it in the regular course of business or is unable to
21 ascertain at the time of purchase whether the property will be sold or will be
22 used for some other purpose. Other than as provided elsewhere in this section,
23 when a resale certificate, properly executed, is presented to the seller, the
24 seller has no duty or obligation to collect sales or use taxes in regard to
25 any sales transaction so documented regardless of whether the purchaser prop-
26 erly or improperly claimed an exemption. A seller so relieved of the obliga-
27 tion to collect tax is also relieved of any liability to the purchaser for
28 failure to collect tax or for making any report or disclosure of information
29 required or permitted under this chapter.
30 The resale certificate shall bear the name and address of the purchaser,
31 shall be signed by the purchaser or his agent, shall indicate the number of
32 the permit issued to the purchaser, or that the purchaser is an out-of-state
33 retailer, and shall indicate the general character of the tangible personal
34 property sold by the purchaser in the regular course of business. The certifi-
35 cate shall be substantially in such form as the state tax commission may pre-
37 (f) If a purchaser who gives a resale certificate makes any storage or
38 use of the property other than retention, demonstration or display while hold-
39 ing it for sale in the regular course of business, the storage or use is tax-
40 able as of the time the property is first so stored or used.
41 (g) Any person violating any provision of this section is guilty of a
42 misdemeanor and punishable by a fine not in excess of one hundred dollars
43 ($100), and each violation shall constitute a separate offense.
44 (h) It shall be presumed that tangible personal property shipped or
45 brought to this state by the purchaser was purchased from a retailer, for
46 storage, use or other consumption in this state.
47 (i) It shall be presumed that tangible personal property delivered out-
48 side this state to a purchaser known by the retailer to be a resident of this
49 state was purchased from a retailer for storage, use, or other consumption in
50 this state. This presumption may be controverted by evidence satisfactory to
51 the state tax commission that the property was not purchased for storage, use,
52 or other consumption in this state.
53 (j) When the tangible personal property subject to use tax has been sub-
54 jected to a general retail sales or use tax by another state of the United
55 States in an amount equal to or greater than the amount of the Idaho tax, and
1 evidence can be given of such payment, the property will not be subject to
2 Idaho use tax. If the amount paid the other state was less, the property will
3 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
4 the other state. For the purposes of this subsection, a registration certifi-
5 cate or title issued by another state or subdivision thereof for a vehicle or
6 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
7 cient evidence of payment of a general retail sales or use tax.
8 (k) The use tax herein imposed shall not apply to the use by a nonresi-
9 dent of this state of a motor vehicle which is registered or licensed under
10 the laws of the state of his residence and is not used in this state more than
11 a cumulative period of time totaling ninety (90) days in any consecutive
12 twelve (12) months, and which is not required to be registered or licensed
13 under the laws of this state.
14 (l) The use tax herein imposed shall not apply to the use of household
15 goods and personal effects by a resident of this state, if such articles were
16 acquired by such person in another state while a resident of that state and
17 primarily for use outside this state and if such use was actual and substan-
18 tial, but if an article was acquired less than three (3) months prior to the
19 time he entered this state, it will be presumed that the article was acquired
20 for use in this state and that its use outside this state was not actual and
21 substantial. For purposes of this subsection, "resident" shall be as defined
22 in section 63-3013 or 63-3013A, Idaho Code.
23 (m) The use tax herein imposed shall not apply to the storage, use or
24 other consumption of tangible personal property which is or will be incorpo-
25 rated into real property and which has been donated to and has become the
26 property of:
27 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code;
29 (2) The state of Idaho; or
30 (3) Any political subdivision of the state.
31 This exemption applies whether the tangible personal property is incorporated
32 in real property by the donee, a contractor or subcontractor of the donee, or
33 any other person.
34 SECTION 6. That Section 63-3638, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
37 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
38 be distributed by the tax commission as follows:
39 (1) An amount of money shall be distributed to the state refund account
40 sufficient to pay current refund claims. All refunds authorized under this
41 chapter by the commission shall be paid through the state refund account, and
42 those moneys are continuously appropriated.
43 (2) Five million dollars ($5,000,000) per year is continuously appropri-
44 ated and shall be distributed to the permanent building fund, provided by sec-
45 tion 57-1108, Idaho Code.
46 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
47 continuously appropriated and shall be distributed to the water pollution con-
48 trol account established by section 39-3605, Idaho Code.
49 (4) An amount equal to the sum required to be certified by the chairman
50 of the Idaho housing and finance association to the state tax commission pur-
51 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
52 ated and shall be paid to any capital reserve fund, established by the Idaho
53 housing and finance association pursuant to section 67-6211, Idaho Code. Such
1 amounts, if any, as may be appropriated hereunder to the capital reserve fund
2 of the Idaho housing and finance association shall be repaid for distribution
3 under the provisions of this section, subject to the provisions of section
4 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
5 possible, from any moneys available therefor and in excess of the amounts
6 which the association determines will keep it self-supporting.
7 (5) An amount equal to the sum required by the provisions of section
8 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
9 by section 63-709, Idaho Code.
10 (6) An amount required by the provisions of chapter 53, title 33, Idaho
11 Code. of this section
12 (7) One dollar ($1.00) on each application for certificate of title or
13 initial application for registration of a motor vehicle, snowmobile, all-
14 terrain vehicle or other vehicle processed by the county assessor or the Idaho
15 transportation department excepting those applications in which any sales or
16 use taxes due have been previously collected by a retailer, shall be a fee for
17 the services of the assessor of the county or the Idaho transportation depart-
18 ment in collecting such taxes, and shall be paid into the current expense fund
19 of the county or state highway account established in section 40-702, Idaho
21 (8) Thirteen Sixteen and three-quarters two-tenths percent ( 13.7516.2%)
22 is continuously appropriated and shall be distributed to the revenue sharing
23 account which is created in the state treasury, and the moneys in the revenue
24 sharing account will be paid by the tax commission as follows:
25 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
26 ious cities as follows:
27 (i) Fifty percent (50%) of such amount shall be paid to the various
28 cities, and each city shall be entitled to an amount in the propor-
29 tion that the population of that city bears to the population of all
30 cities within the state; and
31 (ii) Fifty percent (50%) of such amount shall be paid to the various
32 cities, and each city shall be entitled to an amount in the propor-
33 tion that the preceding year's market value for assessment purposes
34 for that city bears to the preceding year's market value for assess-
35 ment purposes for all cities within the state.
36 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
37 ious counties as follows:
38 (i) One million three hundred twenty thousand dollars ($1,320,000)
39 shall be distributed one forty-fourth (1/44) to each of the various
40 counties; and
41 (ii) The balance of such amount shall be paid to the various coun-
42 ties, and each county shall be entitled to an amount in the propor-
43 tion that the population of that county bears to the population of
44 the state;
45 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
46 ated in this subsection (8) shall be paid to the several counties for dis-
47 tribution to the cities and counties as follows:
48 (i) Each city and county which received a payment under the provi-
49 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
50 calendar year 1999, shall be entitled to a like amount during suc-
51 ceeding calendar quarters.
52 (ii) If the dollar amount of money available under this subsection
53 (8)(c) in any quarter does not equal the amount paid in the fourth
54 quarter of calendar year 1999, each city's and county's payment shall
55 be reduced proportionately.
1 (iii) If the dollar amount of money available under this subsection
2 (8)(c) in any quarter exceeds the amount paid in the fourth quarter
3 of calendar year 1999, each city and county shall be entitled to a
4 proportionately increased payment, but such increase shall not exceed
5 one hundred five percent (105%) of the total payment made in the
6 fourth quarter of calendar year 1999.
7 (iv) If the dollar amount of money available under this subsection
8 (8)(c) in any quarter exceeds one hundred five percent (105%) of the
9 total payment made in the fourth quarter of calendar year 1999, any
10 amount over and above such one hundred five percent (105%) shall be
11 paid fifty percent (50%) to the various cities in the proportion that
12 the population of the city bears to the population of all cities
13 within the state, and fifty percent (50%) to the various counties in
14 the proportion that the population of a county bears to the popula-
15 tion of the state; and
16 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
17 this subsection (8) shall be paid to the several counties for distribution
18 to special purpose taxing districts as follows:
19 (i) Each such district which received a payment under the provi-
20 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
21 calendar year 1999, shall be entitled to a like amount during suc-
22 ceeding calendar quarters.
23 (ii) If the dollar amount of money available under this subsection
24 (8)(d) in any quarter exceeds the amount distributed under paragraph
25 (i) of this subsection (8)(d), each special purpose taxing district
26 shall be entitled to a share of the excess based on the proportion
27 each such district's current property tax budget bears to the sum of
28 the current property tax budgets of all such districts in the state.
29 The state tax commission shall calculate district current property
30 tax budgets to include any unrecovered foregone amounts as determined
31 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
32 district is situated in more than one (1) county, the tax commission
33 shall determine the portion attributable to the special purpose tax-
34 ing district from each county in which it is situated.
35 (iii) If special purpose taxing districts are consolidated, the
36 resulting district is entitled to a base amount equal to the sum of
37 the base amounts which were received in the last calendar quarter by
38 each district prior to the consolidation.
39 (iv) If a special purpose taxing district is dissolved or
40 disincorporated, the state tax commission shall continuously distrib-
41 ute to the board of county commissioners an amount equal to the last
42 quarter's distribution prior to dissolution or disincorporation. The
43 board of county commissioners shall determine any redistribution of
44 moneys so received.
45 (v) Taxing districts formed after January 1, 2001, are not entitled
46 to a payment under the provisions of this subsection (8)(d).
47 (vi) For purposes of this subsection (8)(d), a special purpose tax-
48 ing district is any taxing district which is not a city, a county or
49 a school district.
50 (9) Any moneys remaining over and above those necessary to meet and
51 reserve for payments under other subsections of this section shall be distrib-
52 uted to the general account fund.
53 SECTION 7. An emergency existing therefor, which emergency is hereby
54 declared to exist, Section 1 of this act shall be in full force and effect on
1 and after its passage and approval, and retroactively to January 1, 2001; Sec-
2 tions 2 and 3 of this act shall be in full force and effect on and after Janu-
3 ary 1, 2002; and Sections 4, 5 and 6 of this act shall be in full force and
4 effect on and after July 1, 2002.
STATEMENT OF PURPOSE
To double the grocery tax credit for the calendar year 2001 and
repeal sales tax on "food" beginning July 1, 2002. When sales tax is
removed from food, the grocery tax credit would be repealed. The
definition for "food" would be the same as for food stamps.
Doubling the grocery tax credit would have projected general
fund impact of $18.6 Million for fiscal year 2002. Subsequently
repealing sales tax on "food" and repealing the increased grocery tax
credit would have a projected net general fund impact of $84,908,808
in fiscal year 2003.
STATEMENT OF PURPOSE/FISCAL NOTE H105
Name: Rep. Bill Sali
Phone: 332 1000