2001 Legislation
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HOUSE BILL NO. 113 – Sales tax, refunds, procedure

HOUSE BILL NO. 113

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Daily Data Tracking History



H0113...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to update and clarify the time and manner
for obtaining refunds for overpayments of sales and use taxes; and to
provide procedures.
                                                                        
01/29    House intro - 1st rdg - to printing
01/30    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 113
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SALES TAXES; AMENDING SECTION 63-3626, IDAHO CODE, TO  UPDATE  AND
  3        CLARIFY THE TIME AND MANNER FOR OBTAINING REFUNDS OF OVERPAYMENTS OF SALES
  4        OR USE TAXES, TO PROVIDE PROCEDURES AND TO MAKE A TECHNICAL CORRECTION.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Section 63-3626, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        63-3626.  REFUNDS, LIMITATIONS, INTEREST. (a) If the tax commission deter-
  9    mines that Subject to the provisions of subsection (b) of this section, if any
 10    amount due under this chapter has been paid more than once or has been errone-
 11    ously or illegally collected or computed, the tax commission shall  set  forth
 12    that fact in its records and overpaid, the excess amount paid or collected may
 13    be  credited  on  any  amount then due and payable to the state tax commission
 14    from that person by whom the excess was paid and any balance refunded  to  the
 15    that person. by whom it was paid or to his successors, administrators or exec-
 16    utors;  the  tax  commission  is authorized and the state board of tax appeals
 17    authorized to order the tax commission in proper cases  to  credit  or  refund
 18    such  amounts  whether  or  not such payments have been paid under protest and
 19    certify such refund to the state board of examiners.
 20        (b) (1)  No such credit or refund shall be allowed or made after three (3)
 21        years from the time the payment was made  to  the  state  tax  commission,
 22        unless  before  the  expiration of such period a written claim therefor is
 23        filed with the state tax commission by the taxpayer or by  the  taxpayer's
 24        representative,  but  only  if  the taxpayer has authorized in writing the
 25        representative to file a claim.
 26        (2)  The three (3) year period allowed by subsection (b)(1) of  this  sec-
 27        tion  for  making  refunds or credit claims shall not apply in cases where
 28        For periods in regard to which the state tax commission  asserts  a  defi-
 29        ciency  under  section  63-3629 or 63-3630, Idaho Code,. In such cases, no
 30        credits or refunds shall be allowed or made  after  a  claim  for  refund,
 31        relating to that period of deficiency, must be made on or before the later
 32        of:
 33             (i)   Three  (3)  years  from  the time the payment was made The date
 34             provided in subsection (b)(1) of this section; or
 35             (ii)  The date upon  which  amounts  asserted  by  deficiency  become
 36             assessed;  unless before the expiration of such period a claim there-
 37             fore is filed by the taxpayer any administrative or judicial proceed-
 38             ing relating to such deficiency is finally resolved; or
 39             (iii) The date specified in any agreement under  section  63-3633(g),
 40             Idaho Code.
 41        (3)  In the case of claim for refund by a seller for an amount erroneously
 42        collected  by  the seller from a purchaser, no refund shall be paid unless
 43        such excess amount is refunded to the purchaser.
                                                                        
                                           2
                                                                        
  1        (4)  A taxpayer desiring claiming a refund of amounts paid in obedience to
  2        such deficiencies must do so by appealing  within  the  time  limits  pre-
  3        scribed in sections 63-3631 and 63-3049, Idaho Code.
  4        (c)  Interest shall be allowed on the amount of such credits or refunds at
  5    the  rate  provided in section 63-3045, Idaho Code, from the date such tax was
  6    paid to the state tax commission.
  7        (d)  If the state tax commission denies a claim for refund in whole or  in
  8    part,  it shall provide notice of the denial in the manner provided in section
  9    63-3629(c), Idaho Code. The claimant may petition the state tax commission for
 10    a redetermination of the denial as provided in section  63-3631,  Idaho  Code.
 11    The  tax  commission shall issue a final decision pursuant to the requirements
 12    of section 63-3045B, Idaho Code. Appeal of a tax commission  decision  denying
 13    in  whole  or  in part a claim for refund shall be made in accordance with and
 14    within the time limits prescribed in section 63-3632049, Idaho Code.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                           R.S. 10469

This bill updates and clarifies the statute of limitations on
claiming refunds of overpayments of sales and use taxes.  The bill: 

Extends the statute of limitations for refunds when the State Tax
         Commission asserts additional liability.  
  
Provides for written waiver of the statute of limitations by the
         taxpayer and the State Tax Commission.  

Clarifies that taxes erroneously collected for a purchaser must be
         refunded to the purchaser. 

Specifies procedures for review of denied refund claims. 


Deletes excess language and corrects a cross reference.  














                           FISCAL NOTE

None 





CONTACT

Name:  Dan John/Ted Spangler
Agency:  State Tax Commission
Phone:  334-7530

STATEMENT OF PURPOSE/FISCAL NOTE              BILL No.  H11