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S1096.....................................................by TRANSPORTATION
SALES TAX - VESSELS/ALL-TERRAIN VEHICLES - Amends existing law to provide
that vessels and attached motors, all-terrain vehicles, utility trailers
and snowmobiles shall be exempted from sales tax in the same manner as
motor vehicles and used mobile homes are currently exempted from sales tax.
02/09 Senate intro - 1st rdg - to printing
02/12 Rpt prt - to Transp
02/16 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/20 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Danielson, Darrington, Deide, Frasure, Geddes,
Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, Lodge,
Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Whitworth, Williams,
NAYS -- None
Absent and excused -- Davis, Dunklin
Floor Sponsor -- Ingram
Title apvd - to House
02/21 House intro - 1st rdg - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1096
BY TRANSPORTATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES TAX EXEMPTION FOR MOTOR VEHICLES AND USED MOBILE HOMES;
3 AMENDING SECTION 63-3622R, IDAHO CODE, TO PROVIDE THAT VESSELS AND
4 ATTACHED MOTOR, ALL-TERRAIN VEHICLES, UTILITY TRAILERS AND SNOWMOBILES
5 SHALL BE EXEMPTED FROM SALES TAX IN THE SAME MANNER AS PROVIDED FOR MOTOR
6 VEHICLES AND USED MOBILE HOMES.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-3622R, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-3622R. MOTOR VEHICLES, AND USED MOBILE MANUFACTURED HOMES, VESSELS AND
11 ATTACHED MOTOR, ALL-TERRAIN VEHICLES, UTILITY TRAILERS AND SNOWMOBILES. There
12 are exempted from the taxes imposed by this chapter:
13 (a) Sales of motor vehicles, vessels and attached motor, all-terrain
14 vehicles (ATVs), utility trailers and snowmobiles for use outside of this
15 state, even though delivery be made within this state, but only when:
16 (1) The motor vehicles, vessels and attached motor, ATVs, utility
17 trailers, snowmobiles or trailers will be taken from the point of delivery
18 in this state directly to a point outside this state; and
19 (2) The motor vehicles, vessels and attached motor, ATVs, utility
20 trailers, snowmobiles and trailers will be titled and licensed immediately
21 under the laws of another state, will not be used in this state more than
22 twenty-five percent (25%) of the mileage in any calendar year, and will
23 not be required to be titled under the laws of this state.
24 (b) Sale of used manufactured homes, whether or not such used manufac-
25 tured homes are sold for use outside this state, and whether or not such used
26 manufactured homes are sold by a dealer. Every manufactured home sale after
27 its sale as a "new manufactured home," as defined in section 63-3606, Idaho
28 Code, is a sale as a used manufactured home.
29 (c) Sale or lease of motor vehicles with a maximum gross registered
30 weight over twenty-six thousand (26,000) pounds, which shall be immediately
31 registered under the international registration plan or similar proportional
32 or pro rata registration system, whether or not base plated in Idaho, and the
33 sale or lease of trailers which are part of a fleet of vehicles registered
34 under such proportional or pro rata registration system when such vehicles and
35 trailers are substantially used in interstate commerce. If such a motor vehi-
36 cle or trailer is not substantially used in interstate commerce during any
37 calendar year, it shall be deemed used in Idaho and subject to the use tax
38 under section 63-3621, Idaho Code. For the purpose of this subsection,
39 "substantially used in interstate commerce" means that the vehicles or
40 trailers will be part of a fleet with a minimum of ten percent (10%) of the
41 miles operated by the fleet accrued outside of Idaho in any calendar year.
42 (d) The use or other consumption of a motor vehicle temporarily donated
43 to a driver's education program sponsored by a nonprofit educational institu-
2
1 tion as defined in section 63-3622O, Idaho Code.
STATEMENT OF PURPOSE
RS RS10967
The purpose of this legislation is to allow recreational vehicle dealers
to sell vessels with attached motor, ATV s utility trailers and snowmobiles tax
exempt to the out of state or out of nation buyers without having to deliver
the vehicle to buyers in their state or nation.
At the present time motor vehicle and travel trailer dealers are exempt
from collecting sales tax and from having to deliver the vehicle to the buyer
in their state or nation. Vessels, ATV s utility trailers and snowmobiles
cannot be sold tax exempt unless delivered to buyers in their state or nation.
Snowmobiles, ATV s and vessels and most utility trailers are required to
be titled in Idaho the same as vehicles and mobile homes. With the exception of
Wyoming, all eleven (11) surrounding states title snowmobiles, ATV s vessels
and utility trailers.
The requirement placed on recreational behicle dealers of having to
deliver vessels, ATV s, utility trailers and snowmobiles to the out of state or
nation buyer in order to sell tax exempt places a very unfair burden on Idaho
Recreational dealers. Many sales are lost because of the inconvenience to out
of state buyers who are wanting to take immediate possession and not wait for a
delivery date. Buyers from Oregon and Montana would never gbuy and pay the
Idaho sales tax, both of these states charge no sales tax. If a sale is made
and delivery is required in order to sell tax exempt, the dealer has to pay to
have the vehicle transported to the buyers state. This is not only inconvenient
to the dealer, it also subtracts from his net gain on the sale.
Contact
Name: Senator Cecil Ingram
Phone: 332 1332
FISCAL IMPACT
No fiscal impact to the general fund
$TATEMENT OF PURPOSE/FISCAL NOTE S 1096