2002 Legislation
Print Friendly

HOUSE BILL NO. 426 – Gasohol/diesel fuel, tax

HOUSE BILL NO. 426

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



H0426.........................................by TRANSPORTATION AND DEFENSE
GASOHOL/DIESEL FUEL - TAX - Amends existing law to delete the preferential
tax rate for gasohol and diesel fuel containing agricultural products; to
define "biodiesel"; to provide a deduction for gasohol and biodiesel not
exceeding ten percent of the total gallons of gasohol or biodiesel
reported; and to clarify the three year statute of limitations on refund
claims for motor fuel taxes.
                                                                        
01/15    House intro - 1st rdg - to printing
01/16    Rpt prt - to Transp
01/23    Rpt out - rec d/p - to 2nd rdg
01/24    2nd rdg - to 3rd rdg
01/28    3rd rdg - PASSED - 68-1-1
      AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
      Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark,
      Collins, Crow, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge,
      Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Harwood,
      Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz,
      Lake, Langford, Loertscher, Mader, Martinez, McKague, Meyer,
      Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould,
      Ridinger, Roberts, Robison, Schaefer, Sellman, Shepherd, Smith(33),
      Smith(23), Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Young,
      Mr. Speaker
      NAYS -- Sali
      Absent and excused -- Wood
    Floor Sponsor - Pischner
    Title apvd - to Senate
01/29    Senate intro - 1st rdg - to Transp
02/06    Rpt out - rec d/p - to 2nd rdg
02/07    2nd rdg - to 3rd rdg
02/11    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
      Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little,
      Lodge, Marley, Noh, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Williams
      NAYS -- None
      Absent and excused -- Geddes, Richardson
    Floor Sponsor - Boatright
    Title apvd - to House
02/12    To enrol
02/13    Rpt enrol - Sp signed
02/14    Pres signed
02/15    To Governor
02/19    Governor signed
         Session Law Chapter 30
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 426
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO FUELS TAX LAW; AMENDING SECTION 63-2401,  IDAHO  CODE,  TO  DEFINE
  3        "BIODIESEL"  AND  TO  EXPAND  THE  DEFINITIONS  OF "INTERNATIONAL FUEL TAX
  4        AGREEMENT," "JURISDICTION" AND "PERSON"; AMENDING SECTION  63-2405,  IDAHO
  5        CODE, TO DELETE THE PREFERENTIAL TAX RATE FOR GASOHOL AND DIESEL FUEL CON-
  6        TAINING  AGRICULTURAL  PRODUCTS;  AMENDING SECTION 63-2407, IDAHO CODE, TO
  7        PROVIDE A DEDUCTION FOR GASOHOL AND BIODIESEL NOT EXCEEDING TEN PERCENT OF
  8        THE TOTAL GALLONS OF GASOHOL OR BIODIESEL REPORTED AND TO  MAKE  TECHNICAL
  9        CORRECTIONS;  AMENDING  SECTION  63-2410, IDAHO CODE, TO CLARIFY THE THREE
 10        YEAR STATUTE OF LIMITATION OF REFUND CLAIMS  FOR  MOTOR  FUEL  TAXES;  AND
 11        AMENDING  SECTIONS  63-2421,  63-2438, 63-2440 AND 63-2441, IDAHO CODE, TO
 12        DELETE OBSOLETE LANGUAGE IN REFERENCE TO TEMPORARY TRIP PERMITS.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION 1.  That Section 63-2401, Idaho Code, be, and the same  is  hereby
 15    amended to read as follows:
                                                                        
 16        63-2401.  DEFINITIONS. In this chapter:
 17        (1)  "Aircraft engine fuel" means:
 18        (a)  Aviation  gasoline,  defined  as any mixture of volatile hydrocarbons
 19        used in aircraft reciprocating engines; and
 20        (b)  Jet fuel, defined as any mixture of  volatile  hydrocarbons  used  in
 21        aircraft turbojet and turboprop engines.
 22        (2)  "Biodiesel" means any fuel or mixture of fuels that is:
 23        (a)  Derived in whole or in part from agricultural products or animal fats
 24        or the wastes of such products; and
 25        (b)  Suitable for use as fuel in diesel engines.
 26        (3)  "Bond" means:
 27        (a)  A  surety  bond, in an amount required by this chapter, duly executed
 28        by a surety company licensed and authorized to do business in  this  state
 29        conditioned upon faithful performance of all requirements of this chapter,
 30        including  the payment of all taxes, penalties and other obligations aris-
 31        ing out of the provisions of this chapter; or
 32        (b)  A deposit with the commission by any person required to  be  licensed
 33        pursuant  to this chapter under terms and conditions as the commission may
 34        prescribe, of a like amount of lawful money of the United States or  bonds
 35        or  other  obligations  of  the  United States, the state of Idaho, or any
 36        county of the state; or
 37        (c)  An irrevocable letter of credit issued to the commission  by  a  bank
 38        doing business in this state payable to the state upon failure of the per-
 39        son on whose behalf it is issued to remit any payment due under the provi-
 40        sions of this chapter.
 41        (34)  "Commercial motor boat" means any boat, equipped with a motor, which
 42    is  wholly  or  partly  used in a profit-making enterprise or in an enterprise
 43    conducted with the intent of making a profit.
                                                                        
                                           2
                                                                        
  1        (45)  "Commission" means the state tax commission of the state of Idaho.
  2        (56)  "Distributor" means any person who receives gasoline, special fuels,
  3    and/or aircraft fuel in this state, and includes a special fuels  dealer.  Any
  4    person  who sells or receives gaseous fuels will not be considered a distribu-
  5    tor unless the gaseous fuel is delivered into the fuel supply tank or tanks of
  6    a motor vehicle not then owned or controlled by him.
  7        (67)  "Dyed fuel" means diesel fuel that is dyed pursuant to  requirements
  8    of the internal revenue service, or the environmental protection agency.
  9        (78)  "Exported" means delivered by truck or rail across the boundaries of
 10    this  state  by  or for the seller or purchaser from a place of origin in this
 11    state.
 12        (89)  "Gasohol" means gasoline containing a mixture of no  more  than  ten
 13    percent (10%) blend anhydrous ethanol.
 14        (910) "Gasoline"  means any mixture of volatile hydrocarbons suitable as a
 15    fuel for the propulsion of motor vehicles  or  motor  boats.  "Gasoline"  also
 16    means aircraft engine fuels when used for the operation or propulsion of motor
 17    vehicles  or  motor  boats  and includes gasohol, but does not include special
 18    fuels.
 19        (101) "Highways" means every place of whatever nature open to the  use  of
 20    the  public  as a matter of right for the purpose of vehicular travel which is
 21    maintained by the state of Idaho or an agency or taxing  subdivision  or  unit
 22    thereof  or  the  federal  government or an agency or instrumentality thereof.
 23    Provided, however, if the cost of maintaining a roadway is primarily borne  by
 24    a special fuels user who operates motor vehicles on that roadway pursuant to a
 25    written  contract during any period of time that a special fuels tax liability
 26    accrues to the user, such a roadway shall not be considered  a  "highway"  for
 27    any purpose related to calculating that user's special fuel's tax liability or
 28    refund.
 29        (112) "Imported" means delivered by truck or rail across the boundaries of
 30    this  state  by  or for the seller or purchaser from a place of origin outside
 31    this state.
 32        (123) "International fuel tax agreement" and "IFTA" mean the international
 33    fuel tax agreement required by the  intermodal  surface  transportation  effi-
 34    ciency  act  of  1991,  Public Law 102-240, 105 Stat. 1914, and referred to in
 35    title 49, U.S.C., section  31701,  including  subsequent  amendments  to  that
 36    agreement.
 37        (134) "Jurisdiction"  means  a state of the United States, the District of
 38    Columbia, or a province or territory of  Canada,  or  a  state,  territory  or
 39    agency of Mexico in the event that the state, territory or agency participates
 40    in the international fuel tax agreement.
 41        (145) "Licensed  distributor"  means  any  distributor  who has obtained a
 42    license under the provisions of section 63-2427A, Idaho Code.
 43        (156) "Motor fuel" means gasoline, special fuels, aircraft engine fuels or
 44    any other fuels suitable for the operation or propulsion  of  motor  vehicles,
 45    motor boats or aircraft.
 46        (167) "Motor  vehicle"  means  every  self-propelled  vehicle designed for
 47    operation, or required to be licensed for operation, upon a highway.
 48        (178) "Person" means any individual, firm, fiduciary, copartnership, asso-
 49    ciation, limited liability company, corporation, governmental  instrumentality
 50    including the state and all of its agencies and political subdivisions, or any
 51    other  group  or  combination  acting as a unit, and the plural as well as the
 52    singular number, unless the intent to give a more limited meaning is disclosed
 53    by the context. Whenever used in any clause prescribing and imposing a fine or
 54    imprisonment, or both, the term "person" as applied to  an  association  means
 55    the partners or members, and as applied to corporations, the officers.
                                                                        
                                           3
                                                                        
  1        (189) "Recreational  vehicle"  means  a  snowmobile  as defined in section
  2    67-7101, Idaho Code; a motor driven cycle or motorcycle as defined in  section
  3    49-114, Idaho Code; and any vehicular type unit either as an integral part of,
  4    or  required  for the movement of, units defined in section 39-4105(15), Idaho
  5    Code.
  6        (1920) "Retail dealer" means any person engaged  in  the  retail  sale  of
  7    motor fuels to the public or for use in the state.
  8        (201) "Special fuels" means:
  9        (a)  All fuel suitable as fuel for diesel engines;
 10        (b)  A  compressed  or  liquified gas obtained as a byproduct in petroleum
 11        refining or natural gasoline manufacture, such as butane, isobutane,  pro-
 12        pane, propylene, butylenes, and their mixtures; and
 13        (c)  Natural gas, either liquid or gas, and hydrogen, used for the genera-
 14        tion of power for the operation or propulsion of motor vehicles.
 15        (212) "Special  fuels dealer" means "distributor" under subsection (56) of
 16    this section.
 17        (223) "Special fuels user" means any person who uses or  consumes  special
 18    fuels for the operation or propulsion of motor vehicles owned or controlled by
 19    him upon the highways of this state.
 20        (234) "Use" means either:
 21        (a)  The  receipt,  delivery or placing of fuels by a licensed distributor
 22        or a special fuels dealer into the fuel supply tank or tanks of any  motor
 23        vehicle  not  owned  or controlled by him while the vehicle is within this
 24        state; or
 25        (b)  The consumption of fuels in the operation or propulsion  of  a  motor
 26        vehicle on the highways of this state.
                                                                        
 27        SECTION  2.  That  Section 63-2405, Idaho Code, be, and the same is hereby
 28    amended to read as follows:
                                                                        
 29        63-2405.  IMPOSITION OF TAX. (1) An excise tax is hereby  imposed  on  all
 30    gasoline received. The tax is to be paid by the licensed distributor, and mea-
 31    sured  by the total number of gallons of gasoline received by him, at the rate
 32    of twenty-five cents (25) per gallon. That tax,  together  with  any  penalty
 33    and/or  interest  due, shall be remitted with the monthly distributor's report
 34    required in section 63-2406, Idaho Code.
 35        (2)  The excise tax rate set forth in this section shall, when applied  to
 36    gasohol  or to special fuels designed for use in diesel engines, be reduced by
 37    the same percentage that the quantity of denatured anhydrous ethanol contained
 38    in the gasoline or, in the case of special fuels the quantity of such  special
 39    fuel  which  is derived from agricultural products or the wastes of such prod-
 40    ucts, bears to the total fuel subject to tax. Provided however,  in  no  event
 41    shall  the  rate  set  forth  in this section be reduced more than ten percent
 42    (10%).
                                                                        
 43        SECTION 3.  That Section 63-2407, Idaho Code, be, and the same  is  hereby
 44    amended to read as follows:
                                                                        
 45        63-2407.  DEDUCTIONS  AUTHORIZED.  Each  licensed distributor shall deduct
 46    from his monthly report:
 47        (1)  Motor fuel exported from this state other than in the supply tanks of
 48    motor vehicles, motor boats or aircraft when supported by a shipping document,
 49    an invoice signed by the purchaser, or other proper documents approved by  the
 50    commission but only if:
 51        (a)  tThe  purchaser  is  not  a  licensed  distributor and the seller can
                                                                        
                                           4
                                                                        
  1        establish that any tax due in the jurisdiction to which the motor fuel  is
  2        destined is paid,; or
  3        (b)  tThe purchaser is a licensed distributor in the jurisdiction to which
  4        the motor fuel is destined.
  5        (2)  Motor  fuel returned to a licensed distributor's refinery or pipeline
  6    terminal storage when supported by proper documents approved  by  the  commis-
  7    sion.
  8        (3)  Motor  fuel  lost  or  destroyed  by fire, lightning, flood, tornado,
  9    windstorm, explosion, or other accidental casualty, after  presenting  to  the
 10    commission satisfactory proof of loss.
 11        (4)  The  number  of  gallons which would be equal to one per cent percent
 12    (1%) of the total number of gallons received during the reporting period, less
 13    the total number of gallons deducted under subsections (1) through (3) of this
 14    section, which credit is granted to the licensed distributor to reimburse  him
 15    for  the  expense  incurred  on behalf of the state of Idaho in collecting and
 16    remitting motor fuel tax moneys, maintaining necessary records for the  state,
 17    preparing  necessary  reports and remittances in compliance with this chapter,
 18    and for loss from evaporation, handling, spillage and shrinkage, except losses
 19    caused by casualty as provided in subsection (3) of this section. The licensed
 20    distributor may, in addition to the above, deduct the number of gallons  equal
 21    to  one  per  cent percent (1%) of the total number of gallons received during
 22    the preceding calendar month, less the total number of gallons deducted  under
 23    subsections  (1) through (3) of this section, to cover shrinkage, evaporation,
 24    spillage and handling losses of a retail dealer. The latter deductions are  to
 25    be  allowed  only upon filing with the commission satisfactory evidence as may
 26    be prescribed by it indicating the credit allowance has been made in favor  of
 27    the  retail  dealer  or  paid to him. The evidence shall be submitted together
 28    with the report wherein this portion of the deduction is claimed.  A  licensed
 29    distributor who sells and delivers motor fuel directly to the consumer and not
 30    for  resale  shall, with respect to those sales, be deemed a retail dealer for
 31    the purposes of this section.
 32        (5)  Motor fuel sold to the Idaho national guard for use in  aircraft  and
 33    in vehicles used off public highways provided, however, such deduction is sup-
 34    ported  by  an  exemption  certificate  signed by an authorized officer of the
 35    Idaho national guard.
 36        (6)  For sales made on or after July 1, 1995,  taxes  previously  paid  on
 37    gallons represented by accounts found to be worthless and actually charged-off
 38    for  income  tax purposes may be credited upon a subsequent payment of the tax
 39    provided in this chapter or, if no such tax is due, refunded. If such accounts
 40    are thereafter collected, the tax per gallon shall  be  paid  based  upon  the
 41    amount  actually received divided by the price per gallon of the original sale
 42    multiplied by the appropriate tax rate.
 43        (7)  In the case of motor fuel received during the  reporting  period  and
 44    included in the report that is:
 45        (a)  Gasohol,  deduct the number of gallons of denatured anhydrous ethanol
 46        contained in the gasohol.
 47        (b)  Biodiesel, in whole or in part, deduct the number of gallons of agri-
 48        cultural products or animal fats or the wastes of such products  contained
 49        in the fuel.
 50    The  deduction  provided in this subsection shall not exceed ten percent (10%)
 51    of (i) the volume of gasohol reported on the report or (ii) the  special  fuel
 52    which is or contains biodiesel.
                                                                        
 53        SECTION  4.  That  Section 63-2410, Idaho Code, be, and the same is hereby
 54    amended to read as follows:
                                                                        
                                           5
                                                                        
  1        63-2410.  REFUND OF GASOLINE TAX PROCEDURE. (1) Any person who shall  pur-
  2    chase  fifty  (50)  gallons  or  more, and use the gasoline  in motor vehicles
  3    operated on highways outside of the state of Idaho where a  duplicate  tax  is
  4    assessed  for  the  same gasoline, shall be entitled to refund when a claim is
  5    presented to the commission in the manner required  in  subsection  (5)(c)  of
  6    this section. Claimant shall present to the commission a statement accompanied
  7    by  a  verification  of  the use determined by an audit of his operations con-
  8    ducted as prescribed by the tax commission; or his claim may  be  verified  by
  9    the  filing  of  a receipt or proof showing the payment of tax on the gasoline
 10    used in any other state.
 11        (2)  Any person who shall purchase within any one (1) calendar year  fifty
 12    (50)  gallons or more of gasoline used for the purposes described in this sub-
 13    section shall be entitled to be refunded the amount of gasoline tax previously
 14    paid on that gasoline. Exempt uses are:
 15        (a)  Operating stationary gasoline engines;
 16        (b)  Propelling equipment or vehicles which are not licensed to  be  oper-
 17        ated on a highway; and
 18        (c)  Operating commercial motor boats.
 19        (3)  No refund of gasoline tax shall be allowed for any gasoline which is:
 20        (a)  Used  in  motor vehicles required to be licensed or used in any motor
 21        vehicle exempt from registration by reason of the ownership or  residence;
 22        or
 23        (b)  Aircraft engine fuel placed in aircraft, provided however, if tax has
 24        been  paid  at  the  rate  provided in section 63-2405, Idaho Code, on any
 25        motor fuel placed in the fuel supply tank of an aircraft the user  of  the
 26        fuel  may apply for a refund of the difference between the tax paid on the
 27        fuel and the tax imposed in section 63-2408, Idaho Code; or
 28        (c)  Gasoline used in recreational vehicles; or
 29        (d)  Gasoline used in noncommercial motor boats or in boats operated by  a
 30        governmental entity.
 31        (4)  Any  licensed  distributor  paying  the  gasoline tax and/or aircraft
 32    engine fuel tax to the state of Idaho erroneously shall be allowed a credit or
 33    refund of the amount of tax paid by him if a written claim for refund is filed
 34    with the commission within three (3) years after the  date  those  taxes  were
 35    paid.  Such credit or refund shall include interest at the rate established in
 36    section 63-3045, Idaho Code, computed from the date taxes to  be  refunded  or
 37    credited were paid to the commission.
 38        (5)  (a) All  claims for refund of gasoline taxes arising under subsection
 39        (1), (2) or (3)(b) of this section shall be filed in conjunction with  the
 40        claimant's  income  tax return due pursuant to chapter 30, title 63, Idaho
 41        Code. The gasoline tax refund claimed shall be tax paid on gasoline  actu-
 42        ally  purchased  during  the  taxable  year to which the income tax return
 43        relates. The gasoline tax refund due shall be  offset  against  any  other
 44        taxes,  penalties  or  interest  due before any balance is refunded by the
 45        commission to the claimant. Subject to a limitation as to  the  amount  of
 46        refund  to be claimed as the commission may provide by rule, refund claims
 47        may be submitted and paid on a monthly basis and reconciled on the  income
 48        tax return when it is filed.
 49        (b)  If  a  claimant  is  not  required  to file an income tax return, the
 50        refund claim shall be made on forms and in the manner  as  the  commission
 51        may  provide.  The  claim  shall relate to taxes paid on gasoline actually
 52        purchased in the calendar year preceding the filing and the claim shall be
 53        filed due on or before April 15 following the close of the calendar year.
 54        (c)  Claims for refunds under subsection (1) or (2) of this section  shall
 55        be  filed within the time and in the manner prescribed in section 63-3072,
                                                                        
                                           6
                                                                        
  1        Idaho Code. Such credit or refund  shall  include  interest  at  the  rate
  2        established  in section 63-3045, Idaho Code, computed from sixty (60) days
  3        following the later of the due date of the claimed refund under subsection
  4        (5)(a) or (5)(b) of this section or the filing of  the  claim.  No  refund
  5        shall  be  paid  under this section unless a written claim for such refund
  6        has been filed with the commission within three (3) years  after  the  due
  7        date,  including  extensions,  of the income tax return in regard to which
  8        the claim relates or the due date of the claim  established  in  paragraph
  9        (b) of this subsection (5).
 10        (d)  The  commission  may  require  that  all claims be accompanied by the
 11        original signed invoice or invoices issued to the  claimant,  showing  the
 12        total  amount of gasoline on which a refund is claimed and the reason, the
 13        amount of the tax and any additional information required by  the  commis-
 14        sion.  Each  separate  delivery shall constitute a purchase and a separate
 15        invoice shall be prepared, at least in duplicate, to cover  the  delivery.
 16        All  invoices,  except  those  prepared  by a computer or similar machine,
 17        shall be prepared in ink or double-spaced carbon shall be used between the
 18        original and first duplicate.
 19        (6)  (a) Should the commission find that the claim contains errors, it may
 20        correct the claim and approve it  as  corrected,  or  the  commission  may
 21        require  the claimant to file an amended claim. The commission may require
 22        any person who makes a claim for refund to furnish a statement under oath,
 23        giving his occupation, description of the machine or  equipment  in  which
 24        the  gasoline  was used, the place where used and any other information as
 25        the commission may require. If the commission determines  that  any  claim
 26        has been fraudulently presented, or is supported by an invoice or invoices
 27        fraudulently  made or altered, or that any statement in the claim or affi-
 28        davit is willfully false and made for the purpose of misleading, the  com-
 29        mission  may  reject the claim in full. If the claim is rejected, the com-
 30        mission may suspend the claimant's right to any refund for purchases  made
 31        during  a  period  not  to exceed one (1) year beginning with the date the
 32        rejected claim was filed, and it shall take all other action deemed appro-
 33        priate.
 34        (b)  The commission has authority, in order to establish the  validity  of
 35        any  claim, to examine the books and records of the claimant for that pur-
 36        pose, and failure of the claimant to accede to the demand for the examina-
 37        tion may constitute a waiver of all rights to the refund claimed.
 38        (7)  In the event of the loss or destruction of the  original  invoice  or
 39    invoices,  the  person  claiming  a  refund may submit a duplicate copy of the
 40    invoice certified by the vendor, but payment based on  the  duplicate  invoice
 41    shall  not be made until one (1) year after the date on which the gasoline was
 42    purchased.
                                                                        
 43        SECTION 5.  That Section 63-2421, Idaho Code, be, and the same  is  hereby
 44    amended to read as follows:
                                                                        
 45        63-2421.  RETURNS  AND PAYMENT OF USE TAX BY CONSUMERS. (1) Any person who
 46    consumes special fuels in a motor vehicle licensed or required to be  licensed
 47    by  the  laws  of this state, except for motor vehicles licensed under IFTA or
 48    operating with a temporary trip permit under section 49-432, Idaho Code, which
 49    is subject to the tax imposed by section 63-2416, Idaho Code, shall report the
 50    amount of tax liability and pay the taxes due in conjunction with  his  income
 51    or  franchise  tax  return  due  under the provisions of chapter 30, title 63,
 52    Idaho Code, in the manner and form prescribed by the  commission.  Payment  of
 53    special  fuels taxes shall  be made in conjunction with any other taxes due on
                                                                        
                                           7
                                                                        
  1    that return and special fuels taxes due may be offset against refunds  of  any
  2    other taxes shown on the return to be due the taxpayer.
  3        (2)  In  the case of a person other than one who consumes special fuels in
  4    a motor vehicle described in the exception in subsection (1) of  this  section
  5    and  not required to file a return under chapter 30, title 63, Idaho Code, who
  6    is subject to the tax imposed by section 63-2416, Idaho Code, the tax shall be
  7    paid annually, on a calendar year basis, in the manner and  form  required  by
  8    the  commission. The return and payment for each calendar year shall be due on
  9    or before April 15 of the immediately succeeding calendar year.
                                                                        
 10        SECTION 6.  That Section 63-2438, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        63-2438.  INTERNATIONAL FUEL TAX AGREEMENT (IFTA) LICENSE. (1) It shall be
 13    unlawful  for  any person to consume special fuels in the operation or propul-
 14    sion of a motor vehicle over twenty-six thousand (26,000) pounds maximum gross
 15    weight on the highways of this state unless such motor vehicle is:
 16        (a)  Licensed under the provisions of the international fuels  tax  agree-
 17        ment; or
 18        (b)  Operating  under  a temporary trip permit under section 49-432, Idaho
 19        Code; or
 20        (c)  Registered solely for operation in this state under  section  49-434,
 21        Idaho  Code, and is not  a vehicle proportionally registered under section
 22        49-435, Idaho Code.
 23        (2)  The application for an Idaho IFTA license shall be made to  the  com-
 24    mission  upon  a  form prepared and furnished by the commission and containing
 25    such information as the commission deems necessary. Carriers  based  in  other
 26    IFTA  jurisdictions  must  apply  to their base jurisdiction to obtain an IFTA
 27    license.
 28        (3)  No IFTA license shall be transferable.
 29        (4)  The commission may collect a fee for issuance of the IFTA license and
 30    decal, which fee shall not exceed the cost of issuance.
                                                                        
 31        SECTION 7.  That Section 63-2440, Idaho Code, be, and the same  is  hereby
 32    amended to read as follows:
                                                                        
 33        63-2440.  EXEMPTIONS  FROM  INTERNATIONAL  FUEL  TAX AGREEMENT LICENSE AND
 34    REPORTS AND TEMPORARY TRIP PERMITS. (1) In lieu of obtaining an IFTA  license,
 35    any  person operating a motor vehicle over twenty-six thousand (26,000) pounds
 36    maximum gross weight, propelled by special fuels in this state, shall secure a
 37    temporary trip permit under section 49-432, Idaho Code, authorizing the opera-
 38    tion of such vehicle in the state. for a period not to exceed ninety-six  (96)
 39    hours. The temporary trip permit shall be obtained through the Idaho transpor-
 40    tation  department.  The fees shall be those provided by section 49-432, Idaho
 41    Code,  and the revenues shall be distributed as provided  by  section  40-701,
 42    Idaho Code.
 43        (2)  A  motor  vehicle  owned  or  operated by another state of the United
 44    States or an agency or political subdivision thereof shall be exempt from  the
 45    requirements  of  sections 63-2438 and 63-2439, Idaho Code, if the state where
 46    the vehicle is owned grants a  substantially  similar  exemption  to  vehicles
 47    owned by the state of Idaho, its agencies or political subdivisions.
 48        (3)  Recreational vehicles, as defined in section 63-2401, Idaho Code, and
 49    buses  used exclusively for personal pleasure by an individual shall be exempt
 50    from the  requirements of sections 63-2438 and 63-2439, Idaho Code.  A  recre-
 51    ational vehicle used in connection with any business or institutional endeavor
                                                                        
                                           8
                                                                        
  1    shall not qualify for the exemption under this subsection.
                                                                        
  2        SECTION  8.  That  Section 63-2441, Idaho Code, be, and the same is hereby
  3    amended to read as follows:
                                                                        
  4        63-2441.  PENALTIES. It shall be unlawful for any person  to  consume  any
  5    special  fuels  in  the propulsion of a motor vehicle over twenty-six thousand
  6    (26,000) pounds maximum gross weight on the highways of this state  except  as
  7    provided  in  section  63-2438,  Idaho Code, unless such person is exempt from
  8    such requirement under section 63-2440, Idaho  Code,  or  other  provision  of
  9    state  or federal law or, in the case of vehicles using gaseous fuel, has com-
 10    plied with section 63-2424, Idaho Code. Such unlawful operation or the display
 11    of any fictitious or counterfeit IFTA cab card or decal or any  fictitious  or
 12    counterfeit  temporary  trip  permit  or  display of an IFTA cab card or decal
 13    issued to a person other than the owner or operator or lessee of  the  vehicle
 14    on  which  it  is  displayed  shall  be a misdemeanor and any person convicted
 15    thereof may be punished in the manner provided by law.

Statement of Purpose / Fiscal Impact


                           STATEMENT OF PURPOSE
                                R.S. 11467
This bill proposes several technical and other adjustments to the 
motor fuels tax laws.  The preferential tax rates for gasohol and 
for diesel fuel containing agricultural products are changed to 
deductions.  This provides distributors the same benefit but in 
a way that is administrable under the International Fuels Tax 
Agreement (IFTA). Fuel containing mixtures of agricultural and 
animal fats used in diesel engines is defined as "biodiesel."  
A single three-year statute of limitations on all claims for 
refunds of motor fuels taxes is provided.  Provision is made for 
the potential inclusion of Mexican governments in IFTA in the event 
of implementation of the trucking provisions of the North American 
Free Trade Agreement.  Conforming amendments are made to the 
definitions of "International Fuels Tax Agreement," and "person." 
References to temporary trip permits are changed to reflect last 
session's extension of these permits from 96 to 120 hours.  


                                 FISCAL NOTE


None.  



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

   
STATEMENT OF PURPOSE/FISCAL NOTE            H 426