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H0725...............................................by REVENUE AND TAXATION
CITIES - LOCAL-OPTION NONPROPERTY TAX - Amends existing law to allow all
cities to impose local option hotel/motel occupancy taxes and a tax on
liquor by the drink, wine and beer sold at retail for consumption on
licensed premises; and to allow cities to collect sales tax as in effect
prior to July 1, 2002.
03/05 House intro - 1st rdg - to printing
03/06 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 725
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION BY CITIES; AMENDING SECTION 50-1043, IDAHO CODE, TO
3 REVISE THE SHORT TITLE OF THE ACT; AMENDING SECTION 50-1044, IDAHO CODE,
4 TO AUTHORIZE ALL CITIES TO APPROVE AND COLLECT CERTAIN CITY NONPROPERTY
5 TAXES, TO MAKE TECHNICAL CORRECTIONS AND TO PROVIDE THAT THE CITY ELEC-
6 TION SHALL BE HELD ON ONE OF THE DATES SPECIFIED IN SECTION 34-106, IDAHO
7 CODE; AMENDING SECTION 50-1045, IDAHO CODE, TO ALLOW ALL CITIES TO ESTAB-
8 LISH A CITY PROPERTY TAX RELIEF FUND; AMENDING SECTION 50-1046, IDAHO
9 CODE, TO AUTHORIZE CITY LOCAL-OPTION NONPROPERTY TAXES PERMITTED BY SIXTY
10 PERCENT OR MORE OF THE VOTE, TO AUTHORIZE ALL CITIES TO COLLECT AN OCCU-
11 PANCY TAX UPON HOTEL, MOTEL AND OTHER SLEEPING ACCOMMODATIONS RENTED OR
12 LEASED FOR A PERIOD OF THIRTY DAYS OR LESS AND A TAX UPON LIQUOR BY THE
13 DRINK, WINE AND BEER SOLD AT RETAIL FOR CONSUMPTION ON THE LICENSED PREM-
14 ISES, TO PERMIT CITIES TO COLLECT A SALES TAX UPON PART OR ALL OF SALES
15 SUBJECT TO TAXATION UNDER CHAPTER 36, TITLE 63, IDAHO CODE, WHICH WAS IN
16 EFFECT PRIOR TO JULY 1, 2002, AND TO MAKE TECHNICAL CORRECTIONS; AND
17 AMENDING SECTION 63-2607, IDAHO CODE, TO DELETE REFERENCE TO RESORT CITY,
18 TO MAKE TECHNICAL CORRECTIONS AND TO DELETE AN IMPROPER STATUTORY CITA-
19 TION.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Section 50-1043, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 50-1043. SHORT TITLE. This act shall be known and may be cited as the
24 "City Property Tax Alternatives Act of 19782002."
25 SECTION 2. That Section 50-1044, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 50-1044. AUTHORITY FOR RESORT CITY RESIDENTS TO APPROVE AND RESORT CITY
28 GOVERNMENTS TO ADOPT, IMPLEMENT, AND COLLECT CERTAIN CITY NONPROPERTY TAXES.
29 The voters of any resort city with a population not in excess of ten thousand
30 (10,000) according to the most recent census within the state of Idaho, orga-
31 nized under the general laws of the state, special charter, or a general
32 incorporation act, are hereby given the freedom to authorize their city gov-
33 ernment to adopt, implement, and collect one (1) or more local-option
34 nonproperty taxes as provided herein. A resort city is a city that derives the
35 major portion of its economic well-being from businesses catering to recre-
36 ational needs and meeting needs of people traveling to that destination city
37 for an extended period of time. The corporate authorities of any such resort
38 city are hereby given the freedom and authority to adopt, implement, and col-
39 lect one (1) or more local-option nonproperty taxes as provided herein, if
40 approved by the required majority of city voters voting in an election as pro-
41 vided herein. No local-option nonproperty tax proposal may be presented to
2
1 resort city voters for approval or modification for a period of one (1) year
2 after an election to approve or disapprove such tax. The election may shall be
3 a special city election conducted for the exclusive purpose of approving or
4 disapproving such tax, or may and shall be conducted as a part of any other
5 special or general city election on one (1) of the dates specified in section
6 34-106, Idaho Code.
7 SECTION 3. That Section 50-1045, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 50-1045. CITY PROPERTY TAX RELIEF FUND. Any resort city may establish a
10 city property tax relief fund into which may be placed all or any portion of
11 revenues received from any nonproperty tax levied in accordance with the pro-
12 visions of this act and such nonproperty tax revenues may be used to replace
13 city property taxes in the ensuing fiscal year by the amount of nonproperty
14 tax revenues placed in the city property tax relief fund if city voters have
15 approved of such use of nonproperty tax revenues in the election authorizing
16 such city nonproperty tax. Any resort city that receives more revenues from
17 any local-option nonproperty tax than such city has budgeted shall establish a
18 city property tax relief fund into which shall be placed all revenues received
19 in excess of the budget amount and such excess revenues shall be used to
20 replace city property taxes in the ensuing fiscal year by the amount of all
21 excess revenues placed in said city property tax relief fund.
22 SECTION 4. That Section 50-1046, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 50-1046. CITY LOCAL-OPTION NONPROPERTY TAXES PERMITTED BY SIXTY PER CENT
25 PERCENT MAJORITY VOTE. A sixty per cent percent (60%) majority of the voters
26 of any resort city voting on the question may approve and, upon such approval,
27 any city may adopt, implement, and collect, subject to the provisions of this
28 act, the following city local-option nonproperty taxes: (a) an occupancy tax
29 upon hotel, motel, and other sleeping accommodations rented or leased for a
30 period of thirty (30) days or less; and (b) a tax upon liquor by-the-drink by
31 the drink, wine and beer sold at retail for consumption on the licensed prem-
32 ises; and (c) a sales tax upon part or all of sales subject to taxation under
33 chapter 36, title 63, Idaho Code, which sales tax was in effect prior to July
34 1, 2002.
35 SECTION 5. That Section 63-2607, Idaho Code, be, and the same is hereby
36 amended to read as follows:
37 63-2607. COORDINATION WITH CITY LOCAL-OPTION NONPROPERTY TAXES. In the
38 event that a city has implemented a resort city local-option nonproperty tax
39 as described in sections 50-1044 through 50-1049, Idaho Code, or in sections
40 50-1050 through 50-1055, Idaho Code, that city shall not be entitled to its
41 share of the distribution of resort county sales or use taxes as described in
42 section 63-2606, Idaho Code. In addition, the county local-option sales or
43 use tax shall have no effect within a city that has implemented a city
44 local-option nonproperty tax.
STATEMENT OF PURPOSE
RS 12133
This legislation will eliminate the resort/city designation in
Idaho statutes and treat all cities equally in their ability to
collect non-property taxes. It will allow the cities to have local
option with local voters 60% approval to levy motel and
liquor-by-the-drink tax. Elections must be held on dates
specified in Section 34-106, Idaho Code. Any surplus funds would
be applied to the reduction of property tax levies.
FISCAL IMPACT
No impact to the general fund.
Contact
Name: Rep. Frank Bruneel
Sen. Joe Stegner
Phone: (208-332-1000)
STATEMENT OF PURPOSE/FISCAL NOTE H 725