2002 Legislation
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HOUSE BILL NO. 725 – Cities/local option nonproperty tax

HOUSE BILL NO. 725

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                     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