View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
H0732.....................................................by WAYS AND MEANS
MOTOR FUELS - TAXATION - Amends and repeals existing law to modify the
Idaho Supreme Court's decision of Goodman Oil v. Idaho State Tax Commission
regarding the taxation of motor fuels and distribution of revenues from
that tax.
03/08 House intro - 1st rdg - to printing
03/11 Rpt prt - to Transp
03/13 Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 53-17-0
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Black, Block,
Bolz, Bradford, Bruneel, Callister, Campbell, Clark, Collins, Crow,
Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Kendell, Lake,
Langford, Mader, McKague, Montgomery, Mortensen, Moyle, Pearce,
Pischner, Raybould, Ridinger, Roberts, Sali, Schaefer, Sellman,
Smith(23), Smylie, Stevenson, Stone, Tilman, Wheeler, Wood, Young,
Mr. Speaker
NAYS -- Bieter, Boe, Henbest, Higgins, Hornbeck, Jaquet, Jones,
Kellogg, Kunz, Loertscher, Martinez, Meyer, Pomeroy, Robison,
Shepherd, Smith(33), Trail
Absent and excused -- None
Floor Sponsor - Bruneel
Title apvd - to Senate
03/13 Senate intro - 1st rdg - to St Aff
03/15 Rpt out - rec d/p - to 2nd rdg
2nd rdg - to 3rd rdg
Rls susp - PASSED - 24-10-1
AYES -- Andreason, Branch Brandt, Bunderson, Burtenshaw, Cameron,
Darrington, Davis, Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen,
Little, Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sorensen,
Stegner, Thorne,
NAYS -- Boatright, Deide, Dunklin, Frasure, Keough, King-Barrutia,
Marley, Sims, Stennett, Wheeler
Absent and excused -- Williams
Floor Sponsor - Cameron
Title apvd - to House
03/15 To enrol
Rpt enrol - Sp signed - Pres signed
03/18 To Governor
03/21 Governor signed
Session Law Chapter 174
Effective: 07/01/96
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 732
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO MOTOR FUELS TAXES; PROVIDING A STATEMENT OF LEGISLATIVE INTENT;
3 AMENDING SECTION 63-2402, IDAHO CODE, TO CHANGE THE LEGAL INCIDENCE OF
4 TAXES ON GASOLINE AND SPECIAL FUELS BY PLACING IT ON THE DISTRIBUTOR WHO
5 FIRST RECEIVES THE FUEL IN IDAHO AND TO PROVIDE EXEMPTIONS; AMENDING SEC-
6 TION 63-2401, IDAHO CODE, AS AMENDED BY SECTION 1, CHAPTER 30, LAWS OF
7 2002, TO AMEND THE DEFINITION OF "DISTRIBUTOR"; AMENDING SECTION 63-2403,
8 IDAHO CODE, TO CLARIFY WHEN MOTOR FUEL IS RECEIVED; AMENDING SECTION
9 63-2405, IDAHO CODE, AS AMENDED BY SECTION 2, CHAPTER 30, LAWS OF 2002, TO
10 CLARIFY THE RESPONSIBILITY FOR PAYMENT OF MOTOR FUELS TAXES; AMENDING SEC-
11 TION 63-2412, IDAHO CODE, TO CLARIFY THE DISTRIBUTION OF REVENUES FROM
12 TAXES ON GASOLINE; REPEALING SECTION 63-2416, IDAHO CODE, RELATING TO THE
13 IMPOSITION OF TAX ON SPECIAL FUEL; AMENDING SECTION 63-2418, IDAHO CODE,
14 TO CLARIFY THE DISTRIBUTION OF REVENUES FROM TAXES ON SPECIAL FUEL; AMEND-
15 ING SECTION 63-2421, IDAHO CODE, AS AMENDED BY SECTION 5, CHAPTER 30, LAWS
16 OF 2002, TO IMPOSE USE TAXES ON UNTAXED MOTOR FUEL AND TO CLARIFY THE
17 REPORTING AND PAYMENT OF FUEL USE TAXES; AMENDING SECTION 63-2424, IDAHO
18 CODE, RELATING TO GASEOUS FUELS AND TO CHANGE A CROSS REFERENCE; AMENDING
19 SECTION 63-2425, IDAHO CODE, RELATING TO PROHIBITING USE OF DYED OR
20 UNTAXED FUEL ON A HIGHWAY AND TO CORRECT CROSS REFERENCES; AMENDING SEC-
21 TION 63-2443, IDAHO CODE, TO PROVIDE PENALTIES FOR CERTAIN RETAIL DEALERS
22 WHO ACCEPT OR RECEIVE UNTAXED MOTOR FUEL AND FOR UNAUTHORIZED SALE OF
23 UNTAXED MOTOR FUEL; PROVIDING SEVERABILITY; DECLARING AN EMERGENCY AND
24 PROVIDING A RETROACTIVE EFFECTING DATE.
25 Be It Enacted by the Legislature of the State of Idaho:
26 SECTION 1. STATEMENT OF INTENT. The Legislature intends by this act to
27 modify the holding of the Idaho Supreme Court in the case of Goodman Oil Com-
28 pany of Lewiston, et al v. Idaho State Tax Commission, 136 Idaho 53, (June 8,
29 2001). Specifically the Legislature intends, by this act, to expressly impose
30 the legal incidence of motor fuels taxes upon the motor fuel distributor who
31 receives (as "receipt" is defined in Section 63-2403, Idaho Code) the fuel in
32 this state and to make other coordinating and technical changes to the motor
33 fuels tax laws.
34 SECTION 2. That Section 63-2402, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 63-2402. IMPOSITION OF TAX UPON USE MOTOR FUEL. (1) A tax is hereby
37 imposed for the privilege of using the public highways upon the use or posses-
38 sion for use of gasoline, and upon the receipt of motor fuel in this state by
39 any distributor receiving motor fuel upon which the tax imposed by this sec-
40 tion has not previously been paid. Tthe tax shall be imposed without regard to
41 whether use is on a governmental basis or otherwise, unless exempted by this
42 chapter.
2
1 (2) The tax imposed in this section shall be at the same rate as speci-
2 fied in section 63-2405, Idaho Code, upon each of twenty-five cents (25) per
3 gallon of gasoline used or possessed for use motor fuel received. This tax
4 shall be subject to the exemptions, deductions and refunds set forth in this
5 chapter. The tax shall be paid by distributors upon the distributor's receipt
6 of the motor fuel in this state.
7 (3) Any person coming into this state in a motor vehicle may transport in
8 the manufacturer's original tank of that vehicle, for his own use only, not
9 more than thirty (30) gallons of gasoline motor fuel for the purpose of oper-
10 ating that motor vehicle, without complying with the provisions of this chap-
11 ter.
12 (4) This use tax shall be a debt owing from the user to the state of
13 Idaho The tax imposed in subsection (1) of this section does not apply to:
14 (a) Special fuels that have been dyed at a refinery or terminal under the
15 provisions of 26 U.S.C. section 4082 and regulations adopted thereunder,
16 or under the clean air act and regulations adopted thereunder except as
17 provided in section 63-2425, Idaho Code; or
18 (b) Special fuel dispensed into a motor vehicle which uses gaseous spe-
19 cial fuels and which displays a valid gaseous special fuels permit under
20 section 63-2424, Idaho Code; or
21 (c) Special fuels that are gaseous special fuels, as defined in section
22 63-2401, Idaho Code, except that part thereof that is delivered into the
23 fuel supply tank or tanks of a motor vehicle; or
24 (d) Aircraft engine fuel subject to tax under section 63-2408, Idaho
25 Code.
26 SECTION 3. That Section 63-2401, Idaho Code, as amended by Section 1,
27 Chapter 30, Laws of 2002, be, and the same is hereby amended to read as fol-
28 lows:
29 63-2401. DEFINITIONS. In this chapter:
30 (1) "Aircraft engine fuel" means:
31 (a) Aviation gasoline, defined as any mixture of volatile hydrocarbons
32 used in aircraft reciprocating engines; and
33 (b) Jet fuel, defined as any mixture of volatile hydrocarbons used in
34 aircraft turbojet and turboprop engines.
35 (2) "Biodiesel" means any fuel or mixture of fuels that is:
36 (a) Derived in whole or in part from agricultural products or animal fats
37 or the wastes of such products; and
38 (b) Suitable for use as fuel in diesel engines.
39 (3) "Bond" means:
40 (a) A surety bond, in an amount required by this chapter, duly executed
41 by a surety company licensed and authorized to do business in this state
42 conditioned upon faithful performance of all requirements of this chapter,
43 including the payment of all taxes, penalties and other obligations aris-
44 ing out of the provisions of this chapter; or
45 (b) A deposit with the commission by any person required to be licensed
46 pursuant to this chapter under terms and conditions as the commission may
47 prescribe, of a like amount of lawful money of the United States or bonds
48 or other obligations of the United States, the state of Idaho, or any
49 county of the state; or
50 (c) An irrevocable letter of credit issued to the commission by a bank
51 doing business in this state payable to the state upon failure of the per-
52 son on whose behalf it is issued to remit any payment due under the provi-
53 sions of this chapter.
3
1 (4) "Commercial motor boat" means any boat, equipped with a motor, which
2 is wholly or partly used in a profit-making enterprise or in an enterprise
3 conducted with the intent of making a profit.
4 (5) "Commission" means the state tax commission of the state of Idaho.
5 (6) "Distributor" means any person who receives gasoline, special fuels,
6 and/or aircraft motor fuel in this state, and includes a special fuels dealer.
7 Any person who sells or receives gaseous fuels will not be considered a dis-
8 tributor unless the gaseous fuel is delivered into the fuel supply tank or
9 tanks of a motor vehicle not then owned or controlled by him.
10 (7) "Dyed fuel" means diesel fuel that is dyed pursuant to requirements
11 of the internal revenue service, or the environmental protection agency.
12 (8) "Exported" means delivered by truck or rail across the boundaries of
13 this state by or for the seller or purchaser from a place of origin in this
14 state.
15 (9) "Gasohol" means gasoline containing a mixture of no more than ten
16 percent (10%) blend anhydrous ethanol.
17 (10) "Gasoline" means any mixture of volatile hydrocarbons suitable as a
18 fuel for the propulsion of motor vehicles or motor boats. "Gasoline" also
19 means aircraft engine fuels when used for the operation or propulsion of motor
20 vehicles or motor boats and includes gasohol, but does not include special
21 fuels.
22 (11) "Highways" means every place of whatever nature open to the use of
23 the public as a matter of right for the purpose of vehicular travel which is
24 maintained by the state of Idaho or an agency or taxing subdivision or unit
25 thereof or the federal government or an agency or instrumentality thereof.
26 Provided, however, if the cost of maintaining a roadway is primarily borne by
27 a special fuels user who operates motor vehicles on that roadway pursuant to a
28 written contract during any period of time that a special fuels tax liability
29 accrues to the user, such a roadway shall not be considered a "highway" for
30 any purpose related to calculating that user's special fuel's tax liability or
31 refund.
32 (12) "Imported" means delivered by truck or rail across the boundaries of
33 this state by or for the seller or purchaser from a place of origin outside
34 this state.
35 (13) "International fuel tax agreement" and "IFTA" mean the international
36 fuel tax agreement required by the intermodal surface transportation effi-
37 ciency act of 1991, Public Law 102-240, 105 Stat. 1914, and referred to in
38 title 49, U.S.C., section 31701, including subsequent amendments to that
39 agreement.
40 (14) "Jurisdiction" means a state of the United States, the District of
41 Columbia, a province or territory of Canada, or a state, territory or agency
42 of Mexico in the event that the state, territory or agency participates in the
43 international fuel tax agreement.
44 (15) "Licensed distributor" means any distributor who has obtained a
45 license under the provisions of section 63-2427A, Idaho Code.
46 (16) "Motor fuel" means gasoline, special fuels, aircraft engine fuels or
47 any other fuels suitable for the operation or propulsion of motor vehicles,
48 motor boats or aircraft.
49 (17) "Motor vehicle" means every self-propelled vehicle designed for oper-
50 ation, or required to be licensed for operation, upon a highway.
51 (18) "Person" means any individual, firm, fiduciary, copartnership, asso-
52 ciation, limited liability company, corporation, governmental instrumentality
53 including the state and all of its agencies and political subdivisions, or any
54 other group or combination acting as a unit, and the plural as well as the
55 singular number, unless the intent to give a more limited meaning is disclosed
4
1 by the context. Whenever used in any clause prescribing and imposing a fine or
2 imprisonment, or both, the term "person" as applied to an association means
3 the partners or members, and as applied to corporations, the officers.
4 (19) "Recreational vehicle" means a snowmobile as defined in section
5 67-7101, Idaho Code; a motor driven cycle or motorcycle as defined in section
6 49-114, Idaho Code; and any vehicular type unit either as an integral part of,
7 or required for the movement of, units defined in section 39-4105(15), Idaho
8 Code.
9 (20) "Retail dealer" means any person engaged in the retail sale of motor
10 fuels to the public or for use in the state.
11 (21) "Special fuels" means:
12 (a) All fuel suitable as fuel for diesel engines;
13 (b) A compressed or liquified gas obtained as a byproduct in petroleum
14 refining or natural gasoline manufacture, such as butane, isobutane, pro-
15 pane, propylene, butylenes, and their mixtures; and
16 (c) Natural gas, either liquid or gas, and hydrogen, used for the genera-
17 tion of power for the operation or propulsion of motor vehicles.
18 (22) "Special fuels dealer" means "distributor" under subsection (6) of
19 this section.
20 (23) "Special fuels user" means any person who uses or consumes special
21 fuels for the operation or propulsion of motor vehicles owned or controlled by
22 him upon the highways of this state.
23 (24) "Use" means either:
24 (a) The receipt, delivery or placing of fuels by a licensed distributor
25 or a special fuels dealer into the fuel supply tank or tanks of any motor
26 vehicle not owned or controlled by him while the vehicle is within this
27 state; or
28 (b) The consumption of fuels in the operation or propulsion of a motor
29 vehicle on the highways of this state.
30 SECTION 4. That Section 63-2403, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 63-2403. RECEIPT OF GASOLINE, SPECIAL FUELS OR AIRCRAFT ENGINE MOTOR FUEL
33 -- DETERMINATION. Gasoline, special fuels or aircraft engine Motor fuel is
34 received as follows:
35 (1) (a) Gasoline, special fuels or aircraft engine Motor fuel produced,
36 refined, manufactured, blended or compounded by any person or stored at a
37 pipeline terminal in this state by any person is received by that person
38 when it is loaded into tank cars, tank trucks, tank wagons or other types
39 of transportation equipment or when it is placed into any tank or other
40 container from which sales or deliveries not involving transportation are
41 made.
42 (b) Gasoline, special fuels or aircraft engine Motor fuel is received by
43 a person other than the person designated in subsection (1)(a) of this
44 section in the following circumstances:
45 (i) Gasoline, special fuels or aircraft engine Motor fuel delivered
46 from a pipeline terminal in this state to a licensed distributor is
47 received by the licensed distributor to whom it is first delivered.
48 (ii) Gasoline, special fuels or aircraft engine Motor fuel delivered
49 to a person who is not a licensed distributor for the account of a
50 person that is so licensed, is received by the licensed distributor
51 for whose account it is shipped.
52 (2) Notwithstanding the provisions of subsection (1) above, gasoline,
53 special fuels or aircraft engine motor fuel shipped or delivered from a refin-
5
1 ery or pipeline terminal to another refinery or pipeline terminal, is not
2 received by reason of that shipment or delivery.
3 (3) Any product other than gasoline, special fuels or aircraft engine
4 motor fuel that is blended to produce gasoline, special fuels or aircraft
5 engine motor fuel other than at a refinery or pipeline terminal in this state
6 is received by the person who is the owner of the blended fuel after the
7 blending is completed.
8 (4) (a) Gasoline, special fuels or aircraft engine Motor fuel imported
9 into this state, other than fuel placed in storage at a refinery or pipe-
10 line terminal in this state, is received at the time the fuel arrives in
11 this state by the person who is, at the time of arrival, the owner of the
12 fuel.
13 (b) Gasoline, special fuels or aircraft engine Motor fuel imported into
14 this state by a licensed distributor and delivered directly to a person
15 not a licensed distributor is received by the licensed distributor import-
16 ing that fuel into this state at the time the fuel arrives in this state.
17 (c) Fuel arrives in this state at the time it crosses the border of this
18 state.
19 SECTION 5. That Section 63-2405, Idaho Code, as amended by Section 2,
20 Chapter 30, Laws of 2002, be, and the same is hereby amended to read as fol-
21 lows:
22 63-2405. IMPOSITION PAYMENT OF TAX. An The excise tax is hereby imposed
23 on all gasoline received. The tax by section 63-2402, Idaho Code, is to be
24 paid by the licensed distributor, and measured by the total number of gallons
25 of gasoline motor fuel received by him, at the rate of twenty-five cents (25)
26 per gallon specified in section 63-2402, Idaho Code. That tax, together with
27 any penalty and/or interest due, shall be remitted with the monthly
28 distributor's report required in section 63-2406, Idaho Code.
29 SECTION 6. That Section 63-2412, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 63-2412. DISTRIBUTION OF TAX REVENUES FROM TAX ON GASOLINE AND AIRCRAFT
32 ENGINE FUEL. (1) The revenues received from the taxes imposed by sections
33 63-2402 and 63-240521, Idaho Code, upon the receipt or use of gasoline, and
34 any penalties, interest, or deficiency additions, or from the fees imposed by
35 the commission under the provisions of section 63-2409, Idaho Code, shall be
36 distributed periodically as follows:
37 (a) An amount of money equal to the actual cost of collecting, adminis-
38 tering and enforcing the gasoline tax requirements by the commission, as
39 determined by it shall be retained by the commission. The amount retained
40 by the commission shall not exceed the amount authorized to be expended by
41 appropriation by the legislature. Any unencumbered balance in excess of
42 the actual cost of collecting, administering and enforcing the gasoline
43 tax requirements by the commission at the end of each fiscal year shall be
44 distributed as listed in paragraph (e) of this subsection.
45 (b) An amount of money shall be distributed to the state refund account
46 sufficient to pay current refund claims. All refunds authorized by the
47 commission to be paid shall be paid from the state refund account and
48 those moneys are hereby continuously appropriated for that purpose.
49 (c) As soon as possible after the beginning of each fiscal year, the sum
50 of two hundred fifty thousand dollars ($250,000) shall be distributed to
51 the railroad grade crossing protection account in the dedicated fund, to
6
1 pay the amounts from the account pursuant to the provisions of section
2 62-304C, Idaho Code.
3 (d) As soon as possible after the beginning of each fiscal year, the sum
4 of one hundred thousand dollars ($100,000) shall be distributed to the
5 local bridge inspection account in the dedicated fund, to pay the amounts
6 from the account pursuant to the provisions of section 40-703, Idaho Code.
7 (e) From the balance remaining with the commission after distributing the
8 amounts in paragraphs (a) through (d) of subsection (1) of this section:
9 1. One and twenty-eight hundredths percent (1.28%) shall be distrib-
10 uted as follows: sixty-six percent (66%) of the one and twenty-eight
11 hundredths percent (1.28%) shall be distributed to the waterways
12 improvement account, as created in chapter 15, title 57, Idaho Code.
13 Up to twenty percent (20%) of the moneys distributed to the waterways
14 improvement account under the provisions of this paragraph may be
15 used by the department of parks and recreation to defray administra-
16 tive costs. Any moneys unused at the end of the fiscal year by the
17 department of parks and recreation shall be returned to the state
18 treasurer for deposit in the waterways improvement account. Thir-
19 ty-three percent (33%) of the one and twenty-eight hundredths percent
20 (1.28%) shall be distributed into the park and recreation capital
21 improvement account as created in section 57-1801, Idaho Code. One
22 percent (1%) of the one and twenty-eight hundredths percent (1.28%)
23 shall be distributed to the search and rescue fund created in section
24 67-2913, Idaho Code;
25 2. One and twenty-eight hundredths percent (1.28%) shall be distrib-
26 uted as follows: sixty-six percent (66%) of the one and twenty-eight
27 hundredths percent (1.28%) shall be distributed to the off-road motor
28 vehicle account, as created in section 57-1901, Idaho Code. Up to
29 twenty percent (20%) of the moneys distributed to the off-road motor
30 vehicle account by this subparagraph may be used by the department of
31 parks and recreation to defray administrative costs. Any moneys
32 unused at the end of the fiscal year by the department of parks and
33 recreation shall be returned to the state treasurer for deposit in
34 the off-road motor vehicle account. Thirty-three percent (33%) of the
35 one and twenty-eight hundredths percent (1.28%) shall be distributed
36 into the park and recreation capital improvement account as created
37 in section 57-1801, Idaho Code. One percent (1%) of the one and
38 twenty-eight hundredths percent (1.28%) shall be distributed to the
39 search and rescue fund created in section 67-2913, Idaho Code; and
40 3. Forty-four hundredths percent (.44%) shall be distributed to the
41 park and recreation capital improvement account as created in section
42 57-1801, Idaho Code, to be used solely to develop, construct, main-
43 tain and repair roads, bridges and parking areas within and leading
44 to parks and recreation areas of the state.
45 4. The balance remaining shall be distributed to the highway distri-
46 bution account created in section 40-701, Idaho Code.
47 (2) The revenues received from the taxes imposed by section 63-2408,
48 Idaho Code, and any penalties, interest, and deficiency amounts, shall be dis-
49 tributed as follows:
50 (a) An amount of money shall be distributed to the state refund account
51 sufficient to pay current refund claims. All refunds authorized by the
52 commission to be paid shall be paid from the state refund account, and
53 those moneys are hereby continuously appropriated.
54 (b) The balance remaining of all the taxes collected shall be distributed
55 to the state aeronautics account, as provided in section 21-211, Idaho
7
1 Code.
2 SECTION 7. That Section 63-2416, Idaho Code, be, and the same is hereby
3 repealed.
4 SECTION 8. That Section 63-2418, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-2418. DISTRIBUTION OF TAX REVENUES FROM TAX ON SPECIAL FUELS. The rev-
7 enues received from the tax imposed by section 63-2416, Idaho Code, this chap-
8 ter upon the receipt of special fuel and any penalties, interest, or defi-
9 ciency additions, or from the fees imposed by the commission under the provi-
10 sions of section 63-2424 or 63-2438, Idaho Code, shall be distributed as fol-
11 lows:
12 (1) An amount of money equal to the actual cost of collecting, adminis-
13 tering and enforcing the special fuels tax provisions by the commission, as
14 determined by it shall be retained by the commission. The amount retained by
15 the commission shall not exceed the amount authorized to be expended by appro-
16 priation by the legislature. Any unencumbered balance in excess of the actual
17 cost of collecting, administering and enforcing the special fuels tax require-
18 ments by the commission at the end of each fiscal year shall be distributed to
19 the highway distribution account.
20 (2) An amount of money shall be distributed to the state refund account
21 sufficient to pay current refund claims. All refunds authorized by the commis-
22 sion to be paid under this chapter shall be paid from the state refund
23 account, those moneys being hereby continuously appropriated.
24 (3) The balance remaining with the commission after distributing the
25 amounts specified in subsections (1) and (2) of this section shall be distrib-
26 uted to the highway distribution account, established in section 40-701, Idaho
27 Code.
28 SECTION 9. That Section 63-2421, Idaho Code, as amended by Section 5,
29 Chapter 30, Laws of 2002, be, and the same is hereby amended to read as fol-
30 lows:
31 63-2421. USE TAX -- RETURNS AND PAYMENT OF USE TAX BY CONSUMERS. (1) For
32 the privilege of using the highways of this state, aAny person who consumes
33 special motor fuels in a motor vehicle licensed or required to be licensed by
34 the laws of this state, or which is required to be licensed under the laws of
35 this state and is operated on the highways of this state upon which the tax
36 imposed by section 63-2402, Idaho Code, has not been paid or is subject to
37 credit or refund under IFTA and which fuel is not exempted from tax by this
38 chapter, shall be liable for the tax.
39 (2) Eexcept for motor vehicles licensed under IFTA or operating with a
40 temporary permit under section 49-432, Idaho Code, which is subject to the tax
41 imposed by section 63-2416, Idaho Code, persons liable under subsection (1) of
42 this section shall report the amount of tax liability and pay the taxes due in
43 conjunction with his income or franchise tax return due under the provisions
44 of chapter 30, title 63, Idaho Code, in the manner and form prescribed by the
45 commission. Payment of special motor fuels taxes shall be made in conjunction
46 with any other taxes due on that return and special motor fuels taxes due may
47 be offset against refunds of any other taxes shown on the return to be due the
48 taxpayer.
49 (23) In the case of a person liable under subsection (1) of this section
50 other than one who consumes special motor fuels in a motor vehicle described
8
1 in the exception in subsection (12) of this section and not required to file a
2 return under chapter 30, title 63, Idaho Code, who is subject to the tax
3 imposed by section 63-2416, Idaho Code, the tax shall be paid annually, on a
4 calendar year basis, in the manner and form required by the commission. The
5 return and payment for each calendar year shall be due on or before April 15
6 of the immediately succeeding calendar year.
7 (4) In the case of a person liable under subsection (1) of this section
8 whose motor vehicles are licensed or required to be licensed under IFTA as
9 provided in sections 63-2438 and 63-2439, Idaho Code, or operating with a tem-
10 porary permit under section 49-432, Idaho Code, the tax shall be paid in the
11 manner required by those provisions.
12 SECTION 10. That Section 63-2424, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-2424. GASEOUS FUELS. (1) In the case of special fuels which are in a
15 gaseous form, the commission shall provide by rule the method to be used for
16 converting the measurement of the fuel to the equivalent of gallons for the
17 purpose of applying tax rates. The method provided shall cause the tax rate
18 provided in section 63-24052, Idaho Code, to apply to an amount of gaseous
19 fuels having energy equal to one (1) gallon of gasoline.
20 (2) As an alternative to the provisions of subsection (1) of this sec-
21 tion, an annual fee in lieu of the excise tax may be collected on a vehicle
22 powered by gaseous fuels. The rate of the fee shall be based on the following
23 schedule for all types of gaseous fuels as adjusted by the formula for prora-
24 tion set out below. The permits shall be sold by gaseous fuels vendors dis-
25 pensing gaseous fuels into motor vehicles.
26 VEHICLE TONNAGE (GVW) FEE
27 0 -- 8,000 $ 60.00
28 8,001 -- 16,000 $ 89.00
29 16,001 -- 26,000 $179.00
30 26,001 and above $208.00
31 Permits for vehicles which are converted to gaseous fuels after the first of
32 July in any year shall have the fee prorated for the appropriate number of
33 months until renewal. The commission shall provide by rule the method to be
34 used for converting the measurement of fuel to the equivalent of gallons for
35 the purpose of applying increases in tax rates after this law becomes effec-
36 tive. A decal issued by the commission shall be displayed in any vehicle for
37 which a permit is issued hereunder as evidence that the annual fee has been
38 paid in lieu of the fuel tax. This decal shall be displayed in a conspicuous
39 place.
40 SECTION 11. That Section 63-2425, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 63-2425. DYED FUEL AND OTHER UNTAXED FUEL PROHIBITED FOR USE ON A HIGH-
43 WAY. (1) Except as provided in subsection (2) of this section, no person shall
44 operate a motor vehicle on a highway in this state if the fuel supply tanks of
45 the vehicle contain diesel fuel which has been dyed or marked under the provi-
46 sions of 26 U.S.C. 4082 and regulations adopted thereunder, or under the clean
47 air act and regulations adopted thereunder, or contain other motor fuel on
48 which the tax under section 63-241602, Idaho Code, has not been paid.
49 (2) The following vehicles may use dyed fuel on the highway but are sub-
50 ject to the tax under section 63-241602, Idaho Code, unless exempt under other
51 provisions of this chapter:
9
1 (a) State and local government vehicles;
2 (b) Any vehicles which may use dyed fuel on the highway under the provi-
3 sions of 26 U.S.C. 4082 or regulations adopted thereunder.
4 SECTION 12. That Section 63-2443, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-2443. VIOLATIONS AND PENALTIES. (a) Acts forbidden: It shall be unlaw-
7 ful for any person to:
8 (1) Refuse, or knowingly and intentionally fail to make and file any
9 statement required by this chapter in the manner or within the time
10 required;
11 (2) Wilfully fail to pay any tax due or any fee required by this chapter
12 or any related penalties or interest;
13 (3) Knowingly and with intent to evade or to aid in the evasion of the
14 tax imposed by this chapter to make any false statement or conceal any
15 material fact in any record, return, or affidavit provided for in this
16 chapter;
17 (4) Conduct any activities requiring a license under this chapter without
18 a license or after a license has been surrendered, canceled, or revoked;
19 (5) Fail to keep and maintain the books and records required by this
20 chapter;
21 (6) Use dyed or untaxed fuel in a manner prohibited in this chapter.
22 (b) It shall be unlawful for any retail dealer in motor fuel who is not a
23 licensed distributor or for any person in the state of Idaho other than a
24 licensed distributor to purchase, receive or accept any motor fuel upon which
25 tax imposed by this chapter has not been paid.
26 (c) It shall be unlawful for any person, including a licensed distribu-
27 tor, to sell or transfer any fuel upon which tax required by this chapter has
28 not been paid to any person unless such sale or transfer is authorized by this
29 chapter.
30 (d) Penalties and remedies: Any person violating any provision of this
31 section is guilty of a misdemeanor, unless the act is by any other law of this
32 state declared to be a felony, and upon conviction is punishable by a fine of
33 not less than one hundred dollars ($100) nor more than one thousand dollars
34 ($1,000).
35 (ce) Penalties are cumulative: The fine and imprisonment provided for in
36 this section shall be in addition to any other penalty imposed by any other
37 provision of this chapter.
38 SECTION 13. SEVERABILITY. The provisions of this act are hereby declared
39 to be severable and if any provision of this act or the application of such
40 provision to any person or circumstance is declared invalid for any reason,
41 such declaration shall not affect the validity of the remaining portions of
42 this act.
43 SECTION 14. An emergency existing therefor, which emergency is hereby
44 declared to exist, this act shall be in full force and effect on and after its
45 passage and approval, and retroactively to July 1, 1996.
STATEMENT OF PURPOSE
RS 12211
This bill establishes laws for the application of motor fuels taxes
on Idaho s Indian reservations. It is designed to change the
holding of the Idaho Supreme Court in the case of Goodman Oil
Company of Lewiston, et al v. Idaho State Tax Commission, by
expressly imposing the legal incidence of motor fuels taxes upon
the motor fuel distributor who first receives the fuel in Idaho.
Section 1 is a statement of legislative intent. Section 2 imposes
both the tax on gasoline and the tax on special fuel directly on
the distributor. Sections 3 through 12 make several required
conforming changes. Section 13 provides a retroactive effective
date of July 1, 1996. Section 14 is a severability clause.
FISCAL IMPACT
This bill is intended to stop the annual estimated revenue loss of
$1.6 million motor fuel tax revenue resulting from the Goodman Oil
decision. Without this bill, this loss is expected to grow.
Contact
Name: Rep. Frank Bruneel
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE Bill No. H 732