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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 - 2002IN 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 of19782002." 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 FORRESORTCITY RESIDENTS TO APPROVE ANDRESORTCITY 28 GOVERNMENTS TO ADOPT, IMPLEMENT, AND COLLECT CERTAIN CITY NONPROPERTY TAXES. 29 The voters of anyresortcitywith a population not in excess of ten thousand30(10,000) according to the most recent censuswithin 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 the35major portion of its economic well-being from businesses catering to recre-36ational needs and meeting needs of people traveling to that destination city37for an extended period of time.The corporate authorities of any suchresort38 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 1resortcity voters for approval or modification for a period of one (1) year 2 after an election to approve or disapprove such tax. The electionmayshall be 3 aspecialcity election conducted for theexclusivepurpose of approving or 4 disapproving such tax,or mayand 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. Anyresortcity 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. Anyresortcity 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 SIXTYPER CENT25 PERCENT MAJORITY VOTE. A sixtyper centpercent (60%) majority of the voters 26 of anyresortcity 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 liquorby-the-drinkby 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 aresortcity local-option nonproperty tax 39 as described in sections 50-1044 through 50-1049, Idaho Code,or in sections4050-1050 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