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H0077..................................................by REVENUE AND TAXATION
SALES TAX - Amends existing law relating to sales tax to provide for the
administrative review of a denial of an application for a seller's permit; to
provide that the annual use of certain interstate vehicles shall be measured
based upon the vehicle's annual registration period under the international
plan rather than on a calendar year; and to delete the requirement that
certain exempt aircraft must be registered under the law of another state or
nation.
01/15 House intro - 1st rdg - to printing
01/16 Rpt prt - to Rev/Tax
01/20 Rpt out - rec d/p - to 2nd rdg
01/21 2nd rdg - to 3rd rdg
01/22 3rd rdg - PASSED - 67-0-3
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones,
Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin,
McKague, Miller, Mitchell, Moyle, Nacarrato, Nielsen, Raybould,
Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass,
Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Deal, Meyer, Schaefer
Floor Sponsor - Cuddy
Title apvd - to Senate
01/23 Senate intro - 1st rdg - to Loc Gov
01/28 Rpt out - rec d/p - to 2nd rdg
01/29 2nd rdg - to 3rd rdg
01/30 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Bunderson, Burkett, Calabretta, Cameron,
Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram,
Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
Noble, Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett,
Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Brandt, Burtenshaw
Floor Sponsor - Gannon
Title apvd - to House
01/30 To enrol
01/31 Rpt enrol - Sp signed
02/03 Pres signed
02/04 To Governor
02/10 Governor signed
Session Law Chapter 9
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 77
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES AND USE TAX; AMENDING SECTION 63-3620, IDAHO CODE, TO
3 PROVIDE ADMINISTRATIVE REVIEW OF DENIAL OF AN APPLICATION FOR A SELLER'S
4 PERMIT AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 63-3622R,
5 IDAHO CODE, TO PROVIDE THAT THE ANNUAL USE OF CERTAIN INTERSTATE VEHICLES
6 SHALL BE MEASURED BASED ON THE VEHICLE'S ANNUAL REGISTRATION PERIOD UNDER
7 THE INTERNATIONAL PLAN RATHER THAN ON A CALENDAR YEAR AND TO MAKE A TECH-
8 NICAL CORRECTION; AND AMENDING SECTION 63-3622GG, IDAHO CODE, TO DELETE
9 THE REQUIREMENT THAT CERTAIN EXEMPT AIRCRAFT MUST BE REGISTERED UNDER THE
10 LAW OF ANOTHER STATE OR NATION.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 63-3620, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-3620. PERMITS -- ISSUANCE -- REVOCATION -- PENALTIES. (a) Every
15 retailer engaged in business in this state, before conducting business within
16 this state, shall file with the state tax commission an application for a
17 seller's permit. Every application for a permit shall be made upon a form pre-
18 scribed by the state tax commission and shall set forth the name under which
19 the applicant transacts or intends to transact business, the location of his
20 place or places of business, and such other information as the state tax com-
21 mission may require. The applications, or any information contained thereon,
22 may be made available by the tax commission to authorized representatives of
23 state or federal agencies. The application shall be signed by the owner if he
24 is a natural person or by an individual authorized by the seller to sign the
25 application. Except as provided in subsection (f) of this section, permits
26 shall be issued without charge.
27 (b) The state tax commission, for the efficient administration of this
28 chapter, may issue:
29 (1) Temporary seller's permits. No retailer shall be issued more than
30 three (3) temporary permits in one (1) calendar year. A temporary permit
31 shall be valid only for the period of time shown on the face thereof.
32 (2) Wholesaler's permits to persons who are not retailers but who pur-
33 chase tangible personal property for resale. A wholesaler's permit shall
34 be valid for no more than twelve (12) consecutive months and may be
35 renewed by the commission.
36 (c) The person signing the application shall certify that the applicant
37 will actively engage in or conduct a business making sales subject to tax
38 under this chapter.
39 (d) After compliance by the applicant with the requirements set out above
40 and in section 63-3625, Idaho Code, the state tax commission shall grant and
41 issue to each applicant a permit. A permit shall not be assignable, and shall
42 be valid only for the person in whose name it is issued. The permit or a copy
43 thereof shall at all times be conspicuously displayed at each place where the
2
1 person to whom it is issued conducts business.
2 (e) A seller whose permit has been previously suspended or revoked shall
3 pay the state tax commission a fee of ten dollars ($10.00) for the renewal or
4 issuance of a permit in the event of a first revocation and twenty-five dol-
5 lars ($25.00) for renewal after each successive revocation unless the suspen-
6 sion or revocation is for inactivity pursuant to section 63-3620A, Idaho Code.
7 (f) Whenever any person fails to comply with any provision of this chap-
8 ter relating to the sales tax or any rules of the state tax commission relat-
9 ing to the sales tax prescribed and adopted under this chapter, the state tax
10 commission may revoke or suspend any one (1) or more of the permits held by
11 the person or may deny a new permit to such person. Notice of revocation or
12 denial shall be given in the manner provided for deficiencies in taxes in sec-
13 tion 63-3629, Idaho Code, which shall be subject to review as provided in sec-
14 tion 63-3631, Idaho Code. The state tax commission shall not issue a new per-
15 mit after the revocation of a permit unless the commission is satisfied that
16 the former holder of the permit will comply with the provisions of this chap-
17 ter relating to the sales tax and the rules of the state tax commission.
18 (g) A person who engages in business as a seller in this state without a
19 permit or permits, or after a permit has been suspended, and each officer of
20 any corporation which so engages in business is guilty of a misdemeanor pun-
21 ishable by a fine not in excess of one hundred dollars ($100), and each day
22 shall constitute a separate offense.
23 SECTION 2. That Section 63-3622R, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 63-3622R. MOTOR VEHICLES, USED MANUFACTURED HOMES, VESSELS, ALL-TERRAIN
26 VEHICLES, TRAILERS, OFF-ROAD MOTORCYCLES AND SNOWMOBILES. There are exempted
27 from the taxes imposed by this chapter:
28 (a) Sales to nonresidents of motor vehicles, trailers, vessels, all-
29 terrain vehicles (ATVs), motorcycles intended for off-road use and snowmo-
30 biles, for use outside of this state even though delivery be made within this
31 state, but only when:
32 (1) The motor vehicles, vessels, ATVs, motorcycles intended for off-road
33 use, snowmobiles or trailers will be taken from the point of delivery in
34 this state directly to a point outside this state; and
35 (2) The motor vehicles, vessels, ATVs, motorcycles intended for off-road
36 use, snowmobiles and trailers will be registered immediately under the
37 laws of another state, will be titled in another state if required to be
38 titled in that state, will not be used in this state more than sixty (60)
39 days in any twelve (12) month period, and will not be required to be
40 titled under the laws of this state.
41 (3) For the purpose of this subsection (a), the term "all-terrain vehi-
42 cle" or "ATV" means any recreational vehicle with two (2) or more tires,
43 weighing under six hundred fifty (650) pounds, less than forty-eight (48)
44 inches in width, traveling on low-pressure tires of less than seven (7)
45 psi, and designed to be ridden by one (1) person.
46 (4) For the purpose of this section, the term "vessel" means any boat
47 intended to carry one (1) or more persons upon the water which is either:
48 (i) Sold together with a motor, or
49 (ii) Eleven (11) feet in length or more, but shall not include
50 canoes, kayaks or inflatable boats, unless such canoes, kayaks or in-
51 flatable boats are sold together with a motor.
52 (b) Sale of used manufactured homes, whether or not such used manufac-
53 tured homes are sold for use outside this state, and whether or not such used
3
1 manufactured homes are sold by a dealer. Every manufactured home sale after
2 its sale as a "new manufactured home," as defined in section 63-3606, Idaho
3 Code, is a sale as a used manufactured home.
4 (c) Sale or lease of motor vehicles with a maximum gross registered
5 weight over twenty-six thousand (26,000) pounds, which shall be immediately
6 registered under the international registration plan or similar proportional
7 or pro rata registration system, whether or not base plated in Idaho, and the
8 sale or lease of trailers which are part of a fleet of vehicles registered
9 under such proportional or pro rata registration system when such vehicles
10 and trailers are substantially used in interstate commerce. If such a motor
11 vehicle or trailer is not substantially used in interstate commerce during any
12 calendar year annual registration period under the international registration
13 plan, it shall be deemed used in Idaho and subject to the use tax under sec-
14 tion 63-3621, Idaho Code. For the purpose of this subsection, "substantially
15 used in interstate commerce" means that the vehicles or trailers will be part
16 of a fleet with a minimum of ten percent (10%) of the miles operated by the
17 fleet accrued outside of Idaho in any calendar year annual registration period
18 under the international registration plan.
19 (d) The use or other consumption of a motor vehicle temporarily donated
20 to a driver's education program sponsored by a nonprofit educational institu-
21 tion as defined in section 63-3622O, Idaho Code.
22 SECTION 3. That Section 63-3622GG, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 63-3622GG. AIRCRAFT. There is exempted from the taxes imposed by this
25 chapter:
26 (1) The sale, lease, purchase, or use of aircraft primarily used to
27 transport passengers or freight for hire. This exemption includes repair and
28 replacement materials and parts installed in or affixed or applied to, or
29 sold, leased or purchased to be installed in or affixed or applied to, air-
30 craft in connection with the remodeling, repair or maintenance of such air-
31 craft, but does not include tools and equipment utilized in performing such
32 remodeling, repair or maintenance;
33 (2) The sale, lease or purchase of aircraft for use outside this state by
34 nonresidents, even though delivery be made within this state, but only when:
35 (a) The aircraft will be taken from the point of delivery to a point out-
36 side this state;
37 (b) The aircraft will be registered immediately in another state or
38 nation and not required to be registered under the laws of this state; and
39 (c) The aircraft will not be used in this state more than ninety (90)
40 days in any twelve (12) month period.
STATEMENT OF PURPOSE
RS 12396
This bill makes three corrections and updates to the Idaho Sales
Tax Act.
Provides administrative review of denial of an application for a
seller's permit.
The proportion of out of state use by interstate vehicles
registered under the International Registration Plan shall be
measured based on the vehicle's annual registration period rather,
than on a calendar year.
The requirement that certain exempt aircraft must be registered
under the law of another state or nation is stricken.
FISCAL IMPACT
No fiscal effect.
CONTACT
Name: Dan John / Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
Statement of Purpose/Fiscal Impact H77