2003 Legislation
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HOUSE BILL NO. 192 – Sales tax, resort county

HOUSE BILL NO. 192

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Daily Data Tracking History



H0192..................................................by REVENUE AND TAXATION
SALES TAX - RESORT COUNTY - Repeals and adds to existing law to provide for a
resort county sales and use tax.
                                                                        
02/07    House intro - 1st rdg - to printing
02/10    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 192
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO A  RESORT COUNTY SALES TAX; REPEALING CHAPTER 26, TITLE 63,  IDAHO
  3        CODE;  AMENDING TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 26,
  4        TITLE 63, IDAHO CODE, TO PROVIDE LEGISLATIVE FINDINGS, TO PROVIDE A  DEFI-
  5        NITION  OF "RESORT COUNTY," TO PROVIDE AUTHORITY FOR A COUNTY SALES OR USE
  6        TAX, TO CREATE THE COUNTY PROPERTY TAX RELIEF  FUND,  TO  PROVIDE  GENERAL
  7        PROVISIONS  FOR  AN ORDINANCE ASSESSING THE TAX, TO PROVIDE A DISTRIBUTION
  8        FORMULA, TO PROVIDE COORDINATION WITH CITY LOCAL OPTION NONPROPERTY TAXES,
  9        TO PROVIDE FOR COLLECTION AND ADMINISTRATION OF LOCAL OPTION SALES OR  USE
 10        TAXES BY THE STATE TAX COMMISSION AND TO PROVIDE FOR DISTRIBUTION; PROVID-
 11        ING SEVERABILITY; AND DECLARING AN EMERGENCY.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That  Chapter  26, Title 63,  Idaho Code, be, and the same is
 14    hereby repealed.
                                                                        
 15        SECTION 2.  That Title 63, Idaho Code, be, and the same is hereby  amended
 16    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 17    ter 26, Title 63, Idaho Code, and to read as follows:
                                                                        
 18                                      CHAPTER 26
 19                               RESORT COUNTY SALES TAX
                                                                        
 20        63-2601.  LEGISLATIVE FINDINGS. The legislature finds that the increase in
 21    growth of the population of certain resort counties and the  influx  of  great
 22    numbers  of people traveling to those counties for sport, recreation and busi-
 23    ness have created a drain on the resort county infrastructure that is borne to
 24    an inequitable degree by the property owners of the resort county. The  legis-
 25    lature  finds that it is both equitable and desirable to shift this tax burden
 26    in part from the property owners  of  the  resort  county  to  those  visitors
 27    partaking  of the services of the county. The legislature also finds that this
 28    objective must be subject to the approval and supervision of the voters of the
 29    resort county both through their elected officials and through direct input at
 30    the ballot box.
                                                                        
 31        63-2602.  DEFINITION OF RESORT COUNTY. As used in this chapter, a  "resort
 32    county"  is  any  county  having  a population of more than seventeen thousand
 33    (17,000), and which county derives a major portion of its economic  well-being
 34    from  businesses  catering  to  recreational needs and meeting needs of people
 35    traveling to that destination county for an extended period of time, and which
 36    county at a minimum has at least ten percent (10%) of its  workforce  employed
 37    in  recreational employment, which shall mean being employed in North American
 38    Industry Classification  System  (NAICS)  codes  711  (performing  arts),  712
 39    (museums), 713 (amusement parks), 721 (accommodations) and 722 (food service).
                                                                        
                                           2
                                                                        
  1        63-2603.  AUTHORITY  FOR  COUNTY  SALES OR USE TAX. The voters of a resort
  2    county are given the authority to authorize their county government to  adopt,
  3    implement  and  collect  a sales tax or use tax upon all sales, without excep-
  4    tion, that are subject to taxation under chapter 36, title 63, Idaho Code. The
  5    county commissioners of any such resort county are hereby  given  the  freedom
  6    and  authority  to adopt, implement and collect a sales or use tax as provided
  7    herein if approved by the required minimum of sixty percent  (60%)  of  county
  8    voters  voting in an election conducted on the fourth Tuesday in May or on the
  9    first Tuesday after the first Monday in November. No local option sales or use
 10    tax proposal may be presented to resort county voters for approval or  modifi-
 11    cation  for  a  period of fifty-one (51) weeks after an election to approve or
 12    disapprove such tax. The question presented to the voters of a  resort  county
 13    shall  state  the rate of the local sales or use tax, the duration of the tax,
 14    which shall not exceed ten (10) years, and the purpose of the tax.
                                                                        
 15        63-2604.  COUNTY PROPERTY TAX RELIEF FUND. (1)  Any  resort  county  which
 16    implements a sales or use tax pursuant to this chapter shall create and estab-
 17    lish  in  the office of the county treasurer a county property tax relief fund
 18    into which shall be placed a minimum of fifty percent  (50%)  of  any  revenue
 19    received  from the county sales or use tax. On or before the Tuesday following
 20    the first Monday in September of each year, the county treasurer shall  submit
 21    to  the board of county commissioners and the state tax commission a statement
 22    showing the balance in the county property tax relief fund as of  September  1
 23    of that year.
 24        (2)  No  later  than  October  10,  the balance in the county property tax
 25    relief fund, as of September 1, shall be distributed to  the  county  and  any
 26    cities within the county entitled to receive revenues from the county sales or
 27    use tax. Moneys distributed shall be in an amount proportional to the percent-
 28    age that the previous year's property tax portion of the budget subject to the
 29    limitations  of section 63-802, Idaho Code, for the county and each city bears
 30    to the previous year's total property tax portion of the budget subject to the
 31    limitations of section 63-802, Idaho Code, for the county and  all  cities  in
 32    the county.
 33        (3)  The dollar amount subject to the limitations of section 63-802, Idaho
 34    Code,  shall  be the sum of the dollar amount of the portion of property taxes
 35    certified to the board of county commissioners  under  section  63-804,  Idaho
 36    Code,  and  subject to the limitations of section 63-802, Idaho Code, as if no
 37    county property tax relief fund moneys were to be distributed, and the  dollar
 38    amount  to  be received from the property tax relief fund. The division of the
 39    resulting sum by the value subject to taxation is a quotient  that  shall  not
 40    exceed  the  levy  limits  prescribed  by Idaho Code. If these limitations are
 41    exceeded, the board of county commissioners shall reduce any applicable budget
 42    request to comply with this section. The levy set to fund this portion of  the
 43    budget  shall  be calculated based on the budget subject to the limitations of
 44    section 63-802, Idaho Code, less the money to  be  received  from  the  county
 45    property tax relief fund.
                                                                        
 46        63-2605.  GENERAL  PROVISIONS.  Any  ordinance assessing a tax pursuant to
 47    this chapter shall contain a finding by  the  board  of  county  commissioners
 48    based  upon  evidence presented to it that the conditions set forth in section
 49    63-2602, Idaho Code, exist and shall provide the  methods  for  reporting  and
 50    collecting  taxes due. Taxes collected pursuant to any such ordinance shall be
 51    remitted to the county official designated in such  ordinance  or  other  such
 52    official  contracting,  pursuant  to  this chapter, with the county to provide
 53    collection services, and shall constitute revenue of the county available  for
                                                                        
                                           3
                                                                        
  1    any lawful purpose approved by county voters subject to the provisions of this
  2    chapter.  In any election, the ordinance submitted to county voters shall: (1)
  3    state and define the sales or use tax to be approved; (2) state the exact rate
  4    of the tax to be assessed, which in no event shall exceed one percent (1%)  of
  5    the  sales  price of an item subject to taxation; (3)  state the exact purpose
  6    or purposes for which the revenues derived from the sales or use tax shall  be
  7    used; (4) state the manner and formula by which any portion of the tax revenue
  8    collected  shall  be  distributed  to cities within the resort county; and (5)
  9    state the duration of the tax which shall not be in excess of ten (10)  years.
 10    No  tax  shall  be  redefined, no rate shall be increased, no purpose shall be
 11    modified, and no duration shall be extended  without  subsequent  approval  of
 12    county  voters.  The  county clerk of any county adopting an ordinance, or any
 13    amendment thereto,  shall forward a copy of the ordinance or amendment to  the
 14    state controller, the chairman of the state tax commission and the chairman of
 15    the state board of tax appeals.
                                                                        
 16        63-2606.  DISTRIBUTION  FORMULA  --  GENERAL PROVISIONS. (1) At the end of
 17    each fiscal year, county sales or use tax not placed in  the  county  property
 18    tax  relief  fund  shall  be  distributed  to  the cities in the resort county
 19    according to the formula made a part of the ordinance submitted to the  county
 20    voters.
 21        (2)  All  resort  county property tax revenues distributed to a city shall
 22    be subject to the same purpose or purposes as submitted to the  county  voters
 23    as described in section 63-2605, Idaho Code, and for no other purpose.
                                                                        
 24        63-2607.  COORDINATION  WITH  CITY  LOCAL OPTION NONPROPERTY TAXES. In the
 25    event that a city has implemented a resort city local option  nonproperty  tax
 26    as  described in sections 50-1043 through 50-1049, Idaho Code, that city shall
 27    not be entitled to its share of the distribution of resort county sales or use
 28    taxes as described in section 63-2606, Idaho Code.
                                                                        
 29        63-2608.  COLLECTION AND ADMINISTRATION OF LOCAL OPTION SALES OR USE TAXES
 30    BY THE STATE TAX COMMISSION -- DISTRIBUTION. (1) Any resort county  which  has
 31    levied  a  tax  pursuant to section 63-2603, Idaho Code, may contract with the
 32    state tax commission for the collection and administration of  such  taxes  in
 33    like  manner  and  under definitions and rules of the state tax commission for
 34    the collection and administration of the state sales or use tax under  chapter
 35    36,  title 63, Idaho Code. A county which levies such tax shall have the right
 36    to review and audit the records of collection thereof maintained by  the  com-
 37    mission and the returns of taxpayers relating to such tax. Alternatively, such
 38    county shall have authority to administer and collect such tax.
 39        (2)  All  revenues  collected by the state tax commission pursuant to sec-
 40    tion 63-2603, Idaho Code, shall be distributed as follows:
 41        (a)  An amount of money shall be distributed to the state refund fund suf-
 42        ficient to pay current refund claims. All refunds authorized by  the  com-
 43        mission  to  be paid shall be paid through the state refund fund and those
 44        moneys are continuously appropriated.
 45        (b)  An amount of money equal to such fee as may be  agreed  upon  between
 46        the  state  tax commission and such county for the actual cost of the col-
 47        lection and administration of the tax. The amount retained by the  commis-
 48        sion  shall  not exceed the amount authorized to be expended by appropria-
 49        tion by the legislature. Any unencumbered balance in excess of the  actual
 50        cost  at  the  end of each fiscal year shall be distributed as provided in
 51        subsection (2)(c) of this section.
 52        (c)  All remaining moneys received  pursuant  to  this  chapter  shall  be
                                                                        
                                           4
                                                                        
  1        placed  in  a fund designated by the state controller and remitted monthly
  2        to the county levying such sales or use tax.
                                                                        
  3        SECTION 3.  SEVERABILITY.  The provisions of this act are hereby  declared
  4    to  be  severable  and if any provision of this act or the application of such
  5    provision to any person or circumstance is declared invalid  for  any  reason,
  6    such  declaration  shall  not affect the validity of the remaining portions of
  7    this act.
                                                                        
  8        SECTION 4.  An emergency existing  therefor,  which  emergency  is  hereby
  9    declared to exist, this act shall be in full force and effect on and after its
 10    passage and approval.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 12657C2
This legislation authorizes certain resort counties to adopt
local option sales taxes and to implement and collect such tax. 
The bill requires that the measure 1)be put to the voters and
obtain a minimum of 60% approval, 2)set forth the specific
purpose, 3)be set for a period of time, 10 years or less, & 4)set
forth the rate of taxation and that rate shall not exceed 1%. 
This bill potentially mitigates the financial impact upon the
taxpayers of counties which are subject to significant tourist
and transient demand for services.  The measure allows for county
commissioners in such counties to propose to the voter the
opportunity for an additional sales tax.  Not less than 50% of
the revenue generated would be applied to reduce existing
property taxes and the balance of such revenues used to provide
needed services, which would otherwise be paid for by general
fund revenues. 
                          FISCAL IMPACT
There is no impact to the state of Idaho as a result of this
legislation.  Should the voters in a resort county pass a local
option sales tax, property taxes would be reduced by one-half of
the additional tax collected with the balance applied to the
specific purpose indicated. 
Contact
Name: Senator John Goedde and Senator Dick Compton 
Rep. Hilde Kellogg and Rep. Tim Ridinger
Phone (208)332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                    H 192