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H0428.....................................................by WAYS AND MEANS
SALES TAX - COUNTY LOCAL OPTION - Amends existing law to provide
legislative findings; to provide authority for a county sales or use tax;
to create the county property tax relief fund; to provide general
provisions for an ordinance assessing the tax; to provide for collection
and administration of local option sales or use taxes by the State Tax
Commission; and to provide for distribution.
04/25 House intro - 1st rdg - to printing
04/28 Rpt prt - to 2nd rdg
04/29 2nd rdg - to 3rd rdg
04/30 3rd rdg - PASSED - 38-32-0
AYES -- Andersen(Guyon), Barraclough(Schanz), Bieter, Black, Block,
Boe, Campbell, Cuddy, Deal, Douglas, Eberle, Eskridge, Gagner,
Garrett, Henbest, Jaquet, Jones(Jones), Kellogg, Langhorst,
Martinez(Echohawk), Meyer, Miller, Mitchell, Naccarato, Nielsen,
Ridinger, Ring, Ringo, Robison, Rydalch, Sayler, Shepherd(Buell),
Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills
NAYS -- Barrett, Bauer, Bedke, Bell, Bolz, Bradford, Cannon, Clark,
Collins, Crow, Denney, Edmunson, Ellsworth, Field(18), Field(23),
Harwood, Kulczyk, Lake, Langford, McGeachin, McKague, Moyle,
Raybould, Roberts, Sali, Schaefer, Shirley, Skippen, Stevenson,
Tilman, Wood, Mr. Speaker
Absent and excused -- None
Floor Sponsors - Kellogg, Ridinger, Meyer,
Eberle, Douglas, & Sayler
Title apvd - to Senate
04/30 Senate intro - 1st rdg - to Loc Gov
05/01 Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 22-12-1
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Calabretta,
Compton, Gannon, Goedde, Ingram, Kennedy, Keough, Little, Malepeai,
Marley, McWilliams, Noh, Richardson, Schroeder, Stegner, Stennett,
Werk
NAYS -- Burtenshaw, Cameron, Darrington, Davis, Geddes, Hill, Lodge,
McKenzie, Pearce(Banner), Sorensen, Sweet, Williams
Absent and excused -- Noble
Floor Sponsors - Goedde & Compton
Title apvd - to House
05/01 To enrol - Rpt enrol - Sp signed - Pres signed
05/02 To Governor
05/08 Governor signed
Session Law Chapter 363
Effective: 05/08/03;
12/31/09 Sunset Clause
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 428
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO A COUNTY SALES TAX; REPEALING CHAPTER 26, TITLE 63, IDAHO CODE;
3 AMENDING TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 26, TITLE
4 63, IDAHO CODE, TO PROVIDE LEGISLATIVE FINDINGS, TO PROVIDE AUTHORITY FOR
5 A COUNTY SALES OR USE TAX, TO CREATE THE COUNTY PROPERTY TAX RELIEF FUND,
6 TO PROVIDE GENERAL PROVISIONS FOR AN ORDINANCE ASSESSING THE TAX, TO PRO-
7 VIDE FOR COLLECTION AND ADMINISTRATION OF LOCAL OPTION SALES OR USE TAXES
8 BY THE STATE TAX COMMISSION AND TO PROVIDE FOR DISTRIBUTION; PROVIDING
9 SEVERABILITY; DECLARING AN EMERGENCY AND PROVIDING A SUNSET CLAUSE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Chapter 26, Title 63, Idaho Code, be, and the same is
12 hereby repealed.
13 SECTION 2. That Title 63, Idaho Code, be, and the same is hereby amended
14 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
15 ter 26, Title 63, Idaho Code, and to read as follows:
16 CHAPTER 26
17 COUNTY SALES TAX
18 63-2601. LEGISLATIVE FINDINGS. The legislature hereby finds that the
19 increase in growth of the population of certain counties and the influx of
20 great numbers of people traveling to those counties for sport, recreation and
21 business have created a drain on the county infrastructure that is borne to
22 an inequitable degree by the property owners of those counties. The legisla-
23 ture finds that it is both equitable and desirable to shift this tax burden in
24 part from the property owners of the county to those visitors partaking of the
25 services of the county. The legislature also finds that this objective must be
26 subject to the approval and supervision of the voters of the county both
27 through their elected officials and through direct input at the ballot box.
28 63-2602. AUTHORITY FOR COUNTY SALES OR USE TAX. The voters of a county
29 are given the authority to authorize their county government to adopt, imple-
30 ment and collect a sales tax or use tax upon all sales, without exception,
31 that are subject to taxation under chapter 36, title 63, Idaho Code. The
32 county commissioners of any such county are hereby given the freedom and
33 authority to adopt, implement and collect a sales or use tax as provided
34 herein if approved by the required minimum of sixty-six and two-thirds percent
35 (66 2/3%) of county voters voting in an election conducted on the fourth Tues-
36 day in May or on the first Tuesday after the first Monday in November. No
37 local option sales or use tax proposal may be presented to county voters for
38 approval or modification for a period of fifty-one (51) weeks after an elec-
39 tion to approve or disapprove such tax. The question presented to the voters
40 of a county shall state the rate of the local sales or use tax, the duration
2
1 of the tax, which shall not exceed ten (10) years, and the purposes of the tax
2 which shall be county property tax relief and debt retirement for expansion of
3 detention facilities.
4 63-2603. COUNTY PROPERTY TAX RELIEF FUND. (1) Any county which imple-
5 ments a sales or use tax pursuant to this chapter shall create and establish
6 in the office of the county treasurer a county property tax relief fund into
7 which shall be placed a minimum of fifty percent (50%) of any revenue received
8 from the county sales or use tax. On or before the Tuesday following the first
9 Monday in September of each year, the county treasurer shall submit to the
10 board of county commissioners and the state tax commission a statement showing
11 the balance in the county property tax relief fund as of September 1 of that
12 year.
13 (2) No later than October 10, the balance in the county property tax
14 relief fund, as of September 1, shall be distributed to the county and any
15 cities within the county entitled to receive revenues from the county sales or
16 use tax. Moneys distributed shall be in an amount proportional to the percent-
17 age that the previous year's property tax portion of the budget subject to the
18 limitations of section 63-802, Idaho Code, for the county and each city bears
19 to the previous year's total property tax portion of the budget subject to the
20 limitations of section 63-802, Idaho Code, for the county and all cities in
21 the county.
22 (3) The dollar amount subject to the limitations of section 63-802, Idaho
23 Code, shall be the sum of the dollar amount of the portion of property taxes
24 certified to the board of county commissioners under section 63-804, Idaho
25 Code, and subject to the limitations of section 63-802, Idaho Code, as if no
26 county property tax relief fund moneys were to be distributed, and the dollar
27 amount to be received from the property tax relief fund. The division of the
28 resulting sum by the value subject to taxation is a quotient that shall not
29 exceed the levy limits prescribed by Idaho Code. If these limitations are
30 exceeded, the board of county commissioners shall reduce any applicable budget
31 request to comply with this section. The levy set to fund this portion of the
32 budget shall be calculated based on the budget subject to the limitations of
33 section 63-802, Idaho Code, less the money to be received from the county
34 property tax relief fund.
35 63-2604. GENERAL PROVISIONS. Any ordinance assessing a tax pursuant to
36 this chapter shall contain a finding by the board of county commissioners
37 based upon evidence presented to it that the conditions set forth in section
38 63-2601, Idaho Code, exist and shall provide the methods for reporting and
39 collecting taxes due. Taxes collected pursuant to any such ordinance shall be
40 remitted to the county official designated in such ordinance or other such
41 official contracting, pursuant to this chapter, with the county to provide
42 collection services, and shall constitute revenue of the county available for
43 county property tax relief and debt retirement for expansion of detention
44 facilities. In any election, the ordinance submitted to county voters shall:
45 (1) state and define the sales or use tax to be approved; (2) state the exact
46 rate of the tax to be assessed, which in no event shall exceed five-tenths of
47 one percent (0.5%) of the sales price of an item subject to taxation; (3)
48 state that the revenues derived from the sales or use tax shall be used for
49 county property tax relief and debt retirement for expansion of detention
50 facilities; (4) state the duration of the tax which shall not be in excess of
51 ten (10) years or the date the obligation has been met for the project for
52 which the sales and use tax was passed pursuant to this chapter, whichever
53 occurs first. The county clerk of any county adopting an ordinance, or any
3
1 amendment thereto, shall forward a copy of the ordinance or amendment to the
2 state controller, the chairman of the state tax commission and the chairman of
3 the state board of tax appeals.
4 63-2605. COLLECTION AND ADMINISTRATION OF LOCAL OPTION SALES OR USE TAXES
5 BY THE STATE TAX COMMISSION -- DISTRIBUTION. (1) Any county which has levied
6 a tax pursuant to section 63-2602, Idaho Code, may contract with the state tax
7 commission for the collection and administration of such taxes in like manner
8 and under definitions and rules of the state tax commission for the collection
9 and administration of the state sales or use tax under chapter 36, title 63,
10 Idaho Code. A county which levies such tax shall have the right to review and
11 audit the records of collection thereof maintained by the commission and the
12 returns of taxpayers relating to such tax. Alternatively, such county shall
13 have authority to administer and collect such tax.
14 (2) All revenues collected by the state tax commission pursuant to sec-
15 tion 63-2602, Idaho Code, shall be distributed as follows:
16 (a) An amount of money shall be distributed to the state refund fund suf-
17 ficient to pay current refund claims. All refunds authorized by the com-
18 mission to be paid shall be paid through the state refund fund and those
19 moneys are continuously appropriated.
20 (b) An amount of money equal to such fee as may be agreed upon between
21 the state tax commission and such county for the actual cost of the col-
22 lection and administration of the tax. The amount retained by the commis-
23 sion shall not exceed the amount authorized to be expended by appropria-
24 tion by the legislature. Any unencumbered balance in excess of the actual
25 cost at the end of each fiscal year shall be distributed as provided in
26 subsection (2)(c) of this section.
27 (c) All remaining moneys received pursuant to this chapter shall be
28 placed in a fund designated by the state controller and remitted monthly
29 to the county levying such sales or use tax.
30 SECTION 3. SEVERABILITY. The provisions of this act are hereby declared
31 to be severable and if any provision of this act or the application of such
32 provision to any person or circumstance is declared invalid for any reason,
33 such declaration shall not affect the validity of the remaining portions of
34 this act.
35 SECTION 4. An emergency existing therefor, which emergency is hereby
36 declared to exist, this act shall be in full force and effect on and after its
37 passage and approval, and shall be null, void and of no force and effect on
38 and after December 31, 2009.
STATEMENT OF PURPOSE
RS l3305C2
This legislation authorizes 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
66 2/3% approval, 2)be used for the specific purpose of debt
retirement of detention facilities, 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 .5%. 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. The
measure sunsets on December 31, 2009.
FISCAL IMPACT
There is no impact to the State of Idaho as a result of this
legislation. Counties whose voters approve such a measure will
enjoy a reduction in property taxes while paying higher sales
tax.
Contact
Name: Representative Tim Ridinger, Senators John Goedde, Dick
Compton & Kent Bailey, Representatives Hilde Kellogg, Wayne
Meyer, Charles Eberle, Bonnie Douglas, George Sayler
Phone: 332 1340
STATEMENT OF PURPOSE/FISCAL NOTE H 428