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H0452...............................................by REVENUE AND TAXATION
CONTRACTS - Adds to existing law to provide an exemption, for certain
contracts entered into prior to the effective date of the increased sales
tax, for the additional one cent sales tax.
04/28 House intro - 1st rdg - to printing
Rpt prt - to 2nd rdg
04/29 2nd rdg - to 3rd rdg
05/03 3rd rdg - PASSED - 62-0-8
AYES -- Andersen(Guyon), Barraclough(Schanz), Barrett, Bauer, Bedke,
Bell, Black, Block, Boe, Bolz, Campbell, Cannon, Collins, Crow,
Cuddy, Deal, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
Kulczyk, Lake, Langford, Langhorst, McGeachin, McKague, Meyer,
Miller, Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo,
Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Tilman,
Trail, Wills, Mr. Speaker
NAYS -- None
Absent and excused -- Bieter, Bradford, Clark, Denney, Field(23),
Martinez(Echohawk), Mitchell, Wood
Floor Sponsor - Bolz
Title apvd - to Senate
05/03 Senate intro - 1st rdg - to Loc Gov
Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 35-0-0
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
Marley, McKenzie, McWilliams, Noble, Noh, Pearce(Banner), Richardson,
Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Ingram
Title apvd - to House
05/05 To enrol - Rpt enrol - Sp signed
Pres signed - To Governor
05/15 Governor signed
Session Law Chapter 381
Effective: 04/24/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 452
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-3640, IDAHO CODE, TO PROVIDE FOR CON-
4 TRACTS ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THE INCREASED SALES AND
5 USE TAX; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is
8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
9 ignated as Section 63-3640, Idaho Code, and to read as follows:
10 63-3640. CONTRACTS ENTERED INTO BEFORE EFFECTIVE DATE OF INCREASED TAX.
11 (1) Commencing May 1, 2003, and ending June 30, 2005, the purchase, use, stor-
12 age or other consumption of tangible personal property which is otherwise sub-
13 ject to the taxes imposed by this chapter by persons defined in section
14 63-3609(a), Idaho Code, shall be exempt from one cent (1) of the taxes
15 imposed by sections 63-3619 and 63-3621, Idaho Code, if:
16 (a) The tangible personal property is purchased, used, stored or other-
17 wise consumed for incorporation into real property; and
18 (b) The tangible personal property is purchased, used, stored or other-
19 wise consumed in regard to a project performed by such person pursuant to
20 a qualified contract; and
21 (c) The taxpayer claims the exemption in the manner provided by subsec-
22 tion (3) of this section.
23 (2) As used in this section, the term "qualified contract" means a con-
24 tract which:
25 (a) Is a written contract; and
26 (b) Was in effect on April 15, 2003, or was submitted for bid or bid in
27 written form on or before April 15, 2003, and subsequently became a writ-
28 ten contract; and
29 (c) Was negotiated or bid based upon the sales or use tax being five per-
30 cent (5%); and
31 (d) Requires the cost of the sales or use tax to be borne by the contrac-
32 tor.
33 (3) A person entitled to the exemption granted in subsection (1) of this
34 section may submit a claim for refund to the state tax commission for the
35 amount of one cent (1) of the tax imposed by sections 63-3619 and 63-3621,
36 Idaho Code, if it has actually been paid by him. The claim for refund shall
37 include:
38 (a) A copy of a written contract which is a qualified contract; and
39 (b) A detailed invoice prepared by the seller showing all items of tangi-
40 ble personal property purchased by the claimant, the sale of which is sub-
41 ject to the exemption granted in subsection (1) of this section; and
42 (c) A document signed by the purchaser certifying that the tangible per-
43 sonal property shown on the invoice required by subsection (3)(b) of this
2
1 section has in fact been used by him on the project to which the qualified
2 contract relates.
3 (4) Upon receipt of the claim for refund, the state tax commission shall
4 review the claim and, if it finds it to be proper, shall pay the refund
5 together with interest from the date that the claim was filed at the rate
6 established by section 63-3045, Idaho Code, within thirty (30) days from the
7 date the claim was received by the commission.
8 (5) The use or incorporation into real property of any tangible personal
9 property upon which the exemption provided by subsection (1) of this section
10 has been claimed pursuant to any contract other than a qualified contract
11 shall be a misdemeanor.
12 (6) In addition to the criminal penalties provided by subsection (5) of
13 this section, the use or incorporation into real property of tangible personal
14 property upon which the exemption provided by subsection (1) of this section
15 has been claimed pursuant to any contract which is not a qualified contract
16 shall subject the user to a penalty of three (3) times the sales or use tax
17 otherwise due under this chapter to be enforced and collected as provided by
18 sections 63-3634 and 63-3635, Idaho Code.
19 (7) In the case of a retailer who makes sales of tangible personal prop-
20 erty to any person entitled to the exemption granted in subsection (1) of this
21 section who is for any reason unable to collect one cent (1) of the tax
22 imposed by sections 63-3619 and 63-3621, Idaho Code, from the purchaser, the
23 retailer shall be entitled to claim the refund otherwise available to the pur-
24 chaser. The claim for refund shall be filed in the manner prescribed by sub-
25 section (3) of this section. Nothing in this subsection shall excuse the
26 retailer from reporting sales and use taxes at the full statutory rate on all
27 taxable sales made during the period to which his sales or use tax return
28 relates. If a refund claim is filed concurrently with the return, the refund
29 claimed may be credited against the tax due on the return. Any retailer who
30 claims a refund for any taxes actually collected from the purchaser shall be
31 subject to a penalty of three (3) times the sales or use tax refund improperly
32 claimed to be enforced and collected as provided by sections 63-3634 and
33 63-3635, Idaho Code.
34 SECTION 2. An emergency existing therefor, which emergency is hereby
35 declared to exist, this act shall be in full force and effect on and after its
36 passage and approval, and retroactively to April 24, 2003.
STATEMENT OF PURPOSE
RS 13320
The purpose of this legislation is to provide for an exemption of
the additional one percent sales tax on contracts entered into
agreement prior to May 1, 2003.
FISCAL IMPACT
Reduce the general fund by $6 million to $9 million
Contact
Name: Representative Bolz
Phone: (208)332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 452