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SCR102........................................................by STATE AFFAIRS SALES TAX - STUDY - Stating findings of the Legislature and authorizing the Legislative Council to appoint a committee to study all aspects of the state's sales and use tax structure and to analyze all the sales tax exemptions. 02/10 Senate intro - 1st rdg - to printing 02/11 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE SENATE SENATE CONCURRENT RESOLUTION NO. 102 BY STATE AFFAIRS COMMITTEE 1 A CONCURRENT RESOLUTION 2 STATING FINDINGS OF THE LEGISLATURE AND AUTHORIZING THE LEGISLATIVE COUNCIL TO 3 APPOINT A COMMITTEE TO UNDERTAKE AND COMPLETE A STUDY OF TAXATION MATTERS 4 REGARDING THE SALES AND USE TAX. 5 Be It Resolved by the Legislature of the State of Idaho: 6 7 WHEREAS, when the sales and use tax was first enacted in 1965, the rate 8 was three percent and there were seventeen exemptions to the tax; and 9 WHEREAS, today the sales and use tax rate is five percent and the number 10 of exemptions to the tax total forty different Idaho Code sections; and 11 WHEREAS, for many years the state's citizens enjoyed a balanced tax system 12 which included components of the sales tax, individual income tax and corpo- 13 rate income tax; and 14 WHEREAS, because of a variety of factors, changes in state tax policy as 15 well as federal changes in tax policy, the tax structure in place today has 16 become seriously out of balance; and 17 WHEREAS, this imbalance has caused a fiscal crisis of the highest order 18 for the state; and 19 WHEREAS, it is apparent that short-term or emergency reactions to the fis- 20 cal crisis result in ill-considered, piecemeal and counterproductive tax mea- 21 sures; and 22 WHEREAS, many sales tax exemptions have been enacted by the Legislature 23 over the past three decades and these need to be examined to determine their 24 relevance in today's global economy; and 25 WHEREAS, it is the desire of this Legislature that a tax structure should 26 encourage economic development, and not hinder it. 27 NOW, THEREFORE, BE IT RESOLVED by the members of the First Regular Session 28 of the Fifty-seventh Idaho Legislature, the Senate and the House of Represen- 29 tatives concurring therein, that the Legislative Council is authorized to 30 appoint a committee to undertake and complete a study of all aspects of the 31 state's sales and use tax structure, with the goal of the committee's recom- 32 mendation being to develop a strategy to implement a sales and use tax struc- 33 ture over the succeeding years that is fair and balanced in its application 34 and effect, meets the revenue needs of the state, and encourages and assists 35 economic development. Further, the Committee is to analyze all of the sales 36 tax exemptions in statute, which analysis shall include a statement of the 37 public purpose of the original enactment of the tax exemption, the amount of 38 money the tax exemption represents, the affected taxpayers that would pay 39 additional taxes if the exemption were to be repealed or amended and the pub- 40 lic benefits or detriments that would result if the exemption were to be 41 repealed or amended. The Legislative Council shall determine the number of 42 legislators and membership from each house appointed to the committee and 43 shall authorize the committee to receive input, advice and assistance from 44 interested and affected parties who are not members of the Legislature. 45 BE IT FURTHER RESOLVED that the committee shall report its findings, rec- 2 1 ommendations and proposed legislation, if any, to the Second Regular Session 2 of the Fifty-seventh Idaho Legislature.
STATEMENT OF PURPOSE RS 12833 The purpose of this concurrent resolution is to direct the Legislative Council to appoint an interim committee to complete a study of the Idaho sales tax system and associated sales tax exemptions. The committee will report its findings, recommendations, and proposed legislation, if any, to the Second Regular Session of the Fifty-seventh Idaho Legislature FISCAL IMPACT The amount of money expended by the Legislative account will depend on the number of legislators, where they reside, and the number of meetings. It is anticipated that this interim committee will cost the Legislative account no more than $10,000. Contact Name: Senator Elliot Werk Phone: 332-1406 STATEMENT OF PURPOSE/FISCAL NOTE Bill No. SCR 102