2003 Legislation
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SENATE CONCURRENT RESOLUTION NO. 102 – Sales tax & exemptions, study

SENATE CONCURRENT RESOLUTION NO. 102

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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

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                       IN 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 / Fiscal Impact


                       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