2003 Legislation
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HOUSE BILL NO. 77 – Sales tax, seller’s permit

HOUSE BILL NO. 77

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Daily Data Tracking History



H0077..................................................by REVENUE AND TAXATION
SALES TAX - Amends existing law relating to sales tax to provide for the
administrative review of a denial of an application for a seller's permit; to
provide that the annual use of certain interstate vehicles shall be measured
based upon the vehicle's annual registration period under the international
plan rather than on a calendar year; and to delete the requirement that
certain exempt aircraft must be registered under the law of another state or
nation.
                                                                        
01/15    House intro - 1st rdg - to printing
01/16    Rpt prt - to Rev/Tax
01/20    Rpt out - rec d/p - to 2nd rdg
01/21    2nd rdg - to 3rd rdg
01/22    3rd rdg - PASSED - 67-0-3
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Crow, Cuddy, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones,
      Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin,
      McKague, Miller, Mitchell, Moyle, Nacarrato, Nielsen, Raybould,
      Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
      Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass,
      Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Deal, Meyer, Schaefer
    Floor Sponsor - Cuddy
    Title apvd - to Senate
01/23    Senate intro - 1st rdg - to Loc Gov
01/28    Rpt out - rec d/p - to 2nd rdg
01/29    2nd rdg - to 3rd rdg
01/30    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Bailey, Bunderson, Burkett, Calabretta, Cameron,
      Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram,
      Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
      Noble, Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett,
      Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Brandt, Burtenshaw
    Floor Sponsor - Gannon
    Title apvd - to House
01/30    To enrol
01/31    Rpt enrol - Sp signed
02/03    Pres signed
02/04    To Governor
02/10    Governor signed
         Session Law Chapter 9
         Effective: 07/01/03

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 77
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE SALES AND USE TAX; AMENDING SECTION 63-3620,  IDAHO  CODE,  TO
  3        PROVIDE  ADMINISTRATIVE  REVIEW OF DENIAL OF AN APPLICATION FOR A SELLER'S
  4        PERMIT AND TO MAKE A  TECHNICAL  CORRECTION;  AMENDING  SECTION  63-3622R,
  5        IDAHO  CODE, TO PROVIDE THAT THE ANNUAL USE OF CERTAIN INTERSTATE VEHICLES
  6        SHALL BE MEASURED BASED ON THE VEHICLE'S ANNUAL REGISTRATION PERIOD  UNDER
  7        THE  INTERNATIONAL PLAN RATHER THAN ON A CALENDAR YEAR AND TO MAKE A TECH-
  8        NICAL CORRECTION; AND AMENDING SECTION 63-3622GG, IDAHO  CODE,  TO  DELETE
  9        THE  REQUIREMENT THAT CERTAIN EXEMPT AIRCRAFT MUST BE REGISTERED UNDER THE
 10        LAW OF ANOTHER STATE OR NATION.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION 1.  That Section 63-3620, Idaho Code, be, and the same  is  hereby
 13    amended to read as follows:
                                                                        
 14        63-3620.  PERMITS  --  ISSUANCE  --  REVOCATION  --  PENALTIES.  (a) Every
 15    retailer engaged in business in this state, before conducting business  within
 16    this  state,  shall  file  with  the state tax commission an application for a
 17    seller's permit. Every application for a permit shall be made upon a form pre-
 18    scribed by the state tax commission and shall set forth the name  under  which
 19    the  applicant  transacts or intends to transact business, the location of his
 20    place or places of business, and such other information as the state tax  com-
 21    mission  may  require. The applications, or any information contained thereon,
 22    may be made available by the tax commission to authorized  representatives  of
 23    state  or federal agencies. The application shall be signed by the owner if he
 24    is a natural person or by an individual authorized by the seller to  sign  the
 25    application.  Except  as  provided  in subsection (f) of this section, permits
 26    shall be issued without charge.
 27        (b)  The state tax commission, for the efficient  administration  of  this
 28    chapter, may issue:
 29        (1)  Temporary  seller's  permits.  No  retailer shall be issued more than
 30        three (3) temporary permits in one (1) calendar year. A  temporary  permit
 31        shall be valid only for the period of time shown on the face thereof.
 32        (2)  Wholesaler's  permits  to  persons who are not retailers but who pur-
 33        chase tangible personal property for resale. A wholesaler's  permit  shall
 34        be  valid  for  no  more  than  twelve  (12) consecutive months and may be
 35        renewed by the commission.
 36        (c)  The person signing the application shall certify that  the  applicant
 37    will  actively  engage  in  or  conduct a business making sales subject to tax
 38    under this chapter.
 39        (d)  After compliance by the applicant with the requirements set out above
 40    and in section 63-3625, Idaho Code, the state tax commission shall  grant  and
 41    issue  to each applicant a permit. A permit shall not be assignable, and shall
 42    be valid only for the person in whose name it is issued. The permit or a  copy
 43    thereof  shall at all times be conspicuously displayed at each place where the
                                                                        
                                           2
                                                                        
  1    person to whom it is issued conducts business.
  2        (e)  A seller whose permit has been previously suspended or revoked  shall
  3    pay  the state tax commission a fee of ten dollars ($10.00) for the renewal or
  4    issuance of a permit in the event of a first revocation and  twenty-five  dol-
  5    lars  ($25.00) for renewal after each successive revocation unless the suspen-
  6    sion or revocation is for inactivity pursuant to section 63-3620A, Idaho Code.
  7        (f)  Whenever any person fails to comply with any provision of this  chap-
  8    ter  relating to the sales tax or any rules of the state tax commission relat-
  9    ing to the sales tax prescribed and adopted under this chapter, the state  tax
 10    commission  may  revoke  or suspend any one (1) or more of the permits held by
 11    the person or may deny a new permit to such person. Notice  of  revocation  or
 12    denial shall be given in the manner provided for deficiencies in taxes in sec-
 13    tion 63-3629, Idaho Code, which shall be subject to review as provided in sec-
 14    tion  63-3631, Idaho Code. The state tax commission shall not issue a new per-
 15    mit after the revocation of a permit unless the commission is  satisfied  that
 16    the  former holder of the permit will comply with the provisions of this chap-
 17    ter relating to the sales tax and the rules of the state tax commission.
 18        (g)  A person who engages in business as a seller in this state without  a
 19    permit  or  permits, or after a permit has been suspended, and each officer of
 20    any corporation which so engages in business is guilty of a  misdemeanor  pun-
 21    ishable  by  a  fine not in excess of one hundred dollars ($100), and each day
 22    shall constitute a separate offense.
                                                                        
 23        SECTION 2.  That Section 63-3622R, Idaho Code, be, and the same is  hereby
 24    amended to read as follows:
                                                                        
 25        63-3622R.  MOTOR  VEHICLES,  USED MANUFACTURED HOMES, VESSELS, ALL-TERRAIN
 26    VEHICLES, TRAILERS, OFF-ROAD MOTORCYCLES AND SNOWMOBILES. There  are  exempted
 27    from the taxes imposed by this chapter:
 28        (a)  Sales  to  nonresidents  of  motor  vehicles, trailers, vessels, all-
 29    terrain vehicles (ATVs), motorcycles intended for  off-road  use  and  snowmo-
 30    biles,  for use outside of this state even though delivery be made within this
 31    state, but only when:
 32        (1)  The motor vehicles, vessels, ATVs, motorcycles intended for  off-road
 33        use,  snowmobiles  or trailers will be taken from the point of delivery in
 34        this state directly to a point outside this state; and
 35        (2)  The motor vehicles, vessels, ATVs, motorcycles intended for  off-road
 36        use,  snowmobiles  and  trailers  will be registered immediately under the
 37        laws of another state, will be titled in another state if required  to  be
 38        titled  in that state, will not be used in this state more than sixty (60)
 39        days in any twelve (12) month period, and  will  not  be  required  to  be
 40        titled under the laws of this state.
 41        (3)  For  the  purpose of this subsection (a), the term "all-terrain vehi-
 42        cle" or "ATV" means any recreational vehicle with two (2) or  more  tires,
 43        weighing  under six hundred fifty (650) pounds, less than forty-eight (48)
 44        inches in width, traveling on low-pressure tires of less  than  seven  (7)
 45        psi, and designed to be ridden by one (1) person.
 46        (4)  For  the  purpose  of  this section, the term "vessel" means any boat
 47        intended to carry one (1) or more persons upon the water which is either:
 48             (i)   Sold together with a motor, or
 49             (ii)  Eleven (11) feet in length  or  more,  but  shall  not  include
 50             canoes, kayaks or inflatable boats, unless such canoes, kayaks or in-
 51             flatable boats are sold together with a motor.
 52        (b)  Sale  of  used  manufactured homes, whether or not such used manufac-
 53    tured homes are sold for use outside this state, and whether or not such  used
                                                                        
                                           3
                                                                        
  1    manufactured  homes  are  sold by a dealer. Every manufactured home sale after
  2    its sale as a "new manufactured home," as defined in  section  63-3606,  Idaho
  3    Code, is a sale as a used manufactured home.
  4        (c)  Sale  or  lease  of  motor  vehicles  with a maximum gross registered
  5    weight over twenty-six thousand (26,000) pounds, which  shall  be  immediately
  6    registered  under  the international registration plan or similar proportional
  7    or pro rata registration system, whether or not base plated in Idaho, and  the
  8    sale  or  lease  of  trailers which are part of a fleet of vehicles registered
  9    under such proportional or pro rata registration system when  such    vehicles
 10    and  trailers  are  substantially used in interstate commerce. If such a motor
 11    vehicle or trailer is not substantially used in interstate commerce during any
 12    calendar year annual registration period under the international  registration
 13    plan,  it  shall be deemed used in Idaho and subject to the use tax under sec-
 14    tion 63-3621, Idaho Code. For the purpose of this  subsection,  "substantially
 15    used  in interstate commerce" means that the vehicles or trailers will be part
 16    of a fleet with a minimum of ten percent (10%) of the miles  operated  by  the
 17    fleet accrued outside of Idaho in any calendar year annual registration period
 18    under the international registration plan.
 19        (d)  The  use  or other consumption of a motor vehicle temporarily donated
 20    to a driver's education program sponsored by a nonprofit educational  institu-
 21    tion as defined in section 63-3622O, Idaho Code.
                                                                        
 22        SECTION 3.  That Section 63-3622GG, Idaho Code, be, and the same is hereby
 23    amended to read as follows:
                                                                        
 24        63-3622GG.  AIRCRAFT.  There  is  exempted  from the taxes imposed by this
 25    chapter:
 26        (1)  The sale, lease, purchase, or  use  of  aircraft  primarily  used  to
 27    transport  passengers  or freight for hire. This exemption includes repair and
 28    replacement materials and parts installed in or  affixed  or  applied  to,  or
 29    sold,  leased  or  purchased to be installed in or affixed or applied to, air-
 30    craft in connection with the remodeling, repair or maintenance  of  such  air-
 31    craft,  but  does  not include tools and equipment utilized in performing such
 32    remodeling, repair or maintenance;
 33        (2)  The sale, lease or purchase of aircraft for use outside this state by
 34    nonresidents, even though delivery be made within this state, but only when:
 35        (a)  The aircraft will be taken from the point of delivery to a point out-
 36        side this state;
 37        (b)  The aircraft will be  registered  immediately  in  another  state  or
 38        nation and not required to be registered under the laws of this state; and
 39        (c)  The  aircraft  will  not  be used in this state more than ninety (90)
 40        days in any twelve (12) month period.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE

                             RS 12396

This bill makes three corrections and updates to the Idaho Sales
Tax Act.   

Provides administrative review of denial of an application for a
seller's permit.  

The proportion of out of state use by interstate vehicles
registered under the International Registration Plan shall be
measured based on the vehicle's annual registration period rather,
than on a calendar year.   

The requirement that certain exempt aircraft must be registered
under the law of another state or nation is stricken. 




                         FISCAL IMPACT

No fiscal effect.   





CONTACT
Name:        Dan John / Ted Spangler
Agency:      State Tax Commission
Phone:       334-7530

Statement of Purpose/Fiscal Impact                                                                H77