Print Friendly HOUSE BILL NO. 192 – Sales tax, resort county
HOUSE BILL NO. 192
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H0192..................................................by REVENUE AND TAXATION
SALES TAX - RESORT COUNTY - Repeals and adds to existing law to provide for a
resort county sales and use tax.
02/07 House intro - 1st rdg - to printing
02/10 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 192
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO A RESORT COUNTY SALES TAX; REPEALING CHAPTER 26, TITLE 63, IDAHO
3 CODE; AMENDING TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 26,
4 TITLE 63, IDAHO CODE, TO PROVIDE LEGISLATIVE FINDINGS, TO PROVIDE A DEFI-
5 NITION OF "RESORT COUNTY," TO PROVIDE AUTHORITY FOR A COUNTY SALES OR USE
6 TAX, TO CREATE THE COUNTY PROPERTY TAX RELIEF FUND, TO PROVIDE GENERAL
7 PROVISIONS FOR AN ORDINANCE ASSESSING THE TAX, TO PROVIDE A DISTRIBUTION
8 FORMULA, TO PROVIDE COORDINATION WITH CITY LOCAL OPTION NONPROPERTY TAXES,
9 TO PROVIDE FOR COLLECTION AND ADMINISTRATION OF LOCAL OPTION SALES OR USE
10 TAXES BY THE STATE TAX COMMISSION AND TO PROVIDE FOR DISTRIBUTION; PROVID-
11 ING SEVERABILITY; AND DECLARING AN EMERGENCY.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Chapter 26, Title 63, Idaho Code, be, and the same is
14 hereby repealed.
15 SECTION 2. That Title 63, Idaho Code, be, and the same is hereby amended
16 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
17 ter 26, Title 63, Idaho Code, and to read as follows:
18 CHAPTER 26
19 RESORT COUNTY SALES TAX
20 63-2601. LEGISLATIVE FINDINGS. The legislature finds that the increase in
21 growth of the population of certain resort counties and the influx of great
22 numbers of people traveling to those counties for sport, recreation and busi-
23 ness have created a drain on the resort county infrastructure that is borne to
24 an inequitable degree by the property owners of the resort county. The legis-
25 lature finds that it is both equitable and desirable to shift this tax burden
26 in part from the property owners of the resort county to those visitors
27 partaking of the services of the county. The legislature also finds that this
28 objective must be subject to the approval and supervision of the voters of the
29 resort county both through their elected officials and through direct input at
30 the ballot box.
31 63-2602. DEFINITION OF RESORT COUNTY. As used in this chapter, a "resort
32 county" is any county having a population of more than seventeen thousand
33 (17,000), and which county derives a major portion of its economic well-being
34 from businesses catering to recreational needs and meeting needs of people
35 traveling to that destination county for an extended period of time, and which
36 county at a minimum has at least ten percent (10%) of its workforce employed
37 in recreational employment, which shall mean being employed in North American
38 Industry Classification System (NAICS) codes 711 (performing arts), 712
39 (museums), 713 (amusement parks), 721 (accommodations) and 722 (food service).
1 63-2603. AUTHORITY FOR COUNTY SALES OR USE TAX. The voters of a resort
2 county are given the authority to authorize their county government to adopt,
3 implement and collect a sales tax or use tax upon all sales, without excep-
4 tion, that are subject to taxation under chapter 36, title 63, Idaho Code. The
5 county commissioners of any such resort county are hereby given the freedom
6 and authority to adopt, implement and collect a sales or use tax as provided
7 herein if approved by the required minimum of sixty percent (60%) of county
8 voters voting in an election conducted on the fourth Tuesday in May or on the
9 first Tuesday after the first Monday in November. No local option sales or use
10 tax proposal may be presented to resort county voters for approval or modifi-
11 cation for a period of fifty-one (51) weeks after an election to approve or
12 disapprove such tax. The question presented to the voters of a resort county
13 shall state the rate of the local sales or use tax, the duration of the tax,
14 which shall not exceed ten (10) years, and the purpose of the tax.
15 63-2604. COUNTY PROPERTY TAX RELIEF FUND. (1) Any resort county which
16 implements a sales or use tax pursuant to this chapter shall create and estab-
17 lish in the office of the county treasurer a county property tax relief fund
18 into which shall be placed a minimum of fifty percent (50%) of any revenue
19 received from the county sales or use tax. On or before the Tuesday following
20 the first Monday in September of each year, the county treasurer shall submit
21 to the board of county commissioners and the state tax commission a statement
22 showing the balance in the county property tax relief fund as of September 1
23 of that year.
24 (2) No later than October 10, the balance in the county property tax
25 relief fund, as of September 1, shall be distributed to the county and any
26 cities within the county entitled to receive revenues from the county sales or
27 use tax. Moneys distributed shall be in an amount proportional to the percent-
28 age that the previous year's property tax portion of the budget subject to the
29 limitations of section 63-802, Idaho Code, for the county and each city bears
30 to the previous year's total property tax portion of the budget subject to the
31 limitations of section 63-802, Idaho Code, for the county and all cities in
32 the county.
33 (3) The dollar amount subject to the limitations of section 63-802, Idaho
34 Code, shall be the sum of the dollar amount of the portion of property taxes
35 certified to the board of county commissioners under section 63-804, Idaho
36 Code, and subject to the limitations of section 63-802, Idaho Code, as if no
37 county property tax relief fund moneys were to be distributed, and the dollar
38 amount to be received from the property tax relief fund. The division of the
39 resulting sum by the value subject to taxation is a quotient that shall not
40 exceed the levy limits prescribed by Idaho Code. If these limitations are
41 exceeded, the board of county commissioners shall reduce any applicable budget
42 request to comply with this section. The levy set to fund this portion of the
43 budget shall be calculated based on the budget subject to the limitations of
44 section 63-802, Idaho Code, less the money to be received from the county
45 property tax relief fund.
46 63-2605. GENERAL PROVISIONS. Any ordinance assessing a tax pursuant to
47 this chapter shall contain a finding by the board of county commissioners
48 based upon evidence presented to it that the conditions set forth in section
49 63-2602, Idaho Code, exist and shall provide the methods for reporting and
50 collecting taxes due. Taxes collected pursuant to any such ordinance shall be
51 remitted to the county official designated in such ordinance or other such
52 official contracting, pursuant to this chapter, with the county to provide
53 collection services, and shall constitute revenue of the county available for
1 any lawful purpose approved by county voters subject to the provisions of this
2 chapter. In any election, the ordinance submitted to county voters shall: (1)
3 state and define the sales or use tax to be approved; (2) state the exact rate
4 of the tax to be assessed, which in no event shall exceed one percent (1%) of
5 the sales price of an item subject to taxation; (3) state the exact purpose
6 or purposes for which the revenues derived from the sales or use tax shall be
7 used; (4) state the manner and formula by which any portion of the tax revenue
8 collected shall be distributed to cities within the resort county; and (5)
9 state the duration of the tax which shall not be in excess of ten (10) years.
10 No tax shall be redefined, no rate shall be increased, no purpose shall be
11 modified, and no duration shall be extended without subsequent approval of
12 county voters. The county clerk of any county adopting an ordinance, or any
13 amendment thereto, shall forward a copy of the ordinance or amendment to the
14 state controller, the chairman of the state tax commission and the chairman of
15 the state board of tax appeals.
16 63-2606. DISTRIBUTION FORMULA -- GENERAL PROVISIONS. (1) At the end of
17 each fiscal year, county sales or use tax not placed in the county property
18 tax relief fund shall be distributed to the cities in the resort county
19 according to the formula made a part of the ordinance submitted to the county
21 (2) All resort county property tax revenues distributed to a city shall
22 be subject to the same purpose or purposes as submitted to the county voters
23 as described in section 63-2605, Idaho Code, and for no other purpose.
24 63-2607. COORDINATION WITH CITY LOCAL OPTION NONPROPERTY TAXES. In the
25 event that a city has implemented a resort city local option nonproperty tax
26 as described in sections 50-1043 through 50-1049, Idaho Code, that city shall
27 not be entitled to its share of the distribution of resort county sales or use
28 taxes as described in section 63-2606, Idaho Code.
29 63-2608. COLLECTION AND ADMINISTRATION OF LOCAL OPTION SALES OR USE TAXES
30 BY THE STATE TAX COMMISSION -- DISTRIBUTION. (1) Any resort county which has
31 levied a tax pursuant to section 63-2603, Idaho Code, may contract with the
32 state tax commission for the collection and administration of such taxes in
33 like manner and under definitions and rules of the state tax commission for
34 the collection and administration of the state sales or use tax under chapter
35 36, title 63, Idaho Code. A county which levies such tax shall have the right
36 to review and audit the records of collection thereof maintained by the com-
37 mission and the returns of taxpayers relating to such tax. Alternatively, such
38 county shall have authority to administer and collect such tax.
39 (2) All revenues collected by the state tax commission pursuant to sec-
40 tion 63-2603, Idaho Code, shall be distributed as follows:
41 (a) An amount of money shall be distributed to the state refund fund suf-
42 ficient to pay current refund claims. All refunds authorized by the com-
43 mission to be paid shall be paid through the state refund fund and those
44 moneys are continuously appropriated.
45 (b) An amount of money equal to such fee as may be agreed upon between
46 the state tax commission and such county for the actual cost of the col-
47 lection and administration of the tax. The amount retained by the commis-
48 sion shall not exceed the amount authorized to be expended by appropria-
49 tion by the legislature. Any unencumbered balance in excess of the actual
50 cost at the end of each fiscal year shall be distributed as provided in
51 subsection (2)(c) of this section.
52 (c) All remaining moneys received pursuant to this chapter shall be
1 placed in a fund designated by the state controller and remitted monthly
2 to the county levying such sales or use tax.
3 SECTION 3. SEVERABILITY. The provisions of this act are hereby declared
4 to be severable and if any provision of this act or the application of such
5 provision to any person or circumstance is declared invalid for any reason,
6 such declaration shall not affect the validity of the remaining portions of
7 this act.
8 SECTION 4. An emergency existing therefor, which emergency is hereby
9 declared to exist, this act shall be in full force and effect on and after its
10 passage and approval.
STATEMENT OF PURPOSE
This legislation authorizes certain resort 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 60% approval, 2)set forth the specific
purpose, 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 1%.
This bill potentially mitigates the financial impact upon the
taxpayers of counties which are subject to significant tourist
and transient demand for services. The measure allows for county
commissioners in such counties to propose to the voter the
opportunity for an additional sales tax. 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
There is no impact to the state of Idaho as a result of this
legislation. Should the voters in a resort county pass a local
option sales tax, property taxes would be reduced by one-half of
the additional tax collected with the balance applied to the
specific purpose indicated.
Name: Senator John Goedde and Senator Dick Compton
Rep. Hilde Kellogg and Rep. Tim Ridinger
STATEMENT OF PURPOSE/FISCAL NOTE H 192