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H0264aaS,aaS........................................by REVENUE AND TAXATION
TAX - CIGARETTE - Amends and adds to existing law to increase the rate of
the cigarette tax to fifty-seven cents per package of twenty cigarettes and
to revise distributions from June 1, 2003, through June 30, 2005; to reduce
the percentage that wholesalers are compensated for affixing stamps on
packages of cigarettes; to revise the distribution formula for certain
cigarette tax moneys; to provide a floor stocks tax for packages of
cigarettes held in stock by a wholesaler on June 1, 2003; to provide when
the floor stocks tax is due and payable; to create the Economic Recovery
Reserve Fund; to provide purposes of the Economic Recovery Reserve Fund;
and to provide procedures for appropriation or transfer of money from the
Economic Recovery Reserve Fund.
02/13 House intro - 1st rdg - to printing
02/14 Rpt prt - to Rev/Tax
03/03 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/05 3rd rdg - PASSED - 66-0-4
AYES -- Barraclough, Barrett, Bauer, Bedke, Bieter, Black, Block,
Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
Nielsen, Raybould, Ridinger, Ringo, Robison, Rydalch, Sali, Sayler,
Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Andersen, Bell, Ring, Roberts
Floor Sponsor - Cuddy
Title apvd - to Senate
03/06 Senate intro - 1st rdg - to Loc Gov
03/25 Rpt out - rec d/p - to 2nd rdg
03/26 2nd rdg - to 3rd rdg
04/24 To 14th Ord
04/25 Rpt out amen - to 1st rdg as amen
1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 20-14-1
AYES -- Andreason, Bailey, Brandt, Bunderson, Cameron, Compton,
Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram, Little,
McWilliams, Noh, Schroeder, Sorensen, Stegner, Williams
NAYS -- Burkett, Calabretta, Kennedy, Keough, Lodge, Malepeai,
Marley, McKenzie, Noble, Pearce, Richardson, Stennett, Sweet, Werk
Absent and excused -- Burtenshaw
Floor Sponsors - Compton & Bunderson
Title apvd - to House
04/28 House did not concur in Senate amens
Ref'd to Conference Committee
04/30 Conference Committee report adopted
Ret'd to Senate - ref'd to 14th Ord
Rpt out amen w/o rec - to 1st rdg as amen
1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 21-14-0
AYES -- Bailey, Brandt, Bunderson, Burtenshaw, Cameron, Compton,
Darrington, Davis, Gannon, Geddes, Goedde, Hill(Hill), Ingram,
Little, Lodge, McKenzie, McWilliams, Noh, Sorensen, Stegner, Williams
NAYS -- Andreason, Burkett, Calabretta, Kennedy, Keough, Malepeai,
Marley, Noble, Pearce, Richardson, Schroeder, Stennett, Sweet, Werk
Absent and excused -- None
Floor Sponsor - Bunderson
Title apvd - to House
05/01 Ret'd from Senate amen - Held at Desk
05/02 House concurred in Senate amens
Rls susp - PASSED - 44-26-0
AYES -- Andersen(Guyon), Bauer, Bedke, Bell, Bieter, Black, Block,
Boe, Cuddy, Deal, Denney, Douglas, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Henbest, Jaquet, Jones,
Kellogg, Langhorst, Martinez(Echohawk), Miller, Mitchell, Naccarato,
Ridinger, Ring, Ringo, Robison, Rydalch, Sayler, Shepherd(Buell),
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail,
Wills, Mr. Speaker
NAYS -- Barraclough(Schanz), Barrett, Bolz, Bradford, Campbell,
Cannon, Clark, Collins, Crow, Eberle, Harwood, Kulczyk, Lake,
Langford, McGeachin, McKague, Meyer, Moyle, Nielsen, Raybould,
Roberts, Sali, Schaefer, Stevenson, Tilman, Wood
Absent and excused -- None
Floor Sponsor - Ellsworth
Title apvd - To engros/enrol - Rpt engros/enrol
Sp signed - Pres signed
05/05 To Governor
05/08 Governor signed
Session Law Chapter 362
Effective: 06/01/03 Secs 1, 2, 5 and 6;
06/01/03 Sec 4 with 07/01/05 Sunset Clause;
07/01/03 Section 3
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 264
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE OCCUPANCY TAX; AMENDING SECTION 63-317, IDAHO CODE, TO INCLUDE
3 OCCUPANCY OF IMPROVEMENTS OR USE IN STORAGE OF VEHICLES, BOATS OR HOUSE-
4 HOLD GOODS, PROVIDED SUCH USE IS NOT SOLELY RELATED TO CONSTRUCTION OR
5 SALE OF THE PROPERTY IN THE DEFINITION OF "OCCUPIED" FOR OCCUPANCY TAX
6 PURPOSES; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-317, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-317. OCCUPANCY TAX -- PROCEDURES. (1) All real property subject to
11 property taxation shall be valued and taxed based upon its status as of Janu-
12 ary 1 of each tax year. Improvements, other than additions to existing
13 improvements, constructed upon real property shall not be subject to property
14 taxation during the year of construction other than that portion actually in
15 place as of January 1 of each calendar year.
16 (2) There is hereby levied an occupancy tax upon all newly constructed
17 and occupied residential and commercial structures, except additions to exist-
18 ing improvements, prorated for the portion of the year for which the structure
19 was occupied. The occupancy tax shall be upon those improvements for that por-
20 tion of the calendar year in which first occupancy occurs. For the purposes of
21 this section, the term "occupied" means:
22 (a) Use of the property by any person as a residence including occupancy
23 of improvements or use in storage of vehicles, boats or household goods,
24 provided such use is not solely related to construction or sale of the
25 property; or
26 (b) Use of the property for any business or commercial purpose unrelated
27 to the construction and sale of the property; or
28 (c) Any possessory use of the property for which the owner received any
29 compensation or consideration.
30 (3) The owner of any newly constructed improvement, as described in this
31 section, upon which no occupancy tax has been charged shall report to the
32 county assessor that the improvement has been occupied. As soon as practical
33 after receiving such a report, the county assessor shall appraise and deter-
34 mine the market value for assessment purposes.
35 (a) At the time the county assessor determines the market value for
36 assessment purposes of any improvement, he shall allow as an offset
37 against the market value of the improvement, the market value of any por-
38 tion of that improvement which was existing on January 1 and placed upon
39 the property roll.
40 (b) Upon completion of the appraisal, the county assessor shall notify
41 the owner of the appraisal, and further shall notify the owner of their
42 right to apply for the exemption provided in sections 63-602G and 63-602X,
43 Idaho Code. If the owner applies for and meets the requirements for such
2
1 exemption within thirty (30) days of the notification by the county asses-
2 sor, the exemption shall be extended to the newly constructed and occupied
3 residential structures in compliance with section 63-602G, Idaho Code,
4 notwithstanding limitations requiring occupancy as of January 1 of the
5 tax year.
6 (c) In the event that the owner fails to report to the county assessor
7 that the property is ready for occupancy, the assessor shall notify the
8 county board of equalization, who may impose as penalty an additional
9 amount equal to five percent (5%) of the tax for each month following the
10 date of first occupancy during which the report is not made, to a maximum
11 of twenty-five percent (25%) of the tax.
12 (4) Appeals of the market value for assessment purposes shall be resolved
13 in the same manner as all other appeals of valuation by the board of equaliza-
14 tion.
15 (5) The occupancy tax calculated upon the values set by the county asses-
16 sor, and any penalty imposed by the board of equalization shall be collected
17 in the same manner as all other property taxes.
18 (6) An occupancy tax lien shall be imposed in the manner provided in sec-
19 tion 63-206, Idaho Code.
20 (7) Occupancy taxes shall be billed, collected and distributed in the
21 same manner as all other property taxes.
22 SECTION 2. An emergency existing therefor, which emergency is hereby
23 declared to exist, this act shall be in full force and effect on and after its
24 passage and approval, and retroactively to January 1, 2003.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
Moved by Bunderson
Seconded by Davis
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 264
1 AMENDMENT TO THE BILL
2 On page 2 of the printed bill, delete lines 22 through 24 and insert:
3 "SECTION 2. That Section 63-2506, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 63-2506. IMPOSITION OF TAX. A tax upon the purchase, storage, use, con-
6 sumption, handling, distribution or wholesale sale of cigarettes is hereby
7 imposed at the rate of one and four-tenths cent (1.4) for each cigarette or
8 twenty-eight fifty-six cents (2856) per package of twenty (20) cigarettes,
9 which tax shall be paid by the wholesaler, and collected by the state tax com-
10 mission. Five cents (5) of the tax collected per package of twenty (20) cig-
11 arettes shall be subject to appropriation to the public school income fund to
12 be utilized to facilitate and provide substance abuse programs in the public
13 school system. Five cents (5) of the tax collected per package of twenty
14 (20) cigarettes shall be subject to appropriation to the department of juve-
15 nile corrections for distribution to the counties to be utilized for county
16 juvenile probation services. Appropriated funds shall be distributed quarterly
17 to the counties based upon the percentage the population of the county bears
18 to the population of the state as a whole. The remaining moneys collected and
19 those moneys not appropriated under the provisions of this section shall be
20 distributed as specified in section 63-2520, Idaho Code.
21 SECTION 3. That Section 63-2509, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 63-2509. COMPENSATION FOR AFFIXING STAMPS. Wholesalers shall be allowed
24 as compensation for affixing stamps, five per cent two and five-tenths percent
25 (52.5%) of the face value of the stamps purchased by them.
26 SECTION 4. That Section 63-2520, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 63-2520. DISTRIBUTION OF MONEYS COLLECTED. Revenues received from the
29 taxes imposed by this chapter, and any revenues received from licenses, per-
30 mits, penalties, interest, or deficiency additions, shall be distributed by
31 the tax commission as follows:
32 (a) An amount of money shall be distributed to the state refund account
33 sufficient to pay current refund claims. All refunds authorized under this
34 chapter by the commission shall be paid through the state refund account, and
35 those moneys are continuously appropriated.
36 (b) The balance remaining with the state treasurer after deducting the
37 amount described in paragraph (a) above shall be distributed as follows:
2
1 (1) 43.3% Twenty-one and sixty-five hundredths percent (21.65%) of such
2 balance shall be distributed to the permanent building account created by
3 section 57-1108, Idaho Code.
4 (2) 1% One-half of one percent (0.5%) of such balance shall be distrib-
5 uted to the central tumor registry account. The amount of money so dis-
6 tributed to the central tumor registry account shall not exceed the fiscal
7 year's appropriation, and at such time as the appropriation has been dis-
8 tributed to the central tumor registry account during any fiscal year,
9 all such distributions in excess of the appropriation shall be made
10 instead to the general fund of the state of Idaho.
11 (3) 2.5% One and twenty-five hundredths of one percent (1.25%) of such
12 balance shall be distributed to the cancer control account created by sec-
13 tion 57-1702, Idaho Code. Revenues received in the cancer control account
14 shall be paid over to the state treasurer by the state tax commission to
15 be distributed as follows:
16 (i) Such amounts as are appropriated for purposes specified in sec-
17 tion 57-1702, Idaho Code, shall be expended as appropriated;
18 (ii) Any balance remaining in the cancer control account on June 30
19 of any fiscal year after the amounts withdrawn by appropriation have
20 been deducted, shall be reserved for transfer to the general fund on
21 July 1 and the state controller shall order such transfer.
22 (4) All remaining moneys shall be distributed to the general fund of the
23 state of Idaho.
24 SECTION 5. That Chapter 25, Title 63, Idaho Code, be, and the same is
25 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
26 ignated as Section 63-2531, Idaho Code, and to read as follows:
27 63-2531. FLOOR STOCKS TAX. (1) In addition to the tax imposed by section
28 63-2506, Idaho Code, there is hereby imposed a one (1) time tax at the rate of
29 twenty-eight cents (28) per package of twenty (20) cigarettes on all ciga-
30 rettes to which stamps have been affixed and which are held in stock by a
31 wholesaler at 12:01 a.m. on June 1, 2003.
32 (2) The tax imposed by this section shall be due and payable to the state
33 tax commission on the due date of the cigarette tax return due under this
34 chapter and shall be reported on such return. The tax shall be subject to all
35 the collection, enforcement and administrative provisions of this chapter.
36
37 SECTION 6. SEVERABILITY. The provisions of this act are hereby declared
38 to be severable and if any provision of this act or the application of such
39 provision to any person or circumstance is declared invalid for any reason,
40 such declaration shall not affect the validity of the remaining portions of
41 this act.
42 SECTION 7. An emergency existing therefor, which emergency is hereby
43 declared to exist, Sections 1 and 6 of this act shall be in full force and
44 effect on and after passage and approval, and retroactively to January 1,
45 2003; Sections 2, 3 and 5 of this act shall be in full force and effect on and
46 after June 1, 2003. Section 4 of this act shall be in full force and effect on
47 and after July 1, 2003.".
48 CORRECTION TO TITLE
49 On page 1, delete lines 2 through 6 and insert:
50 "RELATING TO TAXATION; AMENDING SECTION 63-317, IDAHO CODE, TO INCLUDE OCCU-
51 PANCY OF IMPROVEMENTS OR USE IN STORAGE OF VEHICLES, BOATS OR HOUSEHOLD
3
1 GOODS, PROVIDED SUCH USE IS NOT SOLELY RELATED TO CONSTRUCTION OR SALE OF
2 THE PROPERTY IN THE DEFINITION OF "OCCUPIED" FOR OCCUPANCY TAX PURPOSES;
3 AMENDING SECTION 63-2506, IDAHO CODE, TO INCREASE THE RATE OF THE CIGA-
4 RETTE TAX; AMENDING SECTION 63-2509, IDAHO CODE, TO REDUCE THE PERCENTAGE
5 THAT WHOLESALERS ARE COMPENSATED FOR AFFIXING STAMPS ON PACKAGES OF CIGA-
6 RETTES AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 63-2520, IDAHO
7 CODE, TO REVISE THE DISTRIBUTION FORMULA FOR CERTAIN CIGARETTE TAX MONEYS;
8 AMENDING CHAPTER 25, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
9 TION 63-2531, IDAHO CODE, TO PROVIDE A FLOOR STOCKS TAX FOR PACKAGES OF
10 CIGARETTES HELD IN STOCK BY A WHOLESALER ON JUNE 1, 2003, AND TO PROVIDE
11 WHEN THE TAX IS DUE AND PAYABLE; PROVIDING SEVERABILITY; DECLARING AN
12 EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE
13 DATES.".
Moved by Bunderson
Seconded by Geddes
IN THE SENATE
SENATE AMENDMENT TO THE SENATE AMENDMENT TO H.B. NO. 264
14 AMENDMENT TO THE AMENDMENT TO THE BILL
15 On page 1 of the printed amendment, delete lines 2 through 37; on page 2,
16 delete lines 1 through 47 and insert:
17 "On page 1 of the printed bill, delete lines 8 through 43; on page 2,
18 delete lines 1 through 24 and insert:
19 "SECTION 1. That Section 63-2506, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 63-2506. IMPOSITION OF TAX. (1) From June 1, 2003, through June 30,
22 2005, a tax upon the purchase, storage, use, consumption, handling, distribu-
23 tion or wholesale sale of cigarettes is hereby imposed at the rate of fifty-
24 seven cents (57) per package of twenty (20) cigarettes, which tax shall be
25 paid by the wholesaler, and collected by the state tax commission. 5.1746 of
26 the tax collected per package of twenty (20) cigarettes shall be subject to
27 appropriation to the public school income fund to be utilized to facilitate
28 and provide substance abuse programs in the public school system. 5.1746 of
29 the tax collected per package of twenty (20) cigarettes shall be subject to
30 appropriation to the department of juvenile corrections for distribution to
31 the counties to be utilized for county juvenile probation services.
32 (2) On and after July 1, 2005, aA tax upon the purchase, storage, use,
33 consumption, handling, distribution or wholesale sale of cigarettes is hereby
34 imposed at the rate of one and four-tenths cent (1.4) for each cigarette or
35 twenty-eight cents (28) per package of twenty (20) cigarettes, which tax
36 shall be paid by the wholesaler, and collected by the state tax commission.
37 Five cents (5) of the tax collected per package of twenty (20) cigarettes
38 shall be subject to appropriation to the public school income fund to be uti-
39 lized to facilitate and provide substance abuse programs in the public school
40 system. Five cents (5) of the tax collected per package of twenty (20) ciga-
41 rettes shall be subject to appropriation to the department of juvenile correc-
42 tions for distribution to the counties to be utilized for county juvenile pro-
43 bation services.
44 (3) Appropriated funds shall be distributed quarterly to the counties
45 based upon the percentage the population of the county bears to the population
46 of the state as a whole.
4
1 (4) The remaining moneys collected and those moneys not appropriated
2 under the provisions of this section shall be distributed as specified in sec-
3 tion 63-2520, Idaho Code.
4 SECTION 2. That Section 63-2509, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-2509. COMPENSATION FOR AFFIXING STAMPS. From June 1, 2003, through
7 June 30, 2005, wholesalers shall be allowed as compensation for affixing
8 stamps, two and sixty-one one hundredths percent (2.61%) of the face value of
9 the stamps purchased by them. On and after July 1, 2005, wWholesalers shall be
10 allowed as compensation for affixing stamps, five per cent percent (5%) of the
11 face value of the stamps purchased by them.
12 SECTION 3. That Section 63-2520, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-2520. DISTRIBUTION OF MONEYS COLLECTED. Revenues received from the
15 taxes imposed by this chapter, and any revenues received from licenses, per-
16 mits, penalties, interest, or deficiency additions, shall be distributed by
17 the tax commission as follows:
18 (a) An amount of money shall be distributed to the state refund account
19 sufficient to pay current refund claims. All refunds authorized under this
20 chapter by the commission shall be paid through the state refund account, and
21 those moneys are continuously appropriated.
22 (b) From July 1, 2003, through June 30, 2005, tThe balance remaining with
23 the state treasurer after deducting the amount described in paragraph subsec-
24 tion (a) above of this section shall be distributed as follows:
25 (1) 43.3% 17.3% of such balance shall be distributed to the permanent
26 building account created by section 57-1108, Idaho Code.
27 (2) 1% .4% of such balance shall be distributed to the central tumor reg-
28 istry account. The amount of money so distributed to the central tumor
29 registry account shall not exceed the fiscal year's appropriation, and at
30 such time as the appropriation has been distributed to the central tumor
31 registry account during any fiscal year, all such distributions in excess
32 of the appropriation shall be made instead to the general fund of the
33 state of Idaho.
34 (3) 2.5% 1% of such balance shall be distributed to the cancer control
35 account created by section 57-1702, Idaho Code. Revenues received in the
36 cancer control account shall be paid over to the state treasurer by the
37 state tax commission to be distributed as follows:
38 (i) Such amounts as are appropriated for purposes specified in sec-
39 tion 57-1702, Idaho Code, shall be expended as appropriated;
40 (ii) Any balance remaining in the cancer control account on June 30
41 of any fiscal year after the amounts withdrawn by appropriation have
42 been deducted, shall be reserved for transfer to the general fund on
43 July 1 and the state controller shall order such transfer.
44 (4) 21.25% of such balance shall be distributed to the general fund of
45 the state of Idaho.
46 (5) All remaining moneys shall be distributed as follows: For the fiscal
47 year commencing July 1, 2003, and ending June 30, 2004, $23,500,000 shall
48 be distributed to the general fund of the state of Idaho and the remainder
49 shall be distributed to the economic recovery reserve fund created by sec-
50 tion 67-3520, Idaho Code. For the fiscal year commencing July 1, 2004, and
51 ending June 30, 2005, all remaining moneys shall be distributed to the
5
1 economic recovery reserve fund created by section 67-3520, Idaho Code.
2 (c) On and after July 1, 2005, the balance remaining with the state trea-
3 surer after deducting the amount described in subsection (a) of this section
4 shall be distributed as follows:
5 (1) 43.3% of such balance shall be distributed to the permanent building
6 fund created by section 57-1108, Idaho Code.
7 (2) 1% of such balance shall be distributed to the central tumor registry
8 account. The amount of money so distributed to the central tumor registry
9 account shall not exceed the fiscal year's appropriation, and at such time
10 as the appropriation has been distributed to the central tumor registry
11 account during any fiscal year, all such distributions in excess of the
12 appropriation shall be made instead to the general fund of the state of
13 Idaho.
14 (3) 2.5% of such balance shall be distributed to the cancer control
15 account created by section 57-1702, Idaho Code. Revenues received in the
16 cancer control account shall be paid over to the state treasurer by the
17 state tax commission to be distributed as follows:
18 (i) Such amounts as are appropriated for purposes specified in sec-
19 tion 57-1702, Idaho Code, shall be expended as appropriated;
20 (ii) Any balance remaining in the cancer control account on June 30
21 of any fiscal year after the amounts withdrawn by appropriation have
22 been deducted, shall be reserved for transfer to the general fund on
23 July 1 and the state controller shall order such transfer.
24 (4) All remaining moneys shall be distributed to the general fund of the
25 state of Idaho.
26 SECTION 4. That Chapter 25, Title 63, Idaho Code, be, and the same is
27 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
28 ignated as Section 63-2531, Idaho Code, and to read as follows:
29 63-2531. FLOOR STOCKS TAX. (1) In addition to the tax imposed by section
30 63-2506, Idaho Code, there is hereby imposed a one (1) time tax at the rate of
31 twenty-nine cents (29) per package of twenty (20) cigarettes on all ciga-
32 rettes to which stamps have been affixed and which are held in stock by a
33 wholesaler at 12:01 a.m. on June 1, 2003.
34 (2) The tax imposed by this section shall be due and payable to the state
35 tax commission on the due date of the cigarette tax return due under this
36 chapter and shall be reported on such return. The tax shall be subject to all
37 the collection, enforcement and administrative provisions of this chapter.
38 SECTION 5. That Chapter 35, Title 67, Idaho Code, be, and the same is
39 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
40 ignated as Section 67-3520, Idaho Code, and to read as follows:
41 67-3520. ECONOMIC RECOVERY RESERVE FUND. (1) There is hereby created in
42 the state treasury the economic recovery reserve fund for the purpose of
43 meeting general fund revenue shortfalls, meeting expenses incurred as the
44 result of a major disaster declared by the governor, or for providing one (1)
45 time tax relief payments to the citizens of the state of Idaho. Moneys in the
46 economic recovery reserve fund shall consist of moneys remitted pursuant to
47 section 63-2520, Idaho Code. Interest earnings from the investment of moneys
48 in this fund by the state treasurer shall be retained in the economic recovery
49 reserve fund.
50 (2) No appropriations from the economic recovery reserve fund nor any
51 transfers out of the fund shall be made without the consent of the legislature
6
1 by at least a majority of the members of each house concurring therein at an
2 ordinary session or at an extraordinary session of the legislature called by
3 the governor.
4 SECTION 6. SEVERABILITY. The provisions of this act are hereby declared
5 to be severable and if any provision of this act or the application of such
6 provision to any person or circumstance is declared invalid for any reason,
7 such declaration shall not affect the validity of the remaining portions of
8 this act.
9 SECTION 7. An emergency existing therefor, which emergency is hereby
10 declared to exist, Sections 1, 2, 5 and 6 of this act shall be in full force
11 and effect on and after June 1, 2003; Section 4 of this act shall be in full
12 force and effect on and after June 1, 2003, and shall be null, void and of no
13 force and effect on and after July 1, 2005; Section 3 of this act shall be in
14 full force and effect on and after July 1, 2003.".".
15 CORRECTION TO CORRECTION TO TITLE
16 On page 2, delete lines 50 and 51; and on page 3, delete lines 1 through
17 13 and insert:
18 "RELATING TO CIGARETTE TAXES; AMENDING SECTION 63-2506, IDAHO CODE, TO
19 INCREASE THE RATE OF THE CIGARETTE TAX AND TO REVISE DISTRIBUTIONS FROM
20 JUNE 1, 2003, THROUGH JUNE 30, 2005; AMENDING SECTION 63-2509, IDAHO CODE,
21 TO REVISE THE PERCENTAGE THAT WHOLESALERS ARE COMPENSATED FOR AFFIXING
22 STAMPS ON PACKAGES OF CIGARETTES AND TO MAKE A TECHNICAL CORRECTION;
23 AMENDING SECTION 63-2520, IDAHO CODE, TO REVISE THE DISTRIBUTION FORMULA
24 FOR CERTAIN CIGARETTE TAX MONEYS AND TO MAKE TECHNICAL CORRECTIONS; AMEND-
25 ING CHAPTER 25, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
26 63-2531, IDAHO CODE, TO PROVIDE A FLOOR STOCKS TAX FOR PACKAGES OF CIGA-
27 RETTES HELD IN STOCK BY A WHOLESALER ON JUNE 1, 2003, AND TO PROVIDE WHEN
28 THE TAX IS DUE AND PAYABLE; AMENDING CHAPTER 35, TITLE 67, IDAHO CODE, BY
29 THE ADDITION OF A NEW SECTION 67-3520, IDAHO CODE, TO CREATE THE ECONOMIC
30 RECOVERY RESERVE FUND IN THE STATE TREASURY, TO PROVIDE PURPOSES OF THE
31 FUND, TO PROVIDE FOR MONEYS REMITTED TO THE FUND, TO PROVIDE FOR INTEREST
32 EARNINGS TO BE RETAINED IN THE FUND AND TO PROVIDE PROCEDURES FOR APPRO-
33 PRIATION OR TRANSFER OF MONEYS FROM THE FUND; PROVIDING SEVERABILITY;
34 DECLARING AN EMERGENCY, PROVIDING A SUNSET DATE AND PROVIDING EFFECTIVE
35 DATES.".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 264, As Amended in the Senate, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO CIGARETTE TAXES; AMENDING SECTION 63-2506, IDAHO CODE, TO INCREASE
3 THE RATE OF THE CIGARETTE TAX AND TO REVISE DISTRIBUTIONS FROM JUNE 1,
4 2003, THROUGH JUNE 30, 2005; AMENDING SECTION 63-2509, IDAHO CODE, TO
5 REVISE THE PERCENTAGE THAT WHOLESALERS ARE COMPENSATED FOR AFFIXING STAMPS
6 ON PACKAGES OF CIGARETTES AND TO MAKE A TECHNICAL CORRECTION; AMENDING
7 SECTION 63-2520, IDAHO CODE, TO REVISE THE DISTRIBUTION FORMULA FOR CER-
8 TAIN CIGARETTE TAX MONEYS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
9 CHAPTER 25, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
10 63-2531, IDAHO CODE, TO PROVIDE A FLOOR STOCKS TAX FOR PACKAGES OF CIGA-
11 RETTES HELD IN STOCK BY A WHOLESALER ON JUNE 1, 2003, AND TO PROVIDE WHEN
12 THE TAX IS DUE AND PAYABLE; AMENDING CHAPTER 35, TITLE 67, IDAHO CODE, BY
13 THE ADDITION OF A NEW SECTION 67-3520, IDAHO CODE, TO CREATE THE ECONOMIC
14 RECOVERY RESERVE FUND IN THE STATE TREASURY, TO PROVIDE PURPOSES OF THE
15 FUND, TO PROVIDE FOR MONEYS REMITTED TO THE FUND, TO PROVIDE FOR INTEREST
16 EARNINGS TO BE RETAINED IN THE FUND AND TO PROVIDE PROCEDURES FOR APPRO-
17 PRIATION OR TRANSFER OF MONEYS FROM THE FUND; PROVIDING SEVERABILITY;
18 DECLARING AN EMERGENCY, PROVIDING A SUNSET DATE AND PROVIDING EFFECTIVE
19 DATES.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Section 63-2506, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 63-2506. IMPOSITION OF TAX. (1) From June 1, 2003, through June 30,
24 2005, a tax upon the purchase, storage, use, consumption, handling, distribu-
25 tion or wholesale sale of cigarettes is hereby imposed at the rate of fifty-
26 seven cents (57) per package of twenty (20) cigarettes, which tax shall be
27 paid by the wholesaler, and collected by the state tax commission. 5.1746 of
28 the tax collected per package of twenty (20) cigarettes shall be subject to
29 appropriation to the public school income fund to be utilized to facilitate
30 and provide substance abuse programs in the public school system. 5.1746 of
31 the tax collected per package of twenty (20) cigarettes shall be subject to
32 appropriation to the department of juvenile corrections for distribution to
33 the counties to be utilized for county juvenile probation services.
34 (2) On and after July 1, 2005, aA tax upon the purchase, storage, use,
35 consumption, handling, distribution or wholesale sale of cigarettes is hereby
36 imposed at the rate of one and four-tenths cent (1.4) for each cigarette or
37 twenty-eight cents (28) per package of twenty (20) cigarettes, which tax
38 shall be paid by the wholesaler, and collected by the state tax commission.
39 Five cents (5) of the tax collected per package of twenty (20) cigarettes
40 shall be subject to appropriation to the public school income fund to be uti-
41 lized to facilitate and provide substance abuse programs in the public school
42 system. Five cents (5) of the tax collected per package of twenty (20) ciga-
43 rettes shall be subject to appropriation to the department of juvenile correc-
2
1 tions for distribution to the counties to be utilized for county juvenile pro-
2 bation services.
3 (3) Appropriated funds shall be distributed quarterly to the counties
4 based upon the percentage the population of the county bears to the population
5 of the state as a whole.
6 (4) The remaining moneys collected and those moneys not appropriated
7 under the provisions of this section shall be distributed as specified in sec-
8 tion 63-2520, Idaho Code.
9 SECTION 2. That Section 63-2509, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-2509. COMPENSATION FOR AFFIXING STAMPS. From June 1, 2003, through
12 June 30, 2005, wholesalers shall be allowed as compensation for affixing
13 stamps, two and sixty-one one hundredths percent (2.61%) of the face value of
14 the stamps purchased by them. On and after July 1, 2005, wWholesalers shall be
15 allowed as compensation for affixing stamps, five per cent percent (5%) of the
16 face value of the stamps purchased by them.
17 SECTION 3. That Section 63-2520, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 63-2520. DISTRIBUTION OF MONEYS COLLECTED. Revenues received from the
20 taxes imposed by this chapter, and any revenues received from licenses, per-
21 mits, penalties, interest, or deficiency additions, shall be distributed by
22 the tax commission as follows:
23 (a) An amount of money shall be distributed to the state refund account
24 sufficient to pay current refund claims. All refunds authorized under this
25 chapter by the commission shall be paid through the state refund account, and
26 those moneys are continuously appropriated.
27 (b) From July 1, 2003, through June 30, 2005, tThe balance remaining with
28 the state treasurer after deducting the amount described in paragraph subsec-
29 tion (a) above of this section shall be distributed as follows:
30 (1) 43.3% 17.3% of such balance shall be distributed to the permanent
31 building account created by section 57-1108, Idaho Code.
32 (2) 1% .4% of such balance shall be distributed to the central tumor reg-
33 istry account. The amount of money so distributed to the central tumor
34 registry account shall not exceed the fiscal year's appropriation, and at
35 such time as the appropriation has been distributed to the central tumor
36 registry account during any fiscal year, all such distributions in excess
37 of the appropriation shall be made instead to the general fund of the
38 state of Idaho.
39 (3) 2.5% 1% of such balance shall be distributed to the cancer control
40 account created by section 57-1702, Idaho Code. Revenues received in the
41 cancer control account shall be paid over to the state treasurer by the
42 state tax commission to be distributed as follows:
43 (i) Such amounts as are appropriated for purposes specified in sec-
44 tion 57-1702, Idaho Code, shall be expended as appropriated;
45 (ii) Any balance remaining in the cancer control account on June 30
46 of any fiscal year after the amounts withdrawn by appropriation have
47 been deducted, shall be reserved for transfer to the general fund on
48 July 1 and the state controller shall order such transfer.
49 (4) 21.25% of such balance shall be distributed to the general fund of
50 the state of Idaho.
51 (5) All remaining moneys shall be distributed as follows: For the fiscal
3
1 year commencing July 1, 2003, and ending June 30, 2004, $23,500,000 shall
2 be distributed to the general fund of the state of Idaho and the remainder
3 shall be distributed to the economic recovery reserve fund created by sec-
4 tion 67-3520, Idaho Code. For the fiscal year commencing July 1, 2004, and
5 ending June 30, 2005, all remaining moneys shall be distributed to the
6 economic recovery reserve fund created by section 67-3520, Idaho Code.
7 (c) On and after July 1, 2005, the balance remaining with the state trea-
8 surer after deducting the amount described in subsection (a) of this section
9 shall be distributed as follows:
10 (1) 43.3% of such balance shall be distributed to the permanent building
11 fund created by section 57-1108, Idaho Code.
12 (2) 1% of such balance shall be distributed to the central tumor registry
13 account. The amount of money so distributed to the central tumor registry
14 account shall not exceed the fiscal year's appropriation, and at such time
15 as the appropriation has been distributed to the central tumor registry
16 account during any fiscal year, all such distributions in excess of the
17 appropriation shall be made instead to the general fund of the state of
18 Idaho.
19 (3) 2.5% of such balance shall be distributed to the cancer control
20 account created by section 57-1702, Idaho Code. Revenues received in the
21 cancer control account shall be paid over to the state treasurer by the
22 state tax commission to be distributed as follows:
23 (i) Such amounts as are appropriated for purposes specified in sec-
24 tion 57-1702, Idaho Code, shall be expended as appropriated;
25 (ii) Any balance remaining in the cancer control account on June 30
26 of any fiscal year after the amounts withdrawn by appropriation have
27 been deducted, shall be reserved for transfer to the general fund on
28 July 1 and the state controller shall order such transfer.
29 (4) All remaining moneys shall be distributed to the general fund of the
30 state of Idaho.
31 SECTION 4. That Chapter 25, Title 63, Idaho Code, be, and the same is
32 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
33 ignated as Section 63-2531, Idaho Code, and to read as follows:
34 63-2531. FLOOR STOCKS TAX. (1) In addition to the tax imposed by section
35 63-2506, Idaho Code, there is hereby imposed a one (1) time tax at the rate of
36 twenty-nine cents (29) per package of twenty (20) cigarettes on all ciga-
37 rettes to which stamps have been affixed and which are held in stock by a
38 wholesaler at 12:01 a.m. on June 1, 2003.
39 (2) The tax imposed by this section shall be due and payable to the state
40 tax commission on the due date of the cigarette tax return due under this
41 chapter and shall be reported on such return. The tax shall be subject to all
42 the collection, enforcement and administrative provisions of this chapter.
43 SECTION 5. That Chapter 35, Title 67, Idaho Code, be, and the same is
44 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
45 ignated as Section 67-3520, Idaho Code, and to read as follows:
46 67-3520. ECONOMIC RECOVERY RESERVE FUND. (1) There is hereby created in
47 the state treasury the economic recovery reserve fund for the purpose of
48 meeting general fund revenue shortfalls, meeting expenses incurred as the
49 result of a major disaster declared by the governor, or for providing one (1)
50 time tax relief payments to the citizens of the state of Idaho. Moneys in the
51 economic recovery reserve fund shall consist of moneys remitted pursuant to
4
1 section 63-2520, Idaho Code. Interest earnings from the investment of moneys
2 in this fund by the state treasurer shall be retained in the economic recovery
3 reserve fund.
4 (2) No appropriations from the economic recovery reserve fund nor any
5 transfers out of the fund shall be made without the consent of the legislature
6 by at least a majority of the members of each house concurring therein at an
7 ordinary session or at an extraordinary session of the legislature called by
8 the governor.
9 SECTION 6. SEVERABILITY. The provisions of this act are hereby declared
10 to be severable and if any provision of this act or the application of such
11 provision to any person or circumstance is declared invalid for any reason,
12 such declaration shall not affect the validity of the remaining portions of
13 this act.
14 SECTION 7. An emergency existing therefor, which emergency is hereby
15 declared to exist, Sections 1, 2, 5 and 6 of this act shall be in full force
16 and effect on and after June 1, 2003; Section 4 of this act shall be in full
17 force and effect on and after June 1, 2003, and shall be null, void and of no
18 force and effect on and after July 1, 2005; Section 3 of this act shall be in
19 full force and effect on and after July 1, 2003.
STATEMENT OF PURPOSE
SENATE AMENDMENT TO SENATE AMENDMENT TO HOUSE BILL 264
The purpose of this legislation is to increase the tax upon
cigarettes by twenty-nine cents to a rate of fifty-seven cents per
package of twenty cigarettes for the period June 1, 2003, through
June 30, 2005. The distribution of moneys collected from the
cigarette tax shall be revised as follows:
1. For fiscal year 2004, $23.5 million of the moneys
collected from the twenty-nine cent increase shall be
distributed to the General Fund, and all remaining moneys
shall be distributed to the Economic Recovery Reserve
Fund.
2. For fiscal year 2005, all moneys collected from the
twenty-nine cent increase shall be distributed to the
Economic Recovery Reserve Fund.
3. For the period July 1, 2003, through June 30, 2005,
distributions of moneys collected from the cigarette tax
shall be revised to reflect the twenty-nine cent tax
increase in order to maintain current statutory monetary
distribution levels.
FISCAL IMPACT
The estimated fiscal impact is expected to range between $24 million
and $26 million per year for fiscal years 2004 and 2005.
Contact: Senator Hal Bunderson
Phone: (208) 332-1330
STATEMENT OF PURPOSE/FISCAL NOTE
SENATE AMENDMENT TO SENATE AMENDMENT TO HOUSE BILL 264