2004 Legislation
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HOUSE BILL NO. 475 – Fuels tax, certain ATVs exempt


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Bill Status

H0475.........................................by TRANSPORTATION AND DEFENSE
FUELS TAX - Amends existing fuels tax law to provide that gasoline used to
propel all-terrain vehicles not required to be registered under motor
vehicle law or under recreational activities law is exempt from fuel tax;
to provide for refunds payable on such fuel; and to expand the definition
of "recreational vehicle" to include all-terrain vehicles.
01/15    House intro - 1st rdg - to printing
01/16    Rpt prt - to Transp
01/21    Rpt out - rec d/p - to 2nd rdg
01/22    2nd rdg - to 3rd rdg
01/26    3rd rdg - PASSED - 56-10-4
      AYES -- Barraclough, Barrett, Bauer, Bayer, Bedke, Bell, Black,
      Block, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal,
      Denney, Douglas, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
      Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg, Kulczyk,
      Lake, Langford, McGeachin, McKague, Meyer, Miller, Moyle, Nielsen,
      Raybould, Ridinger, Ring, Roberts, Rydalch, Sayler, Schaefer,
      Shepherd, Shirley, Skippen, Smith(24), Smylie, Snodgrass, Stevenson,
      Wills, Wood, Mr. Speaker
      NAYS -- Andersen, Boe, Martinez, Mitchell, Naccarato, Pasley-Stuart,
      Ringo, Robison, Smith(30), Trail
      Absent and excused -- Crow, Eberle, Langhorst, Sali
    Floor Sponsor - Roberts
    Title apvd - to Senate
01/27    Senate intro - 1st rdg - to Transp
03/03    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 27-0-8
      AYES -- Andreason, Bailey, Bunderson, Burtenshaw, Calabretta,
      Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy,
      Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
      Pearce, Richardson, Schroeder, Sorensen, Stegner, Sweet, Werk
      NAYS -- None
      Absent and excused -- Brandt, Burkett, Cameron, Davis, Noble, Noh,
      Stennett, Williams
    Floor Sponsor - Bailey
    Title apvd - to House
03/16    To enrol
03/17    Rpt enrol - Sp signed
03/18    Pres signed - To Governor
03/23    Governor signed
         Session Law Chapter 235
         Effective: 07/01/04

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 475
  1                                        AN ACT
 10    Be It Enacted by the Legislature of the State of Idaho:
 11        SECTION  1.  That  Section 63-2401, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
 13        63-2401.  DEFINITIONS. In this chapter:
 14        (1)  "Aircraft engine fuel" means:
 15        (a)  Aviation gasoline, defined as any mixture  of  volatile  hydrocarbons
 16        used in aircraft reciprocating engines; and
 17        (b)  Jet  fuel,  defined  as  any mixture of volatile hydrocarbons used in
 18        aircraft turbojet and turboprop engines.
 19        (2)  "Biodiesel" means any fuel or mixture of fuels that is:
 20        (a)  Derived in whole or in part from agricultural products or animal fats
 21        or the wastes of such products; and
 22        (b)  Suitable for use as fuel in diesel engines.
 23        (3)  "Bond" means:
 24        (a)  A surety bond, in an amount required by this chapter,  duly  executed
 25        by  a  surety company licensed and authorized to do business in this state
 26        conditioned upon faithful performance of all requirements of this chapter,
 27        including the payment of all taxes, penalties and other obligations  aris-
 28        ing out of the provisions of this chapter; or
 29        (b)  A  deposit  with the commission by any person required to be licensed
 30        pursuant to this chapter under terms and conditions as the commission  may
 31        prescribe,  of a like amount of lawful money of the United States or bonds
 32        or other obligations of the United States, the  state  of  Idaho,  or  any
 33        county of the state; or
 34        (c)  An  irrevocable  letter  of credit issued to the commission by a bank
 35        doing business in this state payable to the state upon failure of the per-
 36        son on whose behalf it is issued to remit any payment due under the provi-
 37        sions of this chapter.
 38        (4)  "Commercial motor boat" means any boat, equipped with a motor,  which
 39    is  wholly  or  partly  used in a profit-making enterprise or in an enterprise
 40    conducted with the intent of making a profit.
 41        (5)  "Commission" means the state tax commission of the state of Idaho.
 42        (6)  "Distributor" means any person who receives motor fuel in this state,
 43    and includes a special fuels dealer. Any person who sells or receives  gaseous
  1    fuels  will  not be considered a distributor unless the gaseous fuel is deliv-
  2    ered into the fuel supply tank or tanks of a motor vehicle not then  owned  or
  3    controlled by him.
  4        (7)  "Dyed  fuel"  means diesel fuel that is dyed pursuant to requirements
  5    of the internal revenue service, or the environmental protection agency.
  6        (8)  "Exported" means delivered by truck or rail across the boundaries  of
  7    this  state  by  or for the seller or purchaser from a place of origin in this
  8    state.
  9        (9)  "Gasohol" means gasoline containing a mixture of  no  more  than  ten
 10    percent (10%) blend anhydrous ethanol.
 11        (10) "Gasoline"  means  any mixture of volatile hydrocarbons suitable as a
 12    fuel for the propulsion of motor vehicles  or  motor  boats.  "Gasoline"  also
 13    means aircraft engine fuels when used for the operation or propulsion of motor
 14    vehicles  or  motor  boats  and includes gasohol, but does not include special
 15    fuels.
 16        (11) "Highways" means every place of whatever nature open to  the  use  of
 17    the  public  as a matter of right for the purpose of vehicular travel which is
 18    maintained by the state of Idaho or an agency or taxing  subdivision  or  unit
 19    thereof  or  the  federal  government or an agency or instrumentality thereof.
 20    Provided, however, if the cost of maintaining a roadway is primarily borne  by
 21    a special fuels user who operates motor vehicles on that roadway pursuant to a
 22    written  contract during any period of time that a special fuels tax liability
 23    accrues to the user, such a roadway shall not be considered  a  "highway"  for
 24    any purpose related to calculating that user's special fuel's tax liability or
 25    refund.
 26        (12) "Imported"  means delivered by truck or rail across the boundaries of
 27    this state by or for the seller or purchaser from a place  of  origin  outside
 28    this state.
 29        (13) "International  fuel tax agreement" and "IFTA" mean the international
 30    fuel tax agreement required by the  intermodal  surface  transportation  effi-
 31    ciency  act  of  1991,  Public Law 102-240, 105 Stat. 1914, and referred to in
 32    title 49, U.S.C., section  31701,  including  subsequent  amendments  to  that
 33    agreement.
 34        (14) "Jurisdiction"  means  a  state of the United States, the District of
 35    Columbia, a province or territory of Canada, or a state, territory  or  agency
 36    of Mexico in the event that the state, territory or agency participates in the
 37    international fuel tax agreement.
 38        (15) "Licensed  distributor"  means  any  distributor  who  has obtained a
 39    license under the provisions of section 63-2427A, Idaho Code.
 40        (16) "Motor fuel" means gasoline, special fuels, aircraft engine fuels  or
 41    any  other  fuels  suitable for the operation or propulsion of motor vehicles,
 42    motor boats or aircraft.
 43        (17) "Motor vehicle" means every self-propelled vehicle designed for oper-
 44    ation, or required to be licensed for operation, upon a highway.
 45        (18) "Person" means any individual, firm, fiduciary, copartnership,  asso-
 46    ciation,  limited liability company, corporation, governmental instrumentality
 47    including the state and all of its agencies and political subdivisions, or any
 48    other group or combination acting as a unit, and the plural  as  well  as  the
 49    singular number, unless the intent to give a more limited meaning is disclosed
 50    by the context. Whenever used in any clause prescribing and imposing a fine or
 51    imprisonment,  or  both,  the term "person" as applied to an association means
 52    the partners or members, and as applied to corporations, the officers.
 53        (19) "Recreational vehicle" means  a  snowmobile  as  defined  in  section
 54    67-7101,  Idaho Code; a motor driven cycle or motorcycle as defined in section
 55    49-114, Idaho Code; and any recreational vehicle as defined in section 49-119,
  1    Idaho Code; and an all-terrain vehicle as defined in  section  67-7101,  Idaho
  2    Code.
  3        (20) "Retail  dealer" means any person engaged in the retail sale of motor
  4    fuels to the public or for use in the state.
  5        (21) "Special fuels" means:
  6        (a)  All fuel suitable as fuel for diesel engines;
  7        (b)  A compressed or liquified gas obtained as a  byproduct  in  petroleum
  8        refining  or natural gasoline manufacture, such as butane, isobutane, pro-
  9        pane, propylene, butylenes, and their mixtures; and
 10        (c)  Natural gas, either liquid or gas, and hydrogen, used for the genera-
 11        tion of power for the operation or propulsion of motor vehicles.
 12        (22) "Special fuels dealer" means "distributor" under  subsection  (6)  of
 13    this section.
 14        (23) "Special  fuels  user"  means any person who uses or consumes special
 15    fuels for the operation or propulsion of motor vehicles owned or controlled by
 16    him upon the highways of this state.
 17        (24) "Use" means either:
 18        (a)  The receipt, delivery or placing of fuels by a  licensed  distributor
 19        or  a special fuels dealer into the fuel supply tank or tanks of any motor
 20        vehicle not owned or controlled by him while the vehicle  is  within  this
 21        state; or
 22        (b)  The  consumption  of  fuels in the operation or propulsion of a motor
 23        vehicle on the highways of this state.
 24        SECTION 2.  That Section 63-2410, Idaho Code, be, and the same  is  hereby
 25    amended to read as follows:
 26        63-2410.  REFUND  OF GASOLINE TAX PROCEDURE. (1) Any person who shall pur-
 27    chase fifty (50) gallons or more, and use the gasoline in motor vehicles oper-
 28    ated on highways outside of the state  of  Idaho  where  a  duplicate  tax  is
 29    assessed  for  the  same gasoline, shall be entitled to refund when a claim is
 30    presented to the commission in the manner required  in  subsection  (5)(c)  of
 31    this section. Claimant shall present to the commission a statement accompanied
 32    by  a  verification  of  the use determined by an audit of his operations con-
 33    ducted as prescribed by the tax commission; or his claim may  be  verified  by
 34    the  filing  of  a receipt or proof showing the payment of tax on the gasoline
 35    used in any other state.
 36        (2)  Any person who shall purchase within any one (1) calendar year  fifty
 37    (50)  gallons or more of gasoline used for the purposes described in this sub-
 38    section shall be entitled to be refunded the amount of gasoline tax previously
 39    paid on that gasoline. Exempt uses are:
 40        (a)  Operating stationary gasoline engines;
 41        (b)  Propelling equipment or vehicles which are not licensed to  be  oper-
 42        ated on a highway; and
 43        (c)  Operating commercial motor boats; and
 44        (d)  Propelling  an  all-terrain vehicle that is not required to be regis-
 45        tered pursuant to chapter 4, title 49, Idaho Code, or  chapter  71,  title
 46        67, Idaho Code.
 47        (3)  No refund of gasoline tax shall be allowed for any gasoline which is:
 48        (a)  Used  in  motor vehicles required to be licensed or used in any motor
 49        vehicle exempt from registration by reason of the ownership or  residence;
 50        or
 51        (b)  Aircraft engine fuel placed in aircraft, provided however, if tax has
 52        been  paid  at  the  rate  provided in section 63-2405, Idaho Code, on any
 53        motor fuel placed in the fuel supply tank of an aircraft the user  of  the
  1        fuel may apply for a refund of the difference  between the tax paid on the
  2        fuel and the tax imposed in section 63-2408, Idaho Code; or
  3        (c)  Gasoline  uUsed  in recreational vehicles except all-terrain vehicles
  4        exempted as provided in subsection (2)(d) of this section; or
  5        (d)  Gasoline uUsed in noncommercial motor boats or in boats operated by a
  6        governmental entity.
  7        (4)  Any licensed distributor paying  the  gasoline  tax  and/or  aircraft
  8    engine fuel tax to the state of Idaho erroneously shall be allowed a credit or
  9    refund of the amount of tax paid by him if a written claim for refund is filed
 10    with  the  commission  within  three (3) years after the date those taxes were
 11    paid. Such credit or refund shall include interest at the rate established  in
 12    section  63-3045,  Idaho  Code, computed from the date taxes to be refunded or
 13    credited were paid to the commission.
 14        (5)  (a) All claims for refund of gasoline taxes arising under  subsection
 15        (1),  (2) or (3)(b) of this section shall be filed in conjunction with the
 16        claimant's income tax return due pursuant to chapter 30, title  63,  Idaho
 17        Code.  The gasoline tax refund claimed shall be tax paid on gasoline actu-
 18        ally purchased during the taxable year to  which  the  income  tax  return
 19        relates.  The  gasoline  tax  refund due shall be offset against any other
 20        taxes, penalties or interest due before any balance  is  refunded  by  the
 21        commission  to  the  claimant. Subject to a limitation as to the amount of
 22        refund to be claimed as the commission may provide by rule, refund  claims
 23        may  be submitted and paid on a monthly basis and reconciled on the income
 24        tax return when it is filed.
 25        (b)  If a claimant is not required to  file  an  income  tax  return,  the
 26        refund  claim  shall  be made on forms and in the manner as the commission
 27        may provide. The claim shall relate to taxes  paid  on  gasoline  actually
 28        purchased in the calendar year preceding the filing and the claim shall be
 29        due on or before April 15 following the close of the calendar year.
 30        (c)  Claims  for refunds under subsection (1) or (2) of this section shall
 31        be filed in the manner prescribed in section  63-3072,  Idaho  Code.  Such
 32        credit or refund shall include interest at the rate established in section
 33        63-3045,  Idaho Code, computed from sixty (60) days following the later of
 34        the due date of the claimed refund under subsection (5)(a)  or  (5)(b)  of
 35        this  section  or  the  filing of the claim. No refund shall be paid under
 36        this section unless a written claim for such refund has  been  filed  with
 37        the commission within three (3) years after the due date, including exten-
 38        sions,  of  the  income tax return in regard to which the claim relates or
 39        the due date of the claim established in paragraph (b) of this  subsection
 40        (5).
 41        (d)  The  commission  may  require  that  all claims be accompanied by the
 42        original signed invoice or invoices issued to the  claimant,  showing  the
 43        total  amount of gasoline on which a refund is claimed and the reason, the
 44        amount of the tax and any additional information required by  the  commis-
 45        sion.  Each  separate  delivery shall constitute a purchase and a separate
 46        invoice shall be prepared, at least in duplicate, to cover  the  delivery.
 47        All  invoices,  except  those  prepared  by a computer or similar machine,
 48        shall be prepared in ink or double-spaced carbon shall be used between the
 49        original and first duplicate.
 50        (6)  (a) Should the commission find that the claim contains errors, it may
 51        correct the claim and approve it  as  corrected,  or  the  commission  may
 52        require  the claimant to file an amended claim. The commission may require
 53        any person who makes a claim for refund to furnish a statement under oath,
 54        giving his occupation, description of the machine or  equipment  in  which
 55        the  gasoline was used, the place where used and any other  information as
  1        the commission may require. If the commission determines  that  any  claim
  2        has been fraudulently presented, or is supported by an invoice or invoices
  3        fraudulently  made or altered, or that any statement in the claim or affi-
  4        davit is willfully false and made for the purpose of misleading, the  com-
  5        mission  may  reject the claim in full. If the claim is rejected, the com-
  6        mission may suspend the claimant's right to any refund for purchases  made
  7        during  a  period  not  to exceed one (1) year beginning with the date the
  8        rejected claim was filed, and it shall take all other action deemed appro-
  9        priate.
 10        (b)  The commission has authority, in order to establish the  validity  of
 11        any  claim, to examine the books and records of the claimant for that pur-
 12        pose, and failure of the claimant to accede to the demand for the examina-
 13        tion may constitute a waiver of all rights to the refund claimed.
 14        (7)  In the event of the loss or destruction of the  original  invoice  or
 15    invoices,  the  person  claiming  a  refund may submit a duplicate copy of the
 16    invoice certified by the vendor, but payment based on  the  duplicate  invoice
 17    shall  not be made until one (1) year after the date on which the gasoline was
 18    purchased.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                             RS 13510

The bill amends the motor fuels tax statutes to clarify when 
refunds are payable on fuel used in all-terrain vehicles(ATV) 
not required to be licensed or to have a recreational permit.  

The effect is to eliminate the difference between three-wheel 
and four-wheel ATVs.  Currently fuel used in three-wheel ATVs is 
taxable but tax on fuel used in four-wheel ATVs (if not licensed) 
can be refunded.

                          FISCAL IMPACT

Additional $20,000 motor fuel tax will qualify for refund.  This 
does not affect the general fund.

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

STATEMENT OF PURPOSE/FISCAL NOTE                         H 475