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H0478...............................................by REVENUE AND TAXATION
TAXATION - Amends existing law to permit use of private delivery services
approved by the Internal Revenue Service to accomplish timely filing of tax
returns and other tax related documents with the State Tax Commission; to
change from October to September the month of the applicable federal rate
used to index the interest rate on taxes and refunds; to provide that an
action to foreclose a tax lien must be brought in the county in which the
property is located and to clarify the limitation of time for bringing such
action; and to delete references to constables and deputies and update
references to agents of the State Tax Commission.
01/19 House intro - 1st rdg - to printing
01/20 Rpt prt - to Rev/Tax
02/03 Rpt out - rec d/p - to 2nd rdg
02/04 2nd rdg - to 3rd rdg
02/09 3rd rdg - PASSED - 67-0-3
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
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, Martinez, McKague,
Meyer, Miller, Mitchell, Naccarato, Nielsen, Pasley-Stuart, Raybould,
Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Langhorst, McGeachin, Moyle
Floor Sponsor - Smith(24)
Title apvd - to Senate
02/10 Senate intro - 1st rdg - to Loc Gov
02/12 Rpt out - rec d/p - to 2nd rdg
02/13 2nd rdg - to 3rd rdg
03/02 3rd rdg - PASSED - 31-0-4
AYES -- Andreason, Bailey, Brandt, Burkett, Burtenshaw, Calabretta,
Cameron, Compton(Duncan), Darrington, Davis, Gannon, Geddes, Goedde,
Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
McKenzie, Noble(Anderson), Noh, Pearce, Schroeder, Sorensen,
Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Bunderson, McWilliams, Richardson, Stegner
Floor Sponsor - Gannon
Title apvd - to House
03/03 To enrol
03/04 Rpt enrol - Sp signed
03/05 Pres signed
03/08 To Governor
03/10 Governor signed
Session Law Chapter 28
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 478
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING SECTION 63-217, IDAHO CODE, TO PERMIT USE OF
3 PRIVATE DELIVERY SERVICES APPROVED BY THE INTERNAL REVENUE SERVICE FOR
4 FILING OF TAX RETURNS AND OTHER TAX RELATED DOCUMENTS WITH THE STATE TAX
5 COMMISSION; AMENDING SECTION 63-3045, IDAHO CODE, TO CHANGE FROM OCTOBER
6 15 TO SEPTEMBER 15 AS THE DATE THE INTEREST RATE ACCRUING UPON ANY DEFI-
7 CIENCY IS CALCULATED; AMENDING SECTION 63-3056, IDAHO CODE, TO PROVIDE
8 THAT AN ACTION TO FORECLOSE A TAX LIEN MUST BE BROUGHT IN THE COUNTY IN
9 WHICH THE PROPERTY IS LOCATED, TO PROVIDE TECHNICAL CORRECTIONS AND TO
10 CLARIFY THE LIMITATION OF TIME FOR BRINGING SUCH ACTIONS; AMENDING SECTION
11 63-3060, IDAHO CODE, TO PROVIDE TECHNICAL CORRECTIONS, TO DELETE REFERENCE
12 TO CONSTABLES OR DEPUTIES AND TO UPDATE REFERENCE TO AGENT OF THE STATE
13 TAX COMMISSION; AMENDING SECTION 63-3061, IDAHO CODE, TO DELETE REFERENCE
14 TO CONSTABLES OR DEPUTIES AND TO UPDATE REFERENCE TO AGENT OF THE STATE
15 TAX COMMISSION; AND AMENDING SECTION 63-3062, IDAHO CODE, TO DELETE REFER-
16 ENCE TO CONSTABLES OR DEPUTIES AND TO UPDATE REFERENCE TO AGENT OF THE
17 STATE TAX COMMISSION.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Section 63-217, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 63-217. FILING OF MATERIAL BY MAIL OR PRIVATE DELIVERY SERVICES. (1) Any
22 report, claim, return, statement or other document or payment dealing in any
23 way or in any manner whatsoever with taxation which is required or authorized
24 to be filed or made to the state of Idaho, or to any political subdivision
25 thereof, which is:
26 (a) Transmitted through the United States mail, shall be deemed filed or
27 made and received by the state or political subdivision on the date shown
28 by the post office cancellation mark stamped upon the envelope or other
29 appropriate wrapper containing it. For purposes of this title, a postage
30 meter cancellation shall not be deemed a post office cancellation mark.
31 (b) Mailed but not received by the state or political subdivision or
32 where received and the cancellation mark is illegible, erroneous or omit-
33 ted, shall be deemed filed or made and received on the date it was mailed
34 if the sender establishes by competent evidence that the report, claim,
35 tax return, statement or other document or payment was deposited in the
36 United States mail on or before the date for filing or paying; and in
37 cases of such nonreceipt of any such report, claim, tax return, statement
38 or other document or payment required by law to be filed or made, the
39 sender files with the state or political subdivision a duplicate within
40 fifteen (15) days after written notification is given to the sender by the
41 state or political subdivision of its nonreceipt of such report, claim,
42 tax return, statement, or other document or payment.
43 (2) If any such report, claim, tax return, statement or other document or
2
1 payment is sent by United States mail and either registered or certified, a
2 record authenticated by the United States post office of such registration or
3 certification shall be considered competent evidence that the report, claim,
4 tax return, statement or other document or payment was delivered to the state
5 officer or state agency or officer or agency of the political subdivision to
6 which addressed, and the date of registration or certification shall be deemed
7 the postmarked date.
8 (3) Any reference in this section to the United States mail shall be
9 treated as including a reference to any delivery service designated by the
10 secretary of the United States department of treasury under section 7502 of
11 the Internal Revenue Code. Any reference in this section to a postmark by the
12 United States postal service shall be treated as including a reference to any
13 date recorded or marked as described in section 7502 of the Internal Revenue
14 Code by any designated delivery service.
15 (4) If the date for filing any such report, claim, tax return, statement
16 or other document or making any such payment falls upon a Saturday, Sunday or
17 legal holiday, such acts shall be considered timely if performed on the next
18 business day.
19 SECTION 2. That Section 63-3045, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 63-3045. NOTICE OF REDETERMINATION OR DEFICIENCY -- INTEREST.
22 (1) (a) If, in the case of any taxpayer, the state tax commission deter-
23 mines that there is a deficiency in respect of the tax imposed by this
24 title, the state tax commission shall, immediately upon discovery thereof,
25 send notice of such deficiency to the taxpayer by registered or certified
26 mail or by other commercial delivery service providing proof of delivery,
27 whichever is the most cost efficient. The notice shall be sent to the
28 taxpayer's last address known to the state tax commission. The notice of
29 deficiency shall be accompanied by an explanation of the specific reason
30 for the determination and an explanation of the taxpayer's right to
31 appeal. Within sixty-three (63) days after such notice is mailed, the tax-
32 payer may, at his option, file a protest in writing with the state tax
33 commission and obtain redetermination of the deficiency.
34 (b) If the taxpayer files a protest with the tax commission within the
35 period set forth in subsection (1)(a) of this section, and such protest
36 does not comply with the rules of the tax commission and is therefore
37 inadequate to perfect the taxpayer's right to a redetermination of the
38 deficiency determination, then, the tax commission shall notify the tax-
39 payer, in the same manner as set forth in subsection (1)(a) of this sec-
40 tion, of such inadequacies, setting forth in said notice the corrective
41 action to be taken by the taxpayer to perfect his protest. The taxpayer
42 shall thereafter have twenty-eight (28) days from the date of said notice
43 to perfect his protest.
44 (c) No assessment of a deficiency in respect to the tax imposed by this
45 chapter, and no distraint or proceedings in court for its collection shall
46 be made, begun, or prosecuted until such notice has been mailed to the
47 taxpayer, nor until all appeal rights relating to the deficiency have
48 become final.
49 (2) Following a protest, the taxpayer has the right to a hearing. The
50 purpose of the hearing is to discuss the deficiency determination and the
51 taxpayer's protest with a commissioner or duly authorized representative of
52 the commission. The meeting shall be held informally and evidence shall be
53 freely admitted regardless of the rules of evidence.
3
1 (3) Any hearing conducted under the provisions of this section may be
2 conducted, in whole or in part, by telephone, television, or other electronic
3 means, if each participant in the hearing has an opportunity to participate in
4 the entire proceeding while it is taking place.
5 (4) A taxpayer has the right to be represented by, or be accompanied by,
6 any person of his choice in any proceeding before the tax commission. If the
7 taxpayer is not present at a proceeding, the representative of that taxpayer
8 must be designated in writing by the taxpayer as shall be prescribed in admin-
9 istrative rules or in any manner acceptable to the tax commission.
10 (5) If the taxpayer does not file a protest with the state tax commission
11 within the time prescribed in subsection (1)(a) of this section, the defi-
12 ciency shall be assessed and shall become due and payable upon notice and
13 demand from the state tax commission.
14 (6) (a) Interest shall apply to deficiencies in tax and refunds of tax.
15 Interest shall not apply to any penalty or to unpaid accrued interest.
16 Interest relating to deficiencies or refunds accruing after the original
17 due date of the return, but not including extensions of the due date,
18 shall be computed on the net of any underpayments and overpayments of a
19 tax liability required to be shown as due on the same return.
20 (b) Interest upon any deficiency shall be assessed at the same time as
21 the deficiency, shall be due and payable upon notice and demand from the
22 state tax commission and shall be collected as a part of the tax at the
23 rate per annum determined under the provisions of subsection (6)(c) of
24 this section from the date prescribed for the payment of the tax. In the
25 event any of the deficiency is reduced by reason of a carryback of a net
26 operating loss or a capital loss carryback, such reduction in deficiency
27 shall not affect the computation of interest under this subsection for the
28 period ending with the last day of the taxable year in which the net oper-
29 ating loss or capital loss arises.
30 (c) The rate of interest accruing during any calendar year, or portion
31 thereof, upon any deficiency, or payable upon an overpayment or refund
32 shall be two percent (2%) plus the rate determined under section 1274(d),
33 Internal Revenue Code, by the secretary of the treasury of the United
34 States as the midterm federal rate as it applies on October September 15
35 of the immediately preceding calendar year rounded to the nearest whole
36 number.
37 (7) When the time provisions contained in this section conflict with the
38 provisions of section 63-4208, Idaho Code, relating to the assessment of taxes
39 on illegal possession of controlled substances, the provisions of section
40 63-4208, Idaho Code, shall prevail.
41 SECTION 3. That Section 63-3056, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 63-3056. ACTION TO ENFORCE LIEN. In any case where there has been a
44 refusal or neglect to pay any tax, including interest, penalty, additional
45 amount or addition to such tax, together with any costs that may accrue in
46 addition thereto, the attorney general of the state, at the request of the
47 state tax commission, may file an action in the district court for Idaho in
48 the county where said lien is filed the property encumbered by the lien is
49 located to enforce the lien of the state for such tax upon any property and
50 rights to property, whether real or personal, or to subject any such property
51 and rights to property owned by the delinquent, or in which he has any right,
52 title, or interest, to the payment of such tax. Such action shall be commenced
53 and pursued in like manner as is now provided by law for the foreclosure of
4
1 mortgages and other liens in chapter 1, title 6, Idaho Code, which is hereby
2 made applicable to the tax liens arising under this act chapter to the extent
3 that such provisions are not inconsistent with other provisions of this act
4 chapter, provided, however, that the redemption period may be fixed by the
5 judge of the court wherein the proceeding was filed, but in no event shall the
6 period of redemption exceed the time prescribed by sections 11-402 and 11-403,
7 Idaho Code. Such action may be commenced at any time within five (5) years
8 following the date such lien arises was filed, or is was last extended.
9
10 SECTION 4. That Section 63-3060, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 63-3060. PROCEEDINGS ON LEVY OR DISTRAINT. When a warrant is issued by
13 the state tax commission for the collection of any tax, interest, penalty,
14 additional amount or addition to such tax, imposed by this act chapter or for
15 the enforcement of any lien authorized by this act chapter, it shall be
16 directed to any sheriff, constable, or deputy or agent of the state tax com-
17 mission, and any such warrant shall have the same force and effect as a writ
18 of execution. It may and shall be levied and sale made pursuant to it in the
19 same manner and with the same force and effect as a levy and sale pursuant to
20 a writ of execution. The sheriff, constable, or deputy or agent of the state
21 tax commission, shall receive upon the completion of his services pursuant to
22 said warrant, and the state tax commission is authorized to pay to said sher-
23 iff, constable, or deputy or agent of the state tax commission, the same fees,
24 commissions and expenses pursuant to said warrant as are provided by law for
25 similar services pursuant to a writ of execution, except that fees for publi-
26 cation in a newspaper shall be subject to approval by the state tax commission
27 rather than by the court; said fees, commissions and expenses shall be an
28 obligation of the taxpayer and may be collected from the taxpayer by virtue of
29 the warrant. Any such warrant issued by the state tax commission shall show
30 the name and last known address of the taxpayer liable for the amount, and
31 shall show the year for which such tax, interest, penalty, additional amount,
32 or addition to such tax, is due and the amount thereof, and the fact that the
33 state tax commission has complied with all provisions of this act chapter in
34 the determination of the amount required to be paid, and that the tax, inter-
35 est, penalty, additional amount, or addition to such tax, is due and payable
36 according to law.
37 SECTION 5. That Section 63-3061, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 63-3061. SUCCESSIVE SEIZURES. Whenever any property which is seized and
40 sold by virtue of the foregoing provisions is not sufficient to satisfy the
41 claim of the state for which distraint or seizure is made, the sheriff, con-
42 stable, or deputy or agent of the state tax commission, may thereafter, and as
43 often as the same may be necessary, proceed to seize and sell in like manner
44 any other property liable to seizure of the taxpayer against whom such claim
45 exists, until the amount due from such taxpayer, together with all expenses,
46 is fully paid.
47 SECTION 6. That Section 63-3062, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 63-3062. PRODUCTION OF BOOKS. All persons, and officers of companies or
5
1 corporations, are required on demand of a sheriff, constable, or deputy or
2 agent of the state tax commission, about to distrain, or having distrained on
3 any property or rights of property, to exhibit all books containing evidence
4 or statements relating to the subject of distraint, or the property or rights
5 of property liable to distraint for the tax due.
STATEMENT OF PURPOSE
RS 13503
This bill makes needed updates and technical corrections to various
tax statutes applicable to taxes administered by the State Tax
Commission.
Section 1 permits taxpayers to use private delivery services
approved by the internal revenue service to accomplish timely
filing of tax returns and other tax related documents with the
State Tax Commission.
Section 2 changes from October to September the month of the
applicable federal rate used to index the interest rate on taxes
and refunds.
Section 3 requires that an action to foreclose a tax lien must be
brought in the county in which the property is located rather than
where the lien is filed (all liens are now filed with the Secretary
of State) and clarifies the limitation of time for bringing such an
action.
Sections 4, 5 and 6 delete obsolete references to constables and
updates references to deputies of the State Tax Commission.
FISCAL IMPACT
No fiscal effect.
CONTACT
Name: Dan John / Ted Spangler
Agency: Tax Commission
Phone: 334-7530
Statement of Purpose/Fiscal Impact H 478