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H0543...............................................by REVENUE AND TAXATION
CONTRACTS - Adds to existing law to provide an exemption from the one
percent increase in sales tax in 2003; and to provide a refund mechanism
for certain contracts.
01/26 House intro - 1st rdg - to printing
01/27 Rpt prt - to Rev/Tax
02/20 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/26 3rd rdg - PASSED - 64-4-2
AYES -- Andersen, Barraclough, Barrett, Bayer, Bedke, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Deal,
Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
Field(23), Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
Kulczyk, Langford, Langhorst, Martinez, McGeachin, Meyer, Miller,
Mitchell, Moyle, 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 -- Bauer, Crow, Gagner, McKague
Absent and excused -- Cuddy, Lake
Floor Sponsor - Langhorst
Title apvd - to Senate
02/27 Senate intro - 1st rdg - to Loc Gov
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/15 3rd rdg - FAILED - 14-15-6
AYES -- Burkett, Calabretta, Darrington, Geddes, Ingram, Kennedy,
Malepeai, Marley, McKenzie, Noble, Pearce, Richardson, Sweet, Werk
NAYS -- Andreason, Bailey, Bunderson, Burtenshaw, Compton, Gannon,
Goedde, Hill, Keough, Little, Lodge, McWilliams, Schroeder, Sorensen,
Stegner
Absent and excused -- Brandt, Cameron, Davis, Noh, Stennett, Williams
Floor Sponsor - Malepeai
Ret'd to House
Filed in Office of the Chief Clerk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 543
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-3640A, IDAHO CODE, TO PROVIDE FOR CON-
4 TRACTS ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THE INCREASED SALES AND
5 USE TAX; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is
8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
9 ignated as Section 63-3640A, Idaho Code, and to read as follows:
10 63-3640A. CONTRACTS ENTERED INTO BEFORE EFFECTIVE DATE OF INCREASED TAX.
11 (1) Commencing May 1, 2003, and ending June 30, 2005, the purchase, use,
12 lease, storage or other consumption of tangible personal property or service
13 which is a sale and otherwise subject to the taxes imposed by this chapter by
14 persons shall be exempt from the one percent (1%) rate increase of the taxes
15 imposed by sections 63-3619 and 63-3621, Idaho Code, if:
16 (a) The tangible personal property or service is purchased, used, leased,
17 stored or otherwise consumed by such person pursuant to a qualified con-
18 tract; and
19 (b) The taxpayer claims the exemption in the manner provided by subsec-
20 tion (3) of this section.
21 (2) As used in this section, the term "qualified contract" means a con-
22 tract which:
23 (a) Is a written contract; and
24 (b) Was in effect on April 15, 2003, or was submitted for bid or bid in
25 written form on or before April 15, 2003, and subsequently became a writ-
26 ten contract on and after January 1, 2002, but before April 15, 2003; and
27 (c) Was negotiated or bid based upon the sales or use tax being five per-
28 cent (5%); and
29 (d) Requires the cost of the sales or use tax to be borne by the pur-
30 chaser.
31 (3) A person entitled to the exemption granted in subsection (1) of this
32 section may submit a claim for refund to the state tax commission for the
33 amount of one percent (1%) of the rate of the tax imposed by sections 63-3619
34 and 63-3621, Idaho Code, if it has actually been paid by him. The claim for
35 refund shall include:
36 (a) A copy of a written contract which is a qualified contract; and
37 (b) A detailed invoice prepared by the seller showing all items of tangi-
38 ble personal property or service purchased by the claimant, the sale of
39 which is subject to the exemption granted in subsection (1) of this sec-
40 tion.
41 (4) Upon receipt of the claim for refund, the state tax commission shall
42 review the claim and, if it finds it to be proper, shall pay the refund
43 together with interest from the date that the claim was filed at the rate
2
1 established by section 63-3045, Idaho Code, within thirty (30) days from the
2 date the claim was received by the commission.
3 (5) The use or incorporation of any tangible personal property or ser-
4 vice upon which the exemption provided by subsection (1) of this section has
5 been claimed pursuant to any contract other than a qualified contract shall be
6 a misdemeanor.
7 (6) In addition to the criminal penalties provided by subsection (5) of
8 this section, the use or incorporation of tangible personal property or ser-
9 vice upon which the exemption provided by subsection (1) of this section has
10 been claimed pursuant to any contract which is not a qualified contract shall
11 subject the user to a penalty of three (3) times the sales or use tax other-
12 wise due under this chapter to be enforced and collected as provided by sec-
13 tions 63-3634 and 63-3635, Idaho Code.
14 (7) In the case of a retailer who makes a sale to any person entitled to
15 the exemption granted in subsection (1) of this section who is for any reason
16 unable to collect one percent (1%) of the rate of the tax imposed by sections
17 63-3619 and 63-3621, Idaho Code, from the purchaser, the retailer shall be
18 entitled to claim the refund otherwise available to the purchaser. The claim
19 for refund shall be filed in the manner prescribed by subsection (3) of this
20 section. Nothing in this subsection shall excuse the retailer from reporting
21 sales and use taxes at the full statutory rate on all taxable sales made dur-
22 ing the period to which his sales or use tax return relates. If a refund claim
23 is filed concurrently with the return, the refund claimed may be credited
24 against the tax due on the return. Any retailer who claims a refund for any
25 taxes actually collected from the purchaser shall be subject to a penalty of
26 three (3) times the sales or use tax refund improperly claimed to be enforced
27 and collected as provided by sections 63-3634 and 63-3635, Idaho Code.
28 SECTION 2. An emergency existing therefor, which emergency is hereby
29 declared to exist, this act shall be in full force and effect on and after its
30 passage and approval, and retroactively to April 24, 2003.
STATEMENT OF PURPOSE
RS 13523
STATEMENT OF PURPOSE
This legislation clarifies the definition of those transactions
which qualify for an exemption from last year's .01 cent increase
in the state sales tax.
FISCAL IMPACT
According to the Idaho Tax Commission, the fiscal impact on this
bill is approximately $1.2 million from the general fund.
Contact
Name: Rep. David Langhorst
Phone: (208)332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 543