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H0754aa.............................................by REVENUE AND TAXATION
EXPENDITURE LIMITS - Amends and adds to existing law to revise legislative
expenditure limits by providing that General Fund expenditures for any
fiscal year shall not exceed the total General Fund expenditure authorized
for fiscal year 2005 as annually adjusted for population growth and
inflation; to create the taxpayers reserve fund; to provide legislative
intent; to provide for the transfer of moneys to the fund; and to provide
for refunds to taxpayers according to criteria specified.
02/24 House intro - 1st rdg - to printing
02/25 Rpt prt - to Rev/Tax
03/05 Rpt out - to Gen Ord
03/08 Rpt out amen - to engros
03/09 Rpt engros - 1st rdg - to 2nd rdg as amen
03/10 2nd rdg - to 3rd rdg as amen
Rls susp - FAILED - 30-37-3
AYES -- Barraclough, Barrett, Bauer, Bayer, Bedke, Bradford, Collins,
Crow, Denney, Eberle, Ellsworth, Eskridge, Field(23), Garrett,
Harwood, Kulczyk, Lake, Langford, McGeachin, McKague, Moyle, Nielsen,
Raybould, Roberts, Rydalch, Sali, Schaefer, Skippen, Wood, Mr.
Speaker
NAYS -- Andersen, Bell, Black, Block, Boe, Bolz, Cannon, Clark,
Cuddy, Deal, Douglas, Edmunson, Field(18), Henbest, Jaquet, Jones,
Kellogg, Langhorst, Martinez, Meyer, Miller, Mitchell, Naccarato,
Pasley-Stuart, Ridinger, Ring, Ringo, Robison, Sayler, Shepherd,
Shirley, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail
Absent and excused -- Campbell, Gagner, Wills
Floor Sponsors - Roberts, McGeachin & Bayer
Filed in the 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. 754
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO ECONOMIC ESTIMATES; AMENDING SECTION 67-6803, IDAHO CODE, TO
3 REVISE LEGISLATIVE EXPENDITURE LIMITS BY PROVIDING THAT GENERAL FUND
4 EXPENDITURES FOR ANY FISCAL YEAR SHALL NOT EXCEED THE TOTAL GENERAL FUND
5 EXPENDITURES AUTHORIZED FOR FISCAL YEAR 2005 AS ANNUALLY ADJUSTED FOR POP-
6 ULATION GROWTH AND INFLATION; AND AMENDING CHAPTER 68, TITLE 67, IDAHO
7 CODE, BY THE ADDITION OF A NEW SECTION 67-6804, IDAHO CODE, TO PROVIDE
8 LEGISLATIVE INTENT, TO CREATE THE TAXPAYERS RESERVE FUND, TO PROVIDE FOR
9 TRANSFER OF MONEYS TO THE FUND AND TO PROVIDE FOR REFUNDS TO TAXPAYERS
10 ACCORDING TO CRITERIA SPECIFIED, UNLESS THE LEGISLATURE HAS DIRECTED THE
11 FUNDS TO BE REFUNDED ACCORDING TO DIFFERENT CRITERIA.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Section 67-6803, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 67-6803. EXPENDITURE LIMITS. (a) The legislature shall not, by ongoing
16 appropriation for any fiscal year, cause the expenditure of general fund reve-
17 nues for that fiscal year to exceed five and one-third percent (5 1/3%) of the
18 total personal income of the state for the ensuing fiscal year as determined
19 by the economic estimates commission. One-time general fund appropriations are
20 not to be included in the expenditure limit.
21 (b) In order to permit the transference of governmental functions between
22 the federal and state governments and between the state government and its
23 political subdivisions and school districts, without abridging the purpose of
24 this act, adjustments to the appropriation percentage limitation of total per-
25 sonal income shall be specifically detailed in appropriations and shall be
26 consistent with the following principles:
27 (1) If, by order of any court or by legislative enactment on or after
28 January 1, 1980, the costs of a program or any portion thereof are trans-
29 ferred from a political subdivision of this state or school district to
30 the state, the appropriation percentage limitation may be commensurately
31 increased provided the tax revenues of the affected political subdivisions
32 or school districts are commensurately decreased.
33 (2) If, by order of any court or by legislative enactment on or after
34 January 1, 1980, the costs of a program or any portion thereof are trans-
35 ferred from the state to a political subdivision of this state, the appro-
36 priation percentage limitation shall be commensurately decreased, and the
37 tax rates of the political subdivision may be commensurately increased.
38 (3) If funds provided by the federal government in support of an existing
39 service or program are eliminated or significantly curtailed on or after
40 January 1, 1980, the appropriation percentage limitation may be
41 commensurately increased by the amount of the increased state costs incur-
42 red in providing such service or program or any portion thereof pursuant
43 to an order of any court or by legislative enactment.
2
1 (4) If the costs of a program are transferred from the state to the fed-
2 eral government on or after January 1, 1980, the appropriation percentage
3 limitation shall be commensurately decreased cause general fund expendi-
4 tures for any fiscal year to exceed the total general fund expenditures
5 authorized for the period July 1, 2004, through June 30, 2005, as adjusted
6 each subsequent fiscal year by the average percentage change in the state
7 of Idaho's population in the three (3) calendar years immediately preced-
8 ing the beginning of each subsequent fiscal year, as reported by the
9 United States census, plus the average percentage change in the unadjusted
10 consumer price index for all urban consumers, in the three (3) calendar
11 years immediately preceding the beginning of each subsequent fiscal year,
12 as reported by the United States department of labor. Exceptions to this
13 limitation may be approved for expenditures resulting from the transfer of
14 any programs to the state from a political subdivision of the state,
15 including school districts, or for transfers from the general fund to pay
16 deficiency warrants issued for emergency expenditures. If general fund
17 expenditures exceed the limitations imposed by this section, then the
18 board of examiners shall proportionately reduce all general fund appropri-
19 ations by the amount necessary to bring such expenditures into compliance
20 with this section.
21 SECTION 2. That Chapter 68, Title 67, Idaho Code, be, and the same is
22 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
23 ignated as Section 67-6804, Idaho Code, and to read as follows:
24 67-6804. TAXPAYERS RESERVE FUND. (1) The legislature finds that it is in
25 the best interest of the taxpayers of the state of Idaho to establish a state
26 budget system that captures surplus revenues for the purposes described
27 herein.
28 (2) There is hereby created in the state treasury the taxpayers reserve
29 fund for the purpose of providing one-time tax relief to the citizens of the
30 state of Idaho. Interest earnings from the investment of idle moneys in this
31 fund by the state treasurer shall be retained in the taxpayers reserve fund.
32 Subsequent to the requirements of sections 57-814 and 63-3203, Idaho Code,
33 the state controller shall transfer all unexpended and unencumbered moneys
34 remaining in the general fund at the end of each fiscal year to the taxpayers
35 reserve fund. The legislature shall authorize no transfer or appropriation
36 from the taxpayers reserve fund, except for the purposes of refunding moneys
37 to the taxpayers.
38 (3) If the balance in the taxpayers reserve fund equals or exceeds three
39 percent (3%) of the revenues deposited in the general fund in the fiscal year
40 just ended, then the balance in the fund shall be refunded to the taxpayers
41 according to the criteria established in this section. Funds shall be refunded
42 based on the net collections during the fiscal year just ended of sales and
43 use tax, individual income tax, and corporate income tax. The percentage that
44 the net collections of each tax bears to the sum of the three (3) shall be
45 applied to the total dollars being refunded, and refunded to the taxpayers as
46 follows:
47 (a) Sales and use tax. For refunded funds attributable to the sales and
48 use tax, the tax commission shall institute a temporary one-year increase
49 in the grocery tax credit, rounded down to the nearest whole dollar, based
50 on the number of people claiming a grocery tax credit on the income tax
51 return in the most recent tax year for which information is available.
52 Moneys shall be transferred from the taxpayers reserve fund to the refund
53 fund to cover the cost.
3
1 (b) Individual income tax. For refunded funds attributable to the indi-
2 vidual income tax, the amount to be distributed to individual income tax-
3 payers shall be calculated as follows: For each individual income tax
4 return required to be filed pursuant to section 63-3030, Idaho Code, for
5 which a tax imposed by section 63-3024, Idaho Code, on at least one dollar
6 ($1.00) of Idaho taxable income, the state tax commission shall provide a
7 surcharge offset against taxes, to the taxpayer named on the return in the
8 amount specified in this paragraph. In the case of a joint return, the
9 surcharge offset against taxes shall be credited to both taxpayers
10 jointly. The amount of the surcharge offset against taxes shall be a per-
11 centage based on the amount of tax computed under section 63-3024, Idaho
12 Code, reduced by credits provided by section 63-3029, Idaho Code, relating
13 to taxes paid to another state, sections 63-3029A and 63-3029C, Idaho
14 Code, relating to certain charitable contributions, section 63-3029B,
15 Idaho Code, relating to capital investments, section 63-3029D, Idaho Code,
16 relating to qualified equipment utilizing postconsumer waste or
17 postindustrial waste, section 63-3029G, Idaho Code, relating to research
18 activities conducted in Idaho, section 63-3029I, Idaho Code, relating to
19 broadband equipment, section 63-3022P, Idaho Code, relating to health
20 insurance costs, section 63-3029J, Idaho Code, relating to investment in
21 certain areas, and section 63-3029F, Idaho Code, relating to new jobs;
22 divided by the amount of individual income tax projected to be collected
23 during the year multiplied by the amount of money to be distributed pursu-
24 ant to this subsection. In the case of married taxpayers filing separate
25 returns, only one (1) surcharge offset against taxes shall be credited. No
26 surcharge offset against taxes shall be credited pursuant to this para-
27 graph in regard to a return described in this paragraph if the return is
28 not filed within three (3) years of the original due date of the return
29 without regard to extensions. In the event that the amount of tax due on a
30 return filed within the time required by this paragraph is amended by the
31 taxpayer or changed by the state tax commission the surcharge offset
32 against taxes provided by this paragraph shall be adjusted proportionally.
33 In the case of a short period return, the rates provided by this section
34 shall be reduced in proportion to the portion of the tax year to which the
35 return applies. Calculations shall be based on the most recent tax year
36 for which information is available, and moneys, if any, shall be trans-
37 ferred from the taxpayers reserve fund to the refund fund to cover the
38 cost.
39 (c) Corporate income tax. For refunded funds attributable to the corpo-
40 rate income tax, the amount to be distributed to corporate income tax-
41 payers shall be calculated as follows: For each corporate income tax
42 return required to be filed pursuant to section 63-3025, Idaho Code, and
43 for each franchise tax return required to be filed pursuant to section
44 63-3025A, Idaho Code, and that is actually filed, for the twelve (12)
45 month taxable year when general fund expenditures exceeded the limitations
46 imposed by section 67-6803, Idaho Code, for which a tax is imposed by sec-
47 tion 63-3025 or 63-3025A, Idaho Code, on at least one dollar ($1.00) of
48 Idaho taxable income, the state tax commission shall provide a surcharge
49 offset against income taxes to the taxpayer named on the return in the
50 amount specified in this paragraph. The amount of the surcharge offset
51 against income taxes shall be a percentage based on the amount of tax com-
52 puted under sections 63-3025 and 63-3025A, Idaho Code, divided by the
53 amount of corporate income tax and franchise tax projected to be collected
54 during the year multiplied by the amount of the surcharge offset against
55 taxes to be credited pursuant to this paragraph. No surcharge offset
4
1 against taxes shall be credited pursuant to this paragraph in regard to a
2 return described in this paragraph if the return is not filed within three
3 (3) years of the original due date of the return without regard to exten-
4 sions. In the event that the amount of tax due on a return filed within
5 the time required by this paragraph is amended by the taxpayer or changed
6 by the state tax commission the surcharge offset against taxes provided by
7 this paragraph shall be adjusted proportionally. In the case of a short
8 period return, the rates provided by this paragraph shall be reduced in
9 proportion to the portion of the tax year to which the return applies.
10 Calculations shall be based on the current tax year, and moneys shall be
11 transferred from the taxpayers reserve fund to the refund fund to cover
12 the cost if the surcharge offset against taxes provides for refunds to
13 taxpayers.
14 (4) Except as provided in this subsection no application for a surcharge
15 offset against taxes pursuant to subsection (3)(b) or (3)(c) of this section
16 shall be required. The state tax commission shall cause any refund to be
17 mailed to the taxpayer or taxpayers at the address shown on the return,
18 unless, as a result of a more recent return, a newer address is shown on the
19 commission's records. The state tax commission may provide a procedure by
20 which refunds, if any, that are returned undeliverable may be claimed. Any
21 taxpayer aggrieved by any action of the state tax commission in regard to the
22 surcharge offset against taxes provided in subsection (3) of this section
23 shall file a petition with the state tax commission in the manner provided in
24 section 63-3045, Idaho Code. Such a petition shall be subject to administra-
25 tive and judicial review in the manner provided by sections 63-3045 through
26 63-3049, Idaho Code. The state tax commission, the state treasurer and the
27 state controller may contract with a commercial bank for some or all of the
28 services, including issuing payments, relating to payment of any refund pro-
29 vided in this section.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
Moved by Raybould
Seconded by Moyle
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 754
1 AMENDMENTS TO SECTION 2
2 On page 3 of the printed bill, in line 11, delete "based on" and insert:
3 "applied against"; in line 21, delete ";" and insert: "."; delete lines 22 and
4 23, and insert: "The surcharge offset percentage shall be established by
5 dividing the amount of money to be distributed pursu-"; in line 24, following
6 "subsection" insert: "by the amount of individual income tax projected to be
7 collected during the year"; in line 51, delete "based on" and insert: "applied
8 against"; in line 52, delete ", divided by the"; delete lines 53 and 54, and
9 insert: ". The surcharge offset percentage shall be established by dividing
10 the amount of the surcharge offset against"; in line 55, following "paragraph"
11 insert: "by the amount of corporate income tax and franchise tax projected to
12 be collected during the year".
13 On page 4, delete lines 14 through 29.
14 CORRECTION TO TITLE
15 On page 1, delete lines 10 and 11, and insert: "ACCORDING TO CRITERIA
16 SPECIFIED.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 754, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO ECONOMIC ESTIMATES; AMENDING SECTION 67-6803, IDAHO CODE, TO
3 REVISE LEGISLATIVE EXPENDITURE LIMITS BY PROVIDING THAT GENERAL FUND
4 EXPENDITURES FOR ANY FISCAL YEAR SHALL NOT EXCEED THE TOTAL GENERAL FUND
5 EXPENDITURES AUTHORIZED FOR FISCAL YEAR 2005 AS ANNUALLY ADJUSTED FOR POP-
6 ULATION GROWTH AND INFLATION; AND AMENDING CHAPTER 68, TITLE 67, IDAHO
7 CODE, BY THE ADDITION OF A NEW SECTION 67-6804, IDAHO CODE, TO PROVIDE
8 LEGISLATIVE INTENT, TO CREATE THE TAXPAYERS RESERVE FUND, TO PROVIDE FOR
9 TRANSFER OF MONEYS TO THE FUND AND TO PROVIDE FOR REFUNDS TO TAXPAYERS
10 ACCORDING TO CRITERIA SPECIFIED.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 67-6803, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 67-6803. EXPENDITURE LIMITS. (a) The legislature shall not, by ongoing
15 appropriation for any fiscal year, cause the expenditure of general fund reve-
16 nues for that fiscal year to exceed five and one-third percent (5 1/3%) of the
17 total personal income of the state for the ensuing fiscal year as determined
18 by the economic estimates commission. One-time general fund appropriations are
19 not to be included in the expenditure limit.
20 (b) In order to permit the transference of governmental functions between
21 the federal and state governments and between the state government and its
22 political subdivisions and school districts, without abridging the purpose of
23 this act, adjustments to the appropriation percentage limitation of total per-
24 sonal income shall be specifically detailed in appropriations and shall be
25 consistent with the following principles:
26 (1) If, by order of any court or by legislative enactment on or after
27 January 1, 1980, the costs of a program or any portion thereof are trans-
28 ferred from a political subdivision of this state or school district to
29 the state, the appropriation percentage limitation may be commensurately
30 increased provided the tax revenues of the affected political subdivisions
31 or school districts are commensurately decreased.
32 (2) If, by order of any court or by legislative enactment on or after
33 January 1, 1980, the costs of a program or any portion thereof are trans-
34 ferred from the state to a political subdivision of this state, the appro-
35 priation percentage limitation shall be commensurately decreased, and the
36 tax rates of the political subdivision may be commensurately increased.
37 (3) If funds provided by the federal government in support of an existing
38 service or program are eliminated or significantly curtailed on or after
39 January 1, 1980, the appropriation percentage limitation may be
40 commensurately increased by the amount of the increased state costs incur-
41 red in providing such service or program or any portion thereof pursuant
42 to an order of any court or by legislative enactment.
43 (4) If the costs of a program are transferred from the state to the fed-
2
1 eral government on or after January 1, 1980, the appropriation percentage
2 limitation shall be commensurately decreased cause general fund expendi-
3 tures for any fiscal year to exceed the total general fund expenditures
4 authorized for the period July 1, 2004, through June 30, 2005, as adjusted
5 each subsequent fiscal year by the average percentage change in the state
6 of Idaho's population in the three (3) calendar years immediately preced-
7 ing the beginning of each subsequent fiscal year, as reported by the
8 United States census, plus the average percentage change in the unadjusted
9 consumer price index for all urban consumers, in the three (3) calendar
10 years immediately preceding the beginning of each subsequent fiscal year,
11 as reported by the United States department of labor. Exceptions to this
12 limitation may be approved for expenditures resulting from the transfer of
13 any programs to the state from a political subdivision of the state,
14 including school districts, or for transfers from the general fund to pay
15 deficiency warrants issued for emergency expenditures. If general fund
16 expenditures exceed the limitations imposed by this section, then the
17 board of examiners shall proportionately reduce all general fund appropri-
18 ations by the amount necessary to bring such expenditures into compliance
19 with this section.
20 SECTION 2. That Chapter 68, Title 67, Idaho Code, be, and the same is
21 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
22 ignated as Section 67-6804, Idaho Code, and to read as follows:
23 67-6804. TAXPAYERS RESERVE FUND. (1) The legislature finds that it is in
24 the best interest of the taxpayers of the state of Idaho to establish a state
25 budget system that captures surplus revenues for the purposes described
26 herein.
27 (2) There is hereby created in the state treasury the taxpayers reserve
28 fund for the purpose of providing one-time tax relief to the citizens of the
29 state of Idaho. Interest earnings from the investment of idle moneys in this
30 fund by the state treasurer shall be retained in the taxpayers reserve fund.
31 Subsequent to the requirements of sections 57-814 and 63-3203, Idaho Code,
32 the state controller shall transfer all unexpended and unencumbered moneys
33 remaining in the general fund at the end of each fiscal year to the taxpayers
34 reserve fund. The legislature shall authorize no transfer or appropriation
35 from the taxpayers reserve fund, except for the purposes of refunding moneys
36 to the taxpayers.
37 (3) If the balance in the taxpayers reserve fund equals or exceeds three
38 percent (3%) of the revenues deposited in the general fund in the fiscal year
39 just ended, then the balance in the fund shall be refunded to the taxpayers
40 according to the criteria established in this section. Funds shall be refunded
41 based on the net collections during the fiscal year just ended of sales and
42 use tax, individual income tax, and corporate income tax. The percentage that
43 the net collections of each tax bears to the sum of the three (3) shall be
44 applied to the total dollars being refunded, and refunded to the taxpayers as
45 follows:
46 (a) Sales and use tax. For refunded funds attributable to the sales and
47 use tax, the tax commission shall institute a temporary one-year increase
48 in the grocery tax credit, rounded down to the nearest whole dollar, based
49 on the number of people claiming a grocery tax credit on the income tax
50 return in the most recent tax year for which information is available.
51 Moneys shall be transferred from the taxpayers reserve fund to the refund
52 fund to cover the cost.
53 (b) Individual income tax. For refunded funds attributable to the indi-
3
1 vidual income tax, the amount to be distributed to individual income tax-
2 payers shall be calculated as follows: For each individual income tax
3 return required to be filed pursuant to section 63-3030, Idaho Code, for
4 which a tax imposed by section 63-3024, Idaho Code, on at least one dollar
5 ($1.00) of Idaho taxable income, the state tax commission shall provide a
6 surcharge offset against taxes, to the taxpayer named on the return in the
7 amount specified in this paragraph. In the case of a joint return, the
8 surcharge offset against taxes shall be credited to both taxpayers
9 jointly. The amount of the surcharge offset against taxes shall be a per-
10 centage applied against the amount of tax computed under section 63-3024,
11 Idaho Code, reduced by credits provided by section 63-3029, Idaho Code,
12 relating to taxes paid to another state, sections 63-3029A and 63-3029C,
13 Idaho Code, relating to certain charitable contributions, section
14 63-3029B, Idaho Code, relating to capital investments, section 63-3029D,
15 Idaho Code, relating to qualified equipment utilizing postconsumer waste
16 or postindustrial waste, section 63-3029G, Idaho Code, relating to
17 research activities conducted in Idaho, section 63-3029I, Idaho Code,
18 relating to broadband equipment, section 63-3022P, Idaho Code, relating to
19 health insurance costs, section 63-3029J, Idaho Code, relating to invest-
20 ment in certain areas, and section 63-3029F, Idaho Code, relating to new
21 jobs. The surcharge offset percentage shall be established by dividing the
22 amount of money to be distributed pursuant to this subsection by the
23 amount of individual income tax projected to be collected during the year.
24 In the case of married taxpayers filing separate returns, only one (1)
25 surcharge offset against taxes shall be credited. No surcharge offset
26 against taxes shall be credited pursuant to this paragraph in regard to a
27 return described in this paragraph if the return is not filed within three
28 (3) years of the original due date of the return without regard to exten-
29 sions. In the event that the amount of tax due on a return filed within
30 the time required by this paragraph is amended by the taxpayer or changed
31 by the state tax commission the surcharge offset against taxes provided by
32 this paragraph shall be adjusted proportionally. In the case of a short
33 period return, the rates provided by this section shall be reduced in pro-
34 portion to the portion of the tax year to which the return applies. Calcu-
35 lations shall be based on the most recent tax year for which information
36 is available, and moneys, if any, shall be transferred from the taxpayers
37 reserve fund to the refund fund to cover the cost.
38 (c) Corporate income tax. For refunded funds attributable to the corpo-
39 rate income tax, the amount to be distributed to corporate income tax-
40 payers shall be calculated as follows: For each corporate income tax
41 return required to be filed pursuant to section 63-3025, Idaho Code, and
42 for each franchise tax return required to be filed pursuant to section
43 63-3025A, Idaho Code, and that is actually filed, for the twelve (12)
44 month taxable year when general fund expenditures exceeded the limitations
45 imposed by section 67-6803, Idaho Code, for which a tax is imposed by sec-
46 tion 63-3025 or 63-3025A, Idaho Code, on at least one dollar ($1.00) of
47 Idaho taxable income, the state tax commission shall provide a surcharge
48 offset against income taxes to the taxpayer named on the return in the
49 amount specified in this paragraph. The amount of the surcharge offset
50 against income taxes shall be a percentage applied against the amount of
51 tax computed under sections 63-3025 and 63-3025A, Idaho Code. The sur-
52 charge offset percentage shall be established by dividing the amount of
53 the surcharge offset against taxes to be credited pursuant to this para-
54 graph by the amount of corporate income tax and franchise tax projected to
55 be collected during the year. No surcharge offset against taxes shall be
4
1 credited pursuant to this paragraph in regard to a return described in
2 this paragraph if the return is not filed within three (3) years of the
3 original due date of the return without regard to extensions. In the event
4 that the amount of tax due on a return filed within the time required by
5 this paragraph is amended by the taxpayer or changed by the state tax com-
6 mission the surcharge offset against taxes provided by this paragraph
7 shall be adjusted proportionally. In the case of a short period return,
8 the rates provided by this paragraph shall be reduced in proportion to the
9 portion of the tax year to which the return applies. Calculations shall be
10 based on the current tax year, and moneys shall be transferred from the
11 taxpayers reserve fund to the refund fund to cover the cost if the sur-
12 charge offset against taxes provides for refunds to taxpayers.
STATEMENT OF PURPOSE
RS 14143
Section 1 amends the legislative expenditure limit language in
Idaho Code 67-6803. It provides that beginning with fiscal year
2006 budget and each year thereafter general fund expenditures
shall not exceed a rolling three (3) year average of population
and consumer price index growth. Exceptions to this limitation
may be approved for programs transferred to the state from
political subdivisions of the state or for deficiency warrants
issued for emergency expenditures.
Section 2 sets up the Taxpayer Reserve Fund which will collect
unexpended and unencumbered moneys at the end of each fiscal
year. If the balance in the Taxpayer Reserve Fund equals or
exceeds three (3) percent of the revenues to the general fund
then it shall be refunded to the taxpayers.
FISCAL IMPACT
There is no direct impact to the general fund.
Original General Fund Expenditures Had
Expenditures Limitation in Place
FY 2000 + 4.0% +4.5%
FY 2001 + 7.7% +4.1%
FY 2002 +13.3% +4.0%
FY 2003 ( 3.7%) +4.5%
FY 2004 + 1.8% +4.4%
Contact
Name: Rep. Ken Roberts
Rep. Janice McGeachin
Rep. Mike Moyle
Rep. Cliff Bayer
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 754