View Bill Status
View Bill Text
View Amendment
View Engrossed Bill (Original Bill with Amendment(s) Incorporated)
View Statement of Purpose / Fiscal Impact
H0799aa.............................................by REVENUE AND TAXATION
PROPERTY TAX EXEMPTION IN LIEU OF INVESTMENT TAX CREDIT - Amends existing
law relating to the election for a property tax exemption in lieu of the
investment tax credit to clarify the election is available for qualified
property placed into service in calendar year 2003; to clarify a loss year;
to exclude taxpayers whose rates of return are regulated according to
federal or state law; to limit public disclosure of tax information
exchanged between the State Tax Commission and county officials; to provide
for the recapture of the property tax benefit of property ceasing to
qualify for the investment tax credit or for the election; to provide that
all moneys collected by the State Tax Commission for an erroneously taken
investment tax credit shall be remitted to the county where the property
was located that was not a qualified investment or ceased to qualify during
the recapture period; to provide for distribution of moneys to taxing
districts within the county; and to provide application of these moneys to
the three percent property tax cap.
03/02 House intro - 1st rdg - to printing
03/03 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
03/11 3rd rdg as amen - PASSED - 51-10-9
AYES -- Barraclough, Barrett, Bauer, Bayer, Bedke, Bell, Black,
Block, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Field(18),
Field(23), Gagner, Garrett, Harwood, Jones, Kellogg, Kulczyk, Lake,
Langford, McGeachin, McKague, Meyer, Moyle, Naccarato, Nielsen,
Pasley-Stuart, Ridinger, Ring, Roberts, Rydalch, Sali, Schaefer,
Shepherd, Shirley, Skippen, Snodgrass, Wills, Wood
NAYS -- Andersen, Boe, Henbest, Langhorst, Martinez, Mitchell, Ringo,
Sayler, Smith(30), Trail
Absent and excused -- Eskridge, Jaquet, Miller, Raybould, Robison,
Smith(24), Smylie, Stevenson, Mr. Speaker
Floor Sponsor - Roberts
Title apvd - to Senate
03/12 Senate intro - 1st rdg - to Loc Gov
03/18 Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 32-1-2
AYES -- Bailey, Brandt, Bunderson, Burtenshaw, Calabretta, Cameron,
Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram,
Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner,
Stennett, Sweet, Werk, Williams
NAYS -- Burkett
Absent and excused -- Andreason, Noble
Floor Sponsor - Compton
Title apvd - to House
03/19 To enrol - Rpt enrol - Sp signed - Pres signed
03/22 To Governor
03/23 Governor signed
Session Law Chapter 204
Effective: 01/01/03
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 799
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING SECTION 63-3029B, IDAHO CODE, RELATING TO THE
3 ELECTION FOR A PROPERTY TAX EXEMPTION IN LIEU OF THE INVESTMENT TAX
4 CREDIT, TO CLARIFY THE ELECTION IS AVAILABLE FOR QUALIFIED PROPERTY PLACED
5 IN SERVICE IN CALENDAR YEAR 2003, TO CLARIFY A LOSS YEAR, TO EXCLUDE TAX-
6 PAYERS WHOSE RATES OF RETURN ARE REGULATED ACCORDING TO FEDERAL OR STATE
7 LAW, TO LIMIT PUBLIC DISCLOSURE OF TAX INFORMATION EXCHANGED BETWEEN THE
8 STATE TAX COMMISSION AND COUNTY OFFICIALS AND TO PROVIDE FOR RECAPTURE OF
9 THE PROPERTY TAX BENEFIT OF PROPERTY CEASING TO QUALIFY FOR THE INVEST-
10 MENT TAX CREDIT OR FOR THE ELECTION; AMENDING SECTION 9-340D, IDAHO CODE,
11 TO PROVIDE FOR CERTAIN INFORMATION GIVEN TO COUNTY OFFICIALS BY THE STATE
12 TAX COMMISSION TO BE EXEMPT FROM DISCLOSURE; DECLARING AN EMERGENCY AND
13 PROVIDING RETROACTIVE APPLICATION.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Section 63-3029B, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
18 of the taxpayer there shall be allowed, subject to the applicable limitations
19 provided herein as a credit against the income tax imposed by chapter 30,
20 title 63, Idaho Code, an amount equal to the sum of:
21 (a) The tax credit carryovers; and
22 (b) The tax credit for the taxable year.
23 (2) The maximum allowable amount of the credit for the current taxable
24 year shall be three percent (3%) of the amount of qualified investments made
25 during the taxable year.
26 (3) As used in this section "qualified investment" means certain depre-
27 ciable property which:
28 (a) (i) Is eligible for the federal investment tax credit, as defined in
29 sections 46(c) and 48 of the Internal Revenue Code subject to the
30 limitations provided for certain regulated companies in section 46(f)
31 of the Internal Revenue Code and is not a motor vehicle under eight
32 thousand (8,000) pounds gross weight; or
33 (ii) Is qualified broadband equipment as defined in section 63-3029I,
34 Idaho Code; and
35 (b) Is acquired, constructed, reconstructed, erected or placed into ser-
36 vice after December 31, 1981; and
37 (c) Has a situs in Idaho.
38 (4) (a) For qualified investments placed in service in taxable years
39 beginning in 2003 and thereafter, the a taxpayer, other than a person
40 whose rate of charge or rate of return, or both, is regulated or limited
41 according to federal or state law, may elect, in lieu of the credit pro-
42 vided by this section, a two (2) year exemption from all taxes on personal
43 property on the qualified investment. The exemption from personal property
2
1 tax shall apply to the year the election is filed as provided in this sec-
2 tion and the immediately following year. The election provided by this
3 paragraph is available only to a taxpayer whose Idaho taxable income,
4 before application of net operating losses carried back or forward, in the
5 second preceding taxable year in which the investment is placed in service
6 is negative.
7 (b) The election shall be made in the form prescribed by the state tax
8 commission and shall include a specific description and location of all
9 qualified investments placed into service and located in the jurisdiction
10 of the assessing authority, a designation of the specific assets for which
11 the exemption is claimed, and such other information as the state tax com-
12 mission may require. The election must be made by including the election
13 form with the listing of personal property required by section 63-302,
14 Idaho Code, or, in the case of operating property assessed under chapter
15 4, title 63, Idaho Code, with the operator's statement required by section
16 63-404, Idaho Code, for the calendar year immediately following the tax-
17 able year in which the property was placed in service. Once made the elec-
18 tion is irrevocable. If no election is made, the election is not otherwise
19 available. A copy of the election form must also be attached to the origi-
20 nal income tax return due for the taxable year in which the claim was
21 made.
22 (c) The state tax commission and the various county assessors are autho-
23 rized to exchange information as necessary to properly coordinate the
24 exemption provided in this subsection. Information disclosed to county
25 officials under this subsection may be used only to determine the validity
26 or amount of a taxpayer's entitlement to the exemption provided in this
27 section, and is not otherwise subject to public disclosure as provided in
28 section 9-340D, Idaho Code.
29 (d) In the event that an investment in regard to which the election under
30 this subsection was made is determined by the state tax commission:
31 (i) Tto not be a qualified investment, or ceases
32 (ii) To have ceased to qualify during the recapture period, or
33 (iii) To be otherwise not qualified for the election,
34 the taxpayer shall be subject to a penalty equal to the amount of the
35 claimed investment recapture of the property tax benefit.
36 (e) The benefit to be recaptured in subsection (4)(d) of this section
37 shall be computed in the manner required in subsection (7) of this section
38 and such recapture amount shall be subject to assessment in the same man-
39 ner as a deficiency in tax under this chapter. For purposes of calculat-
40 ing the recapture, the property tax benefit shall be:
41 (i) In the case of locally assessed property located in a single
42 county or nonapportioned centrally assessed property, the market
43 value of exempted property times the average property tax levy for
44 that county in the year or years for which the exemption was claimed.
45 (ii) In the case of other centrally assessed property and property
46 located in more than one (1) county, the market value of exempted
47 property times the average urban property tax levy of the state as
48 determined by the state tax commission times two (2) in each of the
49 years for which the exemption was claimed.
50 (5) Notwithstanding the provisions of subsections (1) and (2) of this
51 section, the amount of the credit allowed shall not exceed fifty percent (50%)
52 of the tax liability of the taxpayer. The tax liability of the taxpayer shall
53 be the tax after deducting the credit allowed by section 63-3029, Idaho Code.
54 (6) If the sum of credit carryovers from the credit allowed by subsection
55 (2) of this section and the amount of credit for the taxable year from the
3
1 credit allowed by subsection (2) of this section exceed the limitation imposed
2 by subsection (5) of this section for the current taxable year, the excess
3 attributable to the current taxable year's credit shall be an investment
4 credit carryover to the fourteen (14) succeeding taxable years. In the case of
5 a group of corporations filing a combined report under section 63-3027, Idaho
6 Code, or sections 63-3027B through 63-3027E, Idaho Code, credit earned by one
7 (1) member of the group but not used by that member may be used by another
8 member of the group, subject to the provisions of subsection (5) of this sec-
9 tion, instead of carried over. The entire amount of unused credit shall be
10 carried forward to the earliest of the succeeding years, wherein the oldest
11 available unused credit shall be used first, so long as the qualified invest-
12 ment property for which the unused credit was granted still maintains Idaho
13 situs. For a combined group of corporations, credit carried forward may be
14 claimed by any member of the group unless the member who earned the credit is
15 no longer included in the combined group.
16 (7) Any recapture of the credit allowed by subsection (2) of this section
17 on property disposed of or ceasing to qualify, prior to the close of the
18 recapture period, shall be determined according to the applicable recapture
19 provisions of the Internal Revenue Code. In the case of a unitary group of
20 corporations, the increase in tax due to the recapture of investment tax
21 credit must be reported by the member of the group who earned the credit
22 regardless of which member claimed the credit against tax.
23 (8) For the purpose of determining whether property placed in service is
24 a "qualified investment" as defined in subsection (3) of this section, the
25 provisions of section 49 of the Internal Revenue Code shall be disregarded.
26 (9) For purposes of this section, property has a situs in Idaho during a
27 taxable year if it is used in Idaho at any time during the taxable year. Prop-
28 erty not used in Idaho during a taxable year does not have a situs in Idaho in
29 the taxable year during which the property is not used in Idaho or in any sub-
30 sequent taxable year. No credit or carryover of credit is permitted under this
31 section if the credit or carryover relates to property that does not have a
32 situs in Idaho during the taxable year for which the credit or carryover is
33 claimed. The Idaho situs of property must be established by records maintained
34 by the taxpayer which are created reasonably contemporaneously with the use of
35 the property.
36 (10) In the case of property used both in and outside Idaho, the taxpayer,
37 electing to claim the credit provided in this section, must elect to compute
38 the qualified investment in property with a situs in Idaho for all such
39 investments first qualifying during that year in one (1), but only one (1), of
40 the following ways:
41 (a) The amount of each qualified investment in a specific asset shall be
42 separately computed based on the percentage of the actual use of the prop-
43 erty in Idaho by using a measure of the use, such as total miles or total
44 machine hours, that most accurately reflects the beneficial use during the
45 taxable year in which it is first acquired, constructed, reconstructed,
46 erected or placed into service; provided, that the asset is placed in ser-
47 vice more than ninety (90) days before the end of the taxable year. In the
48 case of assets acquired, constructed, reconstructed, erected or placed
49 into service within ninety (90) days prior to the end of the taxable year
50 in which the investment first qualifies, the measure of the use of that
51 asset within Idaho for that year shall be based upon the percentage of use
52 in Idaho during the first ninety (90) days of use of the asset;
53 (b) The investment in qualified property used both inside and outside
54 Idaho during the taxable year in which it is first acquired, constructed,
55 reconstructed, erected or placed into service shall be multiplied by the
4
1 percent of the investment that would be included in the numerator of the
2 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
3 for the same year.
4 (11) Only for the purposes of subsections (3)(a) and (8) of this section,
5 references to sections of the "Internal Revenue Code" mean the sections
6 referred to as they existed in the Internal Revenue Code of 1986 prior to
7 November 5, 1990.
8 SECTION 2. That Section 9-340D, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 9-340D. RECORDS EXEMPT FROM DISCLOSURE -- TRADE SECRETS, PRODUCTION
11 RECORDS, APPRAISALS, BIDS, PROPRIETARY INFORMATION. The following records are
12 exempt from disclosure:
13 (1) Trade secrets including those contained in response to public agency
14 or independent public body corporate and politic requests for proposal,
15 requests for clarification, requests for information and similar requests.
16 "Trade secrets" as used in this section means information, including a for-
17 mula, pattern, compilation, program, computer program, device, method, tech-
18 nique, process, or unpublished or in progress research that:
19 (a) Derives independent economic value, actual or potential, from not
20 being generally known to, and not being readily ascertainable by proper
21 means by other persons who can obtain economic value from its disclosure
22 or use; and
23 (b) Is the subject of efforts that are reasonable under the circumstances
24 to maintain its secrecy.
25 (2) Production records, housing production, rental and financing records,
26 sale or purchase records, catch records, mortgage portfolio loan documents, or
27 similar business records of a private concern or enterprise required by law to
28 be submitted to or inspected by a public agency or submitted to or otherwise
29 obtained by an independent public body corporate and politic. Nothing in this
30 subsection shall limit the use which can be made of such information for regu-
31 latory purposes or its admissibility in any enforcement proceeding.
32 (3) Records relating to the appraisal of real property, timber or mineral
33 rights prior to its acquisition, sale or lease by a public agency or indepen-
34 dent public body corporate and politic.
35 (4) Any estimate prepared by a public agency or independent public body
36 corporate and politic that details the cost of a public project until such
37 time as disclosed or bids are opened, or upon award of the contract for con-
38 struction of the public project.
39 (5) Examination, operating or condition reports and all documents relat-
40 ing thereto, prepared by or supplied to any public agency or independent pub-
41 lic body corporate and politic responsible for the regulation or supervision
42 of financial institutions including, but not limited to, banks, savings and
43 loan associations, regulated lenders, business and industrial development cor-
44 porations, credit unions, and insurance companies, or for the regulation or
45 supervision of the issuance of securities.
46 (6) Records gathered by a local agency or the Idaho department of com-
47 merce, as described in chapter 47, title 67, Idaho Code, for the specific pur-
48 pose of assisting a person to locate, maintain, invest in, or expand business
49 operations in the state of Idaho.
50 (7) Shipping and marketing records of commodity commissions used to eval-
51 uate marketing and advertising strategies and the names and addresses of grow-
52 ers and shippers maintained by commodity commissions.
53 (8) Financial statements and business information and reports submitted
5
1 by a legal entity to a port district organized under title 70, Idaho Code, in
2 connection with a business agreement, or with a development proposal or with
3 a financing application for any industrial, manufacturing, or other business
4 activity within a port district.
5 (9) Names and addresses of seed companies, seed crop growers, seed crop
6 consignees, locations of seed crop fields, variety name and acreage by vari-
7 ety. Upon the request of the owner of the proprietary variety, this informa-
8 tion shall be released to the owner. Provided however, that if a seed crop has
9 been identified as diseased or has been otherwise identified by the Idaho
10 department of agriculture, other state departments of agriculture, or the
11 United States department of agriculture to represent a threat to that particu-
12 lar seed or commercial crop industry or to individual growers, information as
13 to test results, location, acreage involved and disease symptoms of that par-
14 ticular seed crop, for that growing season, shall be available for public
15 inspection and copying. This exemption shall not supersede the provisions of
16 section 22-436, Idaho Code.
17 (10) Information obtained from books, records and accounts required in
18 chapter 47, title 22, Idaho Code, to be maintained by the Idaho canola and
19 rapeseed commission and pertaining to the individual production records of ca-
20 nola or rapeseed growers.
21 (11) Records of any risk retention or self-insurance program prepared in
22 anticipation of litigation or for analysis of or settlement of potential or
23 actual money damage claims against a public entity and its employees or
24 against the industrial special indemnity fund except as otherwise discoverable
25 under the Idaho or federal rules of civil procedure. These records shall
26 include, but are not limited to, claims evaluations, investigatory records,
27 computerized reports of losses, case reserves, internal documents and corre-
28 spondence relating thereto. At the time any claim is concluded, only statisti-
29 cal data and actual amounts paid in settlement shall be deemed a public record
30 unless otherwise ordered to be sealed by a court of competent jurisdiction.
31 Provided however, nothing in this subsection is intended to limit the attorney
32 client privilege or attorney work product privilege otherwise available to any
33 public agency or independent public body corporate and politic.
34 (12) Records of laboratory test results provided by or retained by the
35 Idaho food quality assurance laboratory. Nothing in this subsection shall
36 limit the use which can be made, or availability of such information if used,
37 for regulatory purposes or its admissibility in any enforcement proceeding.
38 (13) Reports required to be filed under chapter 13, title 62, Idaho Code,
39 identifying electrical or natural or manufactured gas consumption data for
40 an individual customer or account.
41 (14) Voluntarily prepared environmental audits, and voluntary disclosures
42 of information submitted on or before December 31, 1997, to an environmental
43 agency as defined in section 9-803, Idaho Code, which are claimed to be confi-
44 dential business information.
45 (15) Computer programs developed or purchased by or for any public agency
46 or independent public body corporate and politic for its own use. As used in
47 this subsection, "computer program" means a series of instructions or state-
48 ments which permit the functioning of a computer system in a manner designed
49 to provide storage, retrieval and manipulation of data from the computer sys-
50 tem, and any associated documentation and source material that explain how to
51 operate the computer program. Computer program does not include:
52 (a) The original data including, but not limited to, numbers, text,
53 voice, graphics and images;
54 (b) Analysis, compilation and other manipulated forms of the original
55 data produced by use of the program; or
6
1 (c) The mathematical or statistical formulas that would be used if the
2 manipulated forms of the original data were to be produced manually.
3 (16) Active investigative records and trademark usage audits of the Idaho
4 potato commission specifically relating to the enforcement of chapter 12,
5 title 22, Idaho Code, until the commencement of formal proceedings as provided
6 by rules of the commission; purchase and sales information submitted to the
7 Idaho potato commission during a trademark usage audit, and investigation or
8 enforcement proceedings. Inactive investigatory records shall be disclosed
9 unless the disclosure would violate the standards set forth in subsections
10 (1)(a) through (f) of section 9-335, Idaho Code. Nothing in this subsection
11 shall limit the use which can be made, or availability of such information if
12 used, for regulatory purposes or its admissibility in any enforcement proceed-
13 ing.
14 (17) All records copied or obtained by the director of the department of
15 agriculture or his designee as a result of an inspection pursuant to section
16 25-3806, Idaho Code, except:
17 (a) Records otherwise deemed to be public records not exempt from disclo-
18 sure pursuant to this chapter; and
19 (b) Inspection reports, determinations of compliance or noncompliance and
20 all other records created by the director or his designee pursuant to sec-
21 tion 25-3806, Idaho Code.
22 (18) Records disclosed to a county official by the state tax commission
23 pursuant to subsection (4)(c) of section 63-3029B, Idaho Code.
24 SECTION 3. An emergency existing therefor, which emergency is hereby
25 declared to exist, this act shall be in full force and effect on and after its
26 passage and approval, and retroactively to January 1, 2004.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
Moved by Moyle
Seconded by Roberts
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 799
1 AMENDMENT TO SECTION 1
2 On page 2 of the printed bill, following line 49, insert:
3 "(f) All moneys collected by the state tax commission pursuant to this
4 subsection, which amounts are continuously appropriated for this purpose,
5 shall be deposited with the state treasurer and placed in the state refund
6 account, as provided by section 63-3067, Idaho Code, to be remitted to the
7 county within which the property was located that was not a qualified
8 investment or ceased to qualify during the recapture period. The county
9 shall distribute this remittance to all appropriate taxing districts based
10 on the proportion each appropriate taxing district's levy is to the total
11 of all the levies of the taxing districts for the tax code area where the
12 property was located for each year the exemption was granted. If any tax-
13 ing district is dissolved or disincorporated, the proportionate share of
14 the remittance to be distributed to that taxing district shall be depos-
15 ited in the county current expense fund.
16 (g) For purposes of the limitation provided by section 63-802, Idaho
17 Code, moneys received pursuant to this subsection shall be treated as
18 property tax revenue by taxing districts.".
19 AMENDMENT TO SECTION 3
20 On page 6, in line 26, delete "2004" and insert: "2003".
21 CORRECTION TO TITLE
22 On page 1, in line 8, delete "OFFICIALS AND" and insert: "OFFICIALS,"; in
23 line 10, following "ELECTION" insert: ", TO PROVIDE THAT ALL MONEYS COL-
24 LECTED BY THE STATE TAX COMMISSION FOR AN ERRONEOUSLY TAKEN INVESTMENT TAX
25 CREDIT SHALL BE REMITTED TO THE COUNTY WHERE THE PROPERTY WAS LOCATED THAT
26 WAS NOT A QUALIFIED INVESTMENT OR CEASED TO QUALIFY DURING THE RECAPTURE
27 PERIOD, TO PROVIDE FOR DISTRIBUTION OF MONEYS TO TAXING DISTRICTS WITHIN
28 THE COUNTY AND TO PROVIDE APPLICATION OF THESE MONEYS TO THE THREE PERCENT
29 PROPERTY TAX CAP".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 799, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING SECTION 63-3029B, IDAHO CODE, RELATING TO THE
3 ELECTION FOR A PROPERTY TAX EXEMPTION IN LIEU OF THE INVESTMENT TAX
4 CREDIT, TO CLARIFY THE ELECTION IS AVAILABLE FOR QUALIFIED PROPERTY PLACED
5 IN SERVICE IN CALENDAR YEAR 2003, TO CLARIFY A LOSS YEAR, TO EXCLUDE TAX-
6 PAYERS WHOSE RATES OF RETURN ARE REGULATED ACCORDING TO FEDERAL OR STATE
7 LAW, TO LIMIT PUBLIC DISCLOSURE OF TAX INFORMATION EXCHANGED BETWEEN THE
8 STATE TAX COMMISSION AND COUNTY OFFICIALS, TO PROVIDE FOR RECAPTURE OF THE
9 PROPERTY TAX BENEFIT OF PROPERTY CEASING TO QUALIFY FOR THE INVESTMENT TAX
10 CREDIT OR FOR THE ELECTION, TO PROVIDE THAT ALL MONEYS COLLECTED BY THE
11 STATE TAX COMMISSION FOR AN ERRONEOUSLY TAKEN INVESTMENT TAX CREDIT SHALL
12 BE REMITTED TO THE COUNTY WHERE THE PROPERTY WAS LOCATED THAT WAS NOT A
13 QUALIFIED INVESTMENT OR CEASED TO QUALIFY DURING THE RECAPTURE PERIOD, TO
14 PROVIDE FOR DISTRIBUTION OF MONEYS TO TAXING DISTRICTS WITHIN THE COUNTY
15 AND TO PROVIDE APPLICATION OF THESE MONEYS TO THE THREE PERCENT PROPERTY
16 TAX CAP; AMENDING SECTION 9-340D, IDAHO CODE, TO PROVIDE FOR CERTAIN
17 INFORMATION GIVEN TO COUNTY OFFICIALS BY THE STATE TAX COMMISSION TO BE
18 EXEMPT FROM DISCLOSURE; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE
19 APPLICATION.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Section 63-3029B, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
24 of the taxpayer there shall be allowed, subject to the applicable limitations
25 provided herein as a credit against the income tax imposed by chapter 30,
26 title 63, Idaho Code, an amount equal to the sum of:
27 (a) The tax credit carryovers; and
28 (b) The tax credit for the taxable year.
29 (2) The maximum allowable amount of the credit for the current taxable
30 year shall be three percent (3%) of the amount of qualified investments made
31 during the taxable year.
32 (3) As used in this section "qualified investment" means certain depre-
33 ciable property which:
34 (a) (i) Is eligible for the federal investment tax credit, as defined in
35 sections 46(c) and 48 of the Internal Revenue Code subject to the
36 limitations provided for certain regulated companies in section 46(f)
37 of the Internal Revenue Code and is not a motor vehicle under eight
38 thousand (8,000) pounds gross weight; or
39 (ii) Is qualified broadband equipment as defined in section 63-3029I,
40 Idaho Code; and
41 (b) Is acquired, constructed, reconstructed, erected or placed into ser-
42 vice after December 31, 1981; and
43 (c) Has a situs in Idaho.
2
1 (4) (a) For qualified investments placed in service in taxable years
2 beginning in 2003 and thereafter, the a taxpayer, other than a person
3 whose rate of charge or rate of return, or both, is regulated or limited
4 according to federal or state law, may elect, in lieu of the credit pro-
5 vided by this section, a two (2) year exemption from all taxes on personal
6 property on the qualified investment. The exemption from personal property
7 tax shall apply to the year the election is filed as provided in this sec-
8 tion and the immediately following year. The election provided by this
9 paragraph is available only to a taxpayer whose Idaho taxable income,
10 before application of net operating losses carried back or forward, in the
11 second preceding taxable year in which the investment is placed in service
12 is negative.
13 (b) The election shall be made in the form prescribed by the state tax
14 commission and shall include a specific description and location of all
15 qualified investments placed into service and located in the jurisdiction
16 of the assessing authority, a designation of the specific assets for which
17 the exemption is claimed, and such other information as the state tax com-
18 mission may require. The election must be made by including the election
19 form with the listing of personal property required by section 63-302,
20 Idaho Code, or, in the case of operating property assessed under chapter
21 4, title 63, Idaho Code, with the operator's statement required by section
22 63-404, Idaho Code, for the calendar year immediately following the tax-
23 able year in which the property was placed in service. Once made the elec-
24 tion is irrevocable. If no election is made, the election is not otherwise
25 available. A copy of the election form must also be attached to the origi-
26 nal income tax return due for the taxable year in which the claim was
27 made.
28 (c) The state tax commission and the various county assessors are autho-
29 rized to exchange information as necessary to properly coordinate the
30 exemption provided in this subsection. Information disclosed to county
31 officials under this subsection may be used only to determine the validity
32 or amount of a taxpayer's entitlement to the exemption provided in this
33 section, and is not otherwise subject to public disclosure as provided in
34 section 9-340D, Idaho Code.
35 (d) In the event that an investment in regard to which the election under
36 this subsection was made is determined by the state tax commission:
37 (i) Tto not be a qualified investment, or ceases
38 (ii) To have ceased to qualify during the recapture period, or
39 (iii) To be otherwise not qualified for the election,
40 the taxpayer shall be subject to a penalty equal to the amount of the
41 claimed investment recapture of the property tax benefit.
42 (e) The benefit to be recaptured in subsection (4)(d) of this section
43 shall be computed in the manner required in subsection (7) of this section
44 and such recapture amount shall be subject to assessment in the same man-
45 ner as a deficiency in tax under this chapter. For purposes of calculat-
46 ing the recapture, the property tax benefit shall be:
47 (i) In the case of locally assessed property located in a single
48 county or nonapportioned centrally assessed property, the market
49 value of exempted property times the average property tax levy for
50 that county in the year or years for which the exemption was claimed.
51 (ii) In the case of other centrally assessed property and property
52 located in more than one (1) county, the market value of exempted
53 property times the average urban property tax levy of the state as
54 determined by the state tax commission times two (2) in each of the
55 years for which the exemption was claimed.
3
1 (f) All moneys collected by the state tax commission pursuant to this
2 subsection, which amounts are continuously appropriated for this purpose,
3 shall be deposited with the state treasurer and placed in the state refund
4 account, as provided by section 63-3067, Idaho Code, to be remitted to the
5 county within which the property was located that was not a qualified
6 investment or ceased to qualify during the recapture period. The county
7 shall distribute this remittance to all appropriate taxing districts based
8 on the proportion each appropriate taxing district's levy is to the total
9 of all the levies of the taxing districts for the tax code area where the
10 property was located for each year the exemption was granted. If any tax-
11 ing district is dissolved or disincorporated, the proportionate share of
12 the remittance to be distributed to that taxing district shall be depos-
13 ited in the county current expense fund.
14 (g) For purposes of the limitation provided by section 63-802, Idaho
15 Code, moneys received pursuant to this subsection shall be treated as
16 property tax revenue by taxing districts.
17 (5) Notwithstanding the provisions of subsections (1) and (2) of this
18 section, the amount of the credit allowed shall not exceed fifty percent (50%)
19 of the tax liability of the taxpayer. The tax liability of the taxpayer shall
20 be the tax after deducting the credit allowed by section 63-3029, Idaho Code.
21 (6) If the sum of credit carryovers from the credit allowed by subsection
22 (2) of this section and the amount of credit for the taxable year from the
23 credit allowed by subsection (2) of this section exceed the limitation imposed
24 by subsection (5) of this section for the current taxable year, the excess
25 attributable to the current taxable year's credit shall be an investment
26 credit carryover to the fourteen (14) succeeding taxable years. In the case of
27 a group of corporations filing a combined report under section 63-3027, Idaho
28 Code, or sections 63-3027B through 63-3027E, Idaho Code, credit earned by one
29 (1) member of the group but not used by that member may be used by another
30 member of the group, subject to the provisions of subsection (5) of this sec-
31 tion, instead of carried over. The entire amount of unused credit shall be
32 carried forward to the earliest of the succeeding years, wherein the oldest
33 available unused credit shall be used first, so long as the qualified invest-
34 ment property for which the unused credit was granted still maintains Idaho
35 situs. For a combined group of corporations, credit carried forward may be
36 claimed by any member of the group unless the member who earned the credit is
37 no longer included in the combined group.
38 (7) Any recapture of the credit allowed by subsection (2) of this section
39 on property disposed of or ceasing to qualify, prior to the close of the
40 recapture period, shall be determined according to the applicable recapture
41 provisions of the Internal Revenue Code. In the case of a unitary group of
42 corporations, the increase in tax due to the recapture of investment tax
43 credit must be reported by the member of the group who earned the credit
44 regardless of which member claimed the credit against tax.
45 (8) For the purpose of determining whether property placed in service is
46 a "qualified investment" as defined in subsection (3) of this section, the
47 provisions of section 49 of the Internal Revenue Code shall be disregarded.
48 (9) For purposes of this section, property has a situs in Idaho during a
49 taxable year if it is used in Idaho at any time during the taxable year. Prop-
50 erty not used in Idaho during a taxable year does not have a situs in Idaho in
51 the taxable year during which the property is not used in Idaho or in any sub-
52 sequent taxable year. No credit or carryover of credit is permitted under this
53 section if the credit or carryover relates to property that does not have a
54 situs in Idaho during the taxable year for which the credit or carryover is
55 claimed. The Idaho situs of property must be established by records maintained
4
1 by the taxpayer which are created reasonably contemporaneously with the use of
2 the property.
3 (10) In the case of property used both in and outside Idaho, the taxpayer,
4 electing to claim the credit provided in this section, must elect to compute
5 the qualified investment in property with a situs in Idaho for all such
6 investments first qualifying during that year in one (1), but only one (1), of
7 the following ways:
8 (a) The amount of each qualified investment in a specific asset shall be
9 separately computed based on the percentage of the actual use of the prop-
10 erty in Idaho by using a measure of the use, such as total miles or total
11 machine hours, that most accurately reflects the beneficial use during the
12 taxable year in which it is first acquired, constructed, reconstructed,
13 erected or placed into service; provided, that the asset is placed in ser-
14 vice more than ninety (90) days before the end of the taxable year. In the
15 case of assets acquired, constructed, reconstructed, erected or placed
16 into service within ninety (90) days prior to the end of the taxable year
17 in which the investment first qualifies, the measure of the use of that
18 asset within Idaho for that year shall be based upon the percentage of use
19 in Idaho during the first ninety (90) days of use of the asset;
20 (b) The investment in qualified property used both inside and outside
21 Idaho during the taxable year in which it is first acquired, constructed,
22 reconstructed, erected or placed into service shall be multiplied by the
23 percent of the investment that would be included in the numerator of the
24 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
25 for the same year.
26 (11) Only for the purposes of subsections (3)(a) and (8) of this section,
27 references to sections of the "Internal Revenue Code" mean the sections
28 referred to as they existed in the Internal Revenue Code of 1986 prior to
29 November 5, 1990.
30 SECTION 2. That Section 9-340D, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 9-340D. RECORDS EXEMPT FROM DISCLOSURE -- TRADE SECRETS, PRODUCTION
33 RECORDS, APPRAISALS, BIDS, PROPRIETARY INFORMATION. The following records are
34 exempt from disclosure:
35 (1) Trade secrets including those contained in response to public agency
36 or independent public body corporate and politic requests for proposal,
37 requests for clarification, requests for information and similar requests.
38 "Trade secrets" as used in this section means information, including a for-
39 mula, pattern, compilation, program, computer program, device, method, tech-
40 nique, process, or unpublished or in progress research that:
41 (a) Derives independent economic value, actual or potential, from not
42 being generally known to, and not being readily ascertainable by proper
43 means by other persons who can obtain economic value from its disclosure
44 or use; and
45 (b) Is the subject of efforts that are reasonable under the circumstances
46 to maintain its secrecy.
47 (2) Production records, housing production, rental and financing records,
48 sale or purchase records, catch records, mortgage portfolio loan documents, or
49 similar business records of a private concern or enterprise required by law to
50 be submitted to or inspected by a public agency or submitted to or otherwise
51 obtained by an independent public body corporate and politic. Nothing in this
52 subsection shall limit the use which can be made of such information for regu-
53 latory purposes or its admissibility in any enforcement proceeding.
5
1 (3) Records relating to the appraisal of real property, timber or mineral
2 rights prior to its acquisition, sale or lease by a public agency or indepen-
3 dent public body corporate and politic.
4 (4) Any estimate prepared by a public agency or independent public body
5 corporate and politic that details the cost of a public project until such
6 time as disclosed or bids are opened, or upon award of the contract for con-
7 struction of the public project.
8 (5) Examination, operating or condition reports and all documents relat-
9 ing thereto, prepared by or supplied to any public agency or independent pub-
10 lic body corporate and politic responsible for the regulation or supervision
11 of financial institutions including, but not limited to, banks, savings and
12 loan associations, regulated lenders, business and industrial development cor-
13 porations, credit unions, and insurance companies, or for the regulation or
14 supervision of the issuance of securities.
15 (6) Records gathered by a local agency or the Idaho department of com-
16 merce, as described in chapter 47, title 67, Idaho Code, for the specific pur-
17 pose of assisting a person to locate, maintain, invest in, or expand business
18 operations in the state of Idaho.
19 (7) Shipping and marketing records of commodity commissions used to eval-
20 uate marketing and advertising strategies and the names and addresses of grow-
21 ers and shippers maintained by commodity commissions.
22 (8) Financial statements and business information and reports submitted
23 by a legal entity to a port district organized under title 70, Idaho Code, in
24 connection with a business agreement, or with a development proposal or with
25 a financing application for any industrial, manufacturing, or other business
26 activity within a port district.
27 (9) Names and addresses of seed companies, seed crop growers, seed crop
28 consignees, locations of seed crop fields, variety name and acreage by vari-
29 ety. Upon the request of the owner of the proprietary variety, this informa-
30 tion shall be released to the owner. Provided however, that if a seed crop has
31 been identified as diseased or has been otherwise identified by the Idaho
32 department of agriculture, other state departments of agriculture, or the
33 United States department of agriculture to represent a threat to that particu-
34 lar seed or commercial crop industry or to individual growers, information as
35 to test results, location, acreage involved and disease symptoms of that par-
36 ticular seed crop, for that growing season, shall be available for public
37 inspection and copying. This exemption shall not supersede the provisions of
38 section 22-436, Idaho Code.
39 (10) Information obtained from books, records and accounts required in
40 chapter 47, title 22, Idaho Code, to be maintained by the Idaho canola and
41 rapeseed commission and pertaining to the individual production records of ca-
42 nola or rapeseed growers.
43 (11) Records of any risk retention or self-insurance program prepared in
44 anticipation of litigation or for analysis of or settlement of potential or
45 actual money damage claims against a public entity and its employees or
46 against the industrial special indemnity fund except as otherwise discoverable
47 under the Idaho or federal rules of civil procedure. These records shall
48 include, but are not limited to, claims evaluations, investigatory records,
49 computerized reports of losses, case reserves, internal documents and corre-
50 spondence relating thereto. At the time any claim is concluded, only statisti-
51 cal data and actual amounts paid in settlement shall be deemed a public record
52 unless otherwise ordered to be sealed by a court of competent jurisdiction.
53 Provided however, nothing in this subsection is intended to limit the attorney
54 client privilege or attorney work product privilege otherwise available to any
55 public agency or independent public body corporate and politic.
6
1 (12) Records of laboratory test results provided by or retained by the
2 Idaho food quality assurance laboratory. Nothing in this subsection shall
3 limit the use which can be made, or availability of such information if used,
4 for regulatory purposes or its admissibility in any enforcement proceeding.
5 (13) Reports required to be filed under chapter 13, title 62, Idaho Code,
6 identifying electrical or natural or manufactured gas consumption data for
7 an individual customer or account.
8 (14) Voluntarily prepared environmental audits, and voluntary disclosures
9 of information submitted on or before December 31, 1997, to an environmental
10 agency as defined in section 9-803, Idaho Code, which are claimed to be confi-
11 dential business information.
12 (15) Computer programs developed or purchased by or for any public agency
13 or independent public body corporate and politic for its own use. As used in
14 this subsection, "computer program" means a series of instructions or state-
15 ments which permit the functioning of a computer system in a manner designed
16 to provide storage, retrieval and manipulation of data from the computer sys-
17 tem, and any associated documentation and source material that explain how to
18 operate the computer program. Computer program does not include:
19 (a) The original data including, but not limited to, numbers, text,
20 voice, graphics and images;
21 (b) Analysis, compilation and other manipulated forms of the original
22 data produced by use of the program; or
23 (c) The mathematical or statistical formulas that would be used if the
24 manipulated forms of the original data were to be produced manually.
25 (16) Active investigative records and trademark usage audits of the Idaho
26 potato commission specifically relating to the enforcement of chapter 12,
27 title 22, Idaho Code, until the commencement of formal proceedings as provided
28 by rules of the commission; purchase and sales information submitted to the
29 Idaho potato commission during a trademark usage audit, and investigation or
30 enforcement proceedings. Inactive investigatory records shall be disclosed
31 unless the disclosure would violate the standards set forth in subsections
32 (1)(a) through (f) of section 9-335, Idaho Code. Nothing in this subsection
33 shall limit the use which can be made, or availability of such information if
34 used, for regulatory purposes or its admissibility in any enforcement proceed-
35 ing.
36 (17) All records copied or obtained by the director of the department of
37 agriculture or his designee as a result of an inspection pursuant to section
38 25-3806, Idaho Code, except:
39 (a) Records otherwise deemed to be public records not exempt from disclo-
40 sure pursuant to this chapter; and
41 (b) Inspection reports, determinations of compliance or noncompliance and
42 all other records created by the director or his designee pursuant to sec-
43 tion 25-3806, Idaho Code.
44 (18) Records disclosed to a county official by the state tax commission
45 pursuant to subsection (4)(c) of section 63-3029B, Idaho Code.
46 SECTION 3. An emergency existing therefor, which emergency is hereby
47 declared to exist, this act shall be in full force and effect on and after its
48 passage and approval, and retroactively to January 1, 2003.
STATEMENT OF PURPOSE
RS14203
This bill amends the provisions passed last year allowing a
taxpayer to elect a two-year exemption from property tax in lieu
of the investment tax credit against income taxes.
1. The bill clarifies that the election is available for
qualified property placed in service in calendar year 2003.
2. It clarifies the determination of a loss year.
3. It limits disclosure of tax information exchanged between
the state tax commission and county assessors.
4. It excludes taxpayers whose rates or returns are regulated
according to federal or state law.
5. It provides for the recapture of the property tax benefit of
property ceasing to qualify for the investment tax credit or
for the election.
The bill will be effective on and after January 1, 2003 the
effective date of the original legislation.
FISCAL IMPACT
This bill has no fiscal impact.
Contact:
Name: Speaker Newcomb
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL IMPACT H 799