2005 Legislation
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HOUSE BILL NO. 14 – Taxpayer, appeal, jurisdiction


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Bill Status

H0014...............................................by REVENUE AND TAXATION
TAXPAYER APPEALS - Amends existing law to revise jurisdictional provisions
for appeals to the Board of Tax Appeals and the district court; and to
define the term "amount asserted."
01/19    House intro - 1st rdg - to printing
01/20    Rpt prt - to Rev/Tax
02/01    Rpt out - rec d/p - to 2nd rdg
02/02    2nd rdg - to 3rd rdg
02/03    3rd rdg - PASSED - 70-0-0
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Raybould
    Title apvd - to Senate
02/04    Senate intro - 1st rdg - to Loc Gov
02/09    Rpt out - rec d/p - to 2nd rdg
02/10    2nd rdg - to 3rd rdg
02/11    3rd rdg - PASSED - 32-0-3
      AYES -- Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Coiner,
      Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
      Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Marley, McGee,
      McKenzie, Noble, Pearce, Richardson, Schroeder, Stegner, Stennett,
      Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Andreason, Cameron, Malepeai
    Floor Sponsor - McKenzie
    Title apvd - to House
02/14    To enrol
02/15    Rpt enrol - Sp signed
02/16    Pres signed
02/17    To Governor
02/18    Governor signed
         Session Law Chapter 17
         Effective: 07/01/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 14
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION 1.  That Section 63-3049, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
  9        63-3049.  JUDICIAL REVIEW. (a) Redetermination by the state tax commission
 10    may  be  reviewed  in the district court for Ada county or the county in which
 11    the taxpayer resides or has his principal office or place  of  business  by  a
 12    complaint  filed  by  the  taxpayer  against  the  state tax commission within
 13    ninety-one (91) days after the receipt of notice of the decision of the  state
 14    tax  commission  denying, in whole or in part, any protest of the taxpayer or,
 15    within the same period, by filing an appeal with the  board  of  tax  appeals.
 16    Upon  the serving of summons upon the state tax commission the case shall pro-
 17    ceed as other civil cases but may be heard by the judge in  chambers.  If  the
 18    case  is  appealed  to  the board of tax appeals, the hearing before that body
 19    shall proceed as set forth in the act creating such board. If the court  finds
 20    that  any  tax  is  due,  it  shall enter judgment for such tax, including any
 21    interest or penalties that may also be due and owing,  against  the  taxpayer.
 22    Any  taxes,  penalties or interest paid, found by the court to be in excess of
 23    that which can be legally assessed, shall be ordered refunded to the  taxpayer
 24    with  interest  from  the time of payment. In the case of sales or use tax and
 25    corporate income tax decisions by the state tax commission, when the amount in
 26    dispute at the time the notice of deficiency  determination/overassessment  is
 27    issued  asserted  exceeds twenty-five thousand dollars ($25,000), no appeal to
 28    the board of tax appeals shall be allowed.
 29        (b)  Before a taxpayer may seek review by the district court or the  board
 30    of tax appeals, the taxpayer shall secure the payment of the tax or deficiency
 31    as  assessed  by depositing cash with the tax commission in an amount equal to
 32    twenty percent (20%) of the tax, penalty and interest amount asserted. In lieu
 33    of the cash deposit, the taxpayer may  deposit  any  other  type  of  security
 34    acceptable to the tax commission.
 35        No  act,  order  or  proceeding of the tax commission shall be valid until
 36    after the time allowed for taking such court action has expired or such  court
 37    action  is  finally  determined.  As  used  in  this section, the term "amount
 38    asserted" shall mean the total amount due, as set forth in the decision of the
 39    state tax commission.
 40        (c)  Any party to the proceedings may appeal to the Ssupreme  Ccourt  from
 41    the  judgment of the district court under the rules and regulations prescribed
 42    for appeals. If the appeal be taken by the state tax commission, it shall  not
 43    be required to give any undertaking or to make any deposits to secure the cost
  1    of such appeal or to secure the payment of any amounts ordered refunded by the
  2    court.
  3        (d)  Whenever it appears to the court that:
  4        (1)  Proceedings  before  it have been instituted or maintained by a party
  5        primarily for delay; or
  6        (2)  A party's position in such proceeding is frivolous or groundless; or
  7        (3)  A party unreasonably failed to pursue available administrative  reme-
  8        dies;
  9    the  court,  in its discretion, may require the party which did not prevail to
 10    pay to the prevailing party costs, expenses and attorney's fees.

Statement of Purpose / Fiscal Impact

                     STATEMENT  OF  PURPOSE
                            RS 14441

This bill makes it easier to determine whether a State Tax
Commission decision should be appealed to the district court or the
Board of Tax Appeals.  It also changes the requirement for the
deposit a taxpayer makes when appealing a decision.  Corporate
income and sales tax cases must be filed in district court when
tax, penalty and interest total more than $25,000.  Currently, that
$25,000 is based on the amount in controversy when the State Tax
Commission issues a notice of deficiency.  This bill would base the
$25,000 threshold on the amount asserted when the State Tax
Commission issues its decision. Also, taxpayers currently deposit
20% of the tax penalty and interest due.  This would change to 20%
of the amount asserted when the State Tax Commission issues its

                         FISCAL  IMPACT

No fiscal effect.

Name:     Dan John
Agency:   State Tax Commission
Phone:    334-7530