2005 Legislation
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HOUSE BILL NO. 29 – Tax collection, collection agency

HOUSE BILL NO. 29

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Bill Status



H0029...............................................by REVENUE AND TAXATION
TAXES - COLLECTION - Adds to and amends existing law to authorize the State
Tax Commission to contract with qualified collection agencies or attorneys
for the collection of taxes.
                                                                        
01/20    House intro - 1st rdg - to printing
01/21    Rpt prt - to Rev/Tax
02/02    Rpt out - rec d/p - to 2nd rdg
02/03    2nd rdg - to 3rd rdg
02/07    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, 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 -- Bradford
    Floor Sponsor - Martinez
    Title apvd - to Senate
02/08    Senate intro - 1st rdg - to Loc Gov
02/10    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/18    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Broadsword, Bunderson, Burkett, Burtenshaw,
      Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes,
      Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, Marley, McGee, McKenzie, Noble, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Werk, Williams
      NAYS -- None
      Absent and excused -- Brandt, Sweet
    Floor Sponsor - Stegner
    Title apvd - to House
02/21    To enrol
02/22    Rpt enrol - Sp signed
02/23    Pres signed
02/24    To Governor
03/02    Governor signed
         Session Law Chapter 30
         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. 29
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO COLLECTION OF TAXES; AMENDING CHAPTER 1, TITLE 63, IDAHO CODE,  BY
  3        THE  ADDITION  OF A NEW SECTION 63-119, IDAHO CODE, TO AUTHORIZE THE STATE
  4        TAX COMMISSION TO CONTRACT WITH QUALIFIED COLLECTION AGENCIES   OR  ATTOR-
  5        NEYS FOR COLLECTION OF TAXES; AND AMENDING SECTION 63-3065, IDAHO CODE, TO
  6        DELETE  PROVISIONS  AUTHORIZING  THE STATE TAX COMMISSION TO CONTRACT WITH
  7        COMMERCIAL COLLECTORS FOR OUT-OF-STATE TAX COLLECTIONS AND TO MAKE A TECH-
  8        NICAL CHANGE.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Chapter 1, Title 63, Idaho Code,  be,  and  the  same  is
 11    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 12    ignated as Section 63-119, Idaho Code, and to read as follows:
                                                                        
 13        63-119.  COLLECTION OF TAX BY COMMERCIAL COLLECTOR. (1) If a person  owing
 14    tax ignores all demands for payment of a tax assessment, the state tax commis-
 15    sion  is  authorized to employ the services of any qualified collection agency
 16    or attorney and to pay fees for such services from moneys recovered.
 17        (2)  As used in this section, the term "qualified collection agency" means
 18    a person issued a permit under chapter 22, title 26, Idaho Code,  or  under  a
 19    similar  licensing  or  permitting statute of another state or jurisdiction in
 20    which the person conducts business.
                                                                        
 21        SECTION 2.  That Section 63-3065, Idaho Code, be, and the same  is  hereby
 22    amended to read as follows:
                                                                        
 23        63-3065.  JEOPARDY  ASSESSMENTS.  (a)  If  the tax commission finds that a
 24    taxpayer is about to depart from the state of Idaho or to remove his  property
 25    therefrom,  or  to conceal himself or his property therein, or to do any other
 26    act tending to prejudice or to render wholly or partially ineffectual proceed-
 27    ings to collect the tax for the taxable year then last  past  or  the  taxable
 28    year  then  current  unless such proceedings be brought without delay, the tax
 29    commission shall declare the taxable period for such taxpayer immediately ter-
 30    minated and shall cause notice of such findings and declaration  to  be  given
 31    the  taxpayer, together with a demand for immediate payment of the tax for the
 32    taxable period so declared terminated and of the tax for the preceding taxable
 33    year or so much of said taxes as is unpaid, whether or not the time  otherwise
 34    allowed  by  law  for  filing returns and paying the tax has expired; and such
 35    taxes shall thereupon become immediately due and payable.  The  provisions  of
 36    section 63-4003(1)(a), Idaho Code, shall not apply to a notice under this sec-
 37    tion  and  communications related thereto. In any proceedings in court brought
 38    to enforce payment of taxes made due and payable by virtue of  the  provisions
 39    of  this  section  the finding of the tax commission, made as herein provided,
 40    whether made after notice to the taxpayer or not, shall be  for  all  purposes
 41    prima facie evidence of the taxpayer's design.
                                                                        
                                           2
                                                                        
  1        (b)  Collection  procedures  may  be  instituted immediately; however, any
  2    taxpayer deeming himself aggrieved by any act of the tax  commission  pursuant
  3    to the provisions of this section may, within sixty-three (63) days of receipt
  4    of  said notice, petition the tax commission for a redetermination or commence
  5    action for refund or redetermination upon payment  of the  tax  together  with
  6    interest and penalty or upon filing a bond in the amount of the assessment.
  7        (c)  A  taxpayer  who is not in default in making any return or paying any
  8    taxes assessed under this chapter may furnish to the state of Idaho under reg-
  9    ulations to be prescribed by the tax commission, security approved by the  tax
 10    commission  that  he will duly make  the return next thereafter required to be
 11    filed and pay the tax next thereafter required to be paid. The tax  commission
 12    may approve and accept in like manner security for return and payment of taxes
 13    made due and payable by virtue of the provisions of this section.
 14        (d)  If  security  is  approved and accepted pursuant to the provisions of
 15    this section and such further or other security with respect  to  the  tax  or
 16    taxes  covered  thereby is given as the tax commission shall from time to time
 17    find necessary and require, payment of such taxes shall not be enforced by any
 18    proceedings under the provisions of this section prior to  the  expiration  of
 19    the time otherwise allowed for paying such respective taxes.
 20        (e)  In  the  case  of a bona fide resident of the state of Idaho about to
 21    depart from the state of Idaho the tax  commission  may,  at  its  discretion,
 22    waive any or all of the requirements placed upon the taxpayer by this section.
 23        (f)  If  a  taxpayer  violates  or  attempts to violate this section there
 24    shall, in addition to all other penalties, be added as part of the tax twenty-
 25    five per cent percent (25%) of the total amount of the tax  or  deficiency  in
 26    the tax.
 27        (g)  If  the  taxpayer  owing tax is not within this state or has departed
 28    from the state, or has property or  is  employed  outside  of  the  state  and
 29    ignores  all  demands  for payment, the tax commission is authorized to employ
 30    the services of any qualified collection agency or attorney and  to  pay  fees
 31    for such services out of moneys recovered.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 14455

This bill expands the State Tax Commission's authority to contract
with commercial collection agencies.  Currently the authority is
limited to out-of-state collection of income taxes and income tax
withholding.  The bill would allow the Commission to contract for
the collection of assessments (tax liabilities on which all appeals
have expired) from in-state taxpayers for all taxes administered by
the Commission. 



                         FISCAL  IMPACT

Additional $1 million in collection of tax due but unpaid.



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

STATEMENT OF PURPOSE/FISCAL NOTE                  H 29