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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
]]]] 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 centpercent (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 departed28 from the state, or has property or is employed outside of the state and29 ignores all demands for payment, the tax commission is authorized to employ30 the services of any qualified collection agency or attorney and to pay fees31 for such services out of moneys recovered.
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