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H0308aa.............................................by REVENUE AND TAXATION
COUNTY TAXES - Adds to existing law to clarify when a county tax is
imposed; to clarify the imposition of county taxes for sales and leases of
motor vehicles, vessels, all-terrain vehicles, trailers, off-road
motorcycles and snowmobiles; and to clarify the imposition of county taxes
for leases and rentals of tangible personal property.
03/08 House intro - 1st rdg - to printing
03/09 Rpt prt - to Rev/Tax
03/22 Rpt out - to Gen Ord
Rpt out amen - to engros
03/23 Rpt engros - 1st rdg - to 2nd rdg as amen
03/24 2nd rdg - to 3rd rdg as amen
03/28 Ret'd to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 308
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING CHAPTER 26, TITLE 63, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW SECTION 63-2606, IDAHO CODE, TO CLARIFY WHEN A COUNTY TAX IS
4 IMPOSED; AMENDING CHAPTER 26, TITLE 63, IDAHO CODE, BY THE ADDITION OF A
5 NEW SECTION 63-2607, IDAHO CODE, TO CLARIFY THE IMPOSITION OF COUNTY TAXES
6 FOR SALES AND LEASES OF MOTOR VEHICLES, VESSELS, ALL-TERRAIN VEHICLES,
7 TRAILERS, OFF-ROAD MOTORCYCLES AND SNOWMOBILES; AND AMENDING CHAPTER 26,
8 TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-2608, IDAHO
9 CODE, TO CLARIFY THE IMPOSITION OF COUNTY TAXES FOR LEASES AND RENTALS OF
10 TANGIBLE PERSONAL PROPERTY.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Chapter 26, Title 63, Idaho Code, be, and the same is
13 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
14 ignated as Section 63-2606, Idaho Code, and to read as follows:
15 63-2606. COUNTY IN WHICH TAX APPLIES. (1) Except as provided in sections
16 63-2607 and 63-2608, Idaho Code, the applicable county tax shall be the tax
17 imposed by the county in which the purchaser accepts delivery of the goods or
18 services. If the seller or a carrier or other third party hired by the seller
19 delivers the goods or services, the acceptance occurs in the county in which
20 the goods or services were delivered.
21 (2) When subsection (1) of this section does not apply, the tax shall
22 apply according to the address of the purchaser that is available from the
23 business records of the seller maintained in the ordinary course of the
24 seller's business, provided the use of this address does not constitute bad
25 faith.
26 SECTION 2. That Chapter 26, Title 63, Idaho Code, be, and the same is
27 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
28 ignated as Section 63-2607, Idaho Code, and to read as follows:
29 63-2607. SALES AND LEASES OF MOTOR VEHICLES, VESSELS, ALL-TERRAIN VEHI-
30 CLES, TRAILERS, OFF-ROAD MOTORCYCLES, AND SNOWMOBILES. (1) For retail sales
31 and for leases that require periodic payments of motor vehicles, vessels, all-
32 terrain vehicles (ATVs), trailers, off-road motorcycles and snowmobiles, the
33 applicable county tax shall be the tax imposed by the county in which the
34 address on the application for registration is located, provided the use of
35 such address does not constitute bad faith.
36 (2) For purposes of this section and section 63-2608, Idaho Code:
37 (a) "All-terrain vehicle" is as defined in section 63-3622R, Idaho Code;
38 (b) "Motor vehicle" is as defined in section 63-3606B, Idaho Code; and
39 (c) "Vessel" is as defined in section 63-3622R, Idaho Code.
40 SECTION 3. That Chapter 26, Title 63, Idaho Code, be, and the same is
2
1 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
2 ignated as Section 63-2608, Idaho Code, and to read as follows:
3 63-2608. LEASES AND RENTALS. (1) For leases or rentals of tangible per-
4 sonal property requiring periodic payments, the applicable county tax for the
5 first periodic payment shall be determined in accordance with the provisions
6 of section 63-2606, Idaho Code. For subsequent payments, the applicable tax
7 shall be that of the county of the primary property location for each period
8 covered by the payment. The primary property location shall be as indicated by
9 an address for the property provided by the lessee that is available to the
10 lessor from its records maintained in the ordinary course of business, pro-
11 vided the use of this address does not constitute bad faith. The property
12 location shall not be altered by intermittent use at different locations, such
13 as use of business property that accompanies employees on business trips and
14 service calls.
15 (2) The applicable county tax for a short-term lease or rental for a sin-
16 gle payment shall be determined in accordance with the provisions of section
17 63-2606, Idaho Code.
18 (3) This section does not affect the imposition or computation of sales
19 or use tax on leases or rentals based on a lump sum or accelerated basis, or
20 on the acquisition of property for lease.
21 (4) This section does not apply to leases or rentals of motor vehicles,
22 vessels, all-terrain vehicles, off-road motorcycles or snowmobiles.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
Moved by Clark
Seconded by Crow
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 308
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 17, delete "goods or"; in line 18,
3 delete "services" and insert: "items"; in line 19, delete "goods or services"
4 and insert: "items"; and in line 20, delete "goods or services" and insert:
5 "items".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 308, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING CHAPTER 26, TITLE 63, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW SECTION 63-2606, IDAHO CODE, TO CLARIFY WHEN A COUNTY TAX IS
4 IMPOSED; AMENDING CHAPTER 26, TITLE 63, IDAHO CODE, BY THE ADDITION OF A
5 NEW SECTION 63-2607, IDAHO CODE, TO CLARIFY THE IMPOSITION OF COUNTY TAXES
6 FOR SALES AND LEASES OF MOTOR VEHICLES, VESSELS, ALL-TERRAIN VEHICLES,
7 TRAILERS, OFF-ROAD MOTORCYCLES AND SNOWMOBILES; AND AMENDING CHAPTER 26,
8 TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-2608, IDAHO
9 CODE, TO CLARIFY THE IMPOSITION OF COUNTY TAXES FOR LEASES AND RENTALS OF
10 TANGIBLE PERSONAL PROPERTY.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Chapter 26, Title 63, Idaho Code, be, and the same is
13 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
14 ignated as Section 63-2606, Idaho Code, and to read as follows:
15 63-2606. COUNTY IN WHICH TAX APPLIES. (1) Except as provided in sections
16 63-2607 and 63-2608, Idaho Code, the applicable county tax shall be the tax
17 imposed by the county in which the purchaser accepts delivery of the items. If
18 the seller or a carrier or other third party hired by the seller delivers the
19 items, the acceptance occurs in the county in which the items were delivered.
20 (2) When subsection (1) of this section does not apply, the tax shall
21 apply according to the address of the purchaser that is available from the
22 business records of the seller maintained in the ordinary course of the
23 seller's business, provided the use of this address does not constitute bad
24 faith.
25 SECTION 2. That Chapter 26, Title 63, Idaho Code, be, and the same is
26 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
27 ignated as Section 63-2607, Idaho Code, and to read as follows:
28 63-2607. SALES AND LEASES OF MOTOR VEHICLES, VESSELS, ALL-TERRAIN VEHI-
29 CLES, TRAILERS, OFF-ROAD MOTORCYCLES, AND SNOWMOBILES. (1) For retail sales
30 and for leases that require periodic payments of motor vehicles, vessels, all-
31 terrain vehicles (ATVs), trailers, off-road motorcycles and snowmobiles, the
32 applicable county tax shall be the tax imposed by the county in which the
33 address on the application for registration is located, provided the use of
34 such address does not constitute bad faith.
35 (2) For purposes of this section and section 63-2608, Idaho Code:
36 (a) "All-terrain vehicle" is as defined in section 63-3622R, Idaho Code;
37 (b) "Motor vehicle" is as defined in section 63-3606B, Idaho Code; and
38 (c) "Vessel" is as defined in section 63-3622R, Idaho Code.
39 SECTION 3. That Chapter 26, Title 63, Idaho Code, be, and the same is
40 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
2
1 ignated as Section 63-2608, Idaho Code, and to read as follows:
2 63-2608. LEASES AND RENTALS. (1) For leases or rentals of tangible per-
3 sonal property requiring periodic payments, the applicable county tax for the
4 first periodic payment shall be determined in accordance with the provisions
5 of section 63-2606, Idaho Code. For subsequent payments, the applicable tax
6 shall be that of the county of the primary property location for each period
7 covered by the payment. The primary property location shall be as indicated by
8 an address for the property provided by the lessee that is available to the
9 lessor from its records maintained in the ordinary course of business, pro-
10 vided the use of this address does not constitute bad faith. The property
11 location shall not be altered by intermittent use at different locations, such
12 as use of business property that accompanies employees on business trips and
13 service calls.
14 (2) The applicable county tax for a short-term lease or rental for a sin-
15 gle payment shall be determined in accordance with the provisions of section
16 63-2606, Idaho Code.
17 (3) This section does not affect the imposition or computation of sales
18 or use tax on leases or rentals based on a lump sum or accelerated basis, or
19 on the acquisition of property for lease.
20 (4) This section does not apply to leases or rentals of motor vehicles,
21 vessels, all-terrain vehicles, off-road motorcycles or snowmobiles.
STATEMENT OF PURPOSE
RS 15013
This legislation clarifies Idaho code dealing with optional
county sales taxes for financing county jail facilities. The
legislation adds three new sections to the statute that clarify
which county's tax is to be imposed when two counties have an
interest in the same transaction.
The first section specifies that the applicable county tax will
be the tax imposed by the county in which a purchaser accepts
delivery of the goods or services. The second section specifies
that the applicable county tax on most vehicle sales will be the
tax imposed by the county in which the address on the application
for registration is located. The third section specifies and
clarifies the applicable county tax that will be imposed for
leased or rented tangible personal property that requires
periodic payments.
FISCAL IMPACT
None
Contact
Name: Sen. Joe Stegner - 332-1308
Sen. John Goedde - 332-1330
Rep. Bob Nonini - 332-1206
STATEMENT OF PURPOSE/FISCAL NOTE H 308