2005 Legislation
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HOUSE BILL NO. 308 – Vehicles, county tax, when

HOUSE BILL NO. 308

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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.

Amendment


                                                                        
                                                                        
  ]]]]              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".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact



                       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