Print Friendly HOUSE BILL NO. 484 – Sales tax exmptn, pollution control
HOUSE BILL NO. 484
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H0484...............................................by REVENUE AND TAXATION
TAXATION - Amends existing law relating to taxation to revise the tax
exemption applicable to pollution control devices or equipment.
01/26 House intro - 1st rdg - to printing
01/27 Rpt prt - to Rev/Tax
02/15 Rpt out - rec d/p - to 2nd rdg
02/16 2nd rdg - to 3rd rdg
02/22 3rd rdg - PASSED - 58-11-1
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Henderson, Jaquet, Kemp, Loertscher, Mathews, McGeachin, McKague,
Miller, Moyle, Nielsen, Nonini, Raybould, Ring, Roberts, Rydalch,
Sali(Sali), Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen,
Smith(24), Smylie(Luker), Snodgrass, Stevenson, Wills, Wood, Mr.
NAYS -- Boe, LeFavour, Martinez, Mitchell, Pasley-Stuart, Pence,
Ringo, Rusche, Sayler, Smith(30), Trail
Absent and excused -- Lake
Floor Sponsor - Denney
Title apvd - to Senate
02/23 Senate intro - 1st rdg - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 484
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING SECTION 63-3622X, IDAHO CODE, TO REVISE
3 DESCRIPTIVE LANGUAGE AND TO REVISE THE TAX EXEMPTION APPLICABLE TO POLLU-
4 TION CONTROL DEVICES, MATERIAL OR EQUIPMENT; DECLARING AN EMERGENCY AND
5 PROVIDING RETROACTIVE APPLICATION.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-3622X, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-3622X. POLLUTION CONTROL DEVICES, MATERIAL AND EQUIPMENT. There is
10 hereby exempted from the taxes imposed by this chapter the sale, use or pur-
11 chase of tangible personal property, which property is a pollution control
12 device or pollution control material or equipment required to meet air and
13 water quality standards or regulations of a state or federal agency having
14 authority to regulate and set air and water quality emission standards regard-
15 less of whether the tangible personal property becomes or is intended to
16 become a component of any real property or any improvement or fixture thereto.
17 This exemption applies to the purchase of dry cleaning equipment that is
18 designed to protect employees from exposure to perchloroethylene as well as
19 retaining the fluid in the machine in order to protect sewer systems and air
20 quality standards. Dry cleaning machines meeting these standards are referred
21 to as "dry to dry transfer systems."
22 This exemption does not include motor vehicles or aircraft, without regard
23 to the use to which such motor vehicles or aircraft are put.
24 SECTION 2. An emergency existing therefor, which emergency is hereby
25 declared to exist, this act shall be in full force and effect on and after its
26 passage and approval, and retroactively to July 1, 2005.
STATEMENT OF PURPOSE
This bill clarifies that the legislature intended the sales
tax exemption for pollution control equipment to be
available for devices, materials and equipment that become
improvements to real property. This means that a synthetic
liner, required by DEQ and intended to protect ground water
quality, would be eligible for the exemption from sales tax.
Under current Tax Commission rulings, the exemption would be
denied because the liner would be considered an improvement
to real property.
DFM estimated the pollution control sales tax exemption to
be worth $3,317,000 in FY 2006. That estimate does not
include the effect of this change in law. Approximately $6
million of synthetic liners and other materials were
installed in late 2005. This bill would make the purchase
of those liners and materials exempt from $300,000 of sales
tax in FY 2006.
DFM estimates the pollution control sales tax exemption to
be worth $3,492,000 in FY 2007. The fiscal impact of this
bill will depend on the value of pollution control devices,
materials and equipment, if any, that are installed but are
not considered eligible for the sales tax exemption under
current Tax Commission rulings.
Name: Jack Lyman, Idaho Mining Association
Name: Brent Olmstead, Milk Producers of Idaho
STATEMENT OF PURPOSE/FISCAL NOTE H 484