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H0502...............................................by REVENUE AND TAXATION
COUNTY SALES TAX - Amends existing law relating to county sales taxes to
revise legislative findings; to require that a minimum number of registered
voters vote in order for a local option tax to be valid; to revise the
purposes of the tax; and to remove a sunset date.
01/30 House intro - 1st rdg - to printing
01/31 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 502
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO COUNTY SALES TAXES; AMENDING SECTION 63-2601, IDAHO CODE, TO
3 REVISE LEGISLATIVE FINDINGS; AMENDING SECTION 63-2602, IDAHO CODE, TO
4 REQUIRE THAT A MINIMUM NUMBER OF REGISTERED VOTERS VOTE IN ORDER FOR THE
5 TAX TO BE VALID AND TO REVISE THE PURPOSES OF THE TAX; AMENDING SECTION
6 63-2604, IDAHO CODE, TO REVISE GENERAL PROVISIONS; AND AMENDING SECTION 4,
7 CHAPTER 363, LAWS OF 2003, TO REMOVE A SUNSET DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-2601, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-2601. LEGISLATIVE FINDINGS. The legislature hereby finds that the
12 increase in rapid growth of the population of certain counties and the influx
13 of great numbers of people traveling short-term residents to those counties
14 for sport, recreation and business have created a drain on the county infra-
15 structure that is borne to an inequitable degree by the property owners of
16 those counties through the payment of property taxes. The legislature finds
17 that it is both equitable and desirable to shift a portion of this tax burden
18 in part from the property owners of the county to those visitors partaking of
19 the services of the county. This would be accomplished by using one-half (1/2)
20 of the proceeds of sales taxes collected pursuant to this chapter for property
21 tax relief. The legislature finds that a local option tax has been used effec-
22 tively in parts of Idaho and that other counties could benefit from this tool
23 as a means of paying for infrastructure enhancement. The legislature also
24 finds that this objective must be subject to the approval and supervision of
25 the voters of the county, both through their elected officials and through
26 direct input at the ballot box.
27 SECTION 2. That Section 63-2602, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-2602. AUTHORITY FOR COUNTY SALES OR USE TAX. The voters of a county
30 are given the authority to authorize their county government to adopt, imple-
31 ment and collect a sales tax or use tax upon all sales, without exception,
32 that are subject to taxation under chapter 36, title 63, Idaho Code. The
33 county commissioners of any such county are hereby given the freedom and
34 authority to adopt, implement and collect a sales or use tax as provided
35 herein if approved by the required minimum of sixty-six and two-thirds percent
36 (66 2/3%) of county voters voting in an election conducted on the fourth Tues-
37 day in May or on the first Tuesday after the first Monday in November, pro-
38 vided that a minimum of forty percent (40%) of the registered voters in the
39 county must vote in such election for the tax to be valid. No local option
40 sales or use tax proposal may be presented to county voters for approval or
41 modification for a period of fifty-one (51) weeks after an election to approve
2
1 or disapprove such tax. The question presented to the voters of a county shall
2 state the rate of the local sales or use tax, the duration of the tax, which
3 shall not exceed ten (10) years, and the purposes of the tax which shall be
4 county property tax relief and debt retirement for expansion of detention
5 facilities the funding of capital projects, exclusive of maintenance and oper-
6 ation costs.
7 SECTION 3. That Section 63-2604, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-2604. GENERAL PROVISIONS. Any ordinance assessing a tax pursuant to
10 this chapter shall contain a finding by the board of county commissioners
11 based upon evidence presented to it that the conditions set forth in section
12 63-2601, Idaho Code, exist and shall provide the methods for reporting and
13 collecting taxes due. Taxes collected pursuant to any such ordinance shall be
14 remitted to the county official designated in such ordinance or other such
15 official contracting, pursuant to this chapter, with the county to provide
16 collection services, and shall constitute revenue of the county available for
17 county property tax relief and debt retirement for expansion of detention
18 facilities the funding of capital projects, exclusive of maintenance and oper-
19 ation costs. In any election, the ordinance submitted to county voters shall:
20 (1) state and define the sales or use tax to be approved; (2) state the exact
21 rate of the tax to be assessed, which in no event shall exceed five-tenths of
22 one percent (0.5%) of the sales price of an item subject to taxation; (3)
23 state that the revenues derived from the sales or use tax shall be used for
24 county property tax relief and debt retirement for expansion of detention
25 facilities the funding of capital projects, exclusive of maintenance and oper-
26 ation costs; (4) state the duration of the tax which shall not be in excess of
27 ten (10) years or the date the obligation has been met for the project for
28 which the sales and use tax was passed pursuant to this chapter, whichever
29 occurs first. The county clerk of any county adopting an ordinance, or any
30 amendment thereto, shall forward a copy of the ordinance or amendment to the
31 state controller, the chairman of the state tax commission and the chairman of
32 the state board of tax appeals.
33 SECTION 4. That Section 4, Chapter 363, Laws of 2003, be, and the same is
34 hereby amended to read as follows:
35 SECTION 4. An emergency existing therefor, which emergency is hereby
36 declared to exist, this act shall be in full force and effect on and after its
37 passage and approval, and shall be null, void and of no force and effect on
38 and after December 31, 2009.
STATEMENT OF PURPOSE
RS 15677
This legislation authorizes counties to adopt local option sales
taxes and to implement and collect such tax. The bill requires that
the measure 1)be put to the voters and obtain a minimum of 66 2/3%
approval, 2)set forth the capital project to be funded, 3)be set for a
period of time, 10 years or less, and 4)set forth the rate of taxation
and that rate shall not exceed .5%. Not less than 50% of the revenue
generated would be applied to reduce existing property taxes and the
balance of such revenues used to provide needed services which would
other wise be paid for by general fund revenues. Elections can only
be held on primary and general election dates and 40% of the
registered voters must vote to validate the outcome.
FISCAL NOTE
There is no impact to the state of Idaho as a result of this
legislation. Should the voters in a county pass a local option sales
tax, property taxes would be reduced by one-half of the additional tax
collected with the balance applied to the specific purpose indicated.
Contact
Name: Senator John Goedde, Senator Dick Compton
Representatives Marge Chadderdon, Frank Henderson, George Saylor
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 502