Print Friendly HOUSE BILL NO. 796 – Sales tax exmptn/pollutn control
HOUSE BILL NO. 796
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H0796...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTION - POLLUTION CONTROL EQUIPMENT - Amends existing law to
revise the tax exemption applicable to pollution control equipment.
03/10 House intro - 1st rdg - to printing
03/13 Rpt prt - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 57-5-8
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Chadderdon,
Clark, Collins, Deal, Denney, Eskridge, Field(18), Field(23),
Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake,
Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Moyle,
Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Rydalch,
Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Smith(30),
Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- Cannon, LeFavour, Mitchell, Ringo, Rusche
Absent and excused -- Bayer, Crow, Edmunson, Ellsworth, Roberts,
Sali, Skippen, Smith(24)
Floor Sponsor - Denney
Title apvd - to Senate
03/16 Senate intro - 1st rdg - to Loc Gov
03/24 Rpt out - rec d/p - to 2nd rdg
03/27 2nd rdg - to 3rd rdg
03/28 3rd rdg - PASSED - 33-1-1
AYES -- Andreason, Brandt, Broadsword, Burkett(Clark), Burtenshaw,
Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon,
Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
Schroeder, Stegner, Stennett, Werk, Williams
NAYS -- Bunderson
Absent and excused -- Sweet
Floor Sponsor - Williams
Title apvd - to House
03/29 To enrol
03/30 Rpt enrol - Sp signed
03/31 Pres signed - To Governor
03/31 Governor signed
Session Law Chapter 326
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 796
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING SECTION 63-3622X, IDAHO CODE, TO REVISE THE
3 EXEMPTION APPLICABLE TO POLLUTION CONTROL EQUIPMENT; DECLARING AN EMER-
4 GENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 63-3622X, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 63-3622X. POLLUTION CONTROL EQUIPMENT. There is hereby exempted from the
9 taxes imposed by this chapter the sale, use or purchase of tangible personal
10 property, which property is pollution control equipment required to meet air
11 and water quality standards of a state or federal agency having authority to
12 regulate and set air and water quality emission standards.
13 This exemption applies to the purchase of dry cleaning equipment that is
14 designed to protect employees from exposure to perchloroethylene as well as
15 retaining the fluid in the machine in order to protect sewer systems and air
16 quality standards. Dry cleaning machines meeting these standards are referred
17 to as "dry to dry transfer systems."
18 This exemption applies to the purchase of a liner or reagent required to
19 meet water quality standards, rules or regulations of a state or federal
20 agency having authority to regulate and set water quality standards regardless
21 of whether the liner or reagent later becomes or is intended to become a com-
22 ponent of any real property or improvement or fixture thereto.
23 This exemption does not include motor vehicles or aircraft, without regard
24 to the use to which such motor vehicles or aircraft are put.
25 SECTION 2. An emergency existing therefor, which emergency is hereby
26 declared to exist, this act shall be in full force and effect on and after its
27 passage and approval, and retroactively to July 1, 2005.
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STATEMENT OF PURPOSE
This bill clarifies that the sales tax exemption for
pollution control equipment is available for liners and
reagents intended to protect ground water. Under current Tax
Commission rulings, the exemption would be denied because
the liners and reagents would be considered improvements to
Approximately $5.5 million of liners and reagents will
be installed or used in FY 2006 that would not be considered
eligible for the sales tax exemption by the Tax Commission.
This bill would make the purchase of those liners and
reagents exempt from $275,000 of sales tax in FY 2006.
The fiscal impact of this bill beyond FY 2006 will
depend on the value of liners and reagents, if any, that are
installed or used but are not considered eligible for the
sales tax exemption under current Tax Commission rulings.
That fiscal impact is expected to be less than $300,000 in
CONTACT: Jack Lyman
Idaho Mining Association
Milk Producers of Idaho
STATEMENT OF PURPOSE/FISCAL NOTE H 796