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H0855...............................................by REVENUE AND TAXATION
SALES AND USE TAX REBATE - RETAILERS - Adds to existing law to provide a
sales and use tax rebate for retailers who have incurred minimum costs in
putting in an interchange on an interstate highway and/or freeway
interchange improvements on land owned by the state of Idaho or any of its
political subdivisions and utility infrastructure installed within the
public right-of-way; to provide procedures; to provide when the rebate is
no longer paid; and to define terms.
03/29 House intro - 1st rdg - to printing
03/30 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. 855
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-3622SS, IDAHO CODE, TO PROVIDE A SALES
4 AND USE TAX REBATE FOR RETAILERS WHO HAVE INCURRED MINIMUM COSTS IN PUT-
5 TING IN AN INTERCHANGE ON AN INTERSTATE HIGHWAY AND/OR FREEWAY INTERCHANGE
6 IMPROVEMENTS ON LAND OWNED BY THE STATE OF IDAHO OR ANY OF ITS POLITICAL
7 SUBDIVISIONS AND UTILITY INFRASTRUCTURE INSTALLED WITHIN THE PUBLIC
8 RIGHTS-OF-WAY, TO PROVIDE PROCEDURES, TO PROVIDE WHEN THE REBATE IS NO
9 LONGER PAID AND TO DEFINE TERMS; DECLARING AN EMERGENCY AND PROVIDING A
10 SUNSET DATE.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Chapter 36, 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 63-3622SS, Idaho Code, and to read as follows:
15 63-3622SS. TANGIBLE PERSONAL PROPERTY SOLD BY CERTAIN RETAILERS. (1) A
16 retailer of tangible personal property may qualify for a rebate of taxes paid
17 on such purchases but only if the retailer has built a retail facility in
18 Idaho that is of a minimum cost as provided in subsection (2) of this section
19 and has incurred costs in excess of eight million dollars ($8,000,000) for the
20 installation of an interchange from an interstate highway by the Idaho trans-
21 portation department or a contractor thereof and/or freeway interchange
22 improvements on land owned by the state of Idaho or any of its political sub-
23 divisions and utility infrastructure installed within the public rights-of-way
24 essential to the function of the retail facility and beneficial to the general
25 area.
26 (2) To qualify for the rebate, the taxpayer must collect sales and use
27 taxes on sales of tangible personal property from their retail facility.
28 Once the taxpayer certifies that the retail facility has cost a minimum of
29 four million dollars ($4,000,000) and the taxpayer has expended in excess of
30 eight million dollars ($8,000,000) for the installation of an interchange from
31 an interstate highway by the Idaho transportation department or a contractor
32 thereof and/or freeway interchange improvements or utility infrastructure, the
33 taxpayer may file with the state tax commission a refund request of sixty-five
34 percent (65%) of the sales and use taxes collected for the sale of tangible
35 personal property from the retail facility. The refund request shall state
36 that the taxpayer has constructed a retail facility that meets the minimum
37 expenditure requirements and also meets the minimum expenditure requirements
38 for an interchange and/or related freeway interchange improvements and utility
39 infrastructure to be eligible for the rebate and that the taxpayer is entitled
40 to receive a rebate of sixty-five percent (65%) of all sales and use taxes
41 collected by the retailer that qualifies for the rebate created by this sec-
42 tion. The state tax commission may require that sufficient documentation be
43 provided by the taxpayer regarding expenditures and shall require an attesta-
2
1 tion from the Idaho transportation department that the minimum requirements of
2 this section have been met.
3 (3) Upon filing of a written refund claim by the taxpayer entitled to the
4 rebate, and subject to such reasonable documentation and verification as the
5 state tax commission may require, the rebate shall be paid by the state tax
6 commission as a refund allowable under section 63-3626, Idaho Code. A claim
7 for rebate under this section must be filed on or before the last day of the
8 third calendar year following the year in which the taxes sought to be rebated
9 were paid or the right to the rebate is lost.
10 (4) Any rebate paid shall be subject to recapture by the state tax com-
11 mission. In the event the property is not used, stored or otherwise consumed
12 in the process of making retail sales for a period of ten (10) years, the
13 state tax commission shall recapture the tax paid in the same proportion as an
14 amount of credit required to be recaptured under section 63-3029B, Idaho Code.
15 (5) Any recapture amount due under this section shall be a deficiency in
16 tax for the period in which the disqualification first occurs for purposes of
17 section 63-3629, Idaho Code, and may be enforced and collected in the manner
18 provided by the Idaho sales tax act, provided however, that in lieu of the
19 provisions of section 63-3633, Idaho Code, the period of time within which the
20 commission may issue a notice under section 63-3629, Idaho Code, in regard to
21 an amount subject to recapture shall be the later of five (5) years after the
22 end of the taxable year, for income tax purposes, in which the project period
23 ends.
24 (6) Once the retailer has recouped its costs of funding the interchange
25 on the interstate highway and/or related transportation or utility infrastruc-
26 ture, the retailer shall be ineligible to receive the rebate pursuant to this
27 section.
28 (7) As used in this section:
29 (a) "Freeway interchange improvements" includes on and off ramps, over-
30 pass and underpass improvements, signalization, utility modifications nec-
31 essary to facilitate the effective access from the interstate highway sys-
32 tem.
33 (b) "Retail facility" includes all buildings, the parking lot, sidewalks
34 and all accessory equipment including, but not limited to, lighting and
35 traffic signs.
36 (c) "Utility infrastructure" includes sewer, water and storm water sys-
37 tems, natural gas service, power lines for electrical service, and instal-
38 lations of cable for telephone, internet and other electronic services
39 that will be installed under streets or roadways or within the right-of-
40 way of any of the streets, roads or accesses that serve the retail facil-
41 ity.
42 SECTION 2. An emergency existing therefor, which emergency is hereby
43 declared to exist, this act shall be in full force and effect on and after its
44 passage and approval, and shall be null, void and of no force and effect on
45 and after July 1, 2010.
STATEMENT OF PURPOSE
RS 16242C1
This legislation gives authority to a private investor who has
installed and paid transportation and infrastructure costs on
public owned land to recoup their costs. The costs would be
recouped through a rebate of a portion of collected sales tax.
The transportation and infrastructure installation must benefit
the surrounding area. The rebate can only be claimed on sales
made in a retail facility owned by the investor and served by the
infrastructure improvements. The rebate privilege ends when the
installation costs are fully recouped.
FISCAL IMPACT
None
Contact
Name: Rep. Bob Nonini
Phone: 332-1000
Rep. Frank Henderson
STATEMENT OF PURPOSE/FISCAL NOTE H 855