2006 Legislation
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SENATE BILL NO. 1489 – Tax exemptions/credits, study

SENATE BILL NO. 1489

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Bill Status



S1489......................................................by STATE AFFAIRS
STATE TAX COMMISSION - Adds to existing law to provide additional duties of
the State Tax Commission for conducting an analysis, over a ten year
period, on each Idaho Code section that provides a sales tax exemption, a
property tax exemption or an income tax credit; to provide annual reporting
requirements; to provide for assignment of each year's analysis to standing
committees of each legislative body for legislative review, consideration
and recommendation, if any; and to provide for submission of committee
reviews to leadership by March 1 of each legislative session.
                                                                        
03/30    Senate intro - 1st rdg - to printing
03/31    Rpt prt - to Loc Gov

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1489
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE STATE TAX COMMISSION; AMENDING  CHAPTER  1,  TITLE  63,  IDAHO
  3        CODE,  BY  THE  ADDITION  OF A NEW SECTION 63-105B, IDAHO CODE, TO PROVIDE
  4        ADDITIONAL DUTIES OF THE STATE TAX COMMISSION FOR CONDUCTING AN  ANALYSIS,
  5        OVER  A  TEN YEAR PERIOD, ON EACH IDAHO CODE SECTION THAT PROVIDES A SALES
  6        TAX EXEMPTION, A PROPERTY TAX EXEMPTION OR AN INCOME TAX CREDIT,  TO  PRO-
  7        VIDE  ANNUAL  REPORTING  REQUIREMENTS,  TO  PROVIDE FOR ASSIGNMENT OF EACH
  8        YEAR'S ANALYSES TO STANDING COMMITTEES OF EACH LEGISLATIVE BODY FOR LEGIS-
  9        LATIVE REVIEW, CONSIDERATION AND RECOMMENDATION, IF ANY,  AND  TO  PROVIDE
 10        FOR  SUBMISSION OF COMMITTEE REVIEWS TO LEADERSHIP BY MARCH 1 OF EACH LEG-
 11        ISLATIVE SESSION.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION 1.  That Chapter 1, Title 63, Idaho Code,  be,  and  the  same  is
 14    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 15    ignated as Section 63-105B, Idaho Code, and to read as follows:
                                                                        
 16        63-105B.  POWERS AND DUTIES -- ANALYSES OF TAX EXEMPTIONS AND CREDITS. (1)
 17    In addition to other duties of the state tax commission, from July 1, 2006, to
 18    June 30, 2016, the state tax commission shall be responsible for conducting an
 19    analysis of each section of Idaho Code that provides a sales tax exemption,  a
 20    property  tax  exemption,  or  an income tax credit. Approximately ten percent
 21    (10%) of such code sections shall be analyzed each year over the ten (10) year
 22    period, and by no later than the end of the first  week  of  each  legislative
 23    session, the commission shall file a report with each member of both houses of
 24    the legislature on each Idaho Code section analyzed in the previous year. Each
 25    analysis shall include:
 26        (a)  The  public  purpose  intended or gained by the original enactment of
 27        the tax exemption or credit;
 28        (b)  The amount of money the tax exemption or credit represents;
 29        (c)  The affected taxpayers who would  pay  additional  taxes  because  of
 30        repeal of the exemption or credit; and
 31        (d)  Public  benefits  or detriments that would occur because of repeal of
 32        the exemption or credit.
 33        (2)  Each year, upon receipt of the analyses  conducted  in  the  previous
 34    year  by  the  state tax commission, leadership of the senate and the house of
 35    representatives shall mutually agree upon which analyses shall be assigned  to
 36    each legislative body. Leadership of each body shall distribute its respective
 37    analyses  to appropriate standing committees, as determined by leadership, for
 38    legislative review, consideration and recommendation, if any. Standing commit-
 39    tees assigned to review analysis of a tax exemption or tax credit, shall  con-
 40    duct  their  reviews  and submit their findings and recommendation, if any, to
 41    leadership of the appropriate body by March 1 of each legislative session.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16299

The implied nature of tax exemptions is to provide relief to a
class of citizens disadvantaged by a state policy designed to
benefit the whole of the citizenry.  The purpose of this
legislation is to provide the legislature a mechanism for the
systematic review of each of the exemptions and credits, quantify
th exemptions and credits, and provide the legislature with the
opportunity to evaluate the intended policy.  The legislation
requires the State Tax Commission to conduct the analysis and
report their findings to each member of the legislature.



                           FISCAL NOTE

Much, if not most of the financial information necessary for the
analysis is accessible by the State Tax Commission.  An additional
one full-time equivalent employee (FTE) may be necessary to make
the appropriate analysis. One evaluation cycle is necessary to make
an accurate cost-benefit analysis of the review.  The estimated
cost of one FTE is $72,000.




Contact
Name: Senator Tim Corder 
Phone: 332-1342


STATEMENT OF PURPOSE/FISCAL NOTE                           S 1489