2006 Legislation
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HOUSE BILL NO. 458 – Sales tax, no sellers permit, pnlty

HOUSE BILL NO. 458

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Bill Status



H0458...............................................by REVENUE AND TAXATION
SALES TAX - SELLER'S PERMIT - Amends existing law to revise the penalty
from a misdemeanor to a civil penalty, under the sales and use tax law, of
doing business without a required seller's permit; to limit the penalty to
persons who are responsible persons of a corporation or other business
entity; and to provide for assessment of the penalty as a deficiency.
                                                                        
01/24    House intro - 1st rdg - to printing
01/25    Rpt prt - to Rev/Tax
02/17    Rpt out - rec d/p - to 2nd rdg
02/20    2nd rdg - to 3rd rdg
02/23    3rd rdg - PASSED - 65-1-4
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
      Lake, LeFavour, Martinez, Mathews, McGeachin, McKague, Miller,
      Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
      Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
      Smylie(Luker), Snodgrass, Stevenson, Trail, Wills, Mr. Speaker
      NAYS -- Loertscher
      Absent and excused -- Black, Brackett, Field(23), Wood
    Floor Sponsor - Smith(24)
    Title apvd - to Senate
02/24    Senate intro - 1st rdg - to Loc Gov
03/02    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/07    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron,
      Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
      Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Burtenshaw, Pearce
    Floor Sponsor - Malepeai
    Title apvd - to House
03/08    To enrol
03/09    Rpt enrol - Sp signed
03/10    Pres signed
03/13    To Governor
03/14    Governor signed
         Session Law Chapter 61
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 458
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SALES AND USE TAXES; AMENDING  SECTION  63-3620,  IDAHO  CODE,  TO
  3        REVISE  THE  PENALTY FOR DOING BUSINESS WITHOUT A REQUIRED SELLER'S PERMIT
  4        FROM A CRIMINAL MISDEMEANOR TO A CIVIL PENALTY, TO LIMIT  THE  PENALTY  TO
  5        PERSONS  WHO  ARE  RESPONSIBLE  PERSONS OF A CORPORATION OR OTHER BUSINESS
  6        ENTITY AND TO PROVIDE FOR ASSESSMENT OF THE PENALTY AS A DEFICIENCY.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Section 63-3620, Idaho Code, be, and the same  is  hereby
  9    amended to read as follows:
                                                                        
 10        63-3620.  PERMITS  --  ISSUANCE  --  REVOCATION  --  PENALTIES.  (a) Every
 11    retailer engaged in business in this state, before conducting business  within
 12    this  state,  shall  file  with  the state tax commission an application for a
 13    seller's permit. Every application for a permit shall be made upon a form pre-
 14    scribed by the state tax commission and shall set forth the name  under  which
 15    the  applicant  transacts or intends to transact business, the location of his
 16    place or places of business, and such other information as the state tax  com-
 17    mission  may  require. The applications, or any information contained thereon,
 18    may be made available by the tax commission to authorized  representatives  of
 19    state  or federal agencies. The application shall be signed by the owner if he
 20    is a natural person or by an individual authorized by the seller to  sign  the
 21    application.  Except  as  provided  in subsection (f) of this section, permits
 22    shall be issued without charge.
 23        (b)  The state tax commission, for the efficient  administration  of  this
 24    chapter, may issue:
 25        (1)  Temporary  seller's  permits.  No  retailer shall be issued more than
 26        three (3) temporary permits in one (1) calendar year. A  temporary  permit
 27        shall be valid only for the period of time shown on the face thereof.
 28        (2)  Wholesaler's  permits  to  persons who are not retailers but who pur-
 29        chase tangible personal property for resale. A wholesaler's  permit  shall
 30        be  valid  for  no  more  than  twelve  (12) consecutive months and may be
 31        renewed by the commission.
 32        (c)  The person signing the application shall certify that  the  applicant
 33    will  actively  engage  in  or  conduct a business making sales subject to tax
 34    under this chapter.
 35        (d)  After compliance by the applicant with the requirements set out above
 36    and in section 63-3625, Idaho Code, the state tax commission shall  grant  and
 37    issue  to each applicant a permit. A permit shall not be assignable, and shall
 38    be valid only for the person in whose name it is issued. The permit or a  copy
 39    thereof  shall at all times be conspicuously displayed at each place where the
 40    person to whom it is issued conducts business.
 41        (e)  A seller whose permit has been previously suspended or revoked  shall
 42    pay  the state tax commission a fee of ten dollars ($10.00) for the renewal or
 43    issuance of a permit in the event of a first revocation and  twenty-five  dol-
                                                                        
                                           2
                                                                        
  1    lars  ($25.00) for renewal after each successive revocation unless the suspen-
  2    sion or revocation is for inactivity pursuant to section 63-3620A, Idaho Code.
  3        (f)  Whenever any person fails to comply with any provision of this  chap-
  4    ter  relating to the sales tax or any rules of the state tax commission relat-
  5    ing to the sales tax prescribed and adopted under this chapter, the state  tax
  6    commission  may  revoke  or suspend any one (1) or more of the permits held by
  7    the person or may deny a new permit to such person. Notice  of  revocation  or
  8    denial shall be given in the manner provided for deficiencies in taxes in sec-
  9    tion 63-3629, Idaho Code, which shall be subject to review as provided in sec-
 10    tion  63-3631, Idaho Code. The state tax commission shall not issue a new per-
 11    mit after the revocation of a permit unless the commission is  satisfied  that
 12    the  former holder of the permit will comply with the provisions of this chap-
 13    ter relating to the sales tax and the rules of the state tax commission.
 14        (g)  A person who engages in business as a seller in this state without  a
 15    permit  or  permits, or after a permit has been suspended, and each officer of
 16    any corporation which so engages in business is guilty of a  misdemeanor  pun-
 17    ishable  by  a  fine and any person who is a responsible person, as defined in
 18    section 63-3627, Idaho Code, of such a business shall, after receiving written
 19    notice from the state tax commission, be subject to a  civil  penalty  not  in
 20    excess of one hundred dollars ($100), and each day shall constitute a separate
 21    offense, which the state tax commission may assess as a deficiency pursuant to
 22    section 63-3629, Idaho Code.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 15371

     This bill amends the Idaho Sales Tax Act to change the
penalty for doing business with out a seller's permit when a
permit is required from a criminal misdemeanor to a civil
penalty.  The amount of the penalty is unchanged.  Persons who
are officers or employees with the duty to account for and pay
over the tax for the business (instead of each officer of a
corporation) are also subject to the penalty.


                          FISCAL NOTE
     None






CONTACT
Name:     Dan John
Agency:   State Tax Commission
Phone:    334-7530

STATEMENT OF PURPOSE/FISCAL NOTE                              H 458