2006 Legislation
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HOUSE BILL NO. 473 – Tax refund, offset, tax liability

HOUSE BILL NO. 473

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Bill Status



H0473...............................................by REVENUE AND TAXATION
TAX REFUNDS - Adds to existing law to authorize agreements between the
State Tax Commission and the United States Department of the Treasury for
offset of tax refunds against tax liabilities; to provide limitations
regarding the offset; and to provide application to federal debt.
                                                                        
01/25    House intro - 1st rdg - to printing
01/26    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 - 62-3-5
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Garrett, 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 -- Hart, Harwood, Loertscher
      Absent and excused -- Black, Brackett, Deal, Field(23), Wood
    Floor Sponsor - Sayler
    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 - 22-8-5
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Coiner, Compton,
      Corder, Fulcher, Gannon, Geddes, Goedde, Hill, Keough, Langhorst,
      Lodge, Malepeai, Marley, McGee, McKenzie, Stegner, Werk, Williams
      NAYS -- Cameron, Darrington, Davis, Jorgenson, Little, Richardson,
      Schroeder, Sweet
      Absent and excused -- Burkett, Burtenshaw, Kelly, Pearce, Stennett
    Floor Sponsor - Corder
    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 55
         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. 473
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO OFFSET OF TAX REFUNDS; AMENDING CHAPTER 30, TITLE 63, IDAHO  CODE,
  3        BY THE ADDITION OF A NEW SECTION 63-3077D, IDAHO CODE, TO AUTHORIZE AGREE-
  4        MENTS BETWEEN THE STATE TAX COMMISSION AND THE UNITED STATES DEPARTMENT OF
  5        THE TREASURY FOR OFFSET OF TAX REFUNDS AGAINST TAX LIABILITIES, TO PROVIDE
  6        LIMITATIONS  REGARDING  THE  OFFSET  AND TO PROVIDE APPLICATION TO FEDERAL
  7        DEBT.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Chapter 30, Title 63, Idaho Code, be,  and  the  same  is
 10    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 11    ignated as Section 63-3077D, Idaho Code, and to read as follows:
                                                                        
 12        63-3077D.  AGREEMENT FOR COLLECTION OF TAX. (1) The state  tax  commission
 13    may  enter  into  agreements  with the United States secretary of the treasury
 14    through the internal revenue service or the financial  management  service  of
 15    the  department  of the treasury of the United States providing for the mutual
 16    offset of any refunds or other amount payable by either party against liabili-
 17    ties owed to the other party  to  the  agreement.  Any  such  agreement  shall
 18    require  that  no  offset  may  be  made unless the liability against which it
 19    applies is final, without any further right on the part of  the  person  owing
 20    the liability to either administrative review or judicial review.
 21        (2)  No  refunds from this state shall be available for offset against any
 22    federal debt:
 23        (a)  Until any debts subject to offset that are  owed  to  this  state  or
 24        agency thereof have been satisfied; or
 25        (b)  During  any  time  when  a reciprocal program for offset from federal
 26        refunds for tax debts owing to this state is not in effect.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                           RS 15383C1

     This bill allows the State Tax Commission to enter into an
agreement with the Internal Revenue Service relating to offset of
tax refunds.  When implemented taxpayers with final, non-
appealable tax assessments owed to the state or to the federal
government will be subject to having that tax debt offset against
any tax refunds owed to the other.  

     Refunds owed by the State Tax Commission will first be
applied against debts owed to the state, such as unpaid child
support, before being offset against federal tax.  No offset of
federal tax against state refunds is allowed unless an agreement
for offsetting federal refunds for state tax debts is in place.


                          FISCAL NOTE

     None.






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

STATEMENT OF PURPOSE/FISCAL NOTE                              H 473