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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
]]]] 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
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