2007 Legislation
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HOUSE BILL NO. 9 – Tax, tobacco products, distributors

HOUSE BILL NO. 9

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Bill Status



H0009...............................................by REVENUE AND TAXATION
TAXATION - TOBACCO PRODUCTS - Amends existing law to require tobacco
distributors to hold cigarette permits from the State Tax Commission; to
allow the credit for taxes paid to distributors who ship tobacco products
to distributors outside Idaho; to delete provisions relating to monthly
estimated tax returns; and to provide returns monthly or such other period
as the State Tax Commission may, by rule, provide.
                                                                        
01/15    House intro - 1st rdg - to printing
01/16    Rpt prt - to Rev/Tax
01/17    Rpt out - rec d/p - to 2nd rdg
01/18    2nd rdg - to 3rd rdg
01/22    3rd rdg - PASSED - 66-0-4
      AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
      LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
      Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
      Ring, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shively, Smith(30), Smith(24), Snodgrass, Stevenson,
      Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Anderson, Clark, Ringo, Shirley
    Floor Sponsor - Killen
    Title apvd - to Senate
01/23    Senate intro - 1st rdg - to Loc Gov
02/02    Rpt out - rec d/p - to 2nd rdg
02/05    2nd rdg - to 3rd rdg
02/06    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Corder
    Title apvd - to House
02/07    To enrol
02/08    Rpt enrol - Sp signed
02/09    Pres signed
02/12    To Governor
02/13    Governor signed
         Session Law Chapter 19
         Effective: 07/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                      HOUSE BILL NO. 9
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE TAX ON TOBACCO PRODUCTS; AMENDING SECTION 63-2554, IDAHO CODE,
  3        TO REQUIRE TOBACCO DISTRIBUTORS TO HOLD CIGARETTE PERMITS;  AMENDING  SEC-
  4        TION  63-2559, IDAHO CODE, TO ALLOW THE CREDIT FOR TAXES PAID TO DISTRIBU-
  5        TORS WHO SHIP TOBACCO PRODUCTS TO DISTRIBUTORS OUTSIDE IDAHO; AND AMENDING
  6        SECTION 63-2560, IDAHO CODE, TO  DELETE  PROVISIONS  RELATING  TO  MONTHLY
  7        ESTIMATED  TAX RETURNS, TO PROVIDE RETURNS MONTHLY OR SUCH OTHER PERIOD AS
  8        THE STATE TAX COMMISSION MAY BY RULE PROVIDE AND TO MAKE TECHNICAL CORREC-
  9        TIONS.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION 1.  That Section 63-2554, Idaho Code, be, and the same  is  hereby
 12    amended to read as follows:
                                                                        
 13        63-2554.  CERTIFICATE OF REGISTRATION PERMIT REQUIRED. From and after July
 14    1,  1972,   nNo  person  shall  engage  in  the  business  of a distributor or
 15    subjobber of tobacco products at any place of business  without  first  having
 16    received  from the commission a certificate of registration permit as provided
 17    in section 63-2503 or 63-2504, Idaho Code.
                                                                        
 18        SECTION 2.  That Section 63-2559, Idaho Code, be, and the same  is  hereby
 19    amended to read as follows:
                                                                        
 20        63-2559.  WHEN  CREDIT  MAY  BE  OBTAINED  FOR TAX PAID. (1) Where tobacco
 21    products upon which the tax imposed by this  chapter  has  been  reported  and
 22    paid,  are  shipped  or  transported  by  the  distributor  to distributors or
 23    retailers without outside  the state, to be  sold  by  those  distributors  or
 24    retailers, or are returned to the manufacturer by the distributor or destroyed
 25    by  the  distributor,  credit  of  such  tax may be made to the distributor in
 26    accordance with rules prescribed by the commission.
 27        (2)  Taxes paid on tobacco products sold on or after January 1,  2000,  on
 28    accounts  later found to be worthless and actually charged-off may be credited
 29    upon a subsequent payment of the tax on tobacco products or, if no such tax is
 30    due, refunded. If all or part of such an account is thereafter collected,  the
 31    tax shall be paid based upon the proportion of the amount collected.
                                                                        
 32        SECTION  3.  That  Section 63-2560, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
                                                                        
 34        63-2560.  TAX PAYABLE MONTHLY -- RETURNS -- OTHER  THAN  MONTHLY  ESTIMATE
 35    AND QUARTERLY RETURNS, -- PROCEDURE. (1)  The taxes imposed hereunder shall be
 36    due  and  payable  in monthly instalments installments and remittance therefor
 37    shall be made on or before the twentieth day of the month next succeeding  the
 38    end  of  the  monthly  period in which tax accrued. The taxpayer, on or before
 39    said twentieth day of said month, shall make out a return, upon such forms and
                                                                        
                                       2
                                                                        
  1    setting forth such information as the tax commission may require, showing  the
  2    amount of the tax for which he is liable for the preceding monthly period, and
  3    shall sign and transmit the same to the commission, together with a remittance
  4    for  such  amount  in  the form required. Provided, that any such taxpayer may
  5    elect to remit each month, on such forms as the tax commission  shall  in  its
  6    discretion  prescribe,  an  estimate of the tax to be due for each month on or
  7    before the twentieth day of the month next succeeding the end of  the  monthly
  8    period  in  which the tax accrued, and a quarterly return to the commission on
  9    or before the twentieth day of the month next succeeding the end of each quar-
 10    ter of every year, and shall remit therewith the balance of the actual tax due
 11    for the period of the report. Provided further, that every  person  who  shall
 12    elect  to  remit  a  monthly  "estimate  of  the tax to be due" as hereinabove
 13    described shall remit each month at least one-third (1/3) of the tax paid dur-
 14    ing the previous quarter, or ninety per cent (90%) of the  tax  actually  col-
 15    lected or owing during the month, whichever is greater.
 16        The  tax  commission  may  also relieve any taxpayer or class of taxpayers
 17    from the obligation of filing monthly returns and may require  the  return  to
 18    cover  other  reporting  periods, but in no event shall returns be filed for a
 19    period greater than one (1) year.
 20        The tax commission may also, by general rule or regulation, establish con-
 21    ditions for submission of annual or semiannual  reconciling  returns  by  such
 22    taxpayers or class of taxpayers in lieu of quarterly returns.
 23        The  tax commission may also require verified annual returns from any tax-
 24    payer, setting forth such additional information as it may deem  necessary  to
 25    correctly determine tax liability.
 26        (2)  The  state  tax commission may by rule provide returns for periods of
 27    time other than monthly periods. Returns for such reporting periods,  together
 28    with  payment  of  the required taxes, shall be due on or before the twentieth
 29    day of the month following the end of the period to which the return relates.

Statement of Purpose / Fiscal Impact


                   STATEMENT OF PURPOSE

                        RS 16520C1

This bill makes three changes to the tax on tobacco products.  
Tobacco products are those products made from tobacco that are 
not cigarettes.  

Section 1 corrects mistaken language.  The State Tax Commission 
issues a “permit” under Idaho Code section 63-2503 or 63-2504, 
not a “certificate of authority.”  

Section 2 allows distributors who ship tobacco products to 
distributors outside Idaho to take the credit for taxes 
previously paid to Idaho.  Currently, the credit is allowed only 
for tobacco products shipped to retailers outside the state.  

Section 3 updates the law relating to filing tobacco products 
tax returns.  It repeals provisions relating to monthly 
estimated tax returns and requires returns monthly or such other 
period as the State Tax Commission may provide by rule.


                        FISCAL NOTE

None.




CONTACT
Name:	Dan John/Ted Spangler
Agency:	State Tax Commission
Phone:	(208) 334-7500

STATEMENT OF PURPOSE/FISCAL NOTE                 	H 9