2007 Legislation
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HOUSE BILL NO. 10 – Sales Tax Act, technical correctns


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Bill Status

H0010...............................................by REVENUE AND TAXATION
SALES TAX ACT - Amends existing law to make technical corrections to the
Sales Tax Act; to delete the requirement that retailers disclose taxpayer
identification numbers on certain statements; to clarify the exemption for
glider kit vehicles; and to delete research from the exclusion from the
logging exemption.
01/16    House intro - 1st rdg - to printing
01/17    Rpt prt - to Rev/Tax
01/18    Rpt out - rec d/p - to 2nd rdg
01/19    2nd rdg - to 3rd rdg
01/22    Ret'd to Rev/Tax

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 10
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  8    Be It Enacted by the Legislature of the State of Idaho:
  9        SECTION  1.  That Section 63-3620C, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
 11        63-3620C.  PROMOTER SPONSORED EVENTS. (1) The operator  or  promoter  con-
 12    tracting  with  persons  for participation in a promoter sponsored event, as a
 13    prerequisite to renting or leasing space to any person for conducting business
 14    as a retailer on any premises owned or controlled by  that  operator  or  pro-
 15    moter, shall obtain:
 16        (a)  Written  evidence  that  the  retailer  holds a valid seller's permit
 17        issued pursuant to this chapter or will apply to the state tax  commission
 18        for a regular or temporary seller's permit; or
 19        (b)  A written statement from the retailer that the retailer is not offer-
 20        ing  for  sale any item that is taxable under this chapter or is otherwise
 21        not required to hold a valid seller's permit.
 22        (2)  Such written evidence or statements shall be in such form and contain
 23    such information as the state tax commission shall require, and shall  include
 24    the  retailer's taxpayer identification number. The operator or promoter shall
 25    submit the documents to the state tax commission within ten (10) days  follow-
 26    ing the beginning of the event.
 27        (3)  (a) The state tax commission may appoint a sponsor or promoter as its
 28        agent  for issuing temporary seller's permits to participants in the event
 29        and for accounting for such permits.
 30        (b)  A sponsor or promoter appointed to issue temporary permits under this
 31        subsection shall be entitled to a credit or refund of income or  franchise
 32        taxes imposed under chapter 30, title 63, Idaho Code, in the amount of one
 33        dollar  ($1.00)  for  each  such temporary permit issued by the sponsor or
 34        promoter during the taxable year.
 35        (4)  Any operator or promoter of a promoter sponsored event who  fails  to
 36    comply  with this section may be subject to a minimum penalty of fifty dollars
 37    ($50.00) per event and twenty-five dollars ($25.00) for each seller  over  two
 38    (2)  sellers  for whom such records required by subsection (1) of this section
 39    are not obtained, but not to exceed one thousand  dollars  ($1,000)  for  each
 40    such event. Under no circumstances, shall an operator or a promoter be respon-
 41    sible  for sales or use tax not remitted by a retailer at a promoter sponsored
 42    event.
 43        (5)  The penalties provided in subsection (4) of this  section  shall  not
  1    apply:
  2        (a)  Unless the state tax commission shall have previously given notice to
  3        the  operator  or promoter or its officer, agent or employee, by certified
  4        mail, of the requirements of this section and of a violation of this  sec-
  5        tion by the operator or promoter or its officer, agent or employee; or
  6        (b)  If  the  operator or promoter shows that such failure was due to rea-
  7        sonable cause and not to willful neglect.
  8        (6)  The state tax commission shall give notice of any penalty provided in
  9    this section and it shall assess such penalties in  the  manner  provided  for
 10    deficiencies of tax.
 11        (7)  "Promoter  sponsored  event,"  as  used in this section, means a swap
 12    meet, flea market, gun show, fair or similar activity involving  a  series  of
 13    sales sufficient in number, scope and character to constitute a regular course
 14    of business; or any event at which two (2) or more persons offer tangible per-
 15    sonal  property or services for sale or exchange and at which a fee is charged
 16    for the privilege of offering the services or displaying the property for sale
 17    or exchange; or at which a fee is charged to prospective buyers for  admission
 18    to  the  area where the property or services are offered or displayed for sale
 19    or exchange.
 20        SECTION 2.  That Section 63-3622R, Idaho Code, be, and the same is  hereby
 21    amended to read as follows:
 24    are exempted from the taxes imposed by this chapter:
 25        (a)  Sales  to  nonresidents  of  motor  vehicles, trailers, vessels, all-
 26    terrain vehicles (ATVs), motorcycles intended for  off-road  use  and  snowmo-
 27    biles,  for use outside of this state even though delivery be made within this
 28    state, but only when:
 29        (1)  The motor vehicles, vessels, ATVs, motorcycles intended for  off-road
 30        use,  snowmobiles  or trailers will be taken from the point of delivery in
 31        this state directly to a point outside this state; and
 32        (2)  The motor vehicles, vessels, ATVs, motorcycles intended for  off-road
 33        use,  snowmobiles  and  trailers  will be registered immediately under the
 34        laws of another state, will be titled in another state if required  to  be
 35        titled  in that state, will not be used in this state more than sixty (60)
 36        days in any twelve (12) month period, and  will  not  be  required  to  be
 37        titled under the laws of this state.
 38        (3)  For  the  purpose of this subsection (a), the term "all-terrain vehi-
 39        cle" or "ATV" means any recreational vehicle with three (3) or more tires,
 40        weighing under eight hundred fifty (850) pounds, forty-eight  (48)  inches
 41        or  less  in  width,  having a wheelbase of sixty-one (61) inches or less,
 42        traveling on low-pressure tires of ten (10) psi or less.
 43        (4)  For the purpose of this section, the term  "vessel"  means  any  boat
 44        intended to carry one (1) or more persons upon the water which is either:
 45             (i)   Sold together with a motor, or
 46             (ii)  Eleven  (11)  feet  in  length  or  more, but shall not include
 47             canoes, kayaks or inflatable boats, unless such canoes, kayaks or in-
 48             flatable boats are sold together with a motor.
 49        (b)  Sale of used manufactured homes, whether or not  such  used  manufac-
 50    tured  homes are sold for use outside this state, and whether or not such used
 51    manufactured homes are sold by a dealer. Every manufactured  home  sale  after
 52    its  sale  as  a "new manufactured home," as defined in section 63-3606, Idaho
 53    Code, is a sale as a used manufactured home.
  1        (c)  Sale or lease of motor  vehicles  with  a  maximum  gross  registered
  2    weight  over  twenty-six  thousand (26,000) pounds, which shall be immediately
  3    registered under the international registration plan, or similar  proportional
  4    or  pro rata registration system, whether or not base plated in Idaho, and the
  5    sale or lease of trailers which are part of a  fleet  of  vehicles  registered
  6    under such proportional or pro rata registration system the international reg-
  7    istration  plan  when  such  vehicles  and  trailers are substantially used in
  8    interstate commerce. If such a motor vehicle or trailer is  not  substantially
  9    used  in  interstate  commerce during any annual registration period under the
 10    international registration plan, it shall be deemed used in Idaho and  subject
 11    to the use tax under section 63-3621, Idaho Code. For the purpose of this sub-
 12    section,  "substantially  used in interstate commerce" means that the vehicles
 13    or trailers will be part of a fleet with a minimum of ten percent (10%) of the
 14    miles operated by the fleet accrued outside of Idaho in any  annual  registra-
 15    tion period under the international registration plan.
 16        (d)  The sale or purchase of a glider kit when the glider kit will be used
 17    to  assemble  a  glider  kit vehicle as defined in section 49-123, Idaho Code,
 18    when the glider kit will be used to assemble a glider kit vehicle, which  will
 19    be  immediately registered under a plan defined in subsection (c) of this sec-
 20    tion, provided that if the glider kit vehicle is substantially used in  inter-
 21    state  commerce as defined in subsection (c) of this section during any regis-
 22    tration period, it shall be subject to the  use  tax  under  section  63-3621,
 23    Idaho Code.
 24        (e)  The  use  or other consumption of a motor vehicle temporarily donated
 25    to a driver's education program sponsored by a nonprofit educational  institu-
 26    tion as defined in section 63-3622O, Idaho Code.
 27        SECTION 3.  That Section 63-3622JJ, Idaho Code, be, and the same is hereby
 28    amended to read as follows:
 29        63-3622JJ.  LOGGING  EXEMPTION.  There are exempted from the taxes imposed
 30    by this chapter:
 31        (1)  The sale at retail, storage, use or other consumption in  this  state
 32    of tangible personal property which is primarily and directly used or consumed
 33    in  logging  including,  but  not  limited  to,  log loaders, log jammers, log
 34    skidders and fuel used in logging trucks, provided that the use or consumption
 35    of such tangible personal property is necessary or essential to logging.
 36        (2)  The exemption allowed by subsection (1)  of  this  section  does  not
 37    include  machinery, equipment, materials and supplies used in a manner that is
 38    incidental to logging such as maintenance and janitorial  equipment  and  sup-
 39    plies,  and hand tools with a unit purchase price not in excess of one hundred
 40    dollars ($100); nor does it include tangible personal  property  used  in  any
 41    activities  other  than  the actual logging, such as office equipment and sup-
 42    plies, equipment and supplies used in selling or distributing  activities,  in
 43    research, or, except for fuel used in logging trucks, in transportation activ-
 44    ities;  nor  shall  this exemption include motor vehicles or aircraft, without
 45    regard to the use to which such motor vehicles or aircraft are put; nor  shall
 46    this  exemption apply to vehicles or equipment described in section 63-3622HH,
 47    Idaho Code.

Statement of Purpose / Fiscal Impact

                    STATEMENT OF PURPOSE

                          RS 16522

This bill makes three technical corrections to the Sales Tax 

It strikes the requirement that a retailer participating in 
“promoter sponsored events” (such as craft shows, flea markets 
and the like) disclose his taxpayer identification number – 
social security number or employer ID number – to the event 

It clarifies that the exemption for glider kit vehicles enacted 
in 2006 applies to vehicles used substantially in interstate 

It removes from the logging exemption the provision excluding 
property used in research from the exemption.  The change 
eliminates the apparent conflict with the specific exemption for 
research activities.

                          FISCAL NOTE


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

STATEMENT OF PURPOSE/FISCAL NOTE                      	H 10