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H0078...............................................by AGRICULTURAL AFFAIRS POTATO COMMISSION - Amends existing law relating to the Potato Commission to revise tax provisions relating to potatoes. 01/31 House intro - 1st rdg - to printing 02/01 Rpt prt - to Agric Aff 02/09 Rpt out - rec d/p - to 2nd rdg 02/12 2nd rdg - to 3rd rdg 02/15 3rd rdg - PASSED - 65-0-5 AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block, Bock, 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, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wood(27), Wood(35), Mr. Speaker NAYS -- None Absent and excused -- Bedke, Boe, Clark, Nielsen, Wills Floor Sponsor - Shirley Title apvd - to Senate 02/16 Senate intro - 1st rdg - to Agric Aff 02/28 Rpt out - rec d/p - to 2nd rdg 03/01 2nd rdg - to 3rd rdg 03/02 3rd rdg - PASSED - 28-7-0 AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett, Cameron, Coiner, Corder, Darrington, Gannon, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Langhorst, Lodge, Malepeai, McGee, McKague, McKenzie, Richardson, Schroeder, Siddoway, Stennett, Werk NAYS -- Davis, Fulcher, Geddes, Keough, Little, Pearce, Stegner Absent and excused -- None Floor Sponsor - Schroeder Title apvd - to House 03/05 To enrol 03/06 Rpt enrol - Sp signed 03/07 Pres signed 03/08 To Governor 03/12 Governor signed Session Law Chapter 57 Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 78 BY AGRICULTURAL AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE POTATO COMMISSION; AMENDING SECTION 22-1211, IDAHO CODE, TO 3 REVISE TAX PROVISIONS RELATING TO POTATOES AND TO MAKE TECHNICAL CORREC- 4 TIONS. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 22-1211, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 22-1211. TAX LEVY. There is hereby levied and imposed a tax of four cents 9 (4¢) per hundredweight on potatoes covered by thisactchapter, which tax 10 shall be due on or before the time when such potatoes are first handled in the 11 primary channels of trade and shall be paid at such time or times as the com- 12 mission may by ruleor regulationprescribe, but not later than the fifteenth 13 day of the month next succeeding the month in which such potatoes were handled 14 in the primary channels of trade. The commission is authorized to make appro- 15 priate rulesand regulationsto implement the collection of the taxes imposed 16 by this chapter. 17 In addition to the four cents(4¢) tax hereinabove provided for, there is 18 hereby levied and imposed an additional tax ofsixeleven cents (611¢) per 19 hundredweight on potatoes covered by thisactchapter; provided,however, said 20 additional tax ofsixeleven cents (611¢), or any portion thereof, shall only 21 be due and collectible upon a determination by at least two-thirds (2/3) of 22 the commission members that the anticipated expenditures for the next fiscal 23 year following the year in which the determination is made will exceed the 24 anticipated tax revenues to be collected from the said four cents(4¢) tax. 25 Upon such a determination, the commission shall collect the additionalsix26 eleven cents(611¢) tax or such portion thereof as is required by such deter- 27 mination, which shall be collected with, and as, other taxes imposed by this 28actchapter. 29 The person first selling or otherwise delivering potatoes into primary 30 channels of trade shall be responsible for and make payment of all taxes 31 imposed by this chapter. If such person is the dealer or shipper handling 32 potatoes grown by another, he may charge against and recover from the grower 33 of such potatoes or the person from whom he acquired them sixtyper centper- 34 cent (60%) of the tax.
STATEMENT OF PURPOSE RS 16763 The Idaho Potato Commission is primarily funded by a tax assessment on potatoes. The annual assessment rate is set by a vote of the Commissioners, who are appointed by the Governor. The Commission is composed of five Grower, two Shipper and two Processor Representatives. The assessment is a cap on what tax may be levied, and has been set by the Legislature at 10¢/hundred weight since 1985. The Commissioners have assessed the full amount of 10¢/hundred weight since 2000. Recent independent market research performed for the Commission demonstrates that increased advertising of the brand "Idaho® Potatoes" causes consumers to buy more potatoes, increasing demand. Declining demand is the single biggest challenge facing the potato industry, and the promotional program of the Commission will actually address this problem directly. Rising media cost have shrunk the Commissions TV campaign so that less than 33% of the Country is now covered by advertising. These self imposed industry funds will help restore coverage to more of the country. This proposal has been presented to over 200 growers at meetings held throughout southern Idaho, all major potato processors and at the annual membership meeting of the Idaho Grower Shippers Association who have expressed support for this proposal. FISCAL NOTE There is no impact on the general fund. Contact Name: Patrick J. Kole Vice President, Legal & Government Affairs Idaho Potato Commission Phone: 334-2350 STATEMENT OF PURPOSE/FISCAL NOTE H 78