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H0082...............................................by REVENUE AND TAXATION
FOOD - SALES TAX - Amends existing law to decrease the sales tax on food
sold for human consumption over a three year period, with no sales tax on
food by July 1, 2010; to reduce the grocery tax credit over a three year
period; and to create the "Grocery Tax Elimination Fund."
01/31 House intro - 1st rdg - to printing
02/01 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 82
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE TAXATION OF FOOD SOLD FOR HUMAN CONSUMPTION; AMENDING SECTION
3 63-3619, IDAHO CODE, TO REDUCE THE RATE OF THE SALES TAX ON CERTAIN FOOD
4 SOLD FOR HUMAN CONSUMPTION OVER A THREE YEAR PERIOD AND TO PROVIDE RULES;
5 AMENDING SECTION 63-3621, IDAHO CODE, TO REDUCE THE RATE OF THE USE TAX ON
6 CERTAIN FOOD SOLD FOR HUMAN CONSUMPTION OVER A THREE YEAR PERIOD; AMENDING
7 SECTION 63-3024A, IDAHO CODE, TO DECREASE THE INCOME TAX CREDIT KNOWN AS
8 THE GROCERY TAX CREDIT OVER A THREE YEAR PERIOD; AMENDING SECTION 63-3638,
9 IDAHO CODE, TO REVISE THE PERCENTAGE OF APPROPRIATED FUNDS DISTRIBUTED TO
10 THE REVENUE SHARING ACCOUNT; AMENDING CHAPTER 8, TITLE 57, IDAHO CODE, BY
11 THE ADDITION OF A NEW SECTION 57-822, IDAHO CODE, TO CREATE THE GROCERY
12 TAX ELIMINATION FUND, TO PROVIDE FOR MONEYS FOR THE FUND UPON CERTAIN CON-
13 DITIONS OCCURRING AND TO PROVIDE FOR USE OF MONEYS IN THE FUND; DECLARING
14 AN EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE
15 DATES.
16 Be It Enacted by the Legislature of the State of Idaho:
17 SECTION 1. That Section 63-3619, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 63-3619. IMPOSITION AND RATE OF THE SALES TAX. An excise tax is hereby
20 imposed upon each sale at retail at the rate of six percent (6%) of the sales
21 price of all retail sales subject to taxation under this chapter and such
22 amount with the exception of food sold for human consumption which shall be
23 taxed at a rate of four and one-half percent (4.5%) of the sales price begin-
24 ning July 1, 2007. Beginning July 1, 2008, food sold for human consumption
25 shall be taxed at a rate of three percent (3%) of the sales price. Beginning
26 July 1, 2009, food sold for human consumption shall be taxed at a rate of one
27 and one-half percent (1.5%) of the sales price. Beginning July 1, 2010, food
28 sold for human consumption shall be exempt from taxation under this chapter.
29 The state tax commission shall promulgate rules prior to June 1, 2007, defin-
30 ing the term "food sold for human consumption" consistent with the same type
31 and kind of food products that are eligible for purchase with coupons issued
32 by the United States department of agriculture. The excise tax as set forth
33 herein shall be computed monthly on all sales at retail within the preceding
34 month.
35 (a) The tax shall apply to, be computed on, and collected for all credit,
36 installment, conditional or similar sales at the time of the sale or, in the
37 case of rentals, at the time the rental is charged.
38 (b) The tax hereby imposed shall be collected by the retailer from the
39 consumer.
40 (c) The state tax commission shall provide schedules for collection of
41 the tax on sales which involve a fraction of a dollar. The retailer shall cal-
42 culate the tax upon the entire amount of the purchases of the consumer made at
43 a particular time and not separately upon each item purchased. The retailer
2
1 may retain any amount collected under the bracket system prescribed which is
2 in excess of the amount of tax for which he is liable to the state during the
3 period as compensation for the work of collecting the tax.
4 (d) It is unlawful for any retailer to advertise or hold out or state to
5 the public or to any customer, directly or indirectly, that the tax or any
6 part thereof will be assumed or absorbed by the retailer or that it will not
7 be added to the selling price of the property sold or that if added it or any
8 part thereof will be refunded. Any person violating any provision of this sec-
9 tion is guilty of a misdemeanor.
10 (e) The tax commission may by rule provide that the amount collected by
11 the retailer from the customer in reimbursement of the tax be displayed sepa-
12 rately from the list price, the price advertised on the premises, the marked
13 price, or other price on the sales slip or other proof of sale.
14 (f) The taxes imposed by this chapter shall apply to the sales to con-
15 tractors purchasing for use in the performance of contracts with the United
16 States.
17 SECTION 2. That Section 63-3621, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
20 is hereby imposed on the storage, use, or other consumption in this state of
21 tangible personal property acquired on or after October 1, 2006, for storage,
22 use, or other consumption in this state at the rate of six percent (6%) of the
23 value of the property, and a with the exception of food sold for human con-
24 sumption which shall be taxed at a rate of four and one-half percent (4.5%) of
25 the sales price beginning July 1, 2007. Beginning July 1, 2008, food sold for
26 human consumption shall be taxed at a rate of three percent (3%) of the sales
27 price. Beginning July 1, 2009, food sold for human consumption shall be taxed
28 at a rate of one and one-half percent (1.5%) of the sales price. Beginning
29 July 1, 2010, food sold for human consumption shall be exempt from taxation
30 under this chapter. A recent sales price shall be presumptive evidence of the
31 value of the property unless the property is wireless telecommunications
32 equipment, in which case a recent sales price shall be conclusive evidence of
33 the value of the property.
34 (a) Every person storing, using, or otherwise consuming, in this state,
35 tangible personal property is liable for the tax. His liability is not extin-
36 guished until the tax has been paid to this state except that a receipt from a
37 retailer maintaining a place of business in this state or engaged in business
38 in this state given to the purchaser is sufficient to relieve the purchaser
39 from further liability for the tax to which the receipt refers. A retailer
40 shall not be considered to have stored, used or consumed wireless telecommuni-
41 cations equipment by virtue of giving, selling or otherwise transferring such
42 equipment at a discount as an inducement to a consumer to commence or continue
43 a contract for telecommunications service.
44 (b) Every retailer engaged in business in this state, and making sales of
45 tangible personal property for the storage, use, or other consumption in this
46 state, not exempted under section 63-3622, Idaho Code, shall, at the time of
47 making the sales or, if storage, use or other consumption of the tangible per-
48 sonal property is not then taxable hereunder, at the time the storage, use or
49 other consumption becomes taxable, collect the tax from the purchaser and give
50 to the purchaser a receipt therefor in the manner and form prescribed by the
51 state tax commission.
52 (c) The provisions of this section shall not apply when the retailer pays
53 sales tax on the transaction and collects reimbursement for such sales tax
3
1 from the customer.
2 (d) Every retailer engaged in business in this state or maintaining a
3 place of business in this state shall register with the state tax commission
4 and give the name and address of all agents operating in this state, the loca-
5 tion of all distributions or sales houses or offices or other places of busi-
6 ness in this state, and such other information as the state tax commission may
7 require.
8 (e) For the purpose of the proper administration of this act and to pre-
9 vent evasion of the use tax and the duty to collect the use tax, it shall be
10 presumed that tangible personal property sold by any person for delivery in
11 this state is sold for storage, use, or other consumption in this state. The
12 burden of proving the sale is tax exempt is upon the person who makes the sale
13 unless he obtains from the purchaser a resale certificate to the effect that
14 the property is purchased for resale or rental. It shall be presumed that
15 sales made to a person who has completed a resale certificate for the seller's
16 records are not taxable and the seller need not collect sales or use taxes
17 unless the tangible personal property purchased is taxable to the purchaser as
18 a matter of law in the particular instance claimed on the resale certificate.
19 A seller may accept a resale certificate from a purchaser prior to the
20 time of sale, at the time of sale, or at any reasonable time after the sale
21 when necessary to establish the privilege of the exemption. The resale certif-
22 icate relieves the person selling the property from the burden of proof only
23 if taken from a person who is engaged in the business of selling or renting
24 tangible personal property and who holds the permit provided for by section
25 63-3620, Idaho Code, or who is a retailer not engaged in business in this
26 state, and who, at the time of purchasing the tangible personal property,
27 intends to sell or rent it in the regular course of business or is unable to
28 ascertain at the time of purchase whether the property will be sold or will be
29 used for some other purpose. Other than as provided elsewhere in this section,
30 when a resale certificate, properly executed, is presented to the seller, the
31 seller has no duty or obligation to collect sales or use taxes in regard to
32 any sales transaction so documented regardless of whether the purchaser prop-
33 erly or improperly claimed an exemption. A seller so relieved of the obliga-
34 tion to collect tax is also relieved of any liability to the purchaser for
35 failure to collect tax or for making any report or disclosure of information
36 required or permitted under this chapter.
37 The resale certificate shall bear the name and address of the purchaser,
38 shall be signed by the purchaser or his agent, shall indicate the number of
39 the permit issued to the purchaser, or that the purchaser is an out-of-state
40 retailer, and shall indicate the general character of the tangible personal
41 property sold by the purchaser in the regular course of business. The certifi-
42 cate shall be substantially in such form as the state tax commission may pre-
43 scribe.
44 (f) If a purchaser who gives a resale certificate makes any storage or
45 use of the property other than retention, demonstration or display while hold-
46 ing it for sale in the regular course of business, the storage or use is tax-
47 able as of the time the property is first so stored or used.
48 (g) Any person violating any provision of this section is guilty of a
49 misdemeanor and punishable by a fine not in excess of one hundred dollars
50 ($100), and each violation shall constitute a separate offense.
51 (h) It shall be presumed that tangible personal property shipped or
52 brought to this state by the purchaser was purchased from a retailer, for
53 storage, use or other consumption in this state.
54 (i) It shall be presumed that tangible personal property delivered out-
55 side this state to a purchaser known by the retailer to be a resident of this
4
1 state was purchased from a retailer for storage, use, or other consumption in
2 this state. This presumption may be controverted by evidence satisfactory to
3 the state tax commission that the property was not purchased for storage, use,
4 or other consumption in this state.
5 (j) When the tangible personal property subject to use tax has been sub-
6 jected to a general retail sales or use tax by another state of the United
7 States in an amount equal to or greater than the amount of the Idaho tax, and
8 evidence can be given of such payment, the property will not be subject to
9 Idaho use tax. If the amount paid the other state was less, the property will
10 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
11 the other state. For the purposes of this subsection, a registration certifi-
12 cate or title issued by another state or subdivision thereof for a vehicle or
13 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suf-
14 ficient evidence of payment of a general retail sales or use tax.
15 (k) The use tax herein imposed shall not apply to the use by a nonresi-
16 dent of this state of a motor vehicle which is registered or licensed under
17 the laws of the state of his residence and is not used in this state more than
18 a cumulative period of time totaling ninety (90) days in any consecutive
19 twelve (12) months, and which is not required to be registered or licensed
20 under the laws of this state.
21 (l) The use tax herein imposed shall not apply to the use of household
22 goods, personal effects and personally owned motor vehicles by a resident of
23 this state, if such articles were acquired by such person in another state
24 while a resident of that state and primarily for use outside this state and if
25 such use was actual and substantial, but if an article was acquired less than
26 three (3) months prior to the time he entered this state, it will be presumed
27 that the article was acquired for use in this state and that its use outside
28 this state was not actual and substantial. For purposes of this subsection,
29 "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code.
30 (m) The use tax herein imposed shall not apply to the storage, use or
31 other consumption of tangible personal property which is or will be incorpo-
32 rated into real property and which has been donated to and has become the
33 property of:
34 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code;
35 or
36 (2) The state of Idaho; or
37 (3) Any political subdivision of the state.
38 This exemption applies whether the tangible personal property is incorporated
39 in real property by the donee, a contractor or subcontractor of the donee, or
40 any other person.
41 SECTION 3. That Section 63-3024A, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 63-3024A. CREDITS AND REFUNDS.
44 (a) (1) Any resident individual not entitled to the credit allowed in
45 subsection (b)(1) of this section, who is required to file by law and who
46 has filed an Idaho income tax return, shall be allowed a credit against
47 taxes due under the Idaho income tax act equal to the amount of twenty
48 fifteen dollars ($2015.00) for each personal exemption for which a deduc-
49 tion is permitted by section 151(b) and (c) of the Internal Revenue Code
50 if such deduction is claimed on the taxpayer's Idaho income tax return,
51 and if the individual for whom the deduction is claimed is a resident of
52 the state of Idaho. If taxes due are less than the total credit allowed,
53 the taxpayer shall be paid a refund equal to the balance of the unused
5
1 credit. If the credit or refund is not claimed for the year for which the
2 individual income tax return is filed, the right thereafter to claim such
3 credit or refund shall be forfeited. The state tax commission shall pre-
4 scribe the method by which the refund, if any, is to be made to the tax-
5 payer.
6 (2) Effective January 1, 2008, any resident individual not entitled to
7 the credit allowed in subsection (b)(1) of this section, who is required
8 to file by law and who has filed an Idaho income tax return, shall be
9 allowed a credit against taxes due under the Idaho income tax act equal to
10 the amount of ten dollars ($10.00) for each personal exemption for which a
11 deduction is permitted by section 151(b) and (c) of the Internal Revenue
12 Code if such deduction is claimed on the taxpayer's Idaho income tax
13 return, and if the individual for whom the deduction is claimed is a resi-
14 dent of the state of Idaho.
15 (3) Effective January 1, 2009, any resident individual not entitled to
16 the credit allowed in subsection (b)(1) of this section, who is required
17 to file by law and who has filed an Idaho income tax return, shall be
18 allowed a credit against taxes due under the Idaho income tax act equal to
19 the amount of five dollars ($5.00) for each personal exemption for which a
20 deduction is permitted by section 151(b) and (c) of the Internal Revenue
21 Code if such deduction is claimed on the taxpayer's Idaho income tax
22 return, and if the individual for whom the deduction is claimed is a resi-
23 dent of the state of Idaho.
24 (4) Effective January 1, 2010, and each year thereafter, there shall be
25 no credit allowed under this subsection (a).
26 (5) If taxes due are less than the total credit allowed, the taxpayer
27 shall be paid a refund equal to the balance of the unused credit. If the
28 credit or refund is not claimed for the year for which the individual
29 income tax return is filed, the right thereafter to claim such credit or
30 refund shall be forfeited. The state tax commission shall prescribe the
31 method by which the refund, if any, is to be made to the taxpayer.
32 (b) (1) A resident individual who has reached his sixty-fifth birthday
33 before the end of his taxable year, who is required to file by law and who
34 has filed an Idaho income tax return, shall be allowed a credit against
35 taxes due under the Idaho income tax act equal to the amount of thirty-
36 five twenty-four dollars ($3524.00) for each personal exemption represent-
37 ing himself, a spouse over the age of sixty-five (65) years, or a depend-
38 ent over the age of sixty-five (65) years, but shall be allowed a credit
39 against taxes due under the Idaho income tax act equal to twenty fifteen
40 dollars ($2015.00) for each personal exemption representing a spouse or
41 dependent under the age of sixty-five (65) years. If taxes due are less
42 than the total credit allowed, the taxpayer shall be paid a refund equal
43 to the balance of the unused credit. If the credit or refund is not
44 claimed for the year for which the individual income tax return is filed,
45 the right thereafter to claim such credit or refund shall be forfeited.
46 The state tax commission shall prescribe the method by which the refund,
47 if any, is to be made to the taxpayer.
48 (2) Effective January 1, 2008, a resident individual who has reached his
49 sixty-fifth birthday before the end of his taxable year, who is required
50 to file by law and who has filed an Idaho income tax return, shall be
51 allowed a credit against taxes due under the Idaho income tax act equal to
52 the amount of twelve dollars ($12.00) for each personal exemption repre-
53 senting himself, a spouse over the age of sixty-five (65) years, or a
54 dependent over the age of sixty-five (65) years, but shall be allowed a
55 credit against taxes due under the Idaho income tax act equal to ten dol-
6
1 lars ($10.00) for each personal exemption representing a spouse or depend-
2 ent under the age of sixty-five (65) years.
3 (3) Effective January 1, 2009, a resident individual who has reached his
4 sixty-fifth birthday before the end of his taxable year, who is required
5 to file by law and who has filed an Idaho income tax return, shall be
6 allowed a credit against taxes due under the Idaho income tax act equal to
7 the amount of six dollars ($6.00) for each personal exemption representing
8 himself, a spouse over the age of sixty-five (65) years, or a dependent
9 over the age of sixty-five (65) years, but shall be allowed a credit
10 against taxes due under the Idaho income tax act equal to five dollars
11 ($5.00) for each personal exemption representing a spouse or dependent
12 under the age of sixty-five (65) years.
13 (4) Effective January 1, 2010, and each year thereafter, there shall be
14 no credit allowed under this subsection (b).
15 (5) If taxes due are less than the total credit allowed, the taxpayer
16 shall be paid a refund equal to the balance of the unused credit. If the
17 credit or refund is not claimed for the year for which the individual
18 income tax return is filed, the right thereafter to claim such credit or
19 refund shall be forfeited. The state tax commission shall prescribe the
20 method by which the refund, if any, is to be made to the taxpayer.
21 (6) A resident individual who has reached his sixty-fifth birthday and is
22 not required by law to file an Idaho income tax return and who has
23 received no credit or refund under any other subsection of this section,
24 shall be entitled to a refund of thirty-five dollars ($35.00). Any refund
25 shall be paid to such individual only upon his making application therefor
26 at such time and in such manner as may be prescribed by the state tax com-
27 mission.
28 (c) A resident individual of the state of Idaho who is:
29 (i) blind, or
30 (ii) a disabled American veteran of any war engaged in by the United
31 States, whose disability is recognized as a service connected disability
32 of a degree of ten percent (10%) or more, or who is in receipt of a pen-
33 sion for nonservice connected disabilities, in accordance with laws and
34 regulations administered by the United States veterans administration,
35 substantiated by a statement as to status signed by a responsible officer
36 of the United States veterans administration, or
37 (iii) over sixty-two (62) years of age, and has been allowed none, or less
38 than all, of the credit provided by subsection (a) or subsection (b) of
39 this section, shall be entitled to a payment from the refund fund in an
40 amount equal to twenty dollars ($20.00), or the balance of his unused
41 credit, whichever is less, upon making application therefor at such time
42 and in such manner as the state tax commission may prescribe.
43 (d) Any part-year resident entitled to a credit under this section shall
44 receive a proportionate credit, in the manner above provided, reflecting the
45 part of the year in which he was domiciled in this state. Effective January 1,
46 2010, and each year thereafter, there shall be no credit allowed under this
47 subsection (d).
48 (e) No credit or refund may be claimed for an exemption which represents
49 a person who has himself filed an Idaho income tax return claiming a deduction
50 for his own personal exemption, and in no event shall more than one (1) tax-
51 payer be allowed a credit or refund for the same exemption, or under more than
52 one (1) subsection of this section.
53 (f) The refunds authorized by this section shall be paid from the state
54 refund fund in the same manner as the refunds authorized by section 63-3067,
55 Idaho Code.
7
1 (g) An application for any refund which is due and payable under the pro-
2 visions of this section must be filed with the state tax commission within
3 three (3) years of:
4 (i) the due date, including extensions, of the return required under sec-
5 tion 63-3030, Idaho Code, if the applicant is required to file a return,
6 or
7 (ii) the 15th day of April of the year following the year to which the
8 application relates if the applicant is not required to file a return.
9 SECTION 4. That Section 63-3638, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
12 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
13 Idaho Code, shall be distributed by the tax commission as follows:
14 (1) An amount of money shall be distributed to the state refund account
15 sufficient to pay current refund claims. All refunds authorized under this
16 chapter by the commission shall be paid through the state refund account, and
17 those moneys are continuously appropriated.
18 (2) Five million dollars ($5,000,000) per year is continuously appropri-
19 ated and shall be distributed to the permanent building fund, provided by sec-
20 tion 57-1108, Idaho Code.
21 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
22 continuously appropriated and shall be distributed to the water pollution con-
23 trol account established by section 39-3605, Idaho Code.
24 (4) An amount equal to the sum required to be certified by the chairman
25 of the Idaho housing and finance association to the state tax commission pur-
26 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
27 ated and shall be paid to any capital reserve fund, established by the Idaho
28 housing and finance association pursuant to section 67-6211, Idaho Code. Such
29 amounts, if any, as may be appropriated hereunder to the capital reserve fund
30 of the Idaho housing and finance association shall be repaid for distribution
31 under the provisions of this section, subject to the provisions of section
32 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
33 possible, from any moneys available therefor and in excess of the amounts
34 which the association determines will keep it self-supporting.
35 (5) An amount equal to the sum required by the provisions of sections
36 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by
37 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid
38 as provided by sections 63-709 and 63-717, Idaho Code.
39 (6) An amount required by the provisions of chapter 53, title 33, Idaho
40 Code.
41 (7) An amount required by the provisions of chapter 87, title 67, Idaho
42 Code.
43 (8) One dollar ($1.00) on each application for certificate of title or
44 initial application for registration of a motor vehicle, snowmobile, all-
45 terrain vehicle or other vehicle processed by the county assessor or the Idaho
46 transportation department excepting those applications in which any sales or
47 use taxes due have been previously collected by a retailer, shall be a fee for
48 the services of the assessor of the county or the Idaho transportation depart-
49 ment in collecting such taxes, and shall be paid into the current expense fund
50 of the county or state highway account established in section 40-702, Idaho
51 Code.
52 (9) Eleven and five-tenths percent (11.5%) is continuously Beginning
53 August 1, 2007, twelve percent (12%) shall be appropriated and shall be dis-
8
1 tributed to the revenue sharing account which is created in the state
2 treasury., and Beginning August 1, 2008, twelve and one-half percent (12.5%)
3 shall be appropriated and distributed to the revenue sharing account. Begin-
4 ning August 1, 2009, thirteen percent (13%) shall be appropriated and distrib-
5 uted to the revenue sharing account. Beginning August 1, 2010, thirteen and
6 one-half percent (13.5%) shall be continuously appropriated and distributed to
7 the revenue sharing account. Tthe moneys in the revenue sharing account will
8 be paid in installments each calendar quarter by the tax commission as fol-
9 lows:
10 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
11 ious cities as follows:
12 (i) Fifty percent (50%) of such amount shall be paid to the various
13 cities, and each city shall be entitled to an amount in the propor-
14 tion that the population of that city bears to the population of all
15 cities within the state; and
16 (ii) Fifty percent (50%) of such amount shall be paid to the various
17 cities, and each city shall be entitled to an amount in the propor-
18 tion that the preceding year's market value for assessment purposes
19 for that city bears to the preceding year's market value for assess-
20 ment purposes for all cities within the state.
21 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
22 ious counties as follows:
23 (i) One million three hundred twenty thousand dollars ($1,320,000)
24 annually shall be distributed one forty-fourth (1/44) to each of the
25 various counties; and
26 (ii) The balance of such amount shall be paid to the various coun-
27 ties, and each county shall be entitled to an amount in the propor-
28 tion that the population of that county bears to the population of
29 the state;
30 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
31 ated in this subsection (9) shall be paid to the several counties for dis-
32 tribution to the cities and counties as follows:
33 (i) Each city and county which received a payment under the provi-
34 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
35 calendar year 1999, shall be entitled to a like amount during suc-
36 ceeding calendar quarters.
37 (ii) If the dollar amount of money available under this subsection
38 (9)(c) in any quarter does not equal the amount paid in the fourth
39 quarter of calendar year 1999, each city's and county's payment shall
40 be reduced proportionately.
41 (iii) If the dollar amount of money available under this subsection
42 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
43 of calendar year 1999, each city and county shall be entitled to a
44 proportionately increased payment, but such increase shall not exceed
45 one hundred five percent (105%) of the total payment made in the
46 fourth quarter of calendar year 1999.
47 (iv) If the dollar amount of money available under this subsection
48 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
49 total payment made in the fourth quarter of calendar year 1999, any
50 amount over and above such one hundred five percent (105%) shall be
51 paid fifty percent (50%) to the various cities in the proportion that
52 the population of the city bears to the population of all cities
53 within the state, and fifty percent (50%) to the various counties in
54 the proportion that the population of a county bears to the popula-
55 tion of the state; and
9
1 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
2 this subsection (9) shall be paid to the several counties for distribution
3 to special purpose taxing districts as follows:
4 (i) Each such district which received a payment under the provi-
5 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
6 calendar year 1999, shall be entitled to a like amount during suc-
7 ceeding calendar quarters.
8 (ii) If the dollar amount of money available under this subsection
9 (9)(d) in any quarter does not equal the amount paid in the fourth
10 quarter of calendar year 1999, each special purpose taxing district's
11 payment shall be reduced proportionately.
12 (iii) If the dollar amount of money available under this subsection
13 (9)(d) in any quarter exceeds the amount distributed under paragraph
14 (i) of this subsection (9)(d), each special purpose taxing district
15 shall be entitled to a share of the excess based on the proportion
16 each such district's current property tax budget bears to the sum of
17 the current property tax budgets of all such districts in the state.
18 The state tax commission shall calculate district current property
19 tax budgets to include any unrecovered foregone amounts as determined
20 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
21 district is situated in more than one (1) county, the tax commission
22 shall determine the portion attributable to the special purpose tax-
23 ing district from each county in which it is situated.
24 (iv) If special purpose taxing districts are consolidated, the
25 resulting district is entitled to a base amount equal to the sum of
26 the base amounts which were received in the last calendar quarter by
27 each district prior to the consolidation.
28 (v) If a special purpose taxing district is dissolved or
29 disincorporated, the state tax commission shall continuously distrib-
30 ute to the board of county commissioners an amount equal to the last
31 quarter's distribution prior to dissolution or disincorporation. The
32 board of county commissioners shall determine any redistribution of
33 moneys so received.
34 (vi) Taxing districts formed after January 1, 2001, are not entitled
35 to a payment under the provisions of this subsection (9)(d).
36 (vii) For purposes of this subsection (9)(d), a special purpose tax-
37 ing district is any taxing district which is not a city, a county or
38 a school district.
39 (10) Amounts calculated in accordance with section 2, chapter 356, laws of
40 2001, for annual distribution to counties and other taxing districts beginning
41 in October 2001 for replacement of property tax on farm machinery and equip-
42 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
43 tricts, the state tax commission shall distribute one-fourth (1/4) of this
44 amount certified quarterly to each county. For school districts, the state tax
45 commission shall distribute one-fourth (1/4) of the amount certified quarterly
46 to each school district. For nonschool districts, the county auditor shall
47 distribute to each district within thirty (30) calendar days from receipt of
48 moneys from the tax commission. Moneys received by each taxing district for
49 replacement shall be utilized in the same manner and in the same proportions
50 as revenues from property taxation. The moneys remitted to the county trea-
51 surer for replacement of property exempt from taxation pursuant to section
52 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
53 tricts and budgeted at the same time, in the same manner and in the same year
54 as revenues from taxation on personal property which these moneys replace. If
55 taxing districts are consolidated, the resulting district is entitled to an
10
1 amount equal to the sum of the amounts which were received in the last calen-
2 dar quarter by each district pursuant to this subsection prior to the consoli-
3 dation. If a taxing district is dissolved or disincorporated, the state tax
4 commission shall continuously distribute to the board of county commissioners
5 an amount equal to the last quarter's distribution prior to dissolution or
6 disincorporation. The board of county commissioners shall determine any redis-
7 tribution of moneys so received. If a taxing district annexes territory, the
8 distribution of moneys received pursuant to this subsection shall be unaf-
9 fected. Taxing districts formed after January 1, 2001, are not entitled to a
10 payment under the provisions of this subsection. School districts shall
11 receive an amount determined by multiplying the sum of the year 2000 school
12 district levy minus .004 times the market value on December 31, 2000, in the
13 district of the property exempt from taxation pursuant to section 63-602EE,
14 Idaho Code, provided that the result of these calculations shall not be less
15 than zero (0). The result of these school district calculations shall be fur-
16 ther increased by six percent (6%). For purposes of the limitation provided by
17 section 63-802, Idaho Code, moneys received pursuant to this section as prop-
18 erty tax replacement for property exempt from taxation pursuant to section
19 63-602EE, Idaho Code, shall be treated as property tax revenues.
20 (11) Any moneys remaining over and above those necessary to meet and
21 reserve for payments under other subsections of this section shall be distrib-
22 uted to the general fund.
23 SECTION 5. That Chapter 8, Title 57, Idaho Code, be, and the same is
24 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
25 ignated as Section 57-822, Idaho Code, and to read as follows:
26 57-822. GROCERY TAX ELIMINATION FUND. There is hereby created in the
27 state treasury the grocery tax elimination fund for the purpose of mitigating
28 general fund revenue shortfalls by repeal in full or in part of the sales tax
29 on food. Subject to the requirements of section 63-3203, Idaho Code, the state
30 controller shall annually transfer moneys from the general fund to the grocery
31 tax elimination fund if the state controller certifies that the receipts to
32 the general fund for the fiscal year just ending have exceeded the receipts
33 of the previous fiscal year by more than six percent (6%), then the state
34 controller shall transfer all general fund collections in excess of said six
35 percent (6%) increase to the grocery tax elimination fund. Moneys in the gro-
36 cery tax elimination fund may be transferred by appropriation to the general
37 fund.
38 SECTION 6. An emergency existing therefor, which emergency is hereby
39 declared to exist, Section 3 of this act shall be in full force and effect on
40 and after passage and approval, and retroactively to January 1, 2007. Sections
41 1, 2 and 5 of this act shall be in full force and effect on and after July 1,
42 2007; Section 4 of this act shall be in full force and effect on and after
43 August 1, 2007.
STATEMENT OF PURPOSE
RS 16817C2
This legislation amends Sections 63-3619, 6321, 63-3024A, 63-3638
Idaho Code to phase-out the sales tax on certain food sold for human
consumption over the next four years beginning July 1, 2007; phase-out
the grocery tax income credit over the same time frame beginning
January 1, 2007; and increase the percentage of sales tax revenue
allocated to cities and counties within that time frame from the
revenue sharing fund to hold local government harmless.
FISCAL NOTE
The complete phase-out of the sales tax on certain food sold for human
consumption and grocery tax credit elimination in the four years will
be $138 million for fiscal year 2011. When the projected revenues are
greater then six percent, all dollars above six percent will be placed
in the Grocery Tax Elimination Fund (GTEF) to be used for shortfalls
in years 2009, 2010 and 2011.
CONTACT:
Name: Representative Phil Hart
Representative Jim Clark
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 82