2007 Legislation
Print Friendly

HOUSE BILL NO. 141 – Income tax, transacting business

HOUSE BILL NO. 141

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



H0141...............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing law to delete the provision in Idaho Income
Tax Law that exempts non-Idaho banks and financial institutions from the
Idaho income tax paid by Idaho banks.
                                                                        
02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to Rev/Tax
02/13    Rpt out - rec d/p - to 2nd rdg
02/14    2nd rdg - to 3rd rdg
02/16    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      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, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
      Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Block
    Floor Sponsor - LeFavour
    Title apvd - to Senate
02/19    Senate intro - 1st rdg - to Loc Gov
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/02    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 - Langhorst
    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 59
         Effective: 01/01/08

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 141
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAXES; AMENDING SECTION 63-3023, IDAHO CODE, TO REVISE  THE
  3        DEFINITION  OF  THE TERM "TRANSACTING BUSINESS";  AND PROVIDING AN  EFFEC-
  4        TIVE DATE.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  That Section 63-3023, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
                                                                        
  8        63-3023.  TRANSACTING BUSINESS. (a) Subject only to the limitations of the
  9    constitutions  of  the  United States and of the state of Idaho, and except as
 10    expressly provided in subsection (b) of this section,  the  term  "transacting
 11    business" shall include owning or leasing, whether as lessor or lessee, of any
 12    property,  including  real  and  personal  property, located in this state, or
 13    engaging in or the transacting of any activity in this state, for the  purpose
 14    of or resulting in economic or pecuniary gain or profit.
 15        (b)  Notwithstanding the provisions of subsection (a) of this section, any
 16    corporation,  bank, trust company, mutual savings bank, savings and loan asso-
 17    ciation, national banking association or  other  corporation,  association  or
 18    trust  organized  and existing under the laws of any state or territory of the
 19    United States other than the state of Idaho or existing under the laws of  the
 20    United  States including, without restriction of the generality of the forego-
 21    ing, employee pension fund organizations, charitable foundations, trust funds,
 22    real estate investment trusts, or other such funds and trusts engaged  in  the
 23    investment of moneys, and trustees of such organizations, which does not main-
 24    tain  an  office within the state of Idaho for any purpose shall not be deemed
 25    to be transacting business within the state of Idaho during any  taxable  year
 26    by  reason  of  carrying on in this state any one (1) or more of the following
 27    activities:
 28        (1)  Creating, acquiring or purchasing of loans, secured or unsecured,  or
 29        any interest therein;
 30        (2)  Collecting  and  servicing  of loans in any manner whatsoever and the
 31        making of credit investigations and physical inspections and appraisals of
 32        real or personal property securing any loans or proposing  to  secure  any
 33        loans;
 34        (3)  Soliciting  of  applications  for  loans  which are sent outside this
 35        state for approval; and
 36        (4)  Filing of security interests; maintaining or defending any action  or
 37        suit;  holding,  selling, assigning, transferring, collecting or enforcing
 38        any loans, or foreclosing or other disposition thereof, including  acquir-
 39        ing  title to property securing such loans by foreclosure, deed in lieu of
 40        foreclosure, or otherwise, as a result of default under the terms  of  the
 41        mortgage, deed of trust or other security instruments relating thereto, or
 42        the  holding,  protecting  and maintaining of said property so acquired or
 43        the disposition thereof.
                                                                        
                                       2
                                                                        
  1        SECTION 2.  This act shall be in full force and effect on and after  Janu-
  2    ary 1, 2008.

Statement of Purpose / Fiscal Impact


                           STATEMENT OF PURPOSE

                                 RS 16800

This bill updates the Idaho income tax law by repealing the
provision that exempts non-Idaho banks and financial institutions
from the Idaho income tax paid by Idaho banks.  


                                 FISCAL NOTE

Increase to General Fund
Fiscal Year 2008 = $1.2m
Fiscal Year 2009 = $5.5m




Contacts:  Dan John, State Tax Commission
Phone:     (208) 334-7500
Contact:   Ted Spangler, State Tax Commission
Phone:     (208) 334-7500


STATEMENT OF PURPOSE/FISCAL NOTE                        H 141