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H0250...............................................by REVENUE AND TAXATION
SALES AND USE TAX - REBATE - Adds to and amends existing law to provide a
sales and use tax rebate for certain developers of certain retail
commercial complexes; to provide requirements for the rebate; to provide
procedures; and to provide when the rebate is no longer paid.
02/28 House intro - 1st rdg - to printing
03/01 Rpt prt - to Rev/Tax
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 68-1-1
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bilbao, Black,
Block, 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, 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 -- LeFavour
Absent and excused -- Bell
Floor Sponsor - Nonini
Title apvd - to Senate
03/08 Senate intro - 1st rdg - to Loc Gov
03/14 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg
03/20 3rd rdg - PASSED - 24-10-1
AYES -- Bair, Bastian, Bilyeu, Broadsword, Cameron, Corder,
Darrington, Davis, Fulcher, Geddes, Goedde, Hammond, Heinrich, Hill,
Jorgenson, Keough, Lodge, McGee, McKague, McKenzie, Pearce,
Richardson, Siddoway, Stegner
NAYS -- Andreason, Burkett, Coiner, Kelly, Langhorst, Little,
Malepeai, Schroeder, Stennett, Werk
Absent and excused -- Gannon
Floor Sponsor - Hammond
Title apvd - to House
03/21 To enrol - Rpt enrol - Sp signed
03/22 Pres signed - To Governor
03/26 Governor signed
Session Law Chapter 172
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 250
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES AND USE TAX; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-3641, IDAHO CODE, TO PROVIDE A SALES
4 AND USE TAX REBATE TO CERTAIN DEVELOPERS OF CERTAIN RETAIL COMMERCIAL
5 COMPLEXES, TO PROVIDE QUALIFICATIONS, TO PROVIDE PROCEDURES, TO PROVIDE
6 WHEN THE REBATE IS NO LONGER PAID AND TO DEFINE TERMS; AND AMENDING SEC-
7 TION 63-3638, IDAHO CODE, TO PROVIDE FOR DISTRIBUTION OF MONEYS TO CERTAIN
8 DEVELOPERS OF CERTAIN RETAIL COMMERCIAL COMPLEXES WHO HAVE INCURRED CER-
9 TAIN COSTS FOR IMPROVEMENTS.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is
12 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
13 ignated as Section 63-3641, Idaho Code, and to read as follows:
14 63-3641. TANGIBLE PERSONAL PROPERTY SOLD BY CERTAIN RETAILERS. (1) A de-
15 veloper of a retail commercial complex whose stores sell tangible personal
16 property or taxable services and collected sales or use tax from customers at
17 the location of the developer's retail commercial complex may qualify for a
18 rebate of taxes paid on such purchases, but only if the developer of a retail
19 commercial complex whose stores sell tangible personal property or taxable
20 services has built a complex in Idaho that is of a minimum cost as provided in
21 subsection (2) of this section and has incurred costs in excess of eight mil-
22 lion dollars ($8,000,000) for the installation of an interchange from an
23 interstate highway or a highway enumerated in section 40-201, Idaho Code, by
24 the Idaho transportation department or a political subdivision or a contractor
25 of the transportation department or political subdivision and/or freeway
26 interchange improvements on land owned by the state of Idaho or a political
27 subdivision and/or auxiliary lanes necessitated by the design and construction
28 of interchanges.
29 (2) To qualify for the rebate, the developer of a retail commercial com-
30 plex whose stores sell tangible personal property or taxable services shall
31 have those stores collect sales and use taxes on sales of tangible personal
32 property or taxable services from the retail commercial complex. Any improve-
33 ment or alteration to a public highway must be bonded in accordance with the
34 public contracts bond act in chapter 19, title 54, Idaho Code. Once the devel-
35 oper of a retail commercial complex whose stores sell tangible personal prop-
36 erty or taxable services certifies that the retail commercial complex has
37 cost a minimum of four million dollars ($4,000,000) and the developer of a
38 retail commercial complex whose stores sell tangible personal property or
39 taxable services has expended in excess of eight million dollars ($8,000,000)
40 for the installation of an interchange and/or related interchange improvements
41 from an interstate highway by the Idaho transportation department or a politi-
42 cal subdivision or a contractor of the transportation department or political
43 subdivision and/or freeway interchange improvements, the developer may file
2
1 with the state tax commission a refund request of sixty percent (60%) of the
2 sales and use taxes collected for the sale of tangible personal property or
3 taxable services from stores in the retail commercial complex. The refund
4 request shall state that the developer of a retail commercial complex whose
5 stores sell tangible personal property or taxable services has constructed a
6 retail facility that meets the minimum expenditure requirements and also meets
7 the minimum expenditure requirements for an interchange and/or related freeway
8 interchange improvements and/or highway improvements to be eligible for the
9 rebate, and that the developer is entitled to receive a rebate of sixty per-
10 cent (60%) of all sales and use taxes collected by the stores in the retail
11 commercial complex that qualifies for the rebate created by this section. The
12 state tax commission may require that sufficient documentation be provided by
13 the developer of a retail commercial complex whose stores sell tangible per-
14 sonal property or taxable services regarding expenditures and shall require an
15 attestation from the Idaho transportation department or a political subdivi-
16 sion that the minimum requirements of this section have been met. The trans-
17 portation department or the political subdivision shall verify to the state
18 tax commission the amount of expenditures the developer has expended on the
19 interchange and/or related freeway interchange improvements and/or highway
20 improvements.
21 (3) Upon filing of a written refund claim by the developer of a retail
22 commercial complex whose stores sell tangible personal property or taxable
23 services entitled to the rebate, and subject to such reasonable documentation
24 and verification as the state tax commission may require, the rebate shall be
25 paid by the state tax commission from the demonstration pilot project fund,
26 which is hereby created in the state treasury, in a timely manner not to
27 exceed sixty (60) calendar days after receipt as funds are available. To qual-
28 ify for the rebate, stores in an eligible complex shall report their sales to
29 the state tax commission separately from other stores they own in the state.
30 Nothing in this section shall be deemed to hold the state of Idaho or any
31 political subdivision liable for any and all liens filed on a project subject
32 to rebate pursuant to this section. All sales and use tax information remitted
33 by retailers shall be deemed a trade secret, shall be confidential and shall
34 not be disclosed by the state tax commission. A developer of a retail commer-
35 cial complex whose stores sell tangible personal property or taxable services
36 must submit a claim for refund pursuant to this section within two (2) years
37 of the developer's last expenditure on the interchange and/or related freeway
38 interchange improvements and/or highway improvements. No interest shall be
39 paid by the state on moneys refunded and all moneys refunded shall be paid
40 from the sales tax account pursuant to subsection (11) of section 63-3638,
41 Idaho Code, and shall be limited to a total aggregate of thirty-five million
42 dollars ($35,000,000) or lesser amount if that is what was expended.
43 (4) Once the developer of a retail commercial complex whose stores sell
44 tangible personal property or taxable services has recouped its costs of
45 funding the interchange and/or related freeway interchange improvements and/or
46 highway improvements and/or related transportation infrastructure, the de-
47 veloper shall be ineligible to receive the rebate pursuant to this section.
48 (5) As used in this section:
49 (a) "Development of a retail commercial complex whose stores sell tangi-
50 ble personal property or taxable services" includes all buildings, the
51 parking lot, sidewalks and all accessory equipment including, but not lim-
52 ited to, lighting and traffic signs. Retail stores in the retail commer-
53 cial complex shall sell tangible personal property or taxable services
54 that are subject to the sales and use tax.
55 (b) "Freeway interchange improvements" includes on and off ramps, over-
3
1 pass and underpass improvements and signalization to facilitate the
2 effective access from the interstate highway system.
3 (c) "Highway improvements" shall be improvements or upgrades to highways
4 enumerated in section 40-201, Idaho Code.
5 SECTION 2. That Section 63-3638, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
8 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
9 Idaho Code, shall be distributed by the tax commission as follows:
10 (1) An amount of money shall be distributed to the state refund account
11 sufficient to pay current refund claims. All refunds authorized under this
12 chapter by the commission shall be paid through the state refund account, and
13 those moneys are continuously appropriated.
14 (2) Five million dollars ($5,000,000) per year is continuously appropri-
15 ated and shall be distributed to the permanent building fund, provided by sec-
16 tion 57-1108, Idaho Code.
17 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
18 continuously appropriated and shall be distributed to the water pollution con-
19 trol account established by section 39-3605, Idaho Code.
20 (4) An amount equal to the sum required to be certified by the chairman
21 of the Idaho housing and finance association to the state tax commission pur-
22 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
23 ated and shall be paid to any capital reserve fund, established by the Idaho
24 housing and finance association pursuant to section 67-6211, Idaho Code. Such
25 amounts, if any, as may be appropriated hereunder to the capital reserve fund
26 of the Idaho housing and finance association shall be repaid for distribution
27 under the provisions of this section, subject to the provisions of section
28 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
29 possible, from any moneys available therefor and in excess of the amounts
30 which the association determines will keep it self-supporting.
31 (5) An amount equal to the sum required by the provisions of sections
32 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by
33 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid
34 as provided by sections 63-709 and 63-717, Idaho Code.
35 (6) An amount required by the provisions of chapter 53, title 33, Idaho
36 Code.
37 (7) An amount required by the provisions of chapter 87, title 67, Idaho
38 Code.
39 (8) One dollar ($1.00) on each application for certificate of title or
40 initial application for registration of a motor vehicle, snowmobile, all-
41 terrain vehicle or other vehicle processed by the county assessor or the Idaho
42 transportation department excepting those applications in which any sales or
43 use taxes due have been previously collected by a retailer, shall be a fee for
44 the services of the assessor of the county or the Idaho transportation depart-
45 ment in collecting such taxes, and shall be paid into the current expense fund
46 of the county or state highway account established in section 40-702, Idaho
47 Code.
48 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated
49 and shall be distributed to the revenue sharing account which is created in
50 the state treasury, and the moneys in the revenue sharing account will be paid
51 in installments each calendar quarter by the tax commission as follows:
52 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
53 ious cities as follows:
4
1 (i) Fifty percent (50%) of such amount shall be paid to the various
2 cities, and each city shall be entitled to an amount in the propor-
3 tion that the population of that city bears to the population of all
4 cities within the state; and
5 (ii) Fifty percent (50%) of such amount shall be paid to the various
6 cities, and each city shall be entitled to an amount in the propor-
7 tion that the preceding year's market value for assessment purposes
8 for that city bears to the preceding year's market value for assess-
9 ment purposes for all cities within the state.
10 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
11 ious counties as follows:
12 (i) One million three hundred twenty thousand dollars ($1,320,000)
13 annually shall be distributed one forty-fourth (1/44) to each of the
14 various counties; and
15 (ii) The balance of such amount shall be paid to the various coun-
16 ties, and each county shall be entitled to an amount in the propor-
17 tion that the population of that county bears to the population of
18 the state;
19 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
20 ated in this subsection (9) shall be paid to the several counties for dis-
21 tribution to the cities and counties as follows:
22 (i) Each city and county which received a payment under the provi-
23 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
24 calendar year 1999, shall be entitled to a like amount during suc-
25 ceeding calendar quarters.
26 (ii) If the dollar amount of money available under this subsection
27 (9)(c) in any quarter does not equal the amount paid in the fourth
28 quarter of calendar year 1999, each city's and county's payment shall
29 be reduced proportionately.
30 (iii) If the dollar amount of money available under this subsection
31 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
32 of calendar year 1999, each city and county shall be entitled to a
33 proportionately increased payment, but such increase shall not exceed
34 one hundred five percent (105%) of the total payment made in the
35 fourth quarter of calendar year 1999.
36 (iv) If the dollar amount of money available under this subsection
37 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
38 total payment made in the fourth quarter of calendar year 1999, any
39 amount over and above such one hundred five percent (105%) shall be
40 paid fifty percent (50%) to the various cities in the proportion that
41 the population of the city bears to the population of all cities
42 within the state, and fifty percent (50%) to the various counties in
43 the proportion that the population of a county bears to the popula-
44 tion of the state; and
45 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
46 this subsection (9) shall be paid to the several counties for distribution
47 to special purpose taxing districts as follows:
48 (i) Each such district which received a payment under the provi-
49 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
50 calendar year 1999, shall be entitled to a like amount during suc-
51 ceeding calendar quarters.
52 (ii) If the dollar amount of money available under this subsection
53 (9)(d) in any quarter does not equal the amount paid in the fourth
54 quarter of calendar year 1999, each special purpose taxing district's
55 payment shall be reduced proportionately.
5
1 (iii) If the dollar amount of money available under this subsection
2 (9)(d) in any quarter exceeds the amount distributed under paragraph
3 (i) of this subsection (9)(d), each special purpose taxing district
4 shall be entitled to a share of the excess based on the proportion
5 each such district's current property tax budget bears to the sum of
6 the current property tax budgets of all such districts in the state.
7 The state tax commission shall calculate district current property
8 tax budgets to include any unrecovered foregone amounts as determined
9 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
10 district is situated in more than one (1) county, the tax commission
11 shall determine the portion attributable to the special purpose tax-
12 ing district from each county in which it is situated.
13 (iv) If special purpose taxing districts are consolidated, the
14 resulting district is entitled to a base amount equal to the sum of
15 the base amounts which were received in the last calendar quarter by
16 each district prior to the consolidation.
17 (v) If a special purpose taxing district is dissolved or
18 disincorporated, the state tax commission shall continuously distrib-
19 ute to the board of county commissioners an amount equal to the last
20 quarter's distribution prior to dissolution or disincorporation. The
21 board of county commissioners shall determine any redistribution of
22 moneys so received.
23 (vi) Taxing districts formed after January 1, 2001, are not entitled
24 to a payment under the provisions of this subsection (9)(d).
25 (vii) For purposes of this subsection (9)(d), a special purpose tax-
26 ing district is any taxing district which is not a city, a county or
27 a school district.
28 (10) Amounts calculated in accordance with section 2, chapter 356, laws of
29 2001, for annual distribution to counties and other taxing districts beginning
30 in October 2001 for replacement of property tax on farm machinery and equip-
31 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
32 tricts, the state tax commission shall distribute one-fourth (1/4) of this
33 amount certified quarterly to each county. For school districts, the state tax
34 commission shall distribute one-fourth (1/4) of the amount certified quarterly
35 to each school district. For nonschool districts, the county auditor shall
36 distribute to each district within thirty (30) calendar days from receipt of
37 moneys from the tax commission. Moneys received by each taxing district for
38 replacement shall be utilized in the same manner and in the same proportions
39 as revenues from property taxation. The moneys remitted to the county trea-
40 surer for replacement of property exempt from taxation pursuant to section
41 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
42 tricts and budgeted at the same time, in the same manner and in the same year
43 as revenues from taxation on personal property which these moneys replace. If
44 taxing districts are consolidated, the resulting district is entitled to an
45 amount equal to the sum of the amounts which were received in the last calen-
46 dar quarter by each district pursuant to this subsection prior to the consoli-
47 dation. If a taxing district is dissolved or disincorporated, the state tax
48 commission shall continuously distribute to the board of county commissioners
49 an amount equal to the last quarter's distribution prior to dissolution or
50 disincorporation. The board of county commissioners shall determine any redis-
51 tribution of moneys so received. If a taxing district annexes territory, the
52 distribution of moneys received pursuant to this subsection shall be unaf-
53 fected. Taxing districts formed after January 1, 2001, are not entitled to a
54 payment under the provisions of this subsection. School districts shall
55 receive an amount determined by multiplying the sum of the year 2000 school
6
1 district levy minus .004 times the market value on December 31, 2000, in the
2 district of the property exempt from taxation pursuant to section 63-602EE,
3 Idaho Code, provided that the result of these calculations shall not be less
4 than zero (0). The result of these school district calculations shall be fur-
5 ther increased by six percent (6%). For purposes of the limitation provided by
6 section 63-802, Idaho Code, moneys received pursuant to this section as prop-
7 erty tax replacement for property exempt from taxation pursuant to section
8 63-602EE, Idaho Code, shall be treated as property tax revenues.
9 (11) Amounts necessary to pay refunds as provided in subsection (3) of
10 section 63-3641, Idaho Code, to a developer of a retail commercial complex
11 whose stores sell tangible personal property or taxable services subject to
12 the sales and use tax up to an aggregate total of thirty-five million dollars
13 ($35,000,000) per project shall be remitted to the demonstration pilot project
14 fund created in subsection (3) of section 63-3641, Idaho Code, and shall be
15 specific to and accounted for by each project.
16 (12) Any moneys remaining over and above those necessary to meet and
17 reserve for payments under other subsections of this section shall be distrib-
18 uted to the general fund.
STATEMENT OF PURPOSE
RS 17131
The purpose of this legislation is to establish a new
method of financing public transportation infrastructure
projects utilizing the State Tax Anticipation Revenue
(STAR) concept. Upon approval of this legislation, private
funds could be used to pay for all phases of qualified and
approved projects to interstate and other state highways,
from development to right-of-way acquisition, to
construction.
The developer of a retail commercial complex whose
stores sell tangible personal property or taxable services,
may qualify for a rebate of taxes paid on purchases at the
site to reimburse the developer for project expenses
incurred for the installation of approved transportation
improvements.
An account will be established to receive funds from a
portion of sales taxes collected on the site as a result of
new businesses and economic development attracted to the
location. The Tax Commission will have oversight
responsibilities for all monies disbursed to repay the
costs incurred by the private sector to construct the
facilities, after approval by the Idaho Transportation
Department.
No general fund or Idaho Transportation Department
budget funds would be used to construct the transportation
improvements. Appropriate checks and balances are
specified to ensure the integrity of the transfer of funds.
Project management would be coordinated through local,
state, and federal units of government. Acquisition of
additional right-of way will require the transfer of
ownership to the Department if purchased by the developer.
Fiscal Impact
The estimated new sales tax revenue at build out of the
first "pilot project" is estimated to be $30 million
dollars annually.
Contact: Speaker of the House Lawerence Denney
Representative Mike Moyle
Representative Bob Nonini
Representative Frank Henderson
Senator Jim Hammond
Phone: 334-1120
STATEMENT OF PURPOSE/FISCAL NOTE H 250