2007 Legislation
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HOUSE BILL NO. 265 – Sales tax exmptn, pollutn cntrl eqp

HOUSE BILL NO. 265

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Bill Status



H0265...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTION - POLLUTION CONTROL EQUIPMENT - Amends existing law
relating to sales tax to revise provisions applicable to the sales tax
exemption for pollution control equipment.

03/02    House intro - 1st rdg - to printing
03/05    Rpt prt - to Rev/Tax
03/09    Rpt out - rec d/p - to 2nd rdg
    Rls susp - PASSED - 62-0-8
      AYES -- Anderson, Andrus, Barrett, Bedke, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Roberts,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Smith(30), Snodgrass, Stevenson, Thayn, Vander Woude, Wills,
      Wood(27), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bayer, Henbest, Mortimer, Ringo, Shively,
      Smith(24), Trail, Wood(35)
    Floor Sponsor - Raybould
    Title apvd - to Senate
03/12    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
03/21    3rd rdg - PASSED - 34-1-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Keough, Langhorst,
      Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- Kelly
      Absent and excused -- None
    Floor Sponsor - McKenzie
    Title apvd - to House
03/22    To enrol - Rpt enrol - Sp signed
03/23    Pres signed
03/26    To Governor
03/30    Governor signed
         Session Law Chapter 290
         Effective: 07/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 265
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SALES TAX; AMENDING SECTION 63-3622X, IDAHO CODE, TO REVISE PROVI-
  3        SIONS APPLICABLE TO THE SALES TAX EXEMPTION FOR POLLUTION  CONTROL  EQUIP-
  4        MENT.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That Section 63-3622X, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        63-3622X.  POLLUTION CONTROL EQUIPMENT. (1) There is hereby exempted  from
  9    the  taxes  imposed by this chapter the sale, use or purchase of tangible per-
 10    sonal property, which property is pollution control equipment required to meet
 11    acquired and primarily used for the purpose of meeting air and or water  qual-
 12    ity  standards,  rules  or  regulations  of  a  state or federal agency having
 13    authority to regulate and set air and or water quality emission standards.
 14        (2)  This The exemption provided in subsection (1) of this section applies
 15    to and includes:
 16        (a)  Tthe purchase of dry cleaning equipment that is designed  to  protect
 17        employees  from  exposure  to  perchloroethylene  as well as retaining the
 18        fluid in the machine in order to protect sewer  systems  and  air  quality
 19        standards.  Dry  cleaning machines meeting these standards are referred to
 20        as "dry to dry transfer systems.";
 21        (b)  This exemption applies  to  tThe  purchase  of  a  liner  or  reagent
 22        required  to meet water quality standards, rules or regulations of a state
 23        or federal agency having authority to regulate and set water quality stan-
 24        dards regardless of whether the liner  or  reagent  later  becomes  or  is
 25        intended to become a component of any real property or improvement or fix-
 26        ture thereto;
 27        (c)  The  sale, use or purchase of tangible personal property that becomes
 28        a component, fixture or improvement to realty acquired and primarily  used
 29        for  the purpose of meeting air or water quality emission standards, rules
 30        or regulations when purchased by:
 31             (i)   Manufacturing, mining or farming businesses  that  qualify  for
 32             the  exemption  provided  by  section  63-3622D,  Idaho Code, but not
 33             including property used to treat drinking water or to  treat  air  or
 34             water that is not required for a production process;
 35             (ii)  Contractors  working for manufacturing, mining or farming busi-
 36             nesses that qualify for the exemption provided by  section  63-3622D,
 37             Idaho  Code,  who purchase, use or install qualifying material at the
 38             direction of a project owner, but  not  including  property  used  to
 39             treat  drinking  water  or to treat air or water that is not required
 40             for a production process; or
 41             (iii) Businesses principally devoted to treating and storing  hazard-
 42             ous or toxic waste; and
 43        (d)  Tangible  personal  property  that  is necessary for the operation of
                                                                        
                                       2
                                                                        
  1        property that qualifies for the exemption available in  paragraph  (c)  of
  2        this subsection.
  3        (3)  This  The  exemption  provided in subsection (1) of this section does
  4    not apply to or include:
  5        (a)  Mmotor vehicles or aircraft, without regard to the use to which  such
  6        motor vehicles or aircraft are put;
  7        (b)  The sale, use or purchase of fixtures, plumbing fixtures, pipe, pumps
  8        or  other  items  used  to  treat  or transport wastewater to a wastewater
  9        treatment plant that is owned by a wastewater operator as defined in  sec-
 10        tion 54-2403, Idaho Code;
 11        (c)  The  sale,  use or purchase of fixtures or tangible personal property
 12        that is used to treat or transport drinking  water  by  a  drinking  water
 13        operator as defined in section 54-2403, Idaho Code;
 14        (d)  The sale, use or purchase of property used to prevent soil erosion;
 15        (e)  The  sale,  use or purchase of property that is affixed to realty and
 16        that is used in road construction or the construction  of  residential  or
 17        commercial  buildings  or  other  improvements  to realty owned by persons
 18        other than the businesses described in subsection (2)(c) of this section;
 19        (f)  The sale, use or purchase of property used to construct buildings  or
 20        structures  that  merely  house pollution control equipment or a pollution
 21        control facility,  including  both  building  materials  and  construction
 22        equipment and including equipment used for excavation;
 23        (g)  The  sale,  use  or  purchase  of  tangible personal property used to
 24        install pollution control equipment or facilities; or
 25        (h)  The sale, use or purchase of tangible  personal  property  that  will
 26        become part of a septic tank or septic system.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                              
                          RS 17062
  
       This bill clarifies the application of the existing
  sales tax exemption for pollution control equipment.  The
  exemption would be available to businesses that qualify for
  the production exemption and purchase personal property that
  is primarily used for meeting air or water quality standards
  even if that property becomes a component, fixture or
  improvement to realty.
       The exemption would not apply to public facilities like
  wastewater or drinking water systems or to buildings or
  structures that merely house pollution control equipment.
                      
  
  
  
  
  
                        FISCAL NOTE
  
       The Tax Commission estimates this legislation would
  reduce General Fund revenues by $1.05 million. 
  
  
  
  
  
  
  
  
  
  CONTACT:                           
  Jack Lyman                         Brent Olmstead
  Idaho Mining Association           Milk Producers of Idaho
  342-0031                           345-1190
  
       
  
  
  STATEMENT OF PURPOSE/FISCAL NOTE                   H 265