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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
]]]] 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
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