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H0276...............................................by REVENUE AND TAXATION
SALES TAX - REPORTING - Adds to and amends existing law to provide for
semiannual reporting of sales tax; and to provide for compensation to
retailers for calendar year 2008.
03/05 House intro - 1st rdg - to printing
03/06 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. 276
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 63-3623C, IDAHO CODE, TO PROVIDE FOR
4 SEMIANNUAL REPORTING OF THE TOTAL SALES AT RETAIL SUBJECT TO SALES AND USE
5 TAX; TO PROVIDE FOR COMPENSATION TO RETAILERS FOR CALENDAR YEAR 2008;
6 AMENDING SECTION 63-3638, IDAHO CODE, TO PROVIDE FOR REMITTANCE OF MONEYS
7 FROM THE STATE SALES TAX ACCOUNT TO THE STATE TAX COMMISSION FOR CALENDAR
8 YEAR 2008; AND PROVIDING AN EFFECTIVE DATE.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is
11 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
12 ignated as Section 63-3623C, Idaho Code, and to read as follows:
13 63-3623C. REPORTING OF SALES TAX STATISTICS BY COUNTY. On and after Janu-
14 ary 1, 2008, the state tax commission shall provide semiannual reports, for
15 the preceding six (6) months, when it has the necessary information of the
16 total sales at retail subject to tax under the sales and use tax laws during
17 the reporting period, the county within which the sales occurred, and the dol-
18 lar amount of sales per county. The commission shall make this information
19 available upon request.
20 SECTION 2. In order to compensate retailers engaged in business in this
21 state for changing their reporting of sales, a retailer during calendar year
22 2008 engaged in business in this state whose computer hardware and software or
23 accounting system must be reconfigured or reprogrammed may retain three hun-
24 dred dollars ($300) of sales tax receipts collected for its costs during cal-
25 endar year 2008 only, to implement the provisions of Section 63-3623C, Idaho
26 Code.
27 SECTION 3. That Section 63-3638, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
30 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
31 Idaho Code, shall be distributed by the tax commission as follows:
32 (1) An amount of money shall be distributed to the state refund account
33 sufficient to pay current refund claims. All refunds authorized under this
34 chapter by the commission shall be paid through the state refund account, and
35 those moneys are continuously appropriated.
36 (2) Five million dollars ($5,000,000) per year is continuously appropri-
37 ated and shall be distributed to the permanent building fund, provided by sec-
38 tion 57-1108, Idaho Code.
39 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
40 continuously appropriated and shall be distributed to the water pollution con-
2
1 trol account established by section 39-3605, Idaho Code.
2 (4) An amount equal to the sum required to be certified by the chairman
3 of the Idaho housing and finance association to the state tax commission pur-
4 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
5 ated and shall be paid to any capital reserve fund, established by the Idaho
6 housing and finance association pursuant to section 67-6211, Idaho Code. Such
7 amounts, if any, as may be appropriated hereunder to the capital reserve fund
8 of the Idaho housing and finance association shall be repaid for distribution
9 under the provisions of this section, subject to the provisions of section
10 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
11 possible, from any moneys available therefor and in excess of the amounts
12 which the association determines will keep it self-supporting.
13 (5) An amount equal to the sum required by the provisions of sections
14 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by
15 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid
16 as provided by sections 63-709 and 63-717, Idaho Code.
17 (6) An amount required by the provisions of chapter 53, title 33, Idaho
18 Code.
19 (7) An amount required by the provisions of chapter 87, title 67, Idaho
20 Code.
21 (8) One dollar ($1.00) on each application for certificate of title or
22 initial application for registration of a motor vehicle, snowmobile, all-
23 terrain vehicle or other vehicle processed by the county assessor or the Idaho
24 transportation department excepting those applications in which any sales or
25 use taxes due have been previously collected by a retailer, shall be a fee for
26 the services of the assessor of the county or the Idaho transportation depart-
27 ment in collecting such taxes, and shall be paid into the current expense fund
28 of the county or state highway account established in section 40-702, Idaho
29 Code.
30 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated
31 and shall be distributed to the revenue sharing account which is created in
32 the state treasury, and the moneys in the revenue sharing account will be paid
33 in installments each calendar quarter by the tax commission as follows:
34 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
35 ious cities as follows:
36 (i) Fifty percent (50%) of such amount shall be paid to the various
37 cities, and each city shall be entitled to an amount in the propor-
38 tion that the population of that city bears to the population of all
39 cities within the state; and
40 (ii) Fifty percent (50%) of such amount shall be paid to the various
41 cities, and each city shall be entitled to an amount in the propor-
42 tion that the preceding year's market value for assessment purposes
43 for that city bears to the preceding year's market value for assess-
44 ment purposes for all cities within the state.
45 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
46 ious counties as follows:
47 (i) One million three hundred twenty thousand dollars ($1,320,000)
48 annually shall be distributed one forty-fourth (1/44) to each of the
49 various counties; and
50 (ii) The balance of such amount shall be paid to the various coun-
51 ties, and each county shall be entitled to an amount in the propor-
52 tion that the population of that county bears to the population of
53 the state;
54 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
55 ated in this subsection (9) shall be paid to the several counties for dis-
3
1 tribution to the cities and counties as follows:
2 (i) Each city and county which received a payment under the provi-
3 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
4 calendar year 1999, shall be entitled to a like amount during suc-
5 ceeding calendar quarters.
6 (ii) If the dollar amount of money available under this subsection
7 (9)(c) in any quarter does not equal the amount paid in the fourth
8 quarter of calendar year 1999, each city's and county's payment shall
9 be reduced proportionately.
10 (iii) If the dollar amount of money available under this subsection
11 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
12 of calendar year 1999, each city and county shall be entitled to a
13 proportionately increased payment, but such increase shall not exceed
14 one hundred five percent (105%) of the total payment made in the
15 fourth quarter of calendar year 1999.
16 (iv) If the dollar amount of money available under this subsection
17 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
18 total payment made in the fourth quarter of calendar year 1999, any
19 amount over and above such one hundred five percent (105%) shall be
20 paid fifty percent (50%) to the various cities in the proportion that
21 the population of the city bears to the population of all cities
22 within the state, and fifty percent (50%) to the various counties in
23 the proportion that the population of a county bears to the popula-
24 tion of the state; and
25 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
26 this subsection (9) shall be paid to the several counties for distribution
27 to special purpose taxing districts as follows:
28 (i) Each such district which received a payment under the provi-
29 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
30 calendar year 1999, shall be entitled to a like amount during suc-
31 ceeding calendar quarters.
32 (ii) If the dollar amount of money available under this subsection
33 (9)(d) in any quarter does not equal the amount paid in the fourth
34 quarter of calendar year 1999, each special purpose taxing district's
35 payment shall be reduced proportionately.
36 (iii) If the dollar amount of money available under this subsection
37 (9)(d) in any quarter exceeds the amount distributed under paragraph
38 (i) of this subsection (9)(d), each special purpose taxing district
39 shall be entitled to a share of the excess based on the proportion
40 each such district's current property tax budget bears to the sum of
41 the current property tax budgets of all such districts in the state.
42 The state tax commission shall calculate district current property
43 tax budgets to include any unrecovered foregone amounts as determined
44 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
45 district is situated in more than one (1) county, the tax commission
46 shall determine the portion attributable to the special purpose tax-
47 ing district from each county in which it is situated.
48 (iv) If special purpose taxing districts are consolidated, the
49 resulting district is entitled to a base amount equal to the sum of
50 the base amounts which were received in the last calendar quarter by
51 each district prior to the consolidation.
52 (v) If a special purpose taxing district is dissolved or
53 disincorporated, the state tax commission shall continuously distrib-
54 ute to the board of county commissioners an amount equal to the last
55 quarter's distribution prior to dissolution or disincorporation. The
4
1 board of county commissioners shall determine any redistribution of
2 moneys so received.
3 (vi) Taxing districts formed after January 1, 2001, are not entitled
4 to a payment under the provisions of this subsection (9)(d).
5 (vii) For purposes of this subsection (9)(d), a special purpose tax-
6 ing district is any taxing district which is not a city, a county or
7 a school district.
8 (10) Amounts calculated in accordance with section 2, chapter 356, laws of
9 2001, for annual distribution to counties and other taxing districts beginning
10 in October 2001 for replacement of property tax on farm machinery and equip-
11 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
12 tricts, the state tax commission shall distribute one-fourth (1/4) of this
13 amount certified quarterly to each county. For school districts, the state tax
14 commission shall distribute one-fourth (1/4) of the amount certified quarterly
15 to each school district. For nonschool districts, the county auditor shall
16 distribute to each district within thirty (30) calendar days from receipt of
17 moneys from the tax commission. Moneys received by each taxing district for
18 replacement shall be utilized in the same manner and in the same proportions
19 as revenues from property taxation. The moneys remitted to the county trea-
20 surer for replacement of property exempt from taxation pursuant to section
21 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
22 tricts and budgeted at the same time, in the same manner and in the same year
23 as revenues from taxation on personal property which these moneys replace. If
24 taxing districts are consolidated, the resulting district is entitled to an
25 amount equal to the sum of the amounts which were received in the last calen-
26 dar quarter by each district pursuant to this subsection prior to the consoli-
27 dation. If a taxing district is dissolved or disincorporated, the state tax
28 commission shall continuously distribute to the board of county commissioners
29 an amount equal to the last quarter's distribution prior to dissolution or
30 disincorporation. The board of county commissioners shall determine any redis-
31 tribution of moneys so received. If a taxing district annexes territory, the
32 distribution of moneys received pursuant to this subsection shall be unaf-
33 fected. Taxing districts formed after January 1, 2001, are not entitled to a
34 payment under the provisions of this subsection. School districts shall
35 receive an amount determined by multiplying the sum of the year 2000 school
36 district levy minus .004 times the market value on December 31, 2000, in the
37 district of the property exempt from taxation pursuant to section 63-602EE,
38 Idaho Code, provided that the result of these calculations shall not be less
39 than zero (0). The result of these school district calculations shall be fur-
40 ther increased by six percent (6%). For purposes of the limitation provided by
41 section 63-802, Idaho Code, moneys received pursuant to this section as prop-
42 erty tax replacement for property exempt from taxation pursuant to section
43 63-602EE, Idaho Code, shall be treated as property tax revenues.
44 (11) For calendar year 2008, $557,000 is appropriated and shall be dis-
45 tributed to the state tax commission for the purpose of implementing the pro-
46 visions of section 63-3623C, Idaho Code.
47 (12) Any moneys remaining over and above those necessary to meet and
48 reserve for payments under other subsections of this section shall be distrib-
49 uted to the general fund.
50 SECTION 4. This act shall be in full force and effect on and after Janu-
51 ary 1, 2008.
STATEMENT OF PURPOSE
RS17138
The purpose of this legislation is to direct the Idaho State
Tax Commission to issue retail sales tax revenue data semi-
annually for all businesses identifying each county where
the sales tax was collected. The legislation requires
businesses to report retail sales tax data by the individual
county from where the business collected the sales tax.
Provisions authorize a retail business to retain $300 on a
one-time basis to upgrade and make modifications to their
sales tax reporting systems to comply with the proposed
state policy. It further authorizes the State Tax commission
to retain funds to make one-time expenditures for software,
hardware and systems upgrades, and future expenditures
associated with vendor notification.
FISCAL NOTE
Tax Commission Estimates $395,000 one-time expenditure for
changing sales tax systems and software for semi-annual
reporting, and $152,000 for on-going expenses related to
notifying retail vendors and collecting and reporting the
data. Retailers are allowed to retain $300 each one-time to
cover.
Contact
Name: John Watts
Phone: 385-7070
Rep. Wendy Jaquet
Rep. Leon Smith
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 276