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H0009...............................................by REVENUE AND TAXATION
TAXATION - TOBACCO PRODUCTS - Amends existing law to require tobacco
distributors to hold cigarette permits from the State Tax Commission; to
allow the credit for taxes paid to distributors who ship tobacco products
to distributors outside Idaho; to delete provisions relating to monthly
estimated tax returns; and to provide returns monthly or such other period
as the State Tax Commission may, by rule, provide.
01/15 House intro - 1st rdg - to printing
01/16 Rpt prt - to Rev/Tax
01/17 Rpt out - rec d/p - to 2nd rdg
01/18 2nd rdg - to 3rd rdg
01/22 3rd rdg - PASSED - 66-0-4
AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
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, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shively, Smith(30), Smith(24), Snodgrass, Stevenson,
Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Anderson, Clark, Ringo, Shirley
Floor Sponsor - Killen
Title apvd - to Senate
01/23 Senate intro - 1st rdg - to Loc Gov
02/02 Rpt out - rec d/p - to 2nd rdg
02/05 2nd rdg - to 3rd rdg
02/06 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 - Corder
Title apvd - to House
02/07 To enrol
02/08 Rpt enrol - Sp signed
02/09 Pres signed
02/12 To Governor
02/13 Governor signed
Session Law Chapter 19
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. 9
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE TAX ON TOBACCO PRODUCTS; AMENDING SECTION 63-2554, IDAHO CODE,
3 TO REQUIRE TOBACCO DISTRIBUTORS TO HOLD CIGARETTE PERMITS; AMENDING SEC-
4 TION 63-2559, IDAHO CODE, TO ALLOW THE CREDIT FOR TAXES PAID TO DISTRIBU-
5 TORS WHO SHIP TOBACCO PRODUCTS TO DISTRIBUTORS OUTSIDE IDAHO; AND AMENDING
6 SECTION 63-2560, IDAHO CODE, TO DELETE PROVISIONS RELATING TO MONTHLY
7 ESTIMATED TAX RETURNS, TO PROVIDE RETURNS MONTHLY OR SUCH OTHER PERIOD AS
8 THE STATE TAX COMMISSION MAY BY RULE PROVIDE AND TO MAKE TECHNICAL CORREC-
9 TIONS.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 63-2554, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 63-2554. CERTIFICATE OF REGISTRATION PERMIT REQUIRED. From and after July
14 1, 1972, nNo person shall engage in the business of a distributor or
15 subjobber of tobacco products at any place of business without first having
16 received from the commission a certificate of registration permit as provided
17 in section 63-2503 or 63-2504, Idaho Code.
18 SECTION 2. That Section 63-2559, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 63-2559. WHEN CREDIT MAY BE OBTAINED FOR TAX PAID. (1) Where tobacco
21 products upon which the tax imposed by this chapter has been reported and
22 paid, are shipped or transported by the distributor to distributors or
23 retailers without outside the state, to be sold by those distributors or
24 retailers, or are returned to the manufacturer by the distributor or destroyed
25 by the distributor, credit of such tax may be made to the distributor in
26 accordance with rules prescribed by the commission.
27 (2) Taxes paid on tobacco products sold on or after January 1, 2000, on
28 accounts later found to be worthless and actually charged-off may be credited
29 upon a subsequent payment of the tax on tobacco products or, if no such tax is
30 due, refunded. If all or part of such an account is thereafter collected, the
31 tax shall be paid based upon the proportion of the amount collected.
32 SECTION 3. That Section 63-2560, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 63-2560. TAX PAYABLE MONTHLY -- RETURNS -- OTHER THAN MONTHLY ESTIMATE
35 AND QUARTERLY RETURNS, -- PROCEDURE. (1) The taxes imposed hereunder shall be
36 due and payable in monthly instalments installments and remittance therefor
37 shall be made on or before the twentieth day of the month next succeeding the
38 end of the monthly period in which tax accrued. The taxpayer, on or before
39 said twentieth day of said month, shall make out a return, upon such forms and
2
1 setting forth such information as the tax commission may require, showing the
2 amount of the tax for which he is liable for the preceding monthly period, and
3 shall sign and transmit the same to the commission, together with a remittance
4 for such amount in the form required. Provided, that any such taxpayer may
5 elect to remit each month, on such forms as the tax commission shall in its
6 discretion prescribe, an estimate of the tax to be due for each month on or
7 before the twentieth day of the month next succeeding the end of the monthly
8 period in which the tax accrued, and a quarterly return to the commission on
9 or before the twentieth day of the month next succeeding the end of each quar-
10 ter of every year, and shall remit therewith the balance of the actual tax due
11 for the period of the report. Provided further, that every person who shall
12 elect to remit a monthly "estimate of the tax to be due" as hereinabove
13 described shall remit each month at least one-third (1/3) of the tax paid dur-
14 ing the previous quarter, or ninety per cent (90%) of the tax actually col-
15 lected or owing during the month, whichever is greater.
16 The tax commission may also relieve any taxpayer or class of taxpayers
17 from the obligation of filing monthly returns and may require the return to
18 cover other reporting periods, but in no event shall returns be filed for a
19 period greater than one (1) year.
20 The tax commission may also, by general rule or regulation, establish con-
21 ditions for submission of annual or semiannual reconciling returns by such
22 taxpayers or class of taxpayers in lieu of quarterly returns.
23 The tax commission may also require verified annual returns from any tax-
24 payer, setting forth such additional information as it may deem necessary to
25 correctly determine tax liability.
26 (2) The state tax commission may by rule provide returns for periods of
27 time other than monthly periods. Returns for such reporting periods, together
28 with payment of the required taxes, shall be due on or before the twentieth
29 day of the month following the end of the period to which the return relates.
STATEMENT OF PURPOSE
RS 16520C1
This bill makes three changes to the tax on tobacco products.
Tobacco products are those products made from tobacco that are
not cigarettes.
Section 1 corrects mistaken language. The State Tax Commission
issues a “permit” under Idaho Code section 63-2503 or 63-2504,
not a “certificate of authority.”
Section 2 allows distributors who ship tobacco products to
distributors outside Idaho to take the credit for taxes
previously paid to Idaho. Currently, the credit is allowed only
for tobacco products shipped to retailers outside the state.
Section 3 updates the law relating to filing tobacco products
tax returns. It repeals provisions relating to monthly
estimated tax returns and requires returns monthly or such other
period as the State Tax Commission may provide by rule.
FISCAL NOTE
None.
CONTACT
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Phone: (208) 334-7500
STATEMENT OF PURPOSE/FISCAL NOTE H 9