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H0010...............................................by REVENUE AND TAXATION
SALES TAX ACT - Amends existing law to make technical corrections to the
Sales Tax Act; to delete the requirement that retailers disclose taxpayer
identification numbers on certain statements; to clarify the exemption for
glider kit vehicles; and to delete research from the exclusion from the
logging exemption.
01/16 House intro - 1st rdg - to printing
01/17 Rpt prt - to Rev/Tax
01/18 Rpt out - rec d/p - to 2nd rdg
01/19 2nd rdg - to 3rd rdg
01/22 Ret'd to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 10
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TECHNICAL CORRECTIONS TO THE SALES TAX ACT; AMENDING SECTION
3 63-3620C, IDAHO CODE, TO DELETE THE REQUIREMENT THAT RETAILERS DISCLOSE
4 TAXPAYER IDENTIFICATION NUMBERS ON CERTAIN STATEMENTS; AMENDING SECTION
5 63-3622R, IDAHO CODE, TO CLARIFY THE EXEMPTION FOR GLIDER KIT VEHICLES;
6 AND AMENDING SECTION 63-3622JJ, IDAHO CODE, TO DELETE RESEARCH FROM THE
7 EXCLUSION FROM THE LOGGING EXEMPTION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-3620C, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-3620C. PROMOTER SPONSORED EVENTS. (1) The operator or promoter con-
12 tracting with persons for participation in a promoter sponsored event, as a
13 prerequisite to renting or leasing space to any person for conducting business
14 as a retailer on any premises owned or controlled by that operator or pro-
15 moter, shall obtain:
16 (a) Written evidence that the retailer holds a valid seller's permit
17 issued pursuant to this chapter or will apply to the state tax commission
18 for a regular or temporary seller's permit; or
19 (b) A written statement from the retailer that the retailer is not offer-
20 ing for sale any item that is taxable under this chapter or is otherwise
21 not required to hold a valid seller's permit.
22 (2) Such written evidence or statements shall be in such form and contain
23 such information as the state tax commission shall require, and shall include
24 the retailer's taxpayer identification number. The operator or promoter shall
25 submit the documents to the state tax commission within ten (10) days follow-
26 ing the beginning of the event.
27 (3) (a) The state tax commission may appoint a sponsor or promoter as its
28 agent for issuing temporary seller's permits to participants in the event
29 and for accounting for such permits.
30 (b) A sponsor or promoter appointed to issue temporary permits under this
31 subsection shall be entitled to a credit or refund of income or franchise
32 taxes imposed under chapter 30, title 63, Idaho Code, in the amount of one
33 dollar ($1.00) for each such temporary permit issued by the sponsor or
34 promoter during the taxable year.
35 (4) Any operator or promoter of a promoter sponsored event who fails to
36 comply with this section may be subject to a minimum penalty of fifty dollars
37 ($50.00) per event and twenty-five dollars ($25.00) for each seller over two
38 (2) sellers for whom such records required by subsection (1) of this section
39 are not obtained, but not to exceed one thousand dollars ($1,000) for each
40 such event. Under no circumstances, shall an operator or a promoter be respon-
41 sible for sales or use tax not remitted by a retailer at a promoter sponsored
42 event.
43 (5) The penalties provided in subsection (4) of this section shall not
2
1 apply:
2 (a) Unless the state tax commission shall have previously given notice to
3 the operator or promoter or its officer, agent or employee, by certified
4 mail, of the requirements of this section and of a violation of this sec-
5 tion by the operator or promoter or its officer, agent or employee; or
6 (b) If the operator or promoter shows that such failure was due to rea-
7 sonable cause and not to willful neglect.
8 (6) The state tax commission shall give notice of any penalty provided in
9 this section and it shall assess such penalties in the manner provided for
10 deficiencies of tax.
11 (7) "Promoter sponsored event," as used in this section, means a swap
12 meet, flea market, gun show, fair or similar activity involving a series of
13 sales sufficient in number, scope and character to constitute a regular course
14 of business; or any event at which two (2) or more persons offer tangible per-
15 sonal property or services for sale or exchange and at which a fee is charged
16 for the privilege of offering the services or displaying the property for sale
17 or exchange; or at which a fee is charged to prospective buyers for admission
18 to the area where the property or services are offered or displayed for sale
19 or exchange.
20 SECTION 2. That Section 63-3622R, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 63-3622R. MOTOR VEHICLES, USED MANUFACTURED HOMES, VESSELS, ALL-TERRAIN
23 VEHICLES, TRAILERS, OFF-ROAD MOTORCYCLES, SNOWMOBILES AND GLIDER KITS. There
24 are exempted from the taxes imposed by this chapter:
25 (a) Sales to nonresidents of motor vehicles, trailers, vessels, all-
26 terrain vehicles (ATVs), motorcycles intended for off-road use and snowmo-
27 biles, for use outside of this state even though delivery be made within this
28 state, but only when:
29 (1) The motor vehicles, vessels, ATVs, motorcycles intended for off-road
30 use, snowmobiles or trailers will be taken from the point of delivery in
31 this state directly to a point outside this state; and
32 (2) The motor vehicles, vessels, ATVs, motorcycles intended for off-road
33 use, snowmobiles and trailers will be registered immediately under the
34 laws of another state, will be titled in another state if required to be
35 titled in that state, will not be used in this state more than sixty (60)
36 days in any twelve (12) month period, and will not be required to be
37 titled under the laws of this state.
38 (3) For the purpose of this subsection (a), the term "all-terrain vehi-
39 cle" or "ATV" means any recreational vehicle with three (3) or more tires,
40 weighing under eight hundred fifty (850) pounds, forty-eight (48) inches
41 or less in width, having a wheelbase of sixty-one (61) inches or less,
42 traveling on low-pressure tires of ten (10) psi or less.
43 (4) For the purpose of this section, the term "vessel" means any boat
44 intended to carry one (1) or more persons upon the water which is either:
45 (i) Sold together with a motor, or
46 (ii) Eleven (11) feet in length or more, but shall not include
47 canoes, kayaks or inflatable boats, unless such canoes, kayaks or in-
48 flatable boats are sold together with a motor.
49 (b) Sale of used manufactured homes, whether or not such used manufac-
50 tured homes are sold for use outside this state, and whether or not such used
51 manufactured homes are sold by a dealer. Every manufactured home sale after
52 its sale as a "new manufactured home," as defined in section 63-3606, Idaho
53 Code, is a sale as a used manufactured home.
3
1 (c) Sale or lease of motor vehicles with a maximum gross registered
2 weight over twenty-six thousand (26,000) pounds, which shall be immediately
3 registered under the international registration plan, or similar proportional
4 or pro rata registration system, whether or not base plated in Idaho, and the
5 sale or lease of trailers which are part of a fleet of vehicles registered
6 under such proportional or pro rata registration system the international reg-
7 istration plan when such vehicles and trailers are substantially used in
8 interstate commerce. If such a motor vehicle or trailer is not substantially
9 used in interstate commerce during any annual registration period under the
10 international registration plan, it shall be deemed used in Idaho and subject
11 to the use tax under section 63-3621, Idaho Code. For the purpose of this sub-
12 section, "substantially used in interstate commerce" means that the vehicles
13 or trailers will be part of a fleet with a minimum of ten percent (10%) of the
14 miles operated by the fleet accrued outside of Idaho in any annual registra-
15 tion period under the international registration plan.
16 (d) The sale or purchase of a glider kit when the glider kit will be used
17 to assemble a glider kit vehicle as defined in section 49-123, Idaho Code,
18 when the glider kit will be used to assemble a glider kit vehicle, which will
19 be immediately registered under a plan defined in subsection (c) of this sec-
20 tion, provided that if the glider kit vehicle is substantially used in inter-
21 state commerce as defined in subsection (c) of this section during any regis-
22 tration period, it shall be subject to the use tax under section 63-3621,
23 Idaho Code.
24 (e) The use or other consumption of a motor vehicle temporarily donated
25 to a driver's education program sponsored by a nonprofit educational institu-
26 tion as defined in section 63-3622O, Idaho Code.
27 SECTION 3. That Section 63-3622JJ, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-3622JJ. LOGGING EXEMPTION. There are exempted from the taxes imposed
30 by this chapter:
31 (1) The sale at retail, storage, use or other consumption in this state
32 of tangible personal property which is primarily and directly used or consumed
33 in logging including, but not limited to, log loaders, log jammers, log
34 skidders and fuel used in logging trucks, provided that the use or consumption
35 of such tangible personal property is necessary or essential to logging.
36 (2) The exemption allowed by subsection (1) of this section does not
37 include machinery, equipment, materials and supplies used in a manner that is
38 incidental to logging such as maintenance and janitorial equipment and sup-
39 plies, and hand tools with a unit purchase price not in excess of one hundred
40 dollars ($100); nor does it include tangible personal property used in any
41 activities other than the actual logging, such as office equipment and sup-
42 plies, equipment and supplies used in selling or distributing activities, in
43 research, or, except for fuel used in logging trucks, in transportation activ-
44 ities; nor shall this exemption include motor vehicles or aircraft, without
45 regard to the use to which such motor vehicles or aircraft are put; nor shall
46 this exemption apply to vehicles or equipment described in section 63-3622HH,
47 Idaho Code.
STATEMENT OF PURPOSE
RS 16522
This bill makes three technical corrections to the Sales Tax
Act.
It strikes the requirement that a retailer participating in
“promoter sponsored events” (such as craft shows, flea markets
and the like) disclose his taxpayer identification number –
social security number or employer ID number – to the event
sponsor.
It clarifies that the exemption for glider kit vehicles enacted
in 2006 applies to vehicles used substantially in interstate
commerce.
It removes from the logging exemption the provision excluding
property used in research from the exemption. The change
eliminates the apparent conflict with the specific exemption for
research activities.
FISCAL NOTE
None.
CONTACT
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Phone: (208) 334-7500
STATEMENT OF PURPOSE/FISCAL NOTE H 10