H0074aaS............................................by REVENUE AND TAXATION SALES AND USE TAX - AIRCRAFT - Amends existing law to provide a sales and use tax exemption for the sale, lease, purchase or use of aircraft by a 501(c)(3) entity located in Idaho if the aircraft is to be primarily utilized in a foreign country for charitable, nonprofit use. 01/30 House intro - 1st rdg - to printing 01/31 Rpt prt - to Rev/Tax 02/01 Rpt out - rec d/p - to 2nd rdg 02/02 2nd rdg - to 3rd rdg 02/06 3rd rdg - PASSED - 66-4-0 AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hart, Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo, Roberts, Ruchti, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker NAYS -- Bock, Hagedorn, Labrador, Rusche Absent and excused -- None Floor Sponsor - Hart Title apvd - to Senate 02/07 Senate intro - 1st rdg - to Loc Gov 03/14 Rpt out - to 14th Ord 03/15 Rpt out amen - to 1st rdg as amen 03/16 1st rdg - to 2nd rdg as amen 03/19 2nd rdg - to 3rd rdg as amen Rls susp - PASSED - 25-5-5 AYES -- Andreason, Bastian, Bilyeu, Broadsword, Burkett, Coiner, Corder, Darrington, Davis, Geddes, Goedde, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, McGee, McKenzie, Richardson, Schroeder, Stegner, Werk NAYS -- Bair, Hammond, McKague, Pearce, Siddoway Absent and excused -- Cameron, Fulcher, Gannon, Malepeai, Stennett Floor Sponsor - Little Title apvd - to House 03/21 House did not concur in Senate amens Filed in Office of the Chief Clerk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 74 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO THE SALES AND USE TAX; AMENDING SECTION 63-3622GG, IDAHO CODE, TO 3 PROVIDE A SALES AND USE TAX EXEMPTION FOR THE SALE, LEASE, PURCHASE OR USE 4 OF AIRCRAFT BY A 501(c)(3) ENTITY LOCATED IN IDAHO IF THE AIRCRAFT IS TO 5 BE PRIMARILY UTILIZED IN A FOREIGN COUNTRY FOR A CHARITABLE, NONPROFIT 6 USE. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 63-3622GG, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 63-3622GG. AIRCRAFT. There is exempted from the taxes imposed by this 11 chapter: 12 (1) The sale, lease, purchase, or use of aircraft primarily used to 13 transport passengers or freight for hire. This exemption includes repair and 14 replacement materials and parts installed in or affixed or applied to, or 15 sold, leased or purchased to be installed in or affixed or applied to, air- 16 craft in connection with the remodeling, repair or maintenance of such air- 17 craft, but does not include tools and equipment utilized in performing such 18 remodeling, repair or maintenance; 19 (2) The sale, lease or purchase of aircraft for use outside this state by 20 nonresidents, even though delivery be made within this state, but only when: 21 (a) The aircraft will be taken from the point of delivery to a point out- 22 side this state; 23 (b) The aircraft will not be used in this state more than ninety (90) 24 days in any twelve (12) month period. 25 (3) The sale, lease, purchase or use of aircraft by an entity, located in 26 Idaho, that is exempt from taxation under section 501(c)(3) of the Internal 27 Revenue Code, if the aircraft is to be primarily utilized in a foreign country 28 for a charitable, nonprofit use. This exemption includes repair and replace- 29 ment materials and parts installed in or affixed or applied to, or sold, 30 leased or purchased to be installed in or affixed or applied to, aircraft in 31 connection with the remodeling, repair or maintenance of such aircraft, but 32 does not include tools and equipment utilized in performing such remodeling, 33 repair or maintenance.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007 Moved by Little Seconded by Hill IN THE SENATE SENATE AMENDMENT TO H.B. NO. 74 1 AMENDMENT TO THE BILL 2 On page 1 of the printed bill, delete lines 8 through 33, and insert: 3 "SECTION 1. That Section 63-3611, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 63-3611. RETAILER ENGAGED IN BUSINESS IN THIS STATE. "Retailer engaged in 6 business in this state" as used in this chapter means any retailer who: 7 (1) Engages in recurring solicitation of purchases from residents of this 8 state or otherwise purposefully directs its business activities at residents 9 of this state; and 10 (2) Has sufficient contact with this state, in accordance with the con- 11 stitution of the United States, to allow the state to require the seller to 12 collect and remit use tax on sales of tangible personal property or services 13 made to customers in this state. 14 (3) The term includes any of the following: 15 (a) Any retailer maintaining, occupying or using, permanently or tempo- 16 rarily, directly or indirectly, or through a subsidiary or agent, by what- 17 ever name called, an office, place of distribution, sales or sample room 18 or place, warehouse or storage place, or other place of business or main- 19 taining a stock of goods. 20 (b) Any retailer having any representative, agent, salesman, canvasser or 21 solicitor operating in this state under the authority of the retailer or 22 its subsidiary for the purpose of selling, delivering, installing or the 23 taking of orders for any tangible personal property. 24 (c) Any retailer, with respect to a lease or rental, deriving rentals 25 from a lease or rental of tangible personal property situated in this 26 state. 27 (d) Any retailer engaging in any activity in connection with servicing or 28 installing tangible personal property in this state. 29 (e) Any retailer owned or controlled by the same interests which own or30 control any retailer engaged in business in the same or a similar line of31 business in this statewith substantial nexus in this state within the 32 meaning of section 63-3615A, Idaho Code. 33 (f) Any retailer having a franchisee or licensee operating under its 34 trade name if the franchisee or licensee is required to collect the tax 35 under the provisions of this section and the retailer and any franchisee 36 or licensee are related parties as defined in subsection (2) of section 37 63-3615A, Idaho Code, except as provided in section 63-3610(d), Idaho 38 Code. 39 SECTION 2. That Chapter 36, Title 63, Idaho Code, be, and the same is 40 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 41 ignated as Section 63-3615A, Idaho Code, and to read as follows: 2 1 63-3615A. SUBSTANTIAL NEXUS. (1) A retailer has substantial nexus with 2 this state if both of the following apply: 3 (a) The retailer and an in-state business maintaining one (1) or more 4 locations within this state are related parties; and 5 (b) The retailer and the in-state business use an identical or substan- 6 tially similar name, trade name, trademark or goodwill to develop, promote 7 or maintain sales, or the in-state business provides services to, or that 8 inure to the benefit of, the out-of-state business related to developing, 9 promoting or maintaining the in-state market. 10 (2) Two (2) entities are related parties under this section if they meet 11 any one (1) of the following tests: 12 (a) Both entities are component members of the same controlled group of 13 corporations under section 1563 of the Internal Revenue Code; 14 (b) One (1) entity is a related taxpayer to the other entity under the 15 provisions of section 267 of the Internal Revenue Code; 16 (c) One (1) entity is a corporation and the other entity and any party, 17 for which section 318 of the Internal Revenue Code requires an attribution 18 of ownership of stock from that party to the entity, own directly, indi- 19 rectly, beneficially, or constructively at least fifty percent (50%) of 20 the value of the outstanding stock of the corporation; or 21 (d) One (1) or both entities is a limited liability company, partnership, 22 estate or trust, none of which is treated as a corporation for federal 23 income tax purposes, and such limited liability company, partnership, 24 estate or trust and its members, partners or beneficiaries own in the 25 aggregate directly, indirectly, beneficially, or constructively at least 26 fifty percent (50%) of the profits, capital, stock or value of the other 27 entity or both entities. 28 (3) The provisions of this section shall not apply to a retailer that had 29 sales in this state in the previous year in an amount of less than one hundred 30 thousand dollars ($100,000). 31 (4) The definition of "Internal Revenue Code" in section 63-3004, Idaho 32 Code, shall apply to this section. 33 SECTION 3. An emergency existing therefor, which emergency is hereby 34 declared to exist, this act shall be in full force and effect on and after its 35 passage and approval.". 36 CORRECTION TO TITLE 37 On page 1, delete lines 2 through 6, and insert: 38 "RELATING TO SALES AND USE TAXES; AMENDING SECTION 63-3611, IDAHO CODE, TO 39 PROVIDE THAT A "RETAILER ENGAGED IN BUSINESS IN THIS STATE" MEANS ANY 40 RETAILER WITH SUBSTANTIAL NEXUS IN THIS STATE WITHIN A SPECIFIED MEANING 41 AND TO PROVIDE APPLICATION TO A RETAILER AND ANY FRANCHISEE OR LICENSEE AS 42 RELATED PARTIES, WITH AN EXCEPTION; AMENDING CHAPTER 36, TITLE 63, IDAHO 43 CODE, BY THE ADDITION OF A NEW SECTION 63-3615A, IDAHO CODE, TO PROVIDE 44 CONDITIONS WHEN A RETAILER HAS SUBSTANTIAL NEXUS WITH THE STATE OF IDAHO, 45 WITH EXCEPTIONS AND TO PROVIDE APPLICATION OF THE DEFINITION OF "INTERNAL 46 REVENUE CODE"; AND DECLARING AN EMERGENCY.".
STATEMENT OF PURPOSE RS 16624 The purpose of this bill is to encourage ( C ) (3) entities to locate and remain in Idaho by exempting from the sales and use tax aircraft purchased in Idaho, if the entity will primarily utilize the aircraft in a foreign country for a charitable, nonprofit use. FISCAL NOTE Estimated reduction of $60,000 to the general fund per annum. Contact Name: Senator Curt McKenzie Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 74