2007 Legislation
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HOUSE BILL NO. 78 – Potato Comm, tax revised

HOUSE BILL NO. 78

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Bill Status



H0078...............................................by AGRICULTURAL AFFAIRS
POTATO COMMISSION - Amends existing law relating to the Potato Commission
to revise tax provisions relating to potatoes.
                                                                        
01/31    House intro - 1st rdg - to printing
02/01    Rpt prt - to Agric Aff
02/09    Rpt out - rec d/p - to 2nd rdg
02/12    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 65-0-5
      AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
      Bock, 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,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
      Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8),
      Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
      Trail, Vander Woude, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke, Boe, Clark, Nielsen, Wills
    Floor Sponsor - Shirley
    Title apvd - to Senate
02/16    Senate intro - 1st rdg - to Agric Aff
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/02    3rd rdg - PASSED - 28-7-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Gannon, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Langhorst, Lodge, Malepeai, McGee,
      McKague, McKenzie, Richardson, Schroeder, Siddoway, Stennett, Werk
      NAYS -- Davis, Fulcher, Geddes, Keough, Little, Pearce, Stegner
      Absent and excused -- None
    Floor Sponsor - Schroeder
    Title apvd - to House
03/05    To enrol
03/06    Rpt enrol - Sp signed
03/07    Pres signed
03/08    To Governor
03/12    Governor signed
         Session Law Chapter 57
         Effective: 07/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 78
                                                                        
                             BY AGRICULTURAL AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE POTATO COMMISSION; AMENDING SECTION 22-1211,  IDAHO  CODE,  TO
  3        REVISE  TAX  PROVISIONS RELATING TO POTATOES AND TO MAKE TECHNICAL CORREC-
  4        TIONS.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  That Section 22-1211, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
                                                                        
  8        22-1211.  TAX LEVY. There is hereby levied and imposed a tax of four cents
  9    (4¢)  per  hundredweight  on  potatoes  covered by this act chapter, which tax
 10    shall be due on or before the time when such potatoes are first handled in the
 11    primary channels of trade and shall be paid at such time or times as the  com-
 12    mission  may by rule or regulation prescribe, but not later than the fifteenth
 13    day of the month next succeeding the month in which such potatoes were handled
 14    in the primary channels of trade. The commission is authorized to make  appro-
 15    priate  rules and regulations to implement the collection of the taxes imposed
 16    by this chapter.
 17        In addition to the four cents (4¢) tax hereinabove provided for, there  is
 18    hereby  levied  and  imposed  an additional tax of six eleven cents (611¢) per
 19    hundredweight on potatoes covered by this act chapter; provided, however, said
 20    additional tax of six eleven cents (611¢), or any portion thereof, shall  only
 21    be  due  and  collectible upon a determination by at least two-thirds (2/3) of
 22    the commission members that the anticipated expenditures for the  next  fiscal
 23    year  following  the  year  in which the determination is made will exceed the
 24    anticipated tax revenues to be collected from the said four  cents  (4¢)  tax.
 25    Upon  such  a  determination,  the commission shall collect the additional six
 26    eleven cents (611¢) tax or such portion thereof as is required by such  deter-
 27    mination,  which  shall be collected with, and as, other taxes imposed by this
 28    act chapter.
 29        The person first selling or otherwise  delivering  potatoes  into  primary
 30    channels  of  trade  shall  be  responsible  for and make payment of all taxes
 31    imposed by this chapter. If such person is  the  dealer  or  shipper  handling
 32    potatoes  grown  by another, he may charge against and recover from the grower
 33    of such potatoes or the person from whom he acquired them sixty per cent  per-
 34    cent (60%) of the tax.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 16763 

The Idaho Potato Commission is primarily funded by a tax assessment on
potatoes.  The annual assessment rate is set by a vote of the Commissioners,
who are appointed by the Governor.  The Commission is composed of five Grower,
two Shipper and two Processor Representatives.  The assessment is a cap on
what tax may be levied, and has been set by the Legislature at 10¢/hundred
weight since 1985.  The Commissioners have assessed the full amount of
10¢/hundred weight since 2000.  Recent independent market research performed
for the Commission demonstrates that increased advertising of the brand
"Idaho® Potatoes" causes consumers to buy more potatoes, increasing demand. 
Declining demand is the single biggest challenge facing the potato industry,
and the promotional program of the Commission will actually address this
problem directly.  Rising media cost have shrunk the Commissions TV campaign
so that less than 33% of the Country is now covered by advertising.  These
self imposed industry funds will help restore coverage to more of the country. 
This proposal has been presented to over 200 growers at meetings held
throughout southern Idaho, all major potato processors and at the annual
membership meeting of the Idaho Grower Shippers Association who have expressed
support for this proposal.


                          FISCAL NOTE

There is no impact on the general fund.



Contact
Name: Patrick J. Kole 
Vice President, Legal & Government Affairs 
Idaho Potato Commission
Phone: 334-2350
     

STATEMENT OF PURPOSE/FISCAL NOTE                                        H 78