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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
]]]] 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
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