2007 Legislation
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SENATE BILL NO. 1112 – Gasohol/biodiesel, no tax deductn

SENATE BILL NO. 1112

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Bill Status



S1112.....................................................by TRANSPORTATION
GASOHOL - BIODIESEL - Amends existing law to delete the fuel tax deduction
authorized for gasohol and biodiesel.
                                                                        
02/09    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to Transp

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1112
                                                                        
                                BY TRANSPORTATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR FUELS TAX; AMENDING SECTION 63-2407, IDAHO CODE,  TO  DELETE
  3        THE FUEL TAX DEDUCTION AUTHORIZED FOR GASOHOL AND BIODIESEL.
                                                                        
  4    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  5        SECTION  1.  That  Section 63-2407, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
                                                                        
  7        63-2407.  DEDUCTIONS AUTHORIZED. Each licensed  distributor  shall  deduct
  8    from his monthly report:
  9        (1)  Motor fuel exported from this state other than in the supply tanks of
 10    motor vehicles, motor boats or aircraft when supported by a shipping document,
 11    an  invoice signed by the purchaser, or other proper documents approved by the
 12    commission but only if:
 13        (a)  The purchaser is not a licensed distributor and the seller can estab-
 14        lish that any tax due in the jurisdiction  to  which  the  motor  fuel  is
 15        destined is paid; or
 16        (b)  The  purchaser is a licensed distributor in the jurisdiction to which
 17        the motor fuel is destined.
 18        (2)  Motor fuel returned to a licensed distributor's refinery or  pipeline
 19    terminal  storage  when  supported by proper documents approved by the commis-
 20    sion.
 21        (3)  Motor fuel lost or destroyed  by  fire,  lightning,  flood,  tornado,
 22    windstorm,  explosion,  or  other accidental casualty, after presenting to the
 23    commission satisfactory proof of loss.
 24        (4)  The number of gallons which would be equal to one percent (1%) of the
 25    total number of gallons received during the reporting period, less  the  total
 26    number  of gallons deducted under subsections (1) through (3) of this section,
 27    which credit is granted to the licensed distributor to reimburse him  for  the
 28    expense  incurred  on behalf of the state of Idaho in collecting and remitting
 29    motor fuel tax moneys, maintaining necessary records for the state,  preparing
 30    necessary  reports  and  remittances  in compliance with this chapter, and for
 31    loss from evaporation, handling, spillage and shrinkage, except losses  caused
 32    by  casualty  as provided in subsection (3) of this section. The licensed dis-
 33    tributor may, in addition to the above, deduct the number of gallons equal  to
 34    one  percent (1%) of the total number of gallons received during the preceding
 35    calendar month, less the total number of gallons  deducted  under  subsections
 36    (1) through (3) of this section, to cover shrinkage, evaporation, spillage and
 37    handling  losses  of a retail dealer. The  latter deductions are to be allowed
 38    only upon filing with the commission satisfactory  evidence  as  may  be  pre-
 39    scribed  by  it  indicating the credit allowance has been made in favor of the
 40    retail dealer or paid to him. The evidence shall be  submitted  together  with
 41    the  report  wherein this portion of the deduction is claimed. A licensed dis-
 42    tributor who sells and delivers motor fuel directly to the  consumer  and  not
 43    for  resale  shall, with respect to those sales, be deemed a retail dealer for
                                                                        
                                       2
                                                                        
  1    the purposes of this section.
  2        (5)  Motor fuel sold to the Idaho national guard for use in  aircraft  and
  3    in vehicles used off public highways provided, however, such deduction is sup-
  4    ported  by  an  exemption  certificate  signed by an authorized officer of the
  5    Idaho national guard.
  6        (6)  For sales made on or after July 1, 1995,  taxes  previously  paid  on
  7    gallons represented by accounts found to be worthless and actually charged-off
  8    for  income  tax purposes may be credited upon a subsequent payment of the tax
  9    provided in this chapter or, if no such tax is due, refunded. If such accounts
 10    are thereafter collected, the tax per gallon shall  be  paid  based  upon  the
 11    amount  actually received divided by the price per gallon of the original sale
 12    multiplied by the appropriate tax rate.
 13        (7)  In the case of motor fuel received during the  reporting  period  and
 14    included in the report that is:
 15        (a)  Gasohol,  deduct the number of gallons of denatured anhydrous ethanol
 16        contained in the gasohol.
 17        (b)  Biodiesel, in whole or in part, deduct the number of gallons of agri-
 18        cultural products or animal fats or the wastes of such products  contained
 19        in the fuel.
 20    The  deduction  provided in this subsection shall not exceed ten percent (10%)
 21    of (i) the volume of gasohol reported on the report or (ii) the  special  fuel
 22    which is or contains biodiesel.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS 16692

This bill would eliminate the ethanol exemption and reduce the 
revenue impact of alternative fuels tax exemption on 
transportation funding.  This legislation will restore fuel tax 
revenue to the Highway Distribution Account and will partially 
address a $203 million annual funding shortfall for 
transportation in Idaho.



                           FISCAL NOTE

Elimination of the ethanol exemption would restore approximately 
$900,000 to the Highway Distribution Account, with approximately 
$513,000 being distributed to the Idaho Transportation 
Department, approximately $342,000 to local units of government, 
and approximately $45,000 to the Idaho State Police.



CONTACT
Name:	Julie Pipal
Agency:	Idaho Department of Transportation
Phone:	334-8804


STATEMENT OF PURPOSE/FISCAL NOTE	                 S 1112