2008 Legislation
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HOUSE BILL NO. 367<br /> – Sales tax, vending machine sales


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Bill Status

H0367...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law relating to sales tax to redefine "sales
price" by deleting a provision relating to tangible personal property sales
through vending machines; and to delete a sales tax reporting requirement
for certain vending machine sales.

01/18    House intro - 1st rdg - to printing
01/21    Rpt prt - to Rev/Tax

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008


                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 367

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT

  7    Be It Enacted by the Legislature of the State of Idaho:

  8        SECTION  1.  That  Section 63-3613, Idaho Code, be, and the same is hereby
  9    amended to read as follows:

 10        63-3613.  SALES PRICE. (a) The term "sales price" means the  total  amount
 11    for which tangible personal property, including services agreed to be rendered
 12    as  a  part  of  the sale, is sold, rented or leased, valued in money, whether
 13    paid in money or otherwise, without any deduction on account  of  any  of  the
 14    following:
 15        1.  The  cost of the property sold. However, in accordance with such rules
 16        as the state tax commission may prescribe, a deduction may be taken if the
 17        retailer has purchased property for some  purpose  other  than  resale  or
 18        rental,  has reimbursed his vendor for tax which the vendor is required to
 19        pay to the state or has paid the use tax with respect to the property, and
 20        has resold or rented the property prior to making any use of the  property
 21        other  than  retention, demonstration or display while holding it for sale
 22        in the regular course of business. If such a deduction  is  taken  by  the
 23        retailer,  no  refund or credit will be allowed to his vendor with respect
 24        to the sale of the property.
 25        2.  The cost of materials used, labor or  service  cost,  losses,  or  any
 26        other expense.
 27        3.  The cost of transportation of the property prior to its sale.
 28        4.  The  face  value  of manufacturer's discount coupons. A manufacturer's
 29        discount coupon is a price reduction coupon presented by a consumer  to  a
 30        retailer  upon  purchase  of  a  manufacturer's product, the face value of
 31        which may only be reimbursed by the manufacturer to the retailer.
 32        (b)  The term "sales price" does not include any of the following:
 33        1.  Retailer discounts allowed and taken on sales, but only to the  extent
 34        that  such  retailer  discounts  represent price adjustments as opposed to
 35        cash discounts offered only as an inducement for prompt payment.
 36        2.  Any sums allowed on merchandise accepted in payment of other  merchan-
 37        dise,  provided  that this allowance shall not apply to the sale of a "new
 38        manufactured home" or a "modular building" as defined herein.
 39        3.  The amount charged for property returned by customers when the  amount
 40        charged  therefor is refunded either in cash or credit; but this exclusion
 41        shall not apply in any instance when the customer, in order to obtain  the
 42        refund, is required to purchase other property at a price greater than the
 43        amount charged for the property that is returned.


  1        4.  The  amount  charged  for  labor or services rendered in installing or
  2        applying the property sold, provided that said amount is stated separately
  3        and such separate statement is not used as a means of avoiding  imposition
  4        of this tax upon the actual sales price of the tangible personal property;
  5        except  that  charges by a manufactured homes dealer for set up of a manu-
  6        factured home shall be included in the "sales price" of such  manufactured
  7        home.
  8        5.  The  amount  of any tax (not including, however, any manufacturers' or
  9        importers' excise tax) imposed by the United States upon or  with  respect
 10        to retail sales whether imposed upon the retailer or the consumer.
 11        6.  The  amount  charged  for  finance  charges, carrying charges, service
 12        charges, time-price differential, or interest on deferred  payment  sales,
 13        provided  such  charges  are not used as a means of avoiding imposition of
 14        this tax upon the actual sales price of the tangible personal property.
 15        7.  Delivery and handling charges for transportation of tangible  personal
 16        property to the consumer, provided that the transportation is stated sepa-
 17        rately and the separate statement is not used as a means of avoiding impo-
 18        sition  of  the  tax  upon the actual sales price of the tangible personal
 19        property; except that charges by a manufactured homes dealer for transpor-
 20        tation of a manufactured home shall be included in the  "sales  price"  of
 21        such manufactured home.
 22        8.  Manufacturers'  rebates  when  used  at the time of a retail sale as a
 23        down payment on or reduction to the retail sales price of a motor  vehicle
 24        to  which  the  rebate  applies. A manufacturer's rebate is a cash payment
 25        made by a manufacturer to a consumer who has purchased  or  is  purchasing
 26        the manufacturer's product from the retailer.
 27        9.  The  amount of any fee imposed upon an outfitter as defined in section
 28        36-2102, Idaho Code, by a governmental entity pursuant to statute for  the
 29        purpose  of  conducting  outfitting activities on land or water subject to
 30        the jurisdiction of the governmental entity,  provided  that  the  fee  is
 31        stated separately and is presented as a use fee paid by the outfitted pub-
 32        lic to be passed through to the governmental entity.
 33        10. The  amount of any discount or other price reduction on telecommunica-
 34        tions equipment when offered as an inducement to the consumer to  commence
 35        or continue telecommunications service, or the amount of any commission or
 36        other  indirect  compensation received by a retailer or seller as a result
 37        of the consumer commencing or continuing telecommunications service.
 38        (c)  The sales price of a "new manufactured home" or a "modular  building"
 39    as defined in this act shall be limited to and include only fifty-five percent
 40    (55%) of the sales price as otherwise defined herein.
 41        (d)  Taxes  previously paid on amounts represented by accounts found to be
 42    worthless may be credited upon a subsequent payment of  the  tax  provided  in
 43    this  chapter or, if no such tax is due, refunded. If such accounts are there-
 44    after collected, a tax shall be paid upon the amount so collected.
 45        (e)  Tangible personal property when sold at retail for more  than  eleven
 46    cents  ($.11)  but less than one dollar and one cent ($1.01) through a vending
 47    machine shall be deemed to have sold at a sales price  equal  to  one  hundred
 48    seventeen percent (117%) of the price which is paid for such tangible personal
 49    property and/or its component parts including packaging by the owner or opera-
 50    tor of the vending machines.

 51        SECTION  2.  That  Section 63-3623, Idaho Code, be, and the same is hereby
 52    amended to read as follows:

 53        63-3623.  RETURNS AND PAYMENTS. (a) The taxes imposed by this act are  due


  1    and payable to the state tax commission monthly on or before the twentieth day
  2    of the succeeding month.
  3        (b)  All moneys collected or received by the state tax commission from the
  4    taxes,  penalties,  interest  and  fees imposed by this act shall be deposited
  5    with the state treasurer to be credited by him to the sales tax  account  cre-
  6    ated by this act.
  7        (c)  On  or  before the twentieth day of the month a return shall be filed
  8    with the state tax commission in such form as the  state  tax  commission  may
  9    prescribe.
 10        (d)  For  the  purpose  of the sales tax, a return shall be filed by every
 11    seller. For the purposes of the use tax, a return  shall  be  filed  by  every
 12    retailer engaged in business in this state and by every person purchasing tan-
 13    gible  personal  property,  the storage, use, or other consumption of which is
 14    subject to the use tax, who has not  paid  the  use  tax  due  to  a  retailer
 15    required to collect the tax. Returns shall be signed by the person required to
 16    file the return or by his duly authorized agent.
 17        (e)  For  the  purposes  of the sales tax, the return shall show the total
 18    sales at retail subject to tax under this act during the reporting period. For
 19    the purposes of the use tax, in case of a return  filed  by  a  retailer,  the
 20    return shall show the total sales price of the property sold by him, the stor-
 21    age,  use, or consumption of which property became subject to the use tax dur-
 22    ing the reporting period; in the case of a return filed by  a  purchaser,  the
 23    return  shall show the total sales price of the property purchased by him, the
 24    storage, use, or consumption of which became subject to the use tax during the
 25    reporting period.
 26        (f)  The return shall show the amount of the taxes for the period  covered
 27    by  the  return  and  such other information as the state tax commission deems
 28    necessary for the proper administration of this act.
 29        (g)  The person required to file the return  shall  mail  or  deliver  the
 30    return  together  with a remittance of any tax due to the state tax commission
 31    for the reporting period.
 32        (h)  The state tax commission, if it deems it necessary in order to insure
 33    payment to or facilitate the collection by the state  of  taxes,  may  require
 34    returns for periods other than monthly periods.
 35        (i)  For  the  purposes  of  the  sales tax, gross amounts from rentals or
 36    leases of tangible personal property which may be subject to  tax  under  this
 37    act  shall  be  reported and the tax paid in accordance with such rules as the
 38    state tax commission may prescribe.
 39        (j)  The state tax commission for good cause may extend, for not to exceed
 40    one (1) month, the time for making any return or paying any amount required to
 41    be paid under this act.
 42        (k)  Any person to whom an extension is  granted  and  who  pays  the  tax
 43    within the period for which the extension is granted shall pay, in addition to
 44    the  tax,  interest  at the rate provided in section 63-3045, Idaho Code, from
 45    the date on which the tax would have been due without the extension until  the
 46    day of payment.
 47        (l)  Upon the transfer of ownership of a motor vehicle subject to sales or
 48    use tax, a certificate of title will be issued to the new owner only upon pre-
 49    sentation of evidence of payment of sales or use tax on the transaction.
 50        (m)  The  owner of a motor vehicle or trailer required to be registered by
 51    the laws of this state shall, upon demand, furnish to the officer issuing such
 52    registration, satisfactory evidence that any sales or use tax  to  which  such
 53    motor  vehicle  or  trailer  is subject has been paid to this state before any
 54    such registration shall be issued.
 55        (n)  Retail sales of tangible personal property through a vending  machine


  1    which are taxable upon the purchase price paid by the owner or operator of the
  2    vending  machine  pursuant  to  subsection (e) of section 63-3613, Idaho Code,
  3    shall be reported upon the sales tax return of the owner or  operator  of  the
  4    vending  machine  in  the  manner by which the tax commission may by rule pre-
  5    scribe.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 17551
This legislation will repeal Section 63-3613 9(e), Idaho
Code, that deals with tangible personal property with sales of
less than a dollar and 1 cent ($1.01) but more than 11 cents
($0.11) through a vending machine.      

                         FISCAL NOTE


Name: Chairman Dennis Lake 
Phone: 208.332.1000

STATEMENT OF PURPOSE/FISCAL NOTE                         H 367