Print Friendly HOUSE BILL NO. 639
– Hwy dist acct, sales tax moneys
HOUSE BILL NO. 639
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H0639.....................................................by WAYS AND MEANS
SALES TAX - Amends existing law relating to the distribution of sales tax
revenues to provide for a distribution to the Highway Distribution Account
of sales tax revenues collected from retailers who report sales of certain
motor vehicle related items.
03/12 House intro - 1st rdg - to printing
03/13 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 639
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO THE DISTRIBUTION OF SALES TAX REVENUES; AMENDING SECTION 63-3638,
3 IDAHO CODE, TO PROVIDE FOR A DISTRIBUTION TO THE HIGHWAY DISTRIBUTION
4 ACCOUNT OF SALES TAX REVENUES COLLECTED FROM RETAILERS WHO REPORT SALES OF
5 CERTAIN MOTOR VEHICLE RELATED ITEMS; AND PROVIDING AN EFFECTIVE DATE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-3638, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
10 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
11 Idaho Code, shall be distributed by the tax commission as follows:
12 (1) An amount of money shall be distributed to the state refund account
13 sufficient to pay current refund claims. All refunds authorized under this
14 chapter by the commission shall be paid through the state refund account, and
15 those moneys are continuously appropriated.
16 (2) Five million dollars ($5,000,000) per year is continuously appropri-
17 ated and shall be distributed to the permanent building fund, provided by sec-
18 tion 57-1108, Idaho Code.
19 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
20 continuously appropriated and shall be distributed to the water pollution con-
21 trol account established by section 39-3605, Idaho Code.
22 (4) An amount equal to the sum required to be certified by the chairman
23 of the Idaho housing and finance association to the state tax commission pur-
24 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
25 ated and shall be paid to any capital reserve fund, established by the Idaho
26 housing and finance association pursuant to section 67-6211, Idaho Code. Such
27 amounts, if any, as may be appropriated hereunder to the capital reserve fund
28 of the Idaho housing and finance association shall be repaid for distribution
29 under the provisions of this section, subject to the provisions of section
30 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
31 possible, from any moneys available therefor and in excess of the amounts
32 which the association determines will keep it self-supporting.
33 (5) An amount equal to the sum required by the provisions of sections
34 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by
35 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid
36 as provided by sections 63-709 and 63-717, Idaho Code.
37 (6) An amount required by the provisions of chapter 53, title 33, Idaho
39 (7) An amount required by the provisions of chapter 87, title 67, Idaho
41 (8) One dollar ($1.00) on each application for certificate of title or
42 initial application for registration of a motor vehicle, snowmobile, all-
43 terrain vehicle or other vehicle processed by the county assessor or the Idaho
1 transportation department excepting those applications in which any sales or
2 use taxes due have been previously collected by a retailer, shall be a fee for
3 the services of the assessor of the county or the Idaho transportation depart-
4 ment in collecting such taxes, and shall be paid into the current expense fund
5 of the county or state highway account established in section 40-702, Idaho
7 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated
8 and shall be distributed to the revenue sharing account which is created in
9 the state treasury, and the moneys in the revenue sharing account will be paid
10 in installments each calendar quarter by the tax commission as follows:
11 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
12 ious cities as follows:
13 (i) Fifty percent (50%) of such amount shall be paid to the various
14 cities, and each city shall be entitled to an amount in the propor-
15 tion that the population of that city bears to the population of all
16 cities within the state; and
17 (ii) Fifty percent (50%) of such amount shall be paid to the various
18 cities, and each city shall be entitled to an amount in the propor-
19 tion that the preceding year's market value for assessment purposes
20 for that city bears to the preceding year's market value for assess-
21 ment purposes for all cities within the state.
22 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
23 ious counties as follows:
24 (i) One million three hundred twenty thousand dollars ($1,320,000)
25 annually shall be distributed one forty-fourth (1/44) to each of the
26 various counties; and
27 (ii) The balance of such amount shall be paid to the various coun-
28 ties, and each county shall be entitled to an amount in the propor-
29 tion that the population of that county bears to the population of
30 the state;
31 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
32 ated in this subsection (9) shall be paid to the several counties for dis-
33 tribution to the cities and counties as follows:
34 (i) Each city and county which received a payment under the provi-
35 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
36 calendar year 1999, shall be entitled to a like amount during suc-
37 ceeding calendar quarters.
38 (ii) If the dollar amount of money available under this subsection
39 (9)(c) in any quarter does not equal the amount paid in the fourth
40 quarter of calendar year 1999, each city's and county's payment shall
41 be reduced proportionately.
42 (iii) If the dollar amount of money available under this subsection
43 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
44 of calendar year 1999, each city and county shall be entitled to a
45 proportionately increased payment, but such increase shall not exceed
46 one hundred five percent (105%) of the total payment made in the
47 fourth quarter of calendar year 1999.
48 (iv) If the dollar amount of money available under this subsection
49 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
50 total payment made in the fourth quarter of calendar year 1999, any
51 amount over and above such one hundred five percent (105%) shall be
52 paid fifty percent (50%) to the various cities in the proportion that
53 the population of the city bears to the population of all cities
54 within the state, and fifty percent (50%) to the various counties in
55 the proportion that the population of a county bears to the popula-
1 tion of the state; and
2 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
3 this subsection (9) shall be paid to the several counties for distribution
4 to special purpose taxing districts as follows:
5 (i) Each such district which received a payment under the provi-
6 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
7 calendar year 1999, shall be entitled to a like amount during suc-
8 ceeding calendar quarters.
9 (ii) If the dollar amount of money available under this subsection
10 (9)(d) in any quarter does not equal the amount paid in the fourth
11 quarter of calendar year 1999, each special purpose taxing district's
12 payment shall be reduced proportionately.
13 (iii) If the dollar amount of money available under this subsection
14 (9)(d) in any quarter exceeds the amount distributed under paragraph
15 (i) of this subsection (9)(d), each special purpose taxing district
16 shall be entitled to a share of the excess based on the proportion
17 each such district's current property tax budget bears to the sum of
18 the current property tax budgets of all such districts in the state.
19 The state tax commission shall calculate district current property
20 tax budgets to include any unrecovered foregone amounts as determined
21 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
22 district is situated in more than one (1) county, the tax commission
23 shall determine the portion attributable to the special purpose tax-
24 ing district from each county in which it is situated.
25 (iv) If special purpose taxing districts are consolidated, the
26 resulting district is entitled to a base amount equal to the sum of
27 the base amounts which were received in the last calendar quarter by
28 each district prior to the consolidation.
29 (v) If a special purpose taxing district is dissolved or
30 disincorporated, the state tax commission shall continuously distrib-
31 ute to the board of county commissioners an amount equal to the last
32 quarter's distribution prior to dissolution or disincorporation. The
33 board of county commissioners shall determine any redistribution of
34 moneys so received.
35 (vi) Taxing districts formed after January 1, 2001, are not entitled
36 to a payment under the provisions of this subsection (9)(d).
37 (vii) For purposes of this subsection (9)(d), a special purpose tax-
38 ing district is any taxing district which is not a city, a county or
39 a school district.
40 (10) Amounts calculated in accordance with section 2, chapter 356, laws of
41 2001, for annual distribution to counties and other taxing districts beginning
42 in October 2001 for replacement of property tax on farm machinery and equip-
43 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
44 tricts, the state tax commission shall distribute one-fourth (1/4) of this
45 amount certified quarterly to each county. For school districts, the state tax
46 commission shall distribute one-fourth (1/4) of the amount certified quarterly
47 to each school district. For nonschool districts, the county auditor shall
48 distribute to each district within thirty (30) calendar days from receipt of
49 moneys from the tax commission. Moneys received by each taxing district for
50 replacement shall be utilized in the same manner and in the same proportions
51 as revenues from property taxation. The moneys remitted to the county trea-
52 surer for replacement of property exempt from taxation pursuant to section
53 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
54 tricts and budgeted at the same time, in the same manner and in the same year
55 as revenues from taxation on personal property which these moneys replace. If
1 taxing districts are consolidated, the resulting district is entitled to an
2 amount equal to the sum of the amounts which were received in the last calen-
3 dar quarter by each district pursuant to this subsection prior to the consoli-
4 dation. If a taxing district is dissolved or disincorporated, the state tax
5 commission shall continuously distribute to the board of county commissioners
6 an amount equal to the last quarter's distribution prior to dissolution or
7 disincorporation. The board of county commissioners shall determine any redis-
8 tribution of moneys so received. If a taxing district annexes territory, the
9 distribution of moneys received pursuant to this subsection shall be unaf-
10 fected. Taxing districts formed after January 1, 2001, are not entitled to a
11 payment under the provisions of this subsection. School districts shall
12 receive an amount determined by multiplying the sum of the year 2000 school
13 district levy minus .004 times the market value on December 31, 2000, in the
14 district of the property exempt from taxation pursuant to section 63-602EE,
15 Idaho Code, provided that the result of these calculations shall not be less
16 than zero (0). The result of these school district calculations shall be fur-
17 ther increased by six percent (6%). For purposes of the limitation provided by
18 section 63-802, Idaho Code, moneys received pursuant to this section as prop-
19 erty tax replacement for property exempt from taxation pursuant to section
20 63-602EE, Idaho Code, shall be treated as property tax revenues.
21 (11) Amounts necessary to pay refunds as provided in subsection (3) of
22 section 63-3641, Idaho Code, to a developer of a retail commercial complex
23 whose stores sell tangible personal property or taxable services subject to
24 the sales and use tax up to an aggregate total of thirty-five million dollars
25 ($35,000,000) per project shall be remitted to the demonstration pilot project
26 fund created in subsection (3) of section 63-3641, Idaho Code, and shall be
27 specific to and accounted for by each project.
28 (12) An amount equal to the sales tax revenues collected from retailers
29 who report sales under industry code 0553 (tires, batteries and accessory
30 dealers) shall be deposited to the highway distribution account established in
31 section 40-701, Idaho Code.
32 (13) Any moneys remaining over and above those necessary to meet and
33 reserve for payments under other subsections of this section shall be distrib-
34 uted to the general fund.
35 SECTION 2. This act shall be in full force and effect on and after July
36 1, 2009.
STATEMENT OF PURPOSE
This legislation allocates the sales tax revenue from the retail
establishments who report to the State Tax Commission under
industry code 0553 (tires, batteries, and accessory dealers) to
the Highway Distribution Account.
Reallocates $22 million from the general fund to the Highway
Distribution Account. The legislation becomes effective in FY
Name: Representative Phil Hart
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 639