Print Friendly HOUSE BILL NO. 367
– Sales tax, vending machine sales
HOUSE BILL NO. 367
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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
]]]] 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
2 RELATING TO SALES TAX; AMENDING SECTION 63-3613, IDAHO CODE, TO REVISE THE
3 DEFINITION OF "SALES PRICE" BY DELETING THE PROVISION RELATING TO TANGIBLE
4 PERSONAL PROPERTY SOLD AT RETAIL THROUGH A VENDING MACHINE; AND AMENDING
5 SECTION 63-3623, IDAHO CODE, TO DELETE A SALES TAX REPORTING REQUIREMENT
6 FOR RETAIL SALES OF TANGIBLE PERSONAL PROPERTY THROUGH A VENDING MACHINE.
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
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
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
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-
STATEMENT OF PURPOSE
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.
Name: Chairman Dennis Lake
STATEMENT OF PURPOSE/FISCAL NOTE H 367