2008 Legislation
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HOUSE BILL NO. 676<br /> – Motor fuels, sales tax on purchase

HOUSE BILL NO. 676

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H0676.....................................................by WAYS AND MEANS
MOTOR FUELS - SALES TAX - Amends existing law relating to sales and use
taxes to provide a rate of the sales tax at two percent of motor fuels that
are subject to the motor fuels tax; to provide a rate of the use tax at two
percent on the purchase of motor fuels that are subject to the motor fuels
tax; to provide a partial exception to the sales and use tax exemption for
motor fuels; and to provide for distribution of the moneys to the highway
distribution account.

03/20    House intro - 1st rdg - to printing
03/21    Rpt prt - Held at Desk
03/31    Ref'd to W/M

Bill Text




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

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 676

                                BY WAYS AND MEANS COMMITTEE

  1                                        AN ACT
  2    RELATING TO SALES AND USE TAXES; AMENDING SECTION 63-3619, IDAHO CODE, TO PRO-
  3        VIDE A RATE OF THE SALES TAX AT TWO PERCENT ON PURCHASES  OF  MOTOR  FUELS
  4        THAT  ARE  SUBJECT TO THE MOTOR FUELS TAX; AMENDING SECTION 63-3621, IDAHO
  5        CODE, TO PROVIDE A RATE OF THE USE TAX AT  TWO  PERCENT  ON  PURCHASES  OF
  6        MOTOR  FUELS  THAT  ARE  SUBJECT  TO THE MOTOR FUELS TAX; AMENDING SECTION
  7        63-3622C, IDAHO CODE, TO PROVIDE A PARTIAL EXCEPTION TO THE SALES AND  USE
  8        TAX  EXEMPTION FOR MOTOR FUELS; AND AMENDING  SECTION 63-3638, IDAHO CODE,
  9        TO PROVIDE FOR A DISTRIBUTION TO THE HIGHWAY DISTRIBUTION ACCOUNT OF SALES
 10        AND USE TAX REVENUES COLLECTED FROM THE IMPOSITION OF A TWO PERCENT TAX ON
 11        PURCHASES OF MOTOR FUELS THAT ARE SUBJECT TO THE MOTOR FUELS TAX.

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

 13        SECTION 1.  That Section 63-3619, Idaho Code, be, and the same  is  hereby
 14    amended to read as follows:

 15        63-3619.  IMPOSITION  AND  RATE  OF THE SALES TAX. An excise tax is hereby
 16    imposed upon each sale at retail at the rate of six percent (6%) of the  sales
 17    price  of  all  retail  sales  subject to taxation under this chapter and such
 18    amount with the exception of purchases exempt from taxation pursuant  to  sec-
 19    tion  63-3622C, Idaho Code, which shall be taxed at a rate of two percent (2%)
 20    of the sales price beginning July 1, 2008, notwithstanding any other provision
 21    of law to the contrary. The excise tax as set forth herein shall  be  computed
 22    monthly on all sales at retail within the preceding month.
 23        (a)  The tax shall apply to, be computed on, and collected for all credit,
 24    installment,  conditional  or similar sales at the time of the sale or, in the
 25    case of rentals, at the time the rental is charged.
 26        (b)  The tax hereby imposed shall be collected by the  retailer  from  the
 27    consumer.
 28        (c)  The  state  tax  commission shall provide schedules for collection of
 29    the tax on sales which involve a fraction of a dollar. The retailer shall cal-
 30    culate the tax upon the entire amount of the purchases of the consumer made at
 31    a particular time and not separately upon each item  purchased.  The  retailer
 32    may  retain  any amount collected under the bracket system prescribed which is
 33    in excess of the amount of tax for which he is liable to the state during  the
 34    period as compensation for the work of collecting the tax.
 35        (d)  It  is unlawful for any retailer to advertise or hold out or state to
 36    the public or to any customer, directly or indirectly, that  the  tax  or  any
 37    part  thereof  will be assumed or absorbed by the retailer or that it will not
 38    be added to the selling price of the property sold or that if added it or  any
 39    part thereof will be refunded. Any person violating any provision of this sec-
 40    tion is guilty of a misdemeanor.
 41        (e)  The  tax  commission may by rule provide that the amount collected by
 42    the retailer from the customer in reimbursement of the tax be displayed  sepa-
 43    rately  from  the list price, the price advertised on the premises, the marked

                                       2

  1    price, or other price on the sales slip or other proof of sale.
  2        (f)  The taxes imposed by this chapter shall apply to the  sales  to  con-
  3    tractors  purchasing  for  use in the performance of contracts with the United
  4    States.

  5        SECTION 2.  That Section 63-3621, Idaho Code, be, and the same  is  hereby
  6    amended to read as follows:

  7        63-3621.  IMPOSITION  AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
  8    is hereby imposed on the storage, use, or other consumption in this  state  of
  9    tangible  personal property acquired on or after October 1, 2006, for storage,
 10    use, or other consumption in this state at the rate of six percent (6%) of the
 11    value of the property, and a with the exception of purchases exempt from taxa-
 12    tion pursuant to section 63-3622C, Idaho Code, which shall be taxed at a  rate
 13    of two percent (2%) of the sales price beginning July 1, 2008, notwithstanding
 14    any other provision of law to the contrary. A recent sales price shall be pre-
 15    sumptive evidence of the value of the property unless the property is wireless
 16    telecommunications equipment, in which case a recent sales price shall be con-
 17    clusive evidence of the value of the property.
 18        (a)  Every  person  storing, using, or otherwise consuming, in this state,
 19    tangible personal property is liable for the tax. His liability is not  extin-
 20    guished until the tax has been paid to this state except that a receipt from a
 21    retailer  maintaining a place of business in this state or engaged in business
 22    in this state given to the purchaser is sufficient to  relieve  the  purchaser
 23    from  further  liability  for  the tax to which the receipt refers. A retailer
 24    shall not be considered to have stored, used or consumed wireless telecommuni-
 25    cations equipment by virtue of giving, selling or otherwise transferring  such
 26    equipment at a discount as an inducement to a consumer to commence or continue
 27    a contract for telecommunications service.
 28        (b)  Every retailer engaged in business in this state, and making sales of
 29    tangible  personal property for the storage, use, or other consumption in this
 30    state, not exempted under section 63-3622, Idaho Code, shall, at the  time  of
 31    making the sales or, if storage, use or other consumption of the tangible per-
 32    sonal  property is not then taxable hereunder, at the time the storage, use or
 33    other consumption becomes taxable, collect the tax from the purchaser and give
 34    to the purchaser a receipt therefor in the manner and form prescribed  by  the
 35    state tax commission.
 36        (c)  The provisions of this section shall not apply when the retailer pays
 37    sales  tax  on  the  transaction and collects reimbursement for such sales tax
 38    from the customer.
 39        (d)  Every retailer engaged in business in this  state  or  maintaining  a
 40    place  of  business in this state shall register with the state tax commission
 41    and give the name and address of all agents operating in this state, the loca-
 42    tion of all distributions or sales houses or offices or other places of  busi-
 43    ness in this state, and such other information as the state tax commission may
 44    require.
 45        (e)  For  the purpose of the proper administration of this act and to pre-
 46    vent evasion of the use tax and the duty to collect the use tax, it  shall  be
 47    presumed  that  tangible  personal property sold by any person for delivery in
 48    this state is sold for storage, use, or other consumption in this  state.  The
 49    burden of proving the sale is tax exempt is upon the person who makes the sale
 50    unless  he  obtains from the purchaser a resale certificate to the effect that
 51    the property is purchased for resale or rental.  It  shall  be  presumed  that
 52    sales made to a person who has completed a resale certificate for the seller's
 53    records  are  not  taxable  and the seller need not collect sales or use taxes

                                       3

  1    unless the tangible personal property purchased is taxable to the purchaser as
  2    a matter of law in the particular instance claimed on the resale certificate.
  3        A seller may accept a resale certificate from a  purchaser  prior  to  the
  4    time  of  sale,  at the time of sale, or at any reasonable time after the sale
  5    when necessary to establish the privilege of the exemption. The resale certif-
  6    icate relieves the person selling the property from the burden of  proof  only
  7    if  taken  from  a person who is engaged in the business of selling or renting
  8    tangible personal property and who holds the permit provided  for  by  section
  9    63-3620,  Idaho  Code,  or  who  is a retailer not engaged in business in this
 10    state, and who, at the time of  purchasing  the  tangible  personal  property,
 11    intends  to sell or rent it in the regular course  of business or is unable to
 12    ascertain at the time of purchase whether the property will be sold or will be
 13    used for some other purpose. Other than as provided elsewhere in this section,
 14    when a resale certificate, properly executed, is presented to the seller,  the
 15    seller  has  no  duty or obligation to collect sales or use taxes in regard to
 16    any sales transaction so documented regardless of whether the purchaser  prop-
 17    erly  or  improperly claimed an exemption. A seller so relieved of the obliga-
 18    tion to collect tax is also relieved of any liability  to  the  purchaser  for
 19    failure  to  collect tax or for making any report or disclosure of information
 20    required or permitted under this chapter.
 21        The resale certificate shall bear the name and address of  the  purchaser,
 22    shall  be  signed  by the purchaser or his agent, shall indicate the number of
 23    the permit issued to the purchaser, or that the purchaser is  an  out-of-state
 24    retailer,  and  shall  indicate the general character of the tangible personal
 25    property sold by the purchaser in the regular course of business. The certifi-
 26    cate shall be substantially in such form as the state tax commission may  pre-
 27    scribe.
 28        (f)  If  a  purchaser  who gives a resale certificate makes any storage or
 29    use of the property other than retention, demonstration or display while hold-
 30    ing it for sale in the regular course of business, the storage or use is  tax-
 31    able as of the time the property is first so stored or used.
 32        (g)  Any  person  violating  any  provision of this section is guilty of a
 33    misdemeanor and punishable by a fine not in  excess  of  one  hundred  dollars
 34    ($100), and each violation shall constitute a separate offense.
 35        (h)  It  shall  be  presumed  that  tangible  personal property shipped or
 36    brought to this state by the purchaser was  purchased  from  a  retailer,  for
 37    storage, use or other consumption in this state.
 38        (i)  It  shall  be presumed that tangible personal property delivered out-
 39    side this state to a purchaser known by the retailer to be a resident of  this
 40    state  was purchased from a retailer for storage, use, or other consumption in
 41    this state. This presumption may be controverted by evidence  satisfactory  to
 42    the state tax commission that the property was not purchased for storage, use,
 43    or other consumption in this state.
 44        (j)  When  the tangible personal property subject to use tax has been sub-
 45    jected to a general retail sales or use tax by another  state  of  the  United
 46    States  in an amount equal to or greater than the amount of the Idaho tax, and
 47    evidence can be given of such payment, the property will  not  be  subject  to
 48    Idaho  use tax. If the amount paid the other state was less, the property will
 49    be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
 50    the other state. For the purposes of this subsection, a registration  certifi-
 51    cate  or title issued by another state or subdivision thereof for a vehicle or
 52    trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
 53    cient evidence of payment of a general retail sales or use tax.
 54        (k)  The use tax herein imposed shall not apply to the use by  a  nonresi-
 55    dent  of  this  state of a motor vehicle which is registered or licensed under

                                       4

  1    the laws of the state of his residence and is not used in this state more than
  2    a cumulative period of time totaling  ninety  (90)  days  in  any  consecutive
  3    twelve  (12)  months,  and  which is not required to be registered or licensed
  4    under the laws of this state.
  5        (l)  The use tax herein imposed shall not apply to the  use  of  household
  6    goods,  personal  effects and personally owned motor vehicles by a resident of
  7    this state, if such articles were acquired by such  person  in  another  state
  8    while a resident of that state and primarily for use outside this state and if
  9    such  use was actual and substantial, but if an article was acquired less than
 10    three (3) months prior to the time he entered this state, it will be  presumed
 11    that  the  article was acquired for use in this state and that its use outside
 12    this state was not actual and substantial. For purposes  of  this  subsection,
 13    "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code.
 14        (m)  The  use  tax  herein  imposed shall not apply to the storage, use or
 15    other consumption of tangible personal property which is or will  be  incorpo-
 16    rated  into  real  property  and  which has been donated to and has become the
 17    property of:
 18        (1)  A nonprofit organization as defined in section 63-3622O, Idaho  Code;
 19        or
 20        (2)  The state of Idaho; or
 21        (3)  Any political subdivision of the state.
 22    This  exemption applies whether the tangible personal property is incorporated
 23    in real property by the donee, a contractor or subcontractor of the donee,  or
 24    any other person.

 25        SECTION  3.  That Section 63-3622C, Idaho Code, be, and the same is hereby
 26    amended to read as follows:

 27        63-3622C.  MOTOR FUELS SUBJECT TO TAX.  Except  as  provided  in  sections
 28    63-3619 and 63-3621, Idaho Code, tThere are exempted from the taxes imposed by
 29    this  chapter  purchases  which  are subject to the motor fuels tax imposed by
 30    chapter 24, title 63, Idaho Code, and purchases upon which motor  fuels  taxes
 31    have  actually been paid and the sale or use of any fuel which is subsequently
 32    transported outside the state for use thereafter outside the state. Nothing in
 33    this chapter shall be construed to authorize the imposition of a tax  on  fuel
 34    brought  into this state in the fuel tanks of motor vehicles or railroad loco-
 35    motives in interstate commerce.

 36        SECTION 4.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
 37    amended to read as follows:

 38        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 39    ter,  except  as  may  otherwise  be required in sections 63-3203 and 63-3709,
 40    Idaho Code, shall be distributed by the tax commission as follows:
 41        (1)  An amount of money shall be distributed to the state  refund  account
 42    sufficient  to  pay  current  refund claims. All refunds authorized under this
 43    chapter by the commission shall be paid through the state refund account,  and
 44    those moneys are continuously appropriated.
 45        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 46    ated and shall be distributed to the permanent building fund, provided by sec-
 47    tion 57-1108, Idaho Code.
 48        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 49    continuously appropriated and shall be distributed to the water pollution con-
 50    trol account established by section 39-3605, Idaho Code.
 51        (4)  An  amount  equal to the sum required to be certified by the chairman

                                       5

  1    of the Idaho housing and finance association to the state tax commission  pur-
  2    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
  3    ated and shall be paid to any capital reserve fund, established by  the  Idaho
  4    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
  5    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
  6    of  the Idaho housing and finance association shall be repaid for distribution
  7    under the provisions of this section, subject to  the  provisions  of  section
  8    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
  9    possible, from any moneys available therefor and  in  excess  of  the  amounts
 10    which the association determines will keep it self-supporting.
 11        (5)  An  amount  equal  to  the sum required by the provisions of sections
 12    63-709 and 63-717, Idaho Code, after allowance for the amount appropriated  by
 13    section      63-718(3),  Idaho Code, is continuously appropriated and shall be
 14    paid as provided by sections 63-709 and 63-717, Idaho Code.
 15        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 16    Code.
 17        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 18    Code.
 19        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 20    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 21    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 22    transportation department excepting those applications in which any  sales  or
 23    use taxes due have been previously collected by a retailer, shall be a fee for
 24    the services of the assessor of the county or the Idaho transportation depart-
 25    ment in collecting such taxes, and shall be paid into the current expense fund
 26    of  the  county  or state highway account established in section 40-702, Idaho
 27    Code.
 28        (9)  Eleven and five-tenths percent (11.5%) is  continuously  appropriated
 29    and  shall  be  distributed to the revenue sharing account which is created in
 30    the state treasury, and the moneys in the revenue sharing account will be paid
 31    in installments each calendar quarter by the tax commission as follows:
 32        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 33        ious cities as follows:
 34             (i)   Fifty percent (50%) of such amount shall be paid to the various
 35             cities, and each city shall be entitled to an amount in  the  propor-
 36             tion  that the population of that city bears to the population of all
 37             cities within the state; and
 38             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 39             cities, and each city shall be entitled to an amount in  the  propor-
 40             tion  that  the preceding year's market value for assessment purposes
 41             for that city bears to the preceding year's market value for  assess-
 42             ment purposes for all cities within the state.
 43        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 44        ious counties as follows:
 45             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
 46             annually shall be distributed one forty-fourth (1/44) to each of  the
 47             various counties; and
 48             (ii)  The  balance  of such amount shall be paid to the various coun-
 49             ties, and each county shall be entitled to an amount in  the  propor-
 50             tion  that  the  population of that county bears to the population of
 51             the state;
 52        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
 53        ated in this subsection (9) shall be paid to the several counties for dis-
 54        tribution to the cities and counties as follows:
 55             (i)   Each  city and county which received a payment under the provi-

                                       6

  1             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
  2             calendar year 1999, shall be entitled to a like  amount  during  suc-
  3             ceeding calendar quarters.
  4             (ii)  If  the  dollar amount of money available under this subsection
  5             (9)(c) in any quarter does not equal the amount paid  in  the  fourth
  6             quarter of calendar year 1999, each city's and county's payment shall
  7             be reduced proportionately.
  8             (iii) If  the  dollar amount of money available under this subsection
  9             (9)(c) in any quarter exceeds the amount paid in the  fourth  quarter
 10             of  calendar  year  1999, each city and county shall be entitled to a
 11             proportionately increased payment, but such increase shall not exceed
 12             one hundred five percent (105%) of the  total  payment  made  in  the
 13             fourth quarter of calendar year 1999.
 14             (iv)  If  the  dollar amount of money available under this subsection
 15             (9)(c)  in any quarter exceeds one hundred five percent (105%) of the
 16             total payment made in the fourth quarter of calendar year  1999,  any
 17             amount  over  and above such one hundred five percent (105%) shall be
 18             paid fifty percent (50%) to the various cities in the proportion that
 19             the population of the city bears to  the  population  of  all  cities
 20             within  the state, and fifty percent (50%) to the various counties in
 21             the proportion that the population of a county bears to  the  popula-
 22             tion of the state; and
 23        (d)  Seven  and  seven-tenths percent (7.7%) of the amount appropriated in
 24        this subsection (9) shall be paid to the several counties for distribution
 25        to special purpose taxing districts as follows:
 26             (i)   Each such district which received a payment  under  the  provi-
 27             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 28             calendar  year  1999,  shall be entitled to a like amount during suc-
 29             ceeding calendar quarters.
 30             (ii)  If the dollar amount of money available under  this  subsection
 31             (9)(d)  in  any  quarter does not equal the amount paid in the fourth
 32             quarter of calendar year 1999, each special purpose taxing district's
 33             payment shall be reduced proportionately.
 34             (iii) If the dollar amount of money available under  this  subsection
 35             (9)(d)  in any quarter exceeds the amount distributed under paragraph
 36             (i) of this subsection (9)(d), each special purpose  taxing  district
 37             shall  be  entitled  to a share of the excess based on the proportion
 38             each such district's current property tax budget bears to the sum  of
 39             the  current property tax budgets of all such districts in the state.
 40             The state tax commission shall calculate  district  current  property
 41             tax budgets to include any unrecovered foregone amounts as determined
 42             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 43             district  is situated in more than one (1) county, the tax commission
 44             shall determine the portion attributable to the special purpose  tax-
 45             ing district from each county in which it is situated.
 46             (iv)  If  special  purpose  taxing  districts  are  consolidated, the
 47             resulting district is entitled to a base amount equal to the  sum  of
 48             the  base amounts which were received in the last calendar quarter by
 49             each district prior to the consolidation.
 50             (v)   If  a  special  purpose  taxing  district   is   dissolved   or
 51             disincorporated, the state tax commission shall continuously distrib-
 52             ute  to the board of county commissioners an amount equal to the last
 53             quarter's distribution prior to dissolution or disincorporation.  The
 54             board  of  county commissioners shall determine any redistribution of
 55             moneys so received.

                                       7

  1             (vi)  Taxing districts formed after January 1, 2001, are not entitled
  2             to a payment under the provisions of this subsection (9)(d).
  3             (vii) For purposes of this subsection (9)(d), a special purpose  tax-
  4             ing  district is any taxing district which is not a city, a county or
  5             a school district.
  6        (10) Amounts calculated in accordance with section 2, chapter 356, laws of
  7    2001, for annual distribution to counties and other taxing districts beginning
  8    in October 2001 for replacement of property tax on farm machinery  and  equip-
  9    ment  exempted  pursuant  to  section 63-602EE, Idaho Code. For nonschool dis-
 10    tricts, the state tax commission shall distribute  one-fourth  (1/4)  of  this
 11    amount certified quarterly to each county. For school districts, the state tax
 12    commission shall distribute one-fourth (1/4) of the amount certified quarterly
 13    to  each  school  district.  For nonschool districts, the county auditor shall
 14    distribute to each district within thirty (30) calendar days from  receipt  of
 15    moneys  from  the  tax commission. Moneys received by each taxing district for
 16    replacement shall be utilized in the same manner and in the  same  proportions
 17    as  revenues  from  property taxation. The moneys remitted to the county trea-
 18    surer  for replacement of property exempt from taxation  pursuant  to  section
 19    63-602EE,  Idaho Code, may be considered by the counties and other taxing dis-
 20    tricts and budgeted at the same time, in the same manner and in the same  year
 21    as  revenues from taxation on personal property which these moneys replace. If
 22    taxing districts are consolidated, the resulting district is  entitled  to  an
 23    amount  equal to the sum of the amounts which were received in the last calen-
 24    dar quarter by each district pursuant to this subsection prior to the consoli-
 25    dation. If a taxing district is dissolved or disincorporated,  the  state  tax
 26    commission  shall continuously distribute to the board of county commissioners
 27    an amount equal to the last quarter's distribution  prior  to  dissolution  or
 28    disincorporation. The board of county commissioners shall determine any redis-
 29    tribution  of moneys so received.  If a taxing district annexes territory, the
 30    distribution of moneys received pursuant to this  subsection  shall  be  unaf-
 31    fected.  Taxing  districts formed after January 1, 2001, are not entitled to a
 32    payment under the  provisions  of  this  subsection.  School  districts  shall
 33    receive  an  amount  determined by multiplying the sum of the year 2000 school
 34    district levy minus .004 times the market value on December 31, 2000,  in  the
 35    district  of  the  property exempt from taxation pursuant to section 63-602EE,
 36    Idaho Code, provided that the result of these calculations shall not  be  less
 37    than  zero (0). The result of these school district calculations shall be fur-
 38    ther increased by six percent (6%). For purposes of the limitation provided by
 39    section 63-802, Idaho Code, moneys received pursuant to this section as  prop-
 40    erty  tax  replacement  for  property exempt from taxation pursuant to section
 41    63-602EE, Idaho Code, shall be treated as property tax revenues.
 42        (11) Amounts necessary to pay refunds as provided  in  subsection  (3)  of
 43    section  63-3641,  Idaho  Code,  to a developer of a retail commercial complex
 44    whose  stores sell tangible personal property or taxable services  subject  to
 45    the  sales and use tax up to an aggregate total of thirty-five million dollars
 46    ($35,000,000) per project shall be remitted to the demonstration pilot project
 47    fund created in subsection (3) of section 63-3641, Idaho Code,  and  shall  be
 48    specific to and accounted for by each project.
 49        (12) An  amount  equal  to  the  sales and use tax revenues collected from
 50    imposition of a two percent (2%) tax on purchases of motor fuels that are sub-
 51    ject to the motor fuels tax shall be deposited  to  the  highway  distribution
 52    account established in section 40-701, Idaho Code.
 53        (13) Any  moneys  remaining  over  and  above  those necessary to meet and
 54    reserve for payments under other subsections of this section shall be distrib-
 55    uted to the general fund.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 18136

The purpose of this legislation is to provide a rate of the sales
tax of two percent (2%) of the retail price of motor fuels that
are subject to the motor fuels tax and to provide a rate of the
use tax at two percent (2%) on purchases of motor fuels that are
subject to the motor fuels tax.  The legislation provides a
partial exception for motor fuels and provides for a distribution
to the highway distribution account of sales and use tax revenues
thus collected.


                           FISCAL NOTE

Based upon assumed per gallon costs of $3.00 for gasoline and
$3.50 for diesel, approximately $50,000,000 will be added to the
highway distribution account.








Contact
Name: Representative Shirley Ringo 
      Representative Bill Killen
      Representative Phylis King
      Representative Nicole LeFavour
      Representative James Ruchti
Phone: (208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 676