legislative

Sentry Page Protection

Legislative Report – 2015

IDAHO

Idaho 2015 Legislative Profile

Idaho 2015 Session Overview

In the 2014 elections Idaho Republican candidates continued to dominate by sweeping all constitutional elected offices and 84 of 105 legislative seats. Many pundits wondered if the Tea Party fringe would capture some statewide seats but that did not happen. Idaho remains very conservative yet operating within a “traditional” republican platform.

The House remains a “divided” House starting at the top with a significant tea party-type alignment inside the House majority leadership. The House Speaker spends a good deal of time balancing and adjusting committees and bill assignments to avert negative press resulting from intra-party fighting on the floor. This divide hampers objective, forthright debate on issues and across-the-isle coalition building. As a result, the lopsided majorities in both chambers leave much work to do on some issues trying to find a majority within the majority to pass a bill, any bill.

Predicting issue outcome is tricky business. For example, this conservative legislature passed new taxes and fees for road and bridge maintenance and construction though refused to consider a minimum wage proposal and held it in committee without a hearing; floated numerous proposals to repeal the sales tax on groceries but passed none; reauthorized an income tax credit for citizens, business and corporate foundations donating to schools and libraries; and increased general fund appropriation levels for teachers salaries by introducing a new career ladder formula.

Lastly, in an unusual circumstance, the legislature refused to consider a bill to align Idaho’s child support systems with U.S. systems and other countries (if part of international treaties). This anti-federal sentiment required a one-day extraordinary session (May 18, 2015) to be called by the Governor for retooling and reconsideration of the legislation.

The 2015 Legislative Session began January 12, 2015 and adjourned sine die April 11, 2015 (and the extraordinary session convened /adjourned May 18). When the Legislature adjourned sine die on April 11th, it had been in session for 89 days. The 2015 legislative session, the longest since 2009, was 15 days longer than the 2014 session.

During the 2015 session, 763 proposed pieces of legislation were prepared for legislative committees and individual legislators. From that initial group of draft proposals, 523 bills were introduced (assigned a bill number), along with another 72 resolutions, memorials and proclamations. By the end of the session, 351 bills had passed but after the Governor’s review only 347 bills became law. Four bills were vetoed by the Governor and one bill received a line-item veto. The majority of the new laws became effective July 1, 2015.

Proposed bills throughout the session were read and analyzed to determine any impact upon the grocery business. The Idaho NWGA lobby team tracked 37 bills containing direct and indirect significance to NWGA members. This report presents only those bills that held a real possibility at some time of becoming law. Some bills introduced presented consequences in how NWGA members may operate their businesses, and some resulted in new taxes, fees, regulations and mandates; and fortunately, a few other bills benefitted grocery employers and businesses.

NWGA Sponsored Legislation

Retail Grocery

Tax

HB29 - Business Personal Property Taxation Exemptions

NWGA Position:Monitor

Status:Signed into law.

Effective date:July 1, 2015

Summary:This legislative proposal makes three technical corrections. Section one of the proposal relates to the definition of a taxpayer using property tax concepts instead of income tax concepts. Section two of the proposal relates to property tax loss replacement money to counties and refunds on improperly claimed exemptions. Section three relates to operating property and the $100,000 per county exemption. The proposal would limit the total amount of the exemption to the lesser of $100,000 per county or the total amount of personal property identified on the companies' reports.

Impact To Industry: Brings predictability to personal property tax exemption calculations. With each NWGA member’s store in a different county eligible to receive up $100,000, property tax savings will be important. To determine your impact determine the number of counties in which you have a store and multiple that by $100,000 for your tax exemption.

HB35 - Income Tax Preparation, Filings & Returns Requirement

NWGA Position: Monitor

Status: DIED on House Floor [25-44-1]

Summary: This proposal would require electronic filing of income tax returns by paid tax preparers once they meet a filing threshold. The legislation also requires large partnerships and large corporations to electronically file income tax returns.

Impact to Industry: Increased filing and preparation costs to retailers.

HB220 - Income Tax Credits - Charitable Contributions

NWGA Position: Monitor

Status: Signed into law.

Effective date: January 1, 2015 (retroactive for 2015 tax year)

Summary: Amends and repeals existing law relating to income tax credit for charitable contributions and limitations. It removes the January 2016 sunset and retains the $5,000 limit for corporation, $1,000 limit for couples and $500 for individuals.

Impact To Industry: Allows retailers to take the full $5,000 tax credit for charitable contributions.

HB237 - Food Use Tax

NWGA Position: Monitor

Status: Signed into law.

Effective date: April 2, 2015.

Summary: Amends existing law to provide that the Use Tax shall not apply to a retailer supplying prepared food or beverages free of charge to its employee when that retailer sells prepared food or beverages in its normal course of business. Retailers are sponsors.

Impact To Industry: Allows retailer to provide sales tax ‘free’ deli meals to employees.

HB283 - Streamlined Sales Tax

NWGA Position: Monitor

Status: Died in House Revenue & Taxation.

Summary: Amends and adds to existing law to enact the Streamlined Sales Tax. This legislation, the Streamlined Sales Tax Simplification Act, brings together the relevant applicable statutes affecting the collection of remote Idaho sales and use taxes. The sales/use tax statutes will be modified to join, with 24 other states, the Streamlined Sales Tax Governing Board. These changes do not create new taxes or create any product or organizational exemptions but rather establishes uniformity of definitions and uniformity of administration of sales/use taxes, such as, uniform tax electronic reporting and use of an automated clearing house.

HB311/HB 330 - Transportation, Income, Grocery and Sales Tax

NWGA Position: Monitor

Status: Died in Senate Transportation

Summary: Overall goal was to remove grocery tax, increase transportation funding and reduce income tax rates. New money would be distributed 60% state and 40% local. Also proposed lowering the income tax rate for the upper brackets to 6.7% and the lowest four brackets will remain at the same tax rate. Created a floor for counties and cities for the sales tax distribution with a 3-year sunset.

Transportation

HB132 – Gaseous Fuels Permit

NWGA Position: Monitor

Status: Signed into law.

Effective Date: July 1, 2015

Summary: This bill repeals Idaho's current annual special gaseous fuels tax permits and uses an energy equivalency. Once the CNG and LPG is converted into a diesel and gasoline gallon energy equivalent, a $.25 per gallon fuel tax is applied. This tax will be paid at the pump by the retail consumer and to the distributor by the retail outlet.

Impact to Industry: $375,000 is expected to be collected from CNG/LPG vehicles across all commercial and private sectors.

HB312a - Fuel Taxes, Vehicle Registration, General Fund Surplus Eliminator

NWGA Position: Monitor

Status: Signed into law.

Effective Date: Motor Fuel Tax Effective: 7/1/15, Registration Fees Effective: 7/1/2015

Summary: Increases registration fees for all vehicles by $21, motorcycle registration by $6, $150 electric cars and $100 for hybrid cars Heavy Truck registration $25 Increase fuel tax by $.07 effective immediately from $.25 to $.32. Included ton mile tax intent language requiring the development of a formula by 2019. Added surplus eliminator diverting up to 1% of general fund revenue in excess of 4% over previous fiscal year. Adding a sunset of May 31, 2017, and adding.

HJM8 – Heavy Trucks and Designated Interstate Routes

NWGA Position: Monitor

Status: ADOPTED-Transmitted to Congress

Summary:Stating findings of the Legislature and urging and petitioning the Congress of the United States to enact the pending legislation introduced by the Idaho congressional delegation providing legal authority to the State of Idaho to determine whether to allow 129,000-pound vehicles on the federal Interstate highway system in Idaho.

Impact to Industry: Sends message of support to Congress that less truck trips/truck miles may be realized if Congress designates Idaho as a 129,000 pound commercial truck weight state on interstate highways.

SB1028 - Speed Limits

NWGA Position: Monitor

Status:Signed into law.

Effective date: July 1, 2015

Summary: This is one of a series of bills that the Idaho Supreme Court has recommended in its annual report to the Governor concerning defects or omissions in the laws. There is no provision in Idaho Code § 49-654 requiring drivers to observe legally set speed limits lower than 75 mph on interstate highways or lower than 65 mph on state highways. This bill would implement the legislative intent by making it an infraction for drivers to exceed the posted limits on interstate highways and state highways.

Pharmacy