Consistent with the unclaimed property laws in about half of the other states, House Bill 471 makes Idaho a mineral interest “current to pay” state. This means that once a royalty in a mineral interest owner’s account reaches the dormancy period of five years, that royalty payment and all other items in the account are reportable. Further, any other payments to that owner’s account in the future become reportable on the next reporting deadline without having to be dormant for the five-year period. Today we are covering a recently enacted bill that makes changes idaho tax and bookkeeping to Idaho’s unclaimed property law, corporate income tax rate changes pending in multiple states, and a sales tax case from the Arkansas Supreme Court. Summary of a recently enacted bill that makes changes to Idaho’s unclaimed property law, corporate income tax rate changes pending in multiple states, and a sales tax case from the Arkansas Supreme Court. After a non-fraudulent report is filed, the statute of limitations for when the administrator may commence an action to enforce reporting payment or delivery of property is increased from three to five years.
- Idaho’s new law modifies when particular property types become reportable and must be remitted to the Idaho state treasurer.
- On March 11, 2024, Governor Brad Little of Idaho signed House Bill 471 into law.
- He and his team are very responsive and willing to take the time to answer any and all questions.
- The vehicles were driven over 5,000 in most cases, and were assigned dealer license tags, which the dealers conceded were misused.
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In addition, the new law increases from seven to ten years the time period during which the administrator may commence an action with respect to a duty of the holder. Alturas CPA is an experienced Boise, Idaho CPA dedicated to providing accounting services, tax services, and financial advice to businesses and individuals. At Alturas CPA, we’re passionate about accounting services for small business owners. We come together with businesses of all types to find accounting and tax solutions that fit their unique needs. When you team up with us, we’ll become a sounding board for your ideas and the resource that helps you stay on track to reach your business goals.
Further, a statute imposing fines for the misuse of dealer tags did not preclude the ADFA from imposing sales tax on the use of the vehicles. Two justices dissented, asserting that it was absurd to call the use of the vehicles a withdrawal from stock when they were in fact sold and tax as collected on the sale. Please contact Sadie Cuevas with questions on Arkansas Department of Finance and Administration v. Trotter Ford. In addition, House Bill 471 provides that a recurring automated clearinghouse debit or credit previously authorized by the apparent owner in an account at a financial organization is not an indication of owner interest that would prevent the running of the dormancy period. Idaho’s existing law permits such contact linkage only among certain types of banking or financial organization types of property (i.e., savings and checking accounts).
If prior to providing the required notice, a holder attempts to provide email notice to the owner through an email address provided by the owner and the owner affirmatively confirms receipt of the notice or the owner otherwise indicates an interest, then due diligence is no longer required. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. We offer quick turnaround and detail-oriented services that your tax and bookkeeping/accounting situations require. Whether we’re helping you through a one-time event or building a long-term relationship, we are available to help.
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One of those statutes required a consumer to pay sales tax on the purchase of a vehicle on or before the time for registration. The dealers argued that the ADFA was not entitled to assess tax twice –on both withdrawal and on the subsequent sale to a consumer. The court, however, noted that the tax at issue was assessed for the “use” of the vehicles and that a vehicle might be involved in multiple transactions during its lifetime that will trigger sales tax liability.
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This includes cloud accounting services, bookkeeping, user-friendly financial statements, and a powerful strategy to reduce taxes so more revenue makes it to your bottom line. When you run into questions or have to make an important business decision, we’ll always make time to offer sound advice. On March 11, 2024, Governor Brad Little of Idaho signed House Bill 471 into law. This bill repeals the existing unclaimed property statute and replaces it with a customized version of the 2016 Revised Unclaimed Property Act. The new Idaho law (IDRUPA) takes effect July 1, 2024, and makes many changes to the current law, including but not limited to, adding provisions extending the law’s coverage to virtual currency and providing that the death of an owner triggers the running of dormancy periods.
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The court first noted that the language in the statute was so plain and unambiguous that judicial construction was limited to what was said. Specifically, the statute provided that a taxable event was triggered by the “withdrawal or use of . In the court’s view, it was clear that the vehicles were used, and therefore, withdrawn from stock based on the plain language of the statute. In reaching this conclusion, the court rejected the lower court’s conclusion that there were several more specific statutes in Arkansas law that governed the matter.
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The length of time and types of items that must be retained pertaining to unclaimed property compliance are expanded under IDRUPA. The record retention period increases from seven to ten years after the later of the date the report was filed or the last date a timely report was due to be filed. Further, House Bill 471 adds information that must be retained, including copies of due diligence letter responses, documentation of service charge deductions, and working papers documenting items that were not ultimately reported. The Arkansas Supreme Court recently concluded that two vehicle dealers owed sales tax on vehicles that were temporarily used by employees and relatives of the owner and general manager before being sold to customers. The vehicles were driven over 5,000 in most cases, and were assigned dealer license tags, which the dealers conceded were misused.
Correspondingly, House Bill 471 prescribes that virtual currency must be liquidated prior to the holder filing the unclaimed property report and that the owner shall have no recourse against either a holder who has acted in good faith or the administrator for any gain in value after liquidation. Over the last couple of years, states have been in an unprecedented period of revenue growth coming out of the pandemic. This has resulted in a number of recent corporate and individual income tax rate reductions. The most recent enactment is Idaho House Bill 521, which was signed into law on March 29, 2024. This bill reduces the corporate income tax rate from 5.8 percent to 5.695 percent effective January 1, 2024. He has always given us great advice for both our business and personal taxes and has saved us thousands.