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H0686...............................................by REVENUE AND TAXATION SALES TAX EXEMPTIONS - Adds to existing law to provide an exemption from sales tax for certain fees and membership dues related to nonprofit hunting or shooting sports. 02/14 House intro - 1st rdg - to printing 02/15 Rpt prt - to Rev/Tax 02/24 Rpt out - rec d/p - to 2nd rdg 02/27 2nd rdg - to 3rd rdg 03/02 3rd rdg - PASSED - 54-13-3 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Black, Bolz, Brackett, Chadderdon, Clark, Collins, Crow, Denney, Edmunson, Ellsworth, Eskridge, Field(23), Garrett, Hart, Harwood, Henderson, Jaquet, Kemp, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Moyle, Nielsen, Nonini, Pence, Raybould, Ring, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood NAYS -- Bilbao, Boe, Bradford, Cannon, Deal, Henbest, Lake, Mitchell, Pasley-Stuart, Ringo, Rusche, Smith(30), Mr. Speaker Absent and excused -- Block, Field(18), Roberts Floor Sponsor - Sali Title apvd - to Senate 03/03 Senate intro - 1st rdg - to Loc Gov 03/16 Rpt out - rec d/p - to 2nd rdg 03/17 2nd rdg - to 3rd rdg 03/22 3rd rdg - PASSED - 27-8-0 AYES -- Andreason, Brandt, Broadsword, Burkett(Clark), Burtenshaw, Cameron, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Keough, Langhorst, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stennett, Sweet, Williams NAYS -- Bunderson, Coiner, Compton, Corder, Kelly, Little, Stegner, Werk Absent and excused -- None Floor Sponsor - Sweet Title apvd - to House 03/23 To enrol 03/24 Rpt enrol - Sp signed 03/27 Pres signed 03/28 To Governor 03/30 Governor signed Session Law Chapter 236 Effective: 07/01/02
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 686 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO TAXATION; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE, BY THE ADDI- 3 TION OF A NEW SECTION 63-3622SS, IDAHO CODE, TO PROVIDE AN EXEMPTION FROM 4 TAXATION FOR CERTAIN FEES AND MEMBERSHIP DUES RELATED TO NONPROFIT HUNTING 5 OR SHOOTING SPORTS; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE 6 EFFECTIVE DATE. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is 9 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 10 ignated as Section 63-3622SS, Idaho Code, and to read as follows: 11 63-3622SS. HUNTING OR SHOOTING SPORTS. There is exempted from the taxes 12 imposed by this chapter any fees that may be charged for the use of the facil- 13 ity at shooting ranges or shooting competitions by nonprofit organizations or 14 membership dues charged by nonprofit hunting or shooting sports organizations. 15 SECTION 2. An emergency existing therefor, which emergency is hereby 16 declared to exist, this act shall be in full force and effect on and after its 17 passage and approval, and retroactively to July 1, 2002.
STATEMENT OF PURPOSE RS 15891C1 This legislation adds a new section 63-3622SS to Idaho Code, providing a sales tax exemption for fees charged at shooting ranges and shooting competitions by nonprofit organizations. It also provides a sales tax exemption for membership dues charged by nonprofit hunting and shooting sports organizations. Because of an unexpected 2005 Tax Commission interpretation that shooting range fees are subject to sales tax, some nonprofit organizations were determined to owe sales tax on the subject fees. Many organizations have been put in serious financial jeopardy by this new interpretation of Idaho sales tax statutes. They will not only owe sales tax that they had previously believed was not required to be collected, but will also be subject to the imposition of interest and penalties which could be relatively substantial. The retroactive portion found in SECTION 2 will provide refunds to the two nonprofit hunting and shooting sports organizations known to have paid tax liability assessments based on Tax Commission audits. These non-profit hunting and shooting sports organizations provide an extremely valuable public service that includes firearms safety and hunter education. FISCAL NOTE The impact on the general fund will be minimal. The total amount of known refunds will be a few thousand dollars. The Tax commission has insufficient data to calculate the fiscal impact on an ongoing basis since these taxes have not been collected historically. Contact Rep. Bill Sali 332-1000 Sen. Gerry Sweet, Sen. Russ Fulcher, Rep. Cliff Bayer STATEMENT OF PURPOSE/FISCAL NOTE H 686