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H0744...............................................by REVENUE AND TAXATION
SALES TAX - EXEMPTION - Amends existing law relating to exemptions from the
sales and use tax to provide that Project P.A.T.C.H., Planned Assistance
for Troubled Children, shall be included in the definition of "health
related entities."
02/28 House intro - 1st rdg - to printing
03/01 Rpt prt - to Rev/Tax
03/03 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/09 3rd rdg - PASSED - 54-11-5
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bedke, Bell,
Bilbao, Block, Boe, Bolz, Brackett, Bradford, Chadderdon, Collins,
Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
Garrett, Hart, Henbest, Henderson, Jaquet, Kemp, Loertscher,
Martinez, Mathews, McGeachin, McKague, Miller, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Rydalch, Sayler, Schaefer,
Shepherd(2), Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Trail, Wills, Mr. Speaker
NAYS -- Cannon, Clark, Harwood, Lake, LeFavour, Mitchell, Moyle,
Ringo, Roberts, Rusche, Sali
Absent and excused -- Bayer, Black, Crow, Shepherd(8), Wood
Floor Sponsor - Schaefer
Title apvd - to Senate
03/10 Senate intro - 1st rdg - to Loc Gov
03/22 Rpt out - rec d/p - to 2nd rdg
03/23 2nd rdg - to 3rd rdg
03/28 3rd rdg - FAILED - 17-18-0
AYES -- Brandt, Broadsword, Burkett(Clark), Burtenshaw, Corder,
Davis, Goedde, Keough, Langhorst, Malepeai, Marley, McGee, McKenzie,
Pearce, Schroeder, Stennett, Williams
NAYS -- Andreason, Bunderson, Cameron, Coiner, Compton, Darrington,
Fulcher, Gannon, Geddes, Hill, Jorgenson, Kelly, Little, Lodge,
Richardson, Stegner, Sweet, Werk
Absent and excused -- None
Floor Sponsor - Corder
Ret'd to House
Filed in Office of the Chief Clerk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 744
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO EXEMPTIONS FROM THE SALES AND USE TAX; AMENDING SECTION 63-3622O,
3 IDAHO CODE, TO PROVIDE THAT PROJECT P.A.T.C.H., PLANNED ASSISTANCE FOR
4 TROUBLED CHILDREN, SHALL BE INCLUDED IN THE DEFINITION OF "HEALTH RELATED
5 ENTITIES" AND TO MAKE TECHNICAL CORRECTIONS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-3622O, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-3622O. EXEMPT PRIVATE AND PUBLIC ORGANIZATIONS. (1) There are exempted
10 from the taxes imposed by this chapter:
11 (a) Sales to or purchases by hospitals, health-related entities, educa-
12 tional institutions, forest protective associations and canal companies
13 which are nonprofit organizations; and
14 (b) Donations to, sales to, and purchases by the Idaho Foodbank Ware-
15 house, Inc.; and
16 (c) Donations to, sales to, and purchases by food banks or soup kitchens
17 of food or other tangible personal property used by food banks or soup
18 kitchens in the growing, storage, preparation or service of food, but not
19 including motor vehicles or trailers; and
20 (d) Sales of clothes to, donations of clothes to, and purchases of
21 clothes by nonsale clothiers; and
22 (e) Sales to or purchases by centers for independent living; and
23 (f) Sales to or purchases by the state of Idaho and its agencies and its
24 political subdivisions; and
25 (g) Sales to or purchases by volunteer fire departments or licensed emer-
26 gency medical service agencies; and
27 (h) Sales to or purchases by a qualifying senior citizen center; and
28 (i) Sales to or purchases by the Blind Services Foundation, Inc.
29 (2) As used in this section, these words shall have the following mean-
30 ings:
31 (a) "Educational institution" shall mean nonprofit colleges, universi-
32 ties, public charter schools organized pursuant to chapter 52, title 33,
33 Idaho Code, and other primary and secondary schools, the income of which
34 is devoted solely to education and in which systematic instruction in the
35 usual branches of learning is given. This definition does not include
36 schools primarily teaching business, dancing, dramatics, music, cosmetol-
37 ogy, writing, gymnastics, exercise and other special accomplishments nor
38 parent-teacher associations, parent groups, alumni or other auxiliary
39 organizations with purposes related to the educational function of an
40 institution or collective group of institutions.
41 (b) "Hospital" shall include nonprofit institutions licensed by the state
42 for the care of ill persons. It shall not extend to nursing homes or simi-
43 lar institutions.
2
1 (c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foun-
2 dation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes,
3 American Cancer Society, Mental Health Association, The Arc, The
4 Children's Home Society of Idaho, American Heart Association, Idaho Ronald
5 McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
6 trophy Foundation, National Multiple Sclerosis Society, Rocky Mountain
7 Kidney Association, American Diabetes Association, Easter Seals, Idaho
8 Community Action Agencies, Idaho Primary Care Association and community
9 health centers who are members of the Idaho Primary Care Association, the
10 Idaho Diabetes Youth Programs, Special Olympics Idaho, the Idaho Women's
11 and Children's Alliance, and the Family Services Alliance of Southeast
12 Idaho, together with said entities' local or regional chapters or divi-
13 sions, and Project P.A.T.C.H., Planned Assistance for Troubled Children.
14 (d) "Canal companies" shall include nonprofit corporations which are
15 incorporated solely for the purpose of operating and maintaining and are
16 engaged solely in operation and maintenance of dams, reservoirs, canals,
17 lateral and drainage ditches, pumps or pumping plants.
18 (e) "Forest protective associations" shall mean associations whose pur-
19 pose is the furnishing, operating and maintaining of a protective system
20 for the detection, prevention and suppression of forest or range fires.
21 Forest protective associations shall include only those associations with
22 which the state of Idaho has contracted or become a member of pursuant to
23 chapter 1, title 38, Idaho Code.
24 (f) "Food banks or soup kitchens" shall mean any nonprofit corporation or
25 association, other than the Idaho Foodbank Warehouse, Inc., one of whose
26 regular activities is the furnishing or providing of food or food products
27 to others without charge.
28 (g) "Nonsale clothier" shall mean any nonprofit corporation or associa-
29 tion, one of whose primary purposes is the furnishing or providing of
30 clothes to others without charge.
31 (h) "Clothes" shall mean garments in general, designed or intended to be
32 worn by humans and shall include footwear in addition to wearing apparel.
33 (i) "Center for independent living" shall mean a private, nonprofit, non-
34 residential organization in which at least fifty-one percent (51%) of the
35 principal governing board, management and staff are individuals with dis-
36 abilities and that:
37 (i) Is designed and operated within a local community by individu-
38 als with disabilities;
39 (ii) Provides an array of independent living services and programs;
40 and
41 (iii) Is cross-disability.
42 (j) "Political subdivision" means:
43 (i) A governmental organization which:
44 1. Embraces a certain territory,
45 2. Is organized for public advantage and not in the interest of
46 private individuals or classes,
47 3. Has been delegated functions of government, and
48 4. Has the statutory power to levy taxes; or
49 (ii) A public health district created by section 39-408, Idaho
50 Code; or
51 (iii) A soil conservation district as defined in section 22-2717,
52 Idaho Code; or
53 (iv) A drainage district created pursuant to chapter 29, title 42,
54 Idaho Code; or
55 (v) An irrigation district created pursuant to title 43, Idaho
3
1 Code; or
2 (vi) A state grazing board created by section 57-1204, Idaho Code;
3 or
4 (vii) A water measurement district created pursuant to section
5 42-705 or 42-706, Idaho Code; or
6 (viii) A ground water management district created pursuant to chapter
7 51, title 42, Idaho Code.
8 (k) "Agency of the state of Idaho" shall mean an office or organization
9 created by the constitution or statutes of this state and constituting a
10 component part of the executive, judicial or legislative branch of the
11 government of this state.
12 (l) "Volunteer fire department" means an entity exempt from federal
13 income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
14 and which primarily provides fire protection, or fire prevention on a not-
15 for-profit basis to surrounding residents.
16 (m) "Licensed emergency medical service agency (EMS)" means an emergency
17 medical service licensed by the EMS bureau of the department of health and
18 welfare and which is exempt from federal income taxation pursuant to sec-
19 tion 501(c)(3) of the Internal Revenue Code and which provides emergency
20 medical services on a not-for-profit basis to surrounding residents.
21 (n) "Qualifying senior citizen center" means an entity exempt from income
22 tax pursuant to section 501(c)(3) of the Internal Revenue Code and which
23 is a community facility for the organization and provision of a broad
24 spectrum of services, which shall include provision of health (including
25 mental health), social, nutritional, and educational services and the pro-
26 vision of facilities for recreational activities for older individuals.
27 (3) The exemption granted by subsection (1)(f) of this section does not
28 include any association or other organization whose members are political sub-
29 divisions or state agencies unless the organization is expressly created under
30 the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
31 (4) The exemptions granted by subsection (1) of this section do not
32 include the use of tangible personal property by a contractor used to improve
33 real property of an exempt entity when such use is within the definition pro-
34 vided by section 63-3615(b), Idaho Code, whether the use tax liability is
35 included in a contract total or stated separately in a contract.
36 (5) There is exempted from the taxes imposed in this chapter, the renting
37 of a place to sleep to an individual by the Idaho Ronald McDonald House.
STATEMENT OF PURPOSE
RS 15467C2
This bill would extend a sales tax exemption to Project
P.A.T.C.H., which stands for "planned assistance for troubled
children." This exemption is already provided for several other
schools with similar missions and all regular educational
institutions. Project Patch is a residential school, treatment
facility, and wilderness program located in Garden Valley, Idaho
since 1990. It is fully licensed by Idaho Health & Welfare and
accredited by the Northwest Association of Accredited Schools,
Idaho Department of Education, and Joint Commission of
Accreditation on Health Care Organizations.
FISCAL NOTE
Approximately $10,300, based on what Project Patch paid in Idaho
Sales Tax in 2005 ($205,429 in Idaho taxable purchases X 5%).
Contact
Name: Rep. Smylie
Phone: 332-1000
Rep. Schaefer
STATEMENT OF PURPOSE/FISCAL NOTE H 744