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H0164...............................................by REVENUE AND TAXATION
SALES TAX - EXEMPTIONS - Amends existing law to provide that the Children's
Home Society of Idaho shall be defined as a health-related entity for sales
tax exemption purposes.
02/03 House intro - 1st rdg - to printing
02/04 Rpt prt - to Rev/Tax
03/11 Rpt out - rec d/p - to 2nd rdg
03/12 2nd rdg - to 3rd rdg
03/12 Rules susp - PASSED - 63-0-7
AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
Black, Boe, Bruneel, Callister, Chase, Clark, Crow, Cuddy, Deal,
Denney, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond,
Hansen(23), Henbest, Hornbeck, Jaquet, Judd, Kellogg, Kempton,
Kendell, Kunz, Lake, Limbaugh, Linford, Mader, Marley, McKague,
Montgomery, Mortensen, Moyle, Pischner, Pomeroy, Reynolds, Ridinger,
Ringo, Robison, Sali, Schaefer, Sellman, Smith, Smylie, Stevenson,
Stoicheff, Stone, Taylor, Tilman, Tippets, Trail, Watson, Wheeler,
Williams, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Campbell, Ellsworth, Hansen(29), Jones,
Loertscher, Meyer, Wood
Floor Sponsor - Taylor
Title apvd - to Senate
03/15 Senate intro - 1st rdg - to Loc Gov
03/17 Rpt out - rec d/p - to 2nd rdg
03/18 2nd rdg - to 3rd rdg
03/19 3rd rdg - PASSED - 31-2-2
AYES--Andreason, Bunderson, Burtenshaw, Cameron, Crow, Danielson,
Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram,
Ipsen, Keough, King, Lee, McLaughlin, Noh, Richardson, Risch, Sandy,
Schroeder, Sorensen, Stegner, Stennett, Thorne, Twiggs, Wheeler,
Whitworth
NAYS--Boatright, Riggs
Absent and excused--Branch, Parry
Floor Sponsor - Sorensen
Title apvd - to House
03/22 To enrol - rpt enrol - Sp signed - Pres signed
03/23 To Governor
03/24 Governor signed
Session Law Chapter 279
Effective: 07/01/99
H0164|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 164 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SALES TAX EXEMPTIONS; AMENDING SECTION 63-3622O, IDAHO CODE, TO 3 PROVIDE THAT THE CHILDREN'S HOME SOCIETY OF IDAHO SHALL BE DEFINED AS A 4 HEALTH-RELATED ENTITY FOR SALES TAX EXEMPTION PURPOSES AND TO MAKE A TECH- 5 NICAL CORRECTION. 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 licensed 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. 25 (2) As used in this section, these words shall have the following mean- 26 ings: 27 (a) "Educational institution" shall mean nonprofit colleges, universi- 28 ties, primary and secondary schools, the income of which is devoted solely 29 to education and in which systematic instruction in the usual branches of 30 learning is given. This definition does not include schools primarily 31 teaching business, dancing, dramatics, music, cosmetology, writing, gym- 32 nastics, exercise and other special accomplishments nor parent-teacher 33 associations, parent groups, alumni or other auxiliary organizations with 34 purposes related to the educational function of an institution or collec- 35 tive group of institutions. 36 (b) "Hospital" shall include nonprofit institutions licensed by the state 37 for the care of ill persons. It shall not extend to nursing homes or simi- 38 lar institutions. 39 (c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foun- 40 dation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes, 41 American Cancer Society, Mental Health Association, The Arc, The 42 Children's Home Society of Idaho, Idaho Heart Association, Idaho 43 Ronald McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscu- 2 1 lar Dystrophy Foundation, National Multiple Sclerosis Society, Rocky Moun- 2 tain Kidney Association, American Diabetes Association, Easter Seals, and 3 Idaho Special Olympics, together with said entities' local or regional 4 chapters or divisions. 5 (d) "Canal companies" shall include nonprofit corporations which are 6 incorporated solely for the purpose of operating and maintaining and are 7 engaged solely in operation and maintenance of dams, reservoirs, canals, 8 lateral and drainage ditches, pumps or pumping plants. 9 (e) "Forest protective associations" shall mean associations whose pur- 10 pose is the furnishing, operating and maintaining of a protective system 11 for the detection, prevention and suppression of forest or range fires. 12 Forest protective associations shall include only those associations with 13 which the state of Idaho has contracted or become a member of pursuant to 14 chapter 1, title 38, Idaho Code. 15 (f) "Food banks or soup kitchens" shall mean any nonprofit corporation or 16 association, other than the Idaho Foodbank Warehouse, Inc., one of whose 17 regular activities is the furnishing or providing of food or food products 18 to others without charge. 19 (g) "Nonsale clothier" shall mean any nonprofit corporation or associa- 20 tion one of whose primary purposes is the furnishing or providing of 21 clothes to others without charge. 22 (h) "Clothes" shall mean garments in general, designed or intended to be 23 worn by humans and shall include footwear in addition to wearing apparel. 24 (i) "Center for independent living" shall mean a private, nonprofit, 25non-residentialnonresidential organization in 26 which at least fifty-one percent (51%) of the principal governing board, 27 management and staff are individuals with disabilities and that: 28 (i) Is designed and operated within a local community by individu- 29 als with disabilities; 30 (ii) Provides an array of independent living services and programs; 31 and 32 (iii) Is cross-disability. 33 (j) "Political subdivision" means: 34 (i) A governmental organization which: 35 1. Embraces a certain territory, 36 2. Is organized for public advantage and not in the interest of 37 private individuals or classes, 38 3. Has been delegated functions of government, and 39 4. Has the statutory power to levy taxes; or 40 (ii) A public health district created by section 39-408, Idaho 41 Code; or 42 (iii) A soil conservation district as defined in section 22-2717, 43 Idaho Code; or 44 (iv) A drainage district created pursuant to chapter 29, title 42, 45 Idaho Code; or 46 (v) An irrigation district created pursuant to title 43, Idaho 47 Code; or 48 (vi) A state grazing board created by section 57-1204, Idaho Code; 49 or 50 (vii) A water measurement district created pursuant to section 51 42-705 or 42-706, Idaho Code; or 52 (viii) A ground water management district created pursuant to chapter 53 51, title 42, Idaho Code. 54 (ix) An agency of the state of Idaho is an office or organization 55 created by the constitution or statutes of this state and constitut- 3 1 ing a component part of the executive, judicial or legislative branch 2 of the government of this state. 3 (3) The exemption granted by subsection (1)(f) of this section does not 4 include any association or other organization whose members are political sub- 5 divisions or state agencies unless the organization is expressly created under 6 the joint powers provision of sections 67-2328 through 67-2333, Idaho Code. 7 (4) The exemption granted by subsection (1)(f) of this section does not 8 include the use of tangible personal property by a contractor used to improve 9 real property of an exempt entity when such use is within the definition pro- 10 vided by section 63-3615(b), Idaho Code, whether the use tax liability is 11 included in a contract total or stated separately in a contract. 12 (5) There is exempted from the taxes imposed in this chapter, the renting 13 of a place to sleep to an individual by the Idaho Ronald McDonald House.
STATEMENT OF PURPOSE
RS 08735
The purpose of this legislation is to add the Children's Home Society of Idaho, a private, non-profit Idaho corporation, to the list of health-related entities for sales tax exemption purposes
and to make a technical correction.
The Children's Home Society of Idaho is currently doing business as the Warm Springs
Counseling Center and Training Institute, providing counseling and assessment senices to
more than 2,400 of Idaho's children and their families, regardless of their ability to pay. If
granted this exemption, the Children's Home will be able to provide approximately 223
more "client hours" to children needing counselmg or assessment services for psychological
or psychoeducational (learning disordered) issues.
Approximately 94% of the clients served by this organization are currently receiving
Medicaid benefits, indicatmg an established partnership in the state's efforts to meet the
medical needs of its most vulnerable citizens -- low income families and children.
The Children's Home Society of Idaho is the only facility of its kind in the state of Idaho,
providing the entire spectrum of out-patient mental health services to children and their
farnilies, and never placing a cap on the number of Medicaid clients it will serve.
As illustrated below, if this request is granted, the fiscal impact on the state would be
minimal, but the benefits realized by its citizens woud be significant.
FISCAL NOTE
In this current fiscal year, the Children's Home Society of Idaho's budget will account for
approximately $3,340.00 of revenue for the state of Idaho, generated by sales tax. If granted
sales tax exemption, the Children's Home would retain those funds, and apply them directly
toward client hours for the families receiving counseling and assessment services. Because
such a large percentage of their clients are receiving Medicaid benefits, this would, in essence,
"cut out the middle man," and decrease a portion of the "man hours" involved in the processing
and tracking of sales tax records/information. The minimal fiscal impact is easily justified when
weighing it against the significant benefits which woud be realized by the additional client
hours provided to Idaho's citizens.
CONTACT: Senator Sheila Sorensen
332-1319
STATEMENT OF PURPOSE/FISCAL NOTE Bill No. H 164