1999 Legislation
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HOUSE BILL NO. 164 – Sales tax exmptn, childrens home


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Daily Data Tracking History

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,
      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

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 164

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT

 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-


 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,
25         non-residential   nonresidential   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-


 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 / Fiscal Impact

                      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