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S1218......................................by LOCAL GOVERNMENT AND TAXATION
SALES TAX - EXEMPTIONS - Amends existing law relating to sales and use tax
by including the Idaho Women's and Children's Alliance within the
definition of a health-related entity for purposes of a sales tax
exemption.
02/15 Senate intro - 1st rdg - to printing
02/16 Rpt prt - to Loc Gov
02/22 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/26 3rd rdg - PASSED - 33-0-2
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins,
Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry, Richardson,
Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
Wheeler, Whitworth
NAYS--None
Absent and Excused--Darrington, Twiggs
Floor Sponsor - Dunklin
Title apvd - to House
03/01 House intro - 1st rdg - to Rev/Tax
S1218|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1218 BY LOCAL GOVERNMENT AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SALES AND USE TAX; AMENDING SECTION 63-3622O, IDAHO CODE, TO 3 INCLUDE THE IDAHO WOMEN'S AND CHILDREN'S ALLIANCE WITHIN THE DEFINITION OF 4 A HEALTH-RELATED ENTITY AND TO MAKE TECHNICAL CORRECTIONS. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 63-3622O, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 63-3622O. EXEMPT PRIVATE AND PUBLIC ORGANIZATIONS. (1) There are exempted 9 from the taxes imposed by this chapter: 10 (a) Sales to or purchases by hospitals, health-related entities, educa- 11 tional institutions,forest-protectiveforest 12 protective associations and canal companies which are non- 13 profit 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, Idaho Heart 42 Association, Idaho Ronald McDonald House, United Cerebral Palsy, Arthritis 43 Foundation, Muscular Dystrophy Foundation, National Multiple Sclerosis 2 1 Society, Rocky Mountain Kidney Association, American Diabetes Association, 2 Easter Seals,andIdaho Special Olympics, and the Idaho 3 Women's and Children's Alliance, together with said entities' local 4 or regional 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
RS08960
This bill includes the Women's and Children's Crisis Center
in the list of "health-related entities" that are exempt
from sales tax. The primary function of the WCA is to
operate the state's largest shelter for battered women and
their children and to operate a rape crisis hotline. The WCA
is a private, non-profit organization funded through grants,
donations and fundraising events.
FISCAL NOTE
The state recently began enforcing the requirement that non-
profit organizations pay sales tax on sale of tickets to
fundraising events or sale of t-shirts and similar items to
raise funds. The WCA has followed the practice of similar
nonprofit organizations on not collecting this tax in the
past so this aspect of the bill would be revenue neutral.
The state would lose the amount the WCA pays in sales tax
each year for products it purchases for it's own operation,
which is roughly $2600 a year.
CONTACT: Senator Betsy Dunklin
332-1354
STATEMENT OF PURPOSE/ FISCAL NOTE S1218