1999 Legislation
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SENATE BILL NO. 1218 – Sales tax exmptn, Women/Child Allnc


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Daily Data Tracking History

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

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
      Absent and Excused--Darrington, Twiggs
    Floor Sponsor - Dunklin
    Title apvd - to House
03/01    House intro - 1st rdg - to Rev/Tax

Bill Text


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

                                      IN THE SENATE

                                   SENATE BILL NO. 1218


 1                                        AN ACT

 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-protective   forest 
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


 1        Society, Rocky Mountain Kidney Association, American Diabetes Association,
 2        Easter Seals,  and  Idaho 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,
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


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