Print Friendly SENATE BILL NO. 1218 – Sales tax exmptn, Women/Child Allnc
SENATE BILL NO. 1218
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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
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,
Absent and Excused--Darrington, Twiggs
Floor Sponsor - Dunklin
Title apvd - to House
03/01 House intro - 1st rdg - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature First Regular Session - 1999
IN 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-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-
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;
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;
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
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.
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
STATEMENT OF PURPOSE/ FISCAL NOTE S1218