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H0534aa.............................................by REVENUE AND TAXATION
MUSEUMS - Amends existing law to provide a sales tax exemption for
purchases by museums; and to define museums.
02/09 House intro - 1st rdg - to printing
02/10 Rpt prt - to Rev/Tax
03/22 Rpt out - to Gen Ord
03/27 Rpt out amen - to engros
03/28 Rpt engros - 1st rdg - to 2nd rdg as amen
Rules susp - PASSED - 62-8-0
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Campbell,
Chase, Cheirrett, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
Field(20), Gagner, Geddes, Gould, Hansen(23), Hansen(29), Henbest,
Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kunz, Lake, Linford,
Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Mortensen,
Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo,
Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson,
Stone, Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Barrett, Bruneel, Callister, Clark, Hadley, Hammond, Kendell,
Stoicheff
Absent and excused -- None
Floor Sponsors - Meyer, Stoicheff
Title apvd - to Senate
03/29 Senate intro - 1st rdg as amen - to Loc Gov
H0534
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 534, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SALES TAX EXEMPTIONS; AMENDING SECTION 63-3622O, IDAHO CODE, TO
3 PROVIDE A SALES TAX EXEMPTION FOR PURCHASES BY MUSEUMS, TO DEFINE "MUSEUM"
4 AND TO MAKE A TECHNICAL CORRECTION; AND TO PROVIDE AN EFFECTIVE DATE.
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 associations and canal companies
12 which are nonprofit organizations; and
13 (b) Donations to, sales to, and purchases by the Idaho Foodbank Ware-
14 house, Inc.; and
15 (c) Donations to, sales to, and purchases by food banks or soup kitchens
16 of food or other tangible personal property used by food banks or soup
17 kitchens in the growing, storage, preparation or service of food, but not
18 including motor vehicles or trailers; and
19 (d) Sales of clothes to, donations of clothes to, and purchases of
20 clothes by nonsale clothiers; and
21 (e) Sales to or purchases by centers for independent living; and
22 (f) Sales to or purchases by the state of Idaho and its agencies and its
23 political subdivisions; and
24 (g) Purchases by museums as defined in subsection (2) of this section.
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, public charter schools organized pursuant to chapter 52, title 33,
29 Idaho Code, and other primary and secondary schools, the income of which
30 is devoted solely to education and in which systematic instruction in the
31 usual branches of learning is given. This definition does not include
32 schools primarily teaching business, dancing, dramatics, music, cosmetol-
33 ogy, writing, gymnastics, exercise and other special accomplishments nor
34 parent-teacher associations, parent groups, alumni or other auxiliary
35 organizations with purposes related to the educational function of an
36 institution or collective group of institutions.
37 (b) "Hospital" shall include nonprofit institutions licensed by the state
38 for the care of ill persons. It shall not extend to nursing homes or simi-
39 lar institutions.
40 (c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foun-
41 dation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes,
42 American Cancer Society, Mental Health Association, The Arc, The
43 Children's Home Society of Idaho, Idaho Heart Association, Idaho Ronald
2
1 McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
2 trophy Foundation, National Multiple Sclerosis Society, Rocky Mountain
3 Kidney Association, American Diabetes Association, Easter Seals, Idaho
4 Community Action Agencies, Idaho Primary Care Association and community
5 health centers who are members of the Idaho Primary Care Association and
6 Idaho Special Olympics, together with said entities' local or regional
7 chapters or divisions.
8 (d) "Canal companies" shall include nonprofit corporations which are
9 incorporated solely for the purpose of operating and maintaining and are
10 engaged solely in operation and maintenance of dams, reservoirs, canals,
11 lateral and drainage ditches, pumps or pumping plants.
12 (e) "Forest protective associations" shall mean associations whose pur-
13 pose is the furnishing, operating and maintaining of a protective system
14 for the detection, prevention and suppression of forest or range fires.
15 Forest protective associations shall include only those associations with
16 which the state of Idaho has contracted or become a member of pursuant to
17 chapter 1, title 38, Idaho Code.
18 (f) "Food banks or soup kitchens" shall mean any nonprofit corporation or
19 association, other than the Idaho Foodbank Warehouse, Inc., one of whose
20 regular activities is the furnishing or providing of food or food products
21 to others without charge.
22 (g) "Nonsale clothier" shall mean any nonprofit corporation or associa-
23 tion one of whose primary purposes is the furnishing or providing of
24 clothes to others without charge.
25 (h) "Clothes" shall mean garments in general, designed or intended to be
26 worn by humans and shall include footwear in addition to wearing apparel.
27 (i) "Center for independent living" shall mean a private, nonprofit, non-
28 residential nonresidential organization in which at least fifty-one per-
29 cent (51%) of the principal governing board, management and staff are
30 individuals with disabilities and that:
31 (i) Is designed and operated within a local community by individu-
32 als with disabilities;
33 (ii) Provides an array of independent living services and programs;
34 and
35 (iii) Is cross-disability.
36 (j) "Political subdivision" means:
37 (i) A governmental organization which:
38 1. Embraces a certain territory,
39 2. Is organized for public advantage and not in the interest of
40 private individuals or classes,
41 3. Has been delegated functions of government, and
42 4. Has the statutory power to levy taxes; or
43 (ii) A public health district created by section 39-408, Idaho
44 Code; or
45 (iii) A soil conservation district as defined in section 22-2717,
46 Idaho Code; or
47 (iv) A drainage district created pursuant to chapter 29, title 42,
48 Idaho Code; or
49 (v) An irrigation district created pursuant to title 43, Idaho
50 Code; or
51 (vi) A state grazing board created by section 57-1204, Idaho Code;
52 or
53 (vii) A water measurement district created pursuant to section
54 42-705 or 42-706, Idaho Code; or
55 (viii) A ground water management district created pursuant to chapter
3
1 51, title 42, Idaho Code.
2 (k) "Agency of the state of Idaho" shall mean an office or organization
3 created by the constitution or statutes of this state and constituting a
4 component part of the executive, judicial or legislative branch of the
5 government of this state.
6 (l) "Museum" means an institution which stores, preserves and exhibits
7 objects of art, history, science or other objects of historical, educa-
8 tional or cultural value on a permanent basis in a building, portion of a
9 building or outdoor location. Museums qualified to receive the exemption
10 provided by this section must: be open to the public; provide museum ser-
11 vices to the public in a building or portion of a building or outdoor
12 location on a regular basis; and be public institutions or private non-
13 profit institutions with a 501(c)(3) federal tax status.
14 (3) The exemption granted by subsection (1)(f) of this section does not
15 include any association or other organization whose members are political sub-
16 divisions or state agencies unless the organization is expressly created under
17 the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
18 (4) The exemptions granted by subsection (1) of this section do not
19 include the use of tangible personal property by a contractor used to improve
20 real property of an exempt entity when such use is within the definition pro-
21 vided by section 63-3615(b), Idaho Code, whether the use tax liability is
22 included in a contract total or stated separately in a contract.
23 (5) There is exempted from the taxes imposed in this chapter, the renting
24 of a place to sleep to an individual by the Idaho Ronald McDonald House.
25 SECTION 2. This act shall be in full force and effect on and after July
26 1, 2000.
AH0534
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Field (13)
Seconded by Shepherd
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 534
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, delete line 25 and insert:
3 "(g) Purchases by museums as defined in subsection (2) of this section.".
4 On page 3, delete lines 7 through 13 and insert:
5 "(l) "Museum" means an institution which stores, preserves and exhibits
6 objects of art, history, science or other objects of historical, educa-
7 tional or cultural value on a permanent basis in a building, portion of a
8 building or outdoor location. Museums qualified to receive the exemption
9 provided by this section must: be open to the public; provide museum ser-
10 vices to the public in a building or portion of a building or outdoor
11 location on a regular basis; and be public institutions or private non-
12 profit institutions with a 501(c)(3) federal tax status.".
13 CORRECTION TO TITLE
14 On page 1, in line 3, delete "DONATIONS TO, SALES TO AND".
REPRINT REPRINT REPRINT REPRINT
STATEMENT OF PURPOSE
RS09461C2
This legislation would exempt public and private non-profit museums with a 501
(c) (3) federal tax status from payment of sales tax on purchases by the museum
for its operation. The museums would continue to remit sales tax on gift shop
sales, auctions and admissions.
FISCAL IMPACT
Sales tax revenue collected by the State would be reduced by approximately
$50,.000 a year, according to the State Tax Commission.
CONTACT: Judy Ouderkirk Rep. Mary Lou Shepherd
Agency: Idaho Botanical Gardens
Phone: 343-8649 332-1000
STATEMENT OF PURPOSE/ FISCAL IMPACT Bill No. 534