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H0138...............................................by REVENUE AND TAXATION MUSEUMS - Amends existing law to provide a sales tax exemption for admissions to and purchases by museums; and to define "museums." 02/01 House intro - 1st rdg - to printing 02/02 Rpt prt - to Rev/Tax 02/28 Rpt out - w/o rec - to 2nd rdg 03/01 2nd rdg - to 3rd rdg Rls susp - PASSED - 48-10-12 AYES -- Barraclough, Bedke, Bell, Bieter, Black, Boe, Bolz, Callister, Campbell, Chase, Collins, Cuddy, Denney, Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Henbest, Higgins, Hornbeck, Jones, Kellogg, Kendell, Kunz, Langford, Marley, McKague, Montgomery, Moss, Pomeroy, Ridinger, Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Young NAYS -- Barrett, Bruneel, Ellis, Harwood, Lake, Meyer, Moyle, Pearce, Raybould, Roberts. Absent and excused -- Bradford, Clark, Crow, Deal, Jaquet, Loertscher, Mader, Mortensen, Pischner, Swan, Wood, Mr. Speaker Floor Sponsor -- Gould Title apvd - to Senate 03/02 Senate intro - 1st rdg - to Loc Gov
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature First Regular Session - 2001IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 138 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 ADMISSIONS TO AND PURCHASES BY MUSEUMS 4 AND TO DEFINE THE TERM "MUSEUM." 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) Admissions to and purchases by museums, as defined in subsection (2) 25 of this section. 26 (2) As used in this section, these words shall have the following mean- 27 ings: 28 (a) "Educational institution" shall mean nonprofit colleges, universi- 29 ties, public charter schools organized pursuant to chapter 52, title 33, 30 Idaho Code, and other primary and secondary schools, the income of which 31 is devoted solely to education and in which systematic instruction in the 32 usual branches of learning is given. This definition does not include 33 schools primarily teaching business, dancing, dramatics, music, cosmetol- 34 ogy, writing, gymnastics, exercise and other special accomplishments nor 35 parent-teacher associations, parent groups, alumni or other auxiliary 36 organizations with purposes related to the educational function of an 37 institution or collective group of institutions. 38 (b) "Hospital" shall include nonprofit institutions licensed by the state 39 for the care of ill persons. It shall not extend to nursing homes or simi- 40 lar institutions. 41 (c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foun- 42 dation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes, 43 American Cancer Society, Mental Health Association, The Arc, The 2 1 Children's Home Society of Idaho, American Heart Association, Idaho Ronald 2 McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys- 3 trophy Foundation, National Multiple Sclerosis Society, Rocky Mountain 4 Kidney Association, American Diabetes Association, Easter Seals, Idaho 5 Community Action Agencies, Idaho Primary Care Association and community 6 health centers who are members of the Idaho Primary Care Association, the 7 Idaho Diabetes Youth Programs and Special Olympics Idaho, and the Idaho 8 Women's and Children's Alliance, together with said entities' local or 9 regional chapters or divisions. 10 (d) "Canal companies" shall include nonprofit corporations which are 11 incorporated solely for the purpose of operating and maintaining and are 12 engaged solely in operation and maintenance of dams, reservoirs, canals, 13 lateral and drainage ditches, pumps or pumping plants. 14 (e) "Forest protective associations" shall mean associations whose pur- 15 pose is the furnishing, operating and maintaining of a protective system 16 for the detection, prevention and suppression of forest or range fires. 17 Forest protective associations shall include only those associations with 18 which the state of Idaho has contracted or become a member of pursuant to 19 chapter 1, title 38, Idaho Code. 20 (f) "Food banks or soup kitchens" shall mean any nonprofit corporation or 21 association, other than the Idaho Foodbank Warehouse, Inc., one of whose 22 regular activities is the furnishing or providing of food or food products 23 to others without charge. 24 (g) "Nonsale clothier" shall mean any nonprofit corporation or associa- 25 tion one of whose primary purposes is the furnishing or providing of 26 clothes to others without charge. 27 (h) "Clothes" shall mean garments in general, designed or intended to be 28 worn by humans and shall include footwear in addition to wearing apparel. 29 (i) "Center for independent living" shall mean a private, nonprofit, non- 30 residential organization in which at least fifty-one percent (51%) of the 31 principal governing board, management and staff are individuals with dis- 32 abilities and that: 33 (i) Is designed and operated within a local community by individu- 34 als with disabilities; 35 (ii) Provides an array of independent living services and programs; 36 and 37 (iii) Is cross-disability. 38 (j) "Political subdivision" means: 39 (i) A governmental organization which: 40 1. Embraces a certain territory, 41 2. Is organized for public advantage and not in the interest of 42 private individuals or classes, 43 3. Has been delegated functions of government, and 44 4. Has the statutory power to levy taxes; or 45 (ii) A public health district created by section 39-408, Idaho 46 Code; or 47 (iii) A soil conservation district as defined in section 22-2717, 48 Idaho Code; or 49 (iv) A drainage district created pursuant to chapter 29, title 42, 50 Idaho Code; or 51 (v) An irrigation district created pursuant to title 43, Idaho 52 Code; or 53 (vi) A state grazing board created by section 57-1204, Idaho Code; 54 or 55 (vii) A water measurement district created pursuant to section 3 1 42-705 or 42-706, Idaho Code; or 2 (viii) A ground water management district created pursuant to chapter 3 51, title 42, Idaho Code. 4 (k) "Agency of the state of Idaho" shall mean an office or organization 5 created by the constitution or statutes of this state and constituting a 6 component part of the executive, judicial or legislative branch of the 7 government of this state. 8 (l) "Museum" means an institution which stores, preserves and exhibits 9 objects of art, history, science or other objects of historical, educa- 10 tional or cultural value on a permanent basis in a building, portion of a 11 building or outdoor location. Museums qualified to receive the exemption 12 provided by this section must: be open to the public; provide museum ser- 13 vices to the public in a building or portion of a building or outdoor 14 location on a regular basis; and be public institutions or private non- 15 profit institutions with a 501(c)(3) federal tax status. 16 (3) The exemption granted by subsection (1)(f) of this section does not 17 include any association or other organization whose members are political sub- 18 divisions or state agencies unless the organization is expressly created under 19 the joint powers provision of sections 67-2328 through 67-2333, Idaho Code. 20 (4) The exemptions granted by subsection (1) of this section do not 21 include the use of tangible personal property by a contractor used to improve 22 real property of an exempt entity when such use is within the definition pro- 23 vided by section 63-3615(b), Idaho Code, whether the use tax liability is 24 included in a contract total or stated separately in a contract. 25 (5) There is exempted from the taxes imposed in this chapter, the renting 26 of a place to sleep to an individual by the Idaho Ronald McDonald House.
STATEMENT OF PURPOSE RS 10877 This bill provides an exemption from sales tax for two, limited categories of transactions by museums: purchases and admissions. Museums are narrowly defined to be limited to public institutions and private 501(c) (3) exempt not-for-profit institutions. They are further defined through the use of the American Association of Museums definition. This double limitation is designed to limit potential for abuse and to provide limited fiscal impact, while assisting the narrow category of educational institutions for which it is meant. All true museums are primarily educational institutions, providing the public, and especially our children with tactile and "real" objects and experiences both to teach and to inspire further learning. Educational institutions in general enjoy exemptions of this sort, and this bill only serves to bring Idaho s museums to an equal footing, respecting their appreciable contribution to education. FISCAL NOTE It is not likely that the impact of this bill will be greater than $100,000 at the very outside. Contact Person: Phil Barber (208)345.8158 (office) (208)371.8484 (cellular) Statement of Purpose/Fiscal Note H 13