Print Friendly HOUSE BILL NO. 138 – Museums, admission/purchases, tax
HOUSE BILL NO. 138
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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,
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 - 2001
IN 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-
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
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;
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;
55 (vii) A water measurement district created pursuant to section
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
This bill provides an exemption from sales tax for two,
limited categories of transactions by museums: purchases
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
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.
It is not likely that the impact of this bill will be
greater than $100,000 at the very outside.
Statement of Purpose/Fiscal Note H 13