2001 Legislation
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HOUSE BILL NO. 138 – Museums, admission/purchases, tax


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Daily Data Tracking History

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

Bill Text

  ||||              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
  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
  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
  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 / Fiscal Impact

                   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