2001 Legislation
Print Friendly

HOUSE BILL NO. 368 – Playground equip, exmpt sales tax


View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History

H0368...............................................by REVENUE AND TAXATION
PLAYGROUND EQUIPMENT - SALES TAX - Amends existing law to provide that
sales and purchases of playground equipment and the shock absorbing
material associated with playground equipment shall be exempt from sales
and use tax.
03/20    House intro - 1st rdg - to printing
03/21    Rpt prt - to Rev/Tax

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 368
                             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.
 24        (2)  As  used  in this section, these words shall have the following mean-
 25    ings:
 26        (a)  "Educational institution" shall mean  nonprofit  colleges,  universi-
 27        ties,  public  charter schools organized pursuant to chapter 52, title 33,
 28        Idaho Code, and other  primary and secondary schools, the income of  which
 29        is  devoted solely to education and in which systematic instruction in the
 30        usual branches of learning is given.  This  definition  does  not  include
 31        schools  primarily teaching business, dancing, dramatics, music, cosmetol-
 32        ogy, writing, gymnastics, exercise and other special  accomplishments  nor
 33        parent-teacher  associations,  parent  groups,  alumni  or other auxiliary
 34        organizations with purposes related to  the  educational  function  of  an
 35        institution or collective 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,  The
 42        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
 43        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
  1        trophy Foundation, National Multiple  Sclerosis  Society,  Rocky  Mountain
  2        Kidney  Association,  American  Diabetes  Association, Easter Seals, Idaho
  3        Community Action Agencies, Idaho Primary Care  Association  and  community
  4        health  centers who are members of the Idaho Primary Care Association, the
  5        Idaho Diabetes Youth Programs and Special Olympics Idaho,  and  the  Idaho
  6        Women's  and  Children's  Alliance,  together with said entities' local or
  7        regional 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 organization in which at least fifty-one percent (51%) of  the
 29        principal  governing board, management and staff are individuals with dis-
 30        abilities 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
  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        (3)  The  exemption  granted by subsection (1)(f) of this section does not
  7    include any association or other organization whose members are political sub-
  8    divisions or state agencies unless the organization is expressly created under
  9    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 10        (4)  The exemptions granted by subsection  (1)  of  this  section  do  not
 11    include  the use of tangible personal property by a contractor used to improve
 12    real property of an exempt entity when such use is within the definition  pro-
 13    vided  by  section  63-3615(b),  Idaho  Code, whether the use tax liability is
 14    included in a contract total or stated separately in a contract;  except  that
 15    sales  and  purchases of  playground equipment (such as slides and swings) and
 16    the shock absorbing material associated therewith shall be exempt.
 17        (5)  There is exempted from the taxes imposed in this chapter, the renting
 18    of a place to sleep to an individual by the Idaho Ronald McDonald House.

Statement of Purpose / Fiscal Impact



This bill would amend section 63-3 6220, Idaho Code to provide 
an exemption from sales and use tax for the purchase of playground 
equipment and associated shock absorbing materials, when purchased 
by a tax exempt entity. Playground equipment purchased by a tax 
exempt entity is not subject to Idaho State sales or use tax. The 
tax exempt entity then contracts to have someone install the 
playground. If neither the sales tax nor the use tax has been paid 
on the playground equipment owned by the tax exempt entity, the 
installer is liable for the state use tax on that playground equipment.

                      FISCAL IMPACT

This bill would have a negative impact on the general fund each 
year of about $60,000 to $75,000. This negative impact would be 
offset by an equal positive impact of $60,000 to $75,000 per year 
to the property taxes or school bonds issued to fund these 

Name:	Charles Campbell
Phone:	H 344-8811 C 8594438