Print Friendly HOUSE BILL NO. 368 – Playground equip, exmpt sales tax
HOUSE BILL NO. 368
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.
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
|||| 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
2 RELATING TO SALES AND USE TAXES; AMENDING SECTION 63-3622O, IDAHO CODE, TO
3 PROVIDE THAT PLAYGROUND EQUIPMENT AND ASSOCIATED ABSORBING MATERIAL ARE
4 EXEMPT FROM SALES AND USE TAXES.
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-
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;
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;
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
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.
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
STATEMENT OF PURPOSE/FISCAL NOTE H 368