2004 Legislation
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HOUSE BILL NO. 601 – Sales tax exmpt/Blind Serv Foundatn


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Bill Status

H0601...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTION - Amends existing law to provide an exemption from
sales and use taxes for sales to or purchases by the Blind Services
Foundation, Inc.
02/02    House intro - 1st rdg - to printing
02/03    Rpt prt - to Rev/Tax
02/11    Rpt out - rec d/p - to 2nd rdg
02/12    2nd rdg - to 3rd rdg
02/18    3rd rdg - PASSED - 65-0-5
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Deal,
      Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones,
      Kellogg(Nonini), Kulczyk, Lake, Langford, Langhorst, Martinez,
      McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
      Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
      Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wood, Mr.
      NAYS -- None
      Absent and excused -- Black, Block, Cuddy, Nielsen, Wills
    Floor Sponsor - Denney
    Title apvd - to Senate
02/19    Senate intro - 1st rdg - to Loc Gov
02/24    Rpt out - rec d/p - to 2nd rdg
02/25    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 24-8-3
      AYES -- Andreason(Andreason), Bailey, Bunderson, Burkett, Burtenshaw,
      Compton, Darrington, Davis, Gannon, Geddes, Goedde, Ingram, Kennedy,
      Keough, Marley, McKenzie, McWilliams, Noh, Pearce, Richardson,
      Schroeder, Stennett, Sweet, Williams
      NAYS -- Brandt, Calabretta, Little, Lodge, Noble, Sorensen, Stegner,
      Absent and excused -- Cameron, Hill, Malepeai
    Floor Sponsor - Ingram
    Title apvd - to House
03/11    To enrol
03/12    Rpt enrol - Sp signed
03/15    Pres signed
03/16    To Governor
03/19    Governor signed
         Session Law Chapter 115
         Effective: 07/01/04

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 601
                             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)  Sales to or purchases by volunteer fire departments or licensed emer-
 25        gency medical service agencies; and
 26        (h)  Sales to or purchases by a qualifying senior citizen center; and
 27        (i)  Sales to or purchases by the Blind Services Foundation, Inc.
 28        (2)  As  used  in this section, these words shall have the following mean-
 29    ings:
 30        (a)  "Educational institution" shall mean  nonprofit  colleges,  universi-
 31        ties,  public  charter schools organized pursuant to chapter 52, title 33,
 32        Idaho Code, and other  primary and secondary schools, the income of  which
 33        is  devoted solely to education and in which systematic instruction in the
 34        usual branches of learning is given.  This  definition  does  not  include
 35        schools  primarily teaching business, dancing, dramatics, music, cosmetol-
 36        ogy, writing, gymnastics, exercise and other special  accomplishments  nor
 37        parent-teacher  associations,  parent  groups,  alumni  or other auxiliary
 38        organizations with purposes related to  the  educational  function  of  an
 39        institution or collective group of institutions.
 40        (b)  "Hospital" shall include nonprofit institutions licensed by the state
 41        for the care of ill persons. It shall not extend to nursing homes or simi-
 42        lar institutions.
 43        (c)  "Health-related  entities" shall mean the Idaho Cystic Fibrosis Foun-
  1        dation, Idaho Epilepsy League, Idaho Lung  Association,  March  of  Dimes,
  2        American   Cancer   Society,  Mental  Health  Association,  The  Arc,  The
  3        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
  4        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
  5        trophy Foundation, National Multiple  Sclerosis  Society,  Rocky  Mountain
  6        Kidney  Association,  American  Diabetes  Association, Easter Seals, Idaho
  7        Community Action Agencies, Idaho Primary Care  Association  and  community
  8        health  centers who are members of the Idaho Primary Care Association, the
  9        Idaho Diabetes Youth Programs, Special Olympics Idaho, the  Idaho  Women's
 10        and  Children's  Alliance,  and  the Family Services Alliance of Southeast
 11        Idaho, together with said entities' local or regional  chapters  or  divi-
 12        sions.
 13        (d)  "Canal  companies"  shall  include  nonprofit  corporations which are
 14        incorporated solely for the purpose of operating and maintaining  and  are
 15        engaged  solely  in operation and maintenance of dams, reservoirs, canals,
 16        lateral and drainage ditches, pumps or pumping plants.
 17        (e)  "Forest protective associations" shall mean associations  whose  pur-
 18        pose  is  the furnishing, operating and maintaining of a protective system
 19        for the detection, prevention and suppression of forest  or  range  fires.
 20        Forest  protective associations shall include only those associations with
 21        which the state of Idaho has contracted or become a member of pursuant  to
 22        chapter 1, title 38, Idaho Code.
 23        (f)  "Food banks or soup kitchens" shall mean any nonprofit corporation or
 24        association,  other  than the Idaho Foodbank Warehouse, Inc., one of whose
 25        regular activities is the furnishing or providing of food or food products
 26        to others without charge.
 27        (g)  "Nonsale clothier" shall mean any nonprofit corporation  or  associa-
 28        tion  one  of  whose  primary  purposes  is the furnishing or providing of
 29        clothes to others without charge.
 30        (h)  "Clothes" shall mean garments in general, designed or intended to  be
 31        worn by humans and shall include footwear in addition to wearing apparel.
 32        (i)  "Center for independent living" shall mean a private, nonprofit, non-
 33        residential  organization in which at least fifty-one percent (51%) of the
 34        principal governing board, management and staff are individuals with  dis-
 35        abilities and that:
 36             (i)   Is  designed and operated within a local community by individu-
 37             als with disabilities;
 38             (ii)  Provides an array of independent living services and  programs;
 39             and
 40             (iii) Is cross-disability.
 41        (j)  "Political subdivision" means:
 42             (i)    A governmental organization which:
 43                  1.  Embraces a certain territory,
 44                  2.  Is organized for public advantage and not in the interest of
 45                  private individuals or classes,
 46                  3.  Has been delegated functions of government, and
 47                  4.  Has the statutory power to levy taxes; or
 48             (ii)   A  public  health  district  created  by section 39-408, Idaho
 49             Code; or
 50             (iii)  A soil conservation district as defined  in  section  22-2717,
 51             Idaho Code; or
 52             (iv)   A  drainage district created pursuant to chapter 29, title 42,
 53             Idaho Code; or
 54             (v)    An irrigation district created pursuant  to  title  43,  Idaho
 55             Code; or
  1             (vi)   A  state grazing board created by section 57-1204, Idaho Code;
  2             or
  3             (vii)  A water  measurement  district  created  pursuant  to  section
  4             42-705 or 42-706, Idaho Code; or
  5             (viii) A ground water management district created pursuant to chapter
  6             51, title 42, Idaho Code.
  7        (k)  "Agency  of  the state of Idaho" shall mean an office or organization
  8        created by the constitution or statutes of this state and  constituting  a
  9        component  part  of   the executive, judicial or legislative branch of the
 10        government of this state.
 11        (l)  "Volunteer fire department"  means  an  entity  exempt  from  federal
 12        income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
 13        and which primarily provides fire protection, or fire prevention on a not-
 14        for-profit basis to surrounding residents.
 15        (m)  "Licensed  emergency medical service agency (EMS)" means an emergency
 16        medical service licensed by the EMS bureau of the department of health and
 17        welfare and  which is exempt from federal income taxation pursuant to sec-
 18        tion 501(c)(3) of the Internal Revenue Code and which  provides  emergency
 19        medical services on a not-for-profit basis to surrounding residents.
 20        (n)  "Qualifying senior citizen center" means an entity exempt from income
 21        tax  pursuant  to section 501(c)(3) of the Internal Revenue Code and which
 22        is a community facility for the organization  and  provision  of  a  broad
 23        spectrum  of  services, which shall include provision of health (including
 24        mental health), social, nutritional, and educational services and the pro-
 25        vision of facilities for recreational activities for older individuals.
 26        (3)  The exemption granted by subsection (1)(f) of this section  does  not
 27    include any association or other organization whose members are political sub-
 28    divisions or state agencies unless the organization is expressly created under
 29    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 30        (4)  The  exemptions  granted  by  subsection  (1)  of this section do not
 31    include the use of tangible personal property by a contractor used to  improve
 32    real  property of an exempt entity when such use is within the definition pro-
 33    vided by section 63-3615(b), Idaho Code, whether  the  use  tax  liability  is
 34    included in a contract total or stated separately in a contract.
 35        (5)  There is exempted from the taxes imposed in this chapter, the renting
 36    of a place to sleep to an individual by the Idaho Ronald McDonald House.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                             RS 13786
The purpose of this legislation is to permit the Blind Services
Foundation, Inc. a valid Idaho non-profit corporation, to make
tax exempt purchases of low vision equipment to be given to
residents of the blind and visually impaired community.  This
legislation would give the Blind Services Foundation the same
exemption that is extended to a number of other groups covered in
the Idaho Code. 
                          FISCAL IMPACT
     Depending on the level of grants and donations received by
the Foundation, the maximum impact is estimated at $7,500 per

Name: Ken Kraft , Blind Services Foundation, Inc. 
Phone: (208) 375-2672
      Darrell Walker -375-9093
      Dave Hand - 362-4745

STATEMENT OF PURPOSE/FISCAL NOTE                      H 601