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H0747...............................................by REVENUE AND TAXATION
SALES TAX - PLAYGROUND EQUIPMENT - Amends existing law to provide that
public playground equipment and associated shock absorbing material are
exempt from sales and use taxes.
02/23 House intro - 1st rdg - to printing
02/24 Rpt prt - to Rev/Tax
03/10 Rpt out - w/o rec - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
03/12 3rd rdg - PASSED - 46-20-4
AYES -- Andersen, Barraclough, Barrett, Bedke, Black, Block, Boe,
Cannon, Crow, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Jaquet, Jones, Langford,
Langhorst, Martinez, McKague, Miller, Moyle, Nielsen, Pasley-Stuart,
Raybould, Ring, Ringo, Robison, Rydalch, Schaefer, Shepherd, Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills, Wood,
Mr. Speaker
NAYS -- Bauer, Bayer, Bolz, Bradford, Campbell, Clark, Collins,
Cuddy, Gagner, Harwood, Kellogg, Kulczyk, Lake, Meyer, Mitchell,
Naccarato, Ridinger, Roberts, Sali, Sayler
Absent and excused -- Bell, Henbest, McGeachin, Stevenson
Floor Sponsor - Smith(24)
Title apvd - to Senate
03/15 Senate intro - 1st rdg - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 747
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 PUBLIC PLAYGROUND EQUIPMENT AND ASSOCIATED SHOCK ABSORBING
4 MATERIAL ARE 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; 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.
27 (2) As used in this section, these words shall have the following mean-
28 ings:
29 (a) "Educational institution" shall mean nonprofit colleges, universi-
30 ties, public charter schools organized pursuant to chapter 52, title 33,
31 Idaho Code, and other primary and secondary schools, the income of which
32 is devoted solely to education and in which systematic instruction in the
33 usual branches of learning is given. This definition does not include
34 schools primarily teaching business, dancing, dramatics, music, cosmetol-
35 ogy, writing, gymnastics, exercise and other special accomplishments nor
36 parent-teacher associations, parent groups, alumni or other auxiliary
37 organizations with purposes related to the educational function of an
38 institution or collective group of institutions.
39 (b) "Hospital" shall include nonprofit institutions licensed by the state
40 for the care of ill persons. It shall not extend to nursing homes or simi-
41 lar institutions.
42 (c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foun-
43 dation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes,
2
1 American Cancer Society, Mental Health Association, The Arc, The
2 Children's Home Society of Idaho, American Heart Association, Idaho Ronald
3 McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
4 trophy Foundation, National Multiple Sclerosis Society, Rocky Mountain
5 Kidney Association, American Diabetes Association, Easter Seals, Idaho
6 Community Action Agencies, Idaho Primary Care Association and community
7 health centers who are members of the Idaho Primary Care Association, the
8 Idaho Diabetes Youth Programs, Special Olympics Idaho, the Idaho Women's
9 and Children's Alliance, and the Family Services Alliance of Southeast
10 Idaho, together with said entities' local or regional chapters or divi-
11 sions.
12 (d) "Canal companies" shall include nonprofit corporations which are
13 incorporated solely for the purpose of operating and maintaining and are
14 engaged solely in operation and maintenance of dams, reservoirs, canals,
15 lateral and drainage ditches, pumps or pumping plants.
16 (e) "Forest protective associations" shall mean associations whose pur-
17 pose is the furnishing, operating and maintaining of a protective system
18 for the detection, prevention and suppression of forest or range fires.
19 Forest protective associations shall include only those associations with
20 which the state of Idaho has contracted or become a member of pursuant to
21 chapter 1, title 38, Idaho Code.
22 (f) "Food banks or soup kitchens" shall mean any nonprofit corporation or
23 association, other than the Idaho Foodbank Warehouse, Inc., one of whose
24 regular activities is the furnishing or providing of food or food products
25 to others without charge.
26 (g) "Nonsale clothier" shall mean any nonprofit corporation or associa-
27 tion one of whose primary purposes is the furnishing or providing of
28 clothes to others without charge.
29 (h) "Clothes" shall mean garments in general, designed or intended to be
30 worn by humans and shall include footwear in addition to wearing apparel.
31 (i) "Center for independent living" shall mean a private, nonprofit, non-
32 residential organization in which at least fifty-one percent (51%) of the
33 principal governing board, management and staff are individuals with dis-
34 abilities and that:
35 (i) Is designed and operated within a local community by individu-
36 als with disabilities;
37 (ii) Provides an array of independent living services and programs;
38 and
39 (iii) Is cross-disability.
40 (j) "Political subdivision" means:
41 (i) A governmental organization which:
42 1. Embraces a certain territory,
43 2. Is organized for public advantage and not in the interest of
44 private individuals or classes,
45 3. Has been delegated functions of government, and
46 4. Has the statutory power to levy taxes; or
47 (ii) A public health district created by section 39-408, Idaho
48 Code; or
49 (iii) A soil conservation district as defined in section 22-2717,
50 Idaho Code; or
51 (iv) A drainage district created pursuant to chapter 29, title 42,
52 Idaho Code; or
53 (v) An irrigation district created pursuant to title 43, Idaho
54 Code; or
55 (vi) A state grazing board created by section 57-1204, Idaho Code;
3
1 or
2 (vii) A water measurement district created pursuant to section
3 42-705 or 42-706, Idaho Code; or
4 (viii) A ground water management district created pursuant to chapter
5 51, title 42, Idaho Code.
6 (k) "Agency of the state of Idaho" shall mean an office or organization
7 created by the constitution or statutes of this state and constituting a
8 component part of the executive, judicial or legislative branch of the
9 government of this state.
10 (l) "Volunteer fire department" means an entity exempt from federal
11 income taxation pursuant to section 501(c)(3) of the Internal Revenue
12 Code and which primarily provides fire protection, or fire prevention on a
13 not-for-profit basis to surrounding residents.
14 (m) "Licensed emergency medical service agency (EMS)" means an emergency
15 medical service licensed by the EMS bureau of the department of health and
16 welfare and which is exempt from federal income taxation pursuant to sec-
17 tion 501(c)(3) of the Internal Revenue Code and which provides emergency
18 medical services on a not-for-profit basis to surrounding residents.
19 (n) "Qualifying senior citizen center" means an entity exempt from income
20 tax pursuant to section 501(c)(3) of the Internal Revenue Code and which
21 is a community facility for the organization and provision of a broad
22 spectrum of services, which shall include provision of health (including
23 mental health), social, nutritional, and educational services and the pro-
24 vision of facilities for recreational activities for older individuals.
25 (3) The exemption granted by subsection (1)(f) of this section does not
26 include any association or other organization whose members are political sub-
27 divisions or state agencies unless the organization is expressly created under
28 the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
29 (4) The exemptions granted by subsection (1) of this section do not
30 include the use of tangible personal property by a contractor used to improve
31 real property of an exempt entity when such use is within the definition pro-
32 vided by section 63-3615(b), Idaho Code, whether the use tax liability is
33 included in a contract total or stated separately in a contract; except that
34 sales and purchases of public playground equipment (such as slides and swings)
35 and the shock absorbing material associated therewith shall be exempt.
36 (5) There is exempted from the taxes imposed in this chapter, the renting
37 of a place to sleep to an individual by the Idaho Ronald McDonald House.
STATEMENT OF PURPOSE
RS 14110C1
The purpose of this legislation is to exempt sales and use tax on
non assembled public playground equipment purchased by a tax-
exempt entity directly from the manufacturer and hires someone to
install the equipment.
FISCAL IMPACT
Loss of revenue to the general fund would be about $90,000 each
fiscal year. An equal savings to the cities and schools that buy
the playground equipment should offset this money.
Contact
Name: Charles F. Campbell
Phone: (208) 344-8811
STATEMENT OF PURPOSE/FISCAL NOTE H 747