2004 Legislation
Print Friendly

HOUSE BILL NO. 747 – Sales tax, playground equip exempt


View Bill Status

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.

Bill Status

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

Bill Text

  ]]]]              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
  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,
  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;
  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 / Fiscal Impact

                       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.

Name: Charles F. Campbell 
Phone: (208) 344-8811

STATEMENT OF PURPOSE/FISCAL NOTE                       H 747