2004 Legislation
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HOUSE BILL NO. 810 – Sales tax exmptn/veterans organiztn


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Bill Status

H0810...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTIONS - Amends existing law to provide that sales to or
purchases by a veterans service organization, which is tax exempt under
Section 501(c)(19) of the Internal Revenue Code, are exempt from sales and
use tax; and to define "veterans service organization."
03/04    House intro - 1st rdg - to printing
03/05    Rpt prt - to Rev/Tax
03/16    Rpt out - rec d/p - to 2nd rdg
    Rls susp - PASSED - 66-3-1
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Gagner, Harwood, Henbest, Jaquet,
      Jones, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin,
      McKague, Meyer, Miller, Moyle, Nielsen, Pasley-Stuart, Raybould,
      Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
      Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Kellogg, Mitchell, Naccarato
      Absent and excused -- Garrett
    Floor Sponsor - McGeachin
    Title apvd - to Senate
03/16    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. 810
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION  1.  That Section 63-3622O, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
  9        63-3622O.  EXEMPT PRIVATE AND PUBLIC ORGANIZATIONS. (1) There are exempted
 10    from the taxes imposed by this chapter:
 11        (a)  Sales to or purchases by hospitals, health-related  entities,  educa-
 12        tional  institutions,  forest  protective associations and canal companies
 13        which are nonprofit organizations; and
 14        (b)  Donations to, sales to, and purchases by  the  Idaho  Foodbank  Ware-
 15        house, Inc.; and
 16        (c)  Donations  to, sales to, and purchases by food banks or soup kitchens
 17        of food or other tangible personal property used by  food  banks  or  soup
 18        kitchens  in the growing, storage, preparation or service of food, but not
 19        including motor vehicles or trailers; and
 20        (d)  Sales of clothes to,  donations  of  clothes  to,  and  purchases  of
 21        clothes by nonsale clothiers; and
 22        (e)  Sales to or purchases by centers for independent living; and
 23        (f)  Sales  to or purchases by the state of Idaho and its agencies and its
 24        political subdivisions; and
 25        (g)  Sales to or purchases by volunteer fire departments or licensed emer-
 26        gency medical service agencies; and
 27        (h)  Sales to or purchases by a qualifying senior citizen center; and
 28        (i)  Sales to or purchases by a veterans service organization which is tax
 29        exempt under section 501(c)(19) of the Internal Revenue Code.
 30        (2)  As used in this section, these words shall have the  following  mean-
 31    ings:
 32        (a)  "Educational  institution"  shall  mean nonprofit colleges, universi-
 33        ties, public charter schools organized pursuant to chapter 52,  title  33,
 34        Idaho  Code, and other  primary and secondary schools, the income of which
 35        is devoted solely to education and in which systematic instruction in  the
 36        usual  branches  of  learning  is  given. This definition does not include
 37        schools primarily teaching business, dancing, dramatics, music,  cosmetol-
 38        ogy,  writing,  gymnastics, exercise and other special accomplishments nor
 39        parent-teacher associations, parent  groups,  alumni  or  other  auxiliary
 40        organizations  with  purposes  related  to  the educational function of an
 41        institution or collective group of institutions.
 42        (b)  "Hospital" shall include nonprofit institutions licensed by the state
 43        for the care of ill persons. It shall not extend to nursing homes or simi-
  1        lar institutions.
  2        (c)  "Health-related entities" shall mean the Idaho Cystic Fibrosis  Foun-
  3        dation,  Idaho  Epilepsy  League,  Idaho Lung Association, March of Dimes,
  4        American  Cancer  Society,  Mental  Health  Association,  The   Arc,   The
  5        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
  6        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
  7        trophy  Foundation,  National  Multiple  Sclerosis Society, Rocky Mountain
  8        Kidney Association, American Diabetes  Association,  Easter  Seals,  Idaho
  9        Community  Action  Agencies,  Idaho Primary Care Association and community
 10        health centers who are members of the Idaho Primary Care Association,  the
 11        Idaho  Diabetes  Youth Programs, Special Olympics Idaho, the Idaho Women's
 12        and Children's Alliance, and the Family  Services  Alliance  of  Southeast
 13        Idaho,  together  with  said entities' local or regional chapters or divi-
 14        sions.
 15        (d)  "Canal companies" shall  include  nonprofit  corporations  which  are
 16        incorporated  solely  for the purpose of operating and maintaining and are
 17        engaged solely in operation and maintenance of dams,  reservoirs,  canals,
 18        lateral and drainage ditches, pumps or pumping plants.
 19        (e)  "Forest  protective  associations" shall mean associations whose pur-
 20        pose is the furnishing, operating and maintaining of a  protective  system
 21        for  the  detection,  prevention and suppression of forest or range fires.
 22        Forest protective associations shall include only those associations  with
 23        which  the state of Idaho has contracted or become a member of pursuant to
 24        chapter 1, title 38, Idaho Code.
 25        (f)  "Food banks or soup kitchens" shall mean any nonprofit corporation or
 26        association, other than the Idaho Foodbank Warehouse, Inc., one  of  whose
 27        regular activities is the furnishing or providing of food or food products
 28        to others without charge.
 29        (g)  "Nonsale  clothier"  shall mean any nonprofit corporation or associa-
 30        tion one of whose primary purposes  is  the  furnishing  or  providing  of
 31        clothes to others without charge.
 32        (h)  "Clothes"  shall mean garments in general, designed or intended to be
 33        worn by humans and shall include footwear in addition to wearing apparel.
 34        (i)  "Center for independent living" shall mean a private, nonprofit, non-
 35        residential organization in which at least fifty-one percent (51%) of  the
 36        principal  governing board, management and staff are individuals with dis-
 37        abilities and that:
 38             (i)   Is designed and operated within a local community by  individu-
 39             als with disabilities;
 40             (ii)  Provides  an array of independent living services and programs;
 41             and
 42             (iii) Is cross-disability.
 43        (j)  "Political subdivision" means:
 44             (i)    A governmental organization which:
 45                  1.  Embraces a certain territory,
 46                  2.  Is organized for public advantage and not in the interest of
 47                  private individuals or classes,
 48                  3.  Has been delegated functions of government, and
 49                  4.  Has the statutory power to levy taxes; or
 50             (ii)   A public health district  created  by  section  39-408,  Idaho
 51             Code; or
 52             (iii)  A  soil  conservation  district as defined in section 22-2717,
 53             Idaho Code; or
 54             (iv)   A drainage district created pursuant to chapter 29, title  42,
 55             Idaho Code; or
  1             (v)    An  irrigation  district  created  pursuant to title 43, Idaho
  2             Code; or
  3             (vi)   A state grazing board created by section 57-1204, Idaho  Code;
  4             or
  5             (vii)  A  water  measurement  district  created  pursuant  to section
  6             42-705 or 42-706, Idaho Code; or
  7             (viii) A ground water management district created pursuant to chapter
  8             51, title 42, Idaho Code.
  9        (k)  "Agency of the state of Idaho" shall mean an office  or  organization
 10        created  by  the constitution or statutes of this state and constituting a
 11        component part of  the executive, judicial or legislative  branch  of  the
 12        government of this state.
 13        (l)  "Volunteer  fire  department"  means  an  entity  exempt from federal
 14        income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
 15        and which primarily provides fire protection, or fire prevention on a not-
 16        for-profit basis to surrounding residents.
 17        (m)  "Licensed emergency medical service agency (EMS)" means an  emergency
 18        medical service licensed by the EMS bureau of the department of health and
 19        welfare and  which is exempt from federal income taxation pursuant to sec-
 20        tion  501(c)(3)  of the Internal Revenue Code and which provides emergency
 21        medical services on a not-for-profit basis to surrounding residents.
 22        (n)  "Qualifying senior citizen center" means an entity exempt from income
 23        tax pursuant to section 501(c)(3) of the Internal Revenue Code  and  which
 24        is  a  community  facility  for  the organization and provision of a broad
 25        spectrum of services, which shall include provision of  health  (including
 26        mental health), social, nutritional, and educational services and the pro-
 27        vision of facilities for recreational activities for older individuals.
 28        (o)  "Veterans  service organization" means a nonprofit organization which
 29        is tax exempt under section 501(c)(19) of the Internal Revenue  Code,  and
 30        incorporated for the purpose of promoting programs designed to assist vet-
 31        erans  of  the armed forces of the United States and their Idaho-domiciled
 32        surviving spouses, orphans and dependents.
 33        (3)  The exemption granted by subsection (1)(f) of this section  does  not
 34    include any association or other organization whose members are political sub-
 35    divisions or state agencies unless the organization is expressly created under
 36    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 37        (4)  The  exemptions  granted  by  subsection  (1)  of this section do not
 38    include the use of tangible personal property by a contractor used to  improve
 39    real  property of an exempt entity when such use is within the definition pro-
 40    vided by section 63-3615(b), Idaho Code, whether  the  use  tax  liability  is
 41    included in a contract total or stated separately in a contract.
 42        (5)  There is exempted from the taxes imposed in this chapter, the renting
 43    of a place to sleep to an individual by the Idaho Ronald McDonald House.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                           RS 14145C1

The purpose of this legislation is to permit the American Legion,
a valid Idaho non-profit Veterans Service Organization, to make
tax exempt purchases.  This legislation would give the American
Legion the same exemption that is extended to a number of other
groups covered in Idaho code, and would help the Gem Boys State
and Girls State programs.

                          FISCAL IMPACT

The financial impact that would be created would be minimal.  The
loss of sales tax revenue is projected to be $15,000.00, a third
of which comes from the Gem Boys State and Girls State programs.
That is about $5000.00 that could have been spent on affording
more deserving young men and women into these outstanding programs
or in direct assistance towards veterans and their children.
Name:  Representative Janice McGeachin 
Phone: 332-1000
       The American Legion   
Phone: 342-7061

STATEMENT OF PURPOSE/FISCAL NOTE                        H 810