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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
]]]] 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 2 RELATING TO SALES AND USE TAX EXEMPTIONS; AMENDING SECTION 63-3622O, IDAHO 3 CODE, TO PROVIDE AN EXEMPTION FROM THE SALES AND USE TAX FOR SALES TO AND 4 PURCHASES BY A QUALIFYING VETERANS SERVICE ORGANIZATION AND TO DEFINE 5 "VETERANS SERVICE ORGANIZATION." 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- 2 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 3 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 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. Contact Name: Representative Janice McGeachin Phone: 332-1000 The American Legion Phone: 342-7061 STATEMENT OF PURPOSE/FISCAL NOTE H 810