Print Friendly HOUSE BILL NO. 810 – Sales tax exmptn/veterans organiztn
HOUSE BILL NO. 810
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.
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-
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-
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;
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;
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
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.
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
The American Legion
STATEMENT OF PURPOSE/FISCAL NOTE H 810