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H0032...............................................by REVENUE AND TAXATION PUBLIC PLAYGROUND EQUIPMENT - SALES TAX EXEMPTION - Amends existing law to provide that public playground equipment and associated shock absorbing material are exempt from sales and use tax. 01/24 House intro - 1st rdg - to printing 01/25 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 32 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; 26 (h) Sales to or purchases by a qualifying senior citizen center; and 27 (i) Sales to or purchases by the Blind Services Foundation, Inc. 28 (2) As used in this section, these words shall have the following mean- 29 ings: 30 (a) "Educational institution" shall mean nonprofit colleges, universi- 31 ties, public charter schools organized pursuant to chapter 52, title 33, 32 Idaho Code, and other primary and secondary schools, the income of which 33 is devoted solely to education and in which systematic instruction in the 34 usual branches of learning is given. This definition does not include 35 schools primarily teaching business, dancing, dramatics, music, cosmetol- 36 ogy, writing, gymnastics, exercise and other special accomplishments nor 37 parent-teacher associations, parent groups, alumni or other auxiliary 38 organizations with purposes related to the educational function of an 39 institution or collective group of institutions. 40 (b) "Hospital" shall include nonprofit institutions licensed by the state 41 for the care of ill persons. It shall not extend to nursing homes or simi- 42 lar institutions. 43 (c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foun- 2 1 dation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes, 2 American Cancer Society, Mental Health Association, The Arc, The 3 Children's Home Society of Idaho, American Heart Association, Idaho Ronald 4 McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys- 5 trophy Foundation, National Multiple Sclerosis Society, Rocky Mountain 6 Kidney Association, American Diabetes Association, Easter Seals, Idaho 7 Community Action Agencies, Idaho Primary Care Association and community 8 health centers who are members of the Idaho Primary Care Association, the 9 Idaho Diabetes Youth Programs, Special Olympics Idaho, the Idaho Women's 10 and Children's Alliance, and the Family Services Alliance of Southeast 11 Idaho, together with said entities' local or regional chapters or divi- 12 sions. 13 (d) "Canal companies" shall include nonprofit corporations which are 14 incorporated solely for the purpose of operating and maintaining and are 15 engaged solely in operation and maintenance of dams, reservoirs, canals, 16 lateral and drainage ditches, pumps or pumping plants. 17 (e) "Forest protective associations" shall mean associations whose pur- 18 pose is the furnishing, operating and maintaining of a protective system 19 for the detection, prevention and suppression of forest or range fires. 20 Forest protective associations shall include only those associations with 21 which the state of Idaho has contracted or become a member of pursuant to 22 chapter 1, title 38, Idaho Code. 23 (f) "Food banks or soup kitchens" shall mean any nonprofit corporation or 24 association, other than the Idaho Foodbank Warehouse, Inc., one of whose 25 regular activities is the furnishing or providing of food or food products 26 to others without charge. 27 (g) "Nonsale clothier" shall mean any nonprofit corporation or associa- 28 tion one of whose primary purposes is the furnishing or providing of 29 clothes to others without charge. 30 (h) "Clothes" shall mean garments in general, designed or intended to be 31 worn by humans and shall include footwear in addition to wearing apparel. 32 (i) "Center for independent living" shall mean a private, nonprofit, non- 33 residential organization in which at least fifty-one percent (51%) of the 34 principal governing board, management and staff are individuals with dis- 35 abilities and that: 36 (i) Is designed and operated within a local community by individu- 37 als with disabilities; 38 (ii) Provides an array of independent living services and programs; 39 and 40 (iii) Is cross-disability. 41 (j) "Political subdivision" means: 42 (i) A governmental organization which: 43 1. Embraces a certain territory, 44 2. Is organized for public advantage and not in the interest of 45 private individuals or classes, 46 3. Has been delegated functions of government, and 47 4. Has the statutory power to levy taxes; or 48 (ii) A public health district created by section 39-408, Idaho 49 Code; or 50 (iii) A soil conservation district as defined in section 22-2717, 51 Idaho Code; or 52 (iv) A drainage district created pursuant to chapter 29, title 42, 53 Idaho Code; or 54 (v) An irrigation district created pursuant to title 43, Idaho 55 Code; or 3 1 (vi) A state grazing board created by section 57-1204, Idaho Code; 2 or 3 (vii) A water measurement district created pursuant to section 4 42-705 or 42-706, Idaho Code; or 5 (viii) A ground water management district created pursuant to chapter 6 51, title 42, Idaho Code. 7 (k) "Agency of the state of Idaho" shall mean an office or organization 8 created by the constitution or statutes of this state and constituting a 9 component part of the executive, judicial or legislative branch of the 10 government of this state. 11 (l) "Volunteer fire department" means an entity exempt from federal 12 income taxation pursuant to section 501(c)(3) of the Internal Revenue Code 13 and which primarily provides fire protection, or fire prevention on a not- 14 for-profit basis to surrounding residents. 15 (m) "Licensed emergency medical service agency (EMS)" means an emergency 16 medical service licensed by the EMS bureau of the department of health and 17 welfare and which is exempt from federal income taxation pursuant to sec- 18 tion 501(c)(3) of the Internal Revenue Code and which provides emergency 19 medical services on a not-for-profit basis to surrounding residents. 20 (n) "Qualifying senior citizen center" means an entity exempt from income 21 tax pursuant to section 501(c)(3) of the Internal Revenue Code and which 22 is a community facility for the organization and provision of a broad 23 spectrum of services, which shall include provision of health (including 24 mental health), social, nutritional, and educational services and the pro- 25 vision of facilities for recreational activities for older individuals. 26 (3) The exemption granted by subsection (1)(f) of this section does not 27 include any association or other organization whose members are political sub- 28 divisions or state agencies unless the organization is expressly created under 29 the joint powers provision of sections 67-2328 through 67-2333, Idaho Code. 30 (4) The exemptions granted by subsection (1) of this section do not 31 include the use of tangible personal property by a contractor used to improve 32 real property of an exempt entity when such use is within the definition pro- 33 vided by section 63-3615(b), Idaho Code, whether the use tax liability is 34 included in a contract total or stated separately in a contract; except that 35 sales and purchases of public playground equipment, such as slides and swings, 36 and the shock absorbing material associated therewith shall be exempt. 37 (5) There is exempted from the taxes imposed in this chapter, the renting 38 of a place to sleep to an individual by the Idaho Ronald McDonald House.
STATEMENT OF PURPOSE RS RS14609 The purpose of this legislation is to exempt sales and use taxes on public playground equipment, such as slides and swings, and the shock absorbing material associated with 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 32