2005 Legislation
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HOUSE BILL NO. 32 – Playground equip, exmpt sales tax


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Bill Status

H0032...............................................by REVENUE AND TAXATION
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

Bill Text

  ]]]]              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
  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-
  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
  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 / Fiscal Impact

                       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.

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