2006 Legislation
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HOUSE BILL NO. 706 – Sales tax exmptn, free dental clnic

HOUSE BILL NO. 706

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Bill Status



H0706...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTIONS - Amends existing law relating to sales tax to exempt
from taxation sales to or purchases by nonprofit organizations offering
free dental clinic services to children.
                                                                        
02/20    House intro - 1st rdg - to printing
02/21    Rpt prt - to Rev/Tax
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 68-0-2
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
      Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Boe, Sayler
    Floor Sponsor - Henbest
    Title apvd - to Senate
03/07    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/20    3rd rdg - PASSED - 28-4-3
      AYES -- Andreason, Broadsword, Bunderson, Burkett, Burtenshaw,
      Cameron, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Malepeai, McGee,
      McKenzie, Pearce, Richardson, Schroeder, Stennett, Werk, Williams
      NAYS -- Coiner, Little, Lodge, Stegner
      Absent and excused -- Brandt, Marley, Sweet
    Floor Sponsor - Langhorst
    Title apvd - to House
03/21    To enrol
03/22    Rpt enrol - Sp signed
03/23    Pres signed - To Governor
03/24    Governor signed
         Session Law Chapter 211
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 706
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SALES TAX; AMENDING SECTION 63-3622O, IDAHO CODE, TO  EXEMPT  FROM
  3        TAXATION  SALES  TO  OR PURCHASES BY NONPROFIT ORGANIZATIONS OFFERING FREE
  4        DENTAL CLINIC SERVICES TO CHILDREN AND TO  MAKE  A  TECHNICAL  CORRECTION;
  5        DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
                                                                        
  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 the Blind Services Foundation, Inc.; and
 29        (j)  Sales to or purchases by nonprofit organizations offering free dental
 30        clinic services to children.
 31        (2)  As used in this section, these words shall have the  following  mean-
 32    ings:
 33        (a)  "Educational  institution"  shall  mean nonprofit colleges, universi-
 34        ties, public charter schools organized pursuant to chapter 52,  title  33,
 35        Idaho  Code, and other  primary and secondary schools, the income of which
 36        is devoted solely to education and in which systematic instruction in  the
 37        usual  branches  of  learning  is  given. This definition does not include
 38        schools primarily teaching business, dancing, dramatics, music,  cosmetol-
 39        ogy,  writing,  gymnastics, exercise and other special accomplishments nor
 40        parent-teacher associations, parent  groups,  alumni  or  other  auxiliary
 41        organizations  with  purposes  related  to  the educational function of an
 42        institution or collective group of institutions.
 43        (b)  "Hospital" shall include nonprofit institutions licensed by the state
                                                                        
                                           2
                                                                        
  1        for the care of ill persons. It shall not extend to nursing homes or simi-
  2        lar institutions.
  3        (c)  "Health-related entities" shall mean the Idaho Cystic Fibrosis  Foun-
  4        dation,  Idaho  Epilepsy  League,  Idaho Lung Association, March of Dimes,
  5        American  Cancer  Society,  Mental  Health  Association,  The   Arc,   The
  6        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
  7        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
  8        trophy  Foundation,  National  Multiple Sclerosis Society,  Rocky Mountain
  9        Kidney Association, American Diabetes  Association,  Easter  Seals,  Idaho
 10        Community  Action  Agencies,  Idaho Primary Care Association and community
 11        health centers who are members of the Idaho Primary Care Association,  the
 12        Idaho  Diabetes  Youth Programs, Special Olympics Idaho, the Idaho Women's
 13        and Children's Alliance, and the Family  Services  Alliance  of  Southeast
 14        Idaho,  together  with  said entities' local or regional chapters or divi-
 15        sions.
 16        (d)  "Canal companies" shall  include  nonprofit  corporations  which  are
 17        incorporated  solely  for the purpose of operating and maintaining and are
 18        engaged solely in operation and maintenance of dams,  reservoirs,  canals,
 19        lateral and drainage ditches, pumps or pumping plants.
 20        (e)  "Forest  protective  associations" shall mean associations whose pur-
 21        pose is the furnishing, operating and maintaining of a  protective  system
 22        for  the  detection,  prevention and suppression of forest or range fires.
 23        Forest protective associations shall include only those associations  with
 24        which  the state of Idaho has contracted or become a member of pursuant to
 25        chapter 1, title 38, Idaho Code.
 26        (f)  "Food banks or soup kitchens" shall mean any nonprofit corporation or
 27        association, other than the Idaho Foodbank Warehouse, Inc., one  of  whose
 28        regular activities is the furnishing or providing of food or food products
 29        to others without charge.
 30        (g)  "Nonsale  clothier"  shall mean any nonprofit corporation or associa-
 31        tion one of whose primary purposes  is  the  furnishing  or  providing  of
 32        clothes to others without charge.
 33        (h)  "Clothes"  shall mean garments in general, designed or intended to be
 34        worn by humans and shall include footwear in addition to wearing apparel.
 35        (i)  "Center for independent living" shall mean a private, nonprofit, non-
 36        residential organization in which at least fifty-one percent (51%) of  the
 37        principal  governing board, management and staff are individuals with dis-
 38        abilities and that:
 39             (i)   Is designed and operated within a local community by  individu-
 40             als with disabilities;
 41             (ii)  Provides  an array of independent living services and programs;
 42             and
 43             (iii) Is cross-disability.
 44        (j)  "Political subdivision" means:
 45             (i)    A governmental organization which:
 46                  1.  Embraces a certain territory,
 47                  2.  Is organized for public advantage and not in the interest of
 48                  private individuals or classes,
 49                  3.  Has been delegated functions of government, and
 50                  4.  Has the statutory power to levy taxes; or
 51             (ii)   A public health district  created  by  section  39-408,  Idaho
 52             Code; or
 53             (iii)  A  soil  conservation  district as defined in section 22-2717,
 54             Idaho Code; or
 55             (iv)   A drainage district created pursuant to chapter 29, title  42,
                                                                        
                                           3
                                                                        
  1             Idaho Code; or
  2             (v)    An  irrigation  district  created  pursuant to title 43, Idaho
  3             Code; or
  4             (vi)   A state grazing board created by section 57-1204, Idaho  Code;
  5             or
  6             (vii)  A  water  measurement  district  created  pursuant  to section
  7             42-705 or 42-706, Idaho Code; or
  8             (viii) A ground water management district created pursuant to chapter
  9             51, title 42, Idaho Code.
 10        (k)  "Agency of the state of Idaho" shall mean an office  or  organization
 11        created   by the constitution or statutes of this state and constituting a
 12        component part of the executive, judicial or  legislative  branch  of  the
 13        government of this state.
 14        (l)  "Volunteer  fire  department"  means  an  entity  exempt from federal
 15        income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
 16        and which primarily provides fire protection, or fire prevention on a not-
 17        for-profit basis to surrounding residents.
 18        (m)  "Licensed emergency medical service agency (EMS)" means an  emergency
 19        medical service licensed by the EMS bureau of the department of health and
 20        welfare and  which is exempt from federal income taxation pursuant to sec-
 21        tion  501(c)(3)  of the Internal Revenue Code and which provides emergency
 22        medical services on a not-for-profit basis to surrounding residents.
 23        (n)  "Qualifying senior citizen center" means an entity exempt from income
 24        tax pursuant to section 501(c)(3) of the Internal Revenue Code  and  which
 25        is  a  community  facility  for  the organization and provision of a broad
 26        spectrum of services, which shall include provision of  health  (including
 27        mental health), social, nutritional, and educational services and the pro-
 28        vision of facilities for recreational activities for older individuals.
 29        (3)  The  exemption  granted by subsection (1)(f) of this section does not
 30    include any association or other organization whose members are political sub-
 31    divisions or state agencies unless the organization is expressly created under
 32    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 33        (4)  The exemptions granted by subsection  (1)  of  this  section  do  not
 34    include  the use of tangible personal property by a contractor used to improve
 35    real property of an exempt entity when such use is within the definition  pro-
 36    vided  by  section  63-3615(b),  Idaho  Code, whether the use tax liability is
 37    included in a contract total or stated separately in a contract.
 38        (5)  There is exempted from the taxes imposed in this chapter, the renting
 39    of a place to sleep to an individual by the Idaho Ronald McDonald House.
                                                                        
 40        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 41    declared to exist, this act shall be in full force and effect on and after its
 42    passage and approval, and retroactively to July 1, 2005.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16091

This legislation amends Chapter 36, Title 63, Idaho Code, by the
addition of an exemption from sales tax for purchases made by an
Idaho Nonprofit organization offering free dental clinic services
to children and making this retroactive.



                           FISCAL NOTE

This legislation will impact the general fund by $7,500.00




Contact
Name: Rep. Margaret Henbest 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 706