Print Friendly HOUSE BILL NO. 706 – Sales tax exmptn, free dental clnic
HOUSE BILL NO. 706
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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
]]]] 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-
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
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-
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;
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,
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;
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
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.
This legislation will impact the general fund by $7,500.00
Name: Rep. Margaret Henbest
STATEMENT OF PURPOSE/FISCAL NOTE H 706