2006 Legislation
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HOUSE BILL NO. 744 – Sales tax exmptn/Project P.A.T.C.H.


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Bill Status

H0744...............................................by REVENUE AND TAXATION
SALES TAX - EXEMPTION - Amends existing law relating to exemptions from the
sales and use tax to provide that Project P.A.T.C.H., Planned Assistance
for Troubled Children, shall be included in the definition of "health
related entities."
02/28    House intro - 1st rdg - to printing
03/01    Rpt prt - to Rev/Tax
03/03    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 54-11-5
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bedke, Bell,
      Bilbao, Block, Boe, Bolz, Brackett, Bradford, Chadderdon, Collins,
      Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
      Garrett, Hart, Henbest, Henderson, Jaquet, Kemp, Loertscher,
      Martinez, Mathews, McGeachin, McKague, Miller, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Rydalch, Sayler, Schaefer,
      Shepherd(2), Shirley, Skippen, Smith(30), Smith(24), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Mr. Speaker
      NAYS -- Cannon, Clark, Harwood, Lake, LeFavour, Mitchell, Moyle,
      Ringo, Roberts, Rusche, Sali
      Absent and excused -- Bayer, Black, Crow, Shepherd(8), Wood
    Floor Sponsor - Schaefer
    Title apvd - to Senate
03/10    Senate intro - 1st rdg - to Loc Gov
03/22    Rpt out - rec d/p - to 2nd rdg
03/23    2nd rdg - to 3rd rdg
03/28    3rd rdg - FAILED - 17-18-0
      AYES -- Brandt, Broadsword, Burkett(Clark), Burtenshaw, Corder,
      Davis, Goedde, Keough, Langhorst, Malepeai, Marley, McGee, McKenzie,
      Pearce, Schroeder, Stennett, Williams
      NAYS -- Andreason, Bunderson, Cameron, Coiner, Compton, Darrington,
      Fulcher, Gannon, Geddes, Hill, Jorgenson, Kelly, Little, Lodge,
      Richardson, Stegner, Sweet, Werk
      Absent and excused -- None
    Floor Sponsor - Corder
    Ret'd to House
    Filed in Office of the Chief Clerk

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 744
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  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.
 29        (2)  As used in this section, these words shall have the  following  mean-
 30    ings:
 31        (a)  "Educational  institution"  shall  mean nonprofit colleges, universi-
 32        ties, public charter schools organized pursuant to chapter 52,  title  33,
 33        Idaho  Code, and other  primary and secondary schools, the income of which
 34        is devoted solely to education and in which systematic instruction in  the
 35        usual  branches  of  learning  is  given. This definition does not include
 36        schools primarily teaching business, dancing, dramatics, music,  cosmetol-
 37        ogy,  writing,  gymnastics, exercise and other special accomplishments nor
 38        parent-teacher associations, parent  groups,  alumni  or  other  auxiliary
 39        organizations  with  purposes  related  to  the educational function of an
 40        institution or collective group of institutions.
 41        (b)  "Hospital" shall include nonprofit institutions licensed by the state
 42        for the care of ill persons. It shall not extend to nursing homes or simi-
 43        lar institutions.
  1        (c)  "Health-related entities" shall mean the Idaho Cystic Fibrosis  Foun-
  2        dation,  Idaho  Epilepsy  League,  Idaho Lung Association, March of Dimes,
  3        American  Cancer  Society,  Mental  Health  Association,  The   Arc,   The
  4        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
  5        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
  6        trophy  Foundation,  National  Multiple  Sclerosis Society, Rocky Mountain
  7        Kidney Association, American Diabetes  Association,  Easter  Seals,  Idaho
  8        Community  Action  Agencies,  Idaho Primary Care Association and community
  9        health centers who are members of the Idaho Primary Care Association,  the
 10        Idaho  Diabetes  Youth Programs, Special Olympics Idaho, the Idaho Women's
 11        and Children's Alliance, and the Family  Services  Alliance  of  Southeast
 12        Idaho,  together  with  said entities' local or regional chapters or divi-
 13        sions, and Project P.A.T.C.H., Planned Assistance for Troubled Children.
 14        (d)  "Canal companies" shall  include  nonprofit  corporations  which  are
 15        incorporated  solely  for the purpose of operating and maintaining and are
 16        engaged solely in operation and maintenance of dams,  reservoirs,  canals,
 17        lateral and drainage ditches, pumps or pumping plants.
 18        (e)  "Forest  protective  associations" shall mean associations whose pur-
 19        pose is the furnishing, operating and maintaining of a  protective  system
 20        for  the  detection,  prevention and suppression of forest or range fires.
 21        Forest protective associations shall include only those associations  with
 22        which  the state of Idaho has contracted or become a member of pursuant to
 23        chapter 1, title 38, Idaho Code.
 24        (f)  "Food banks or soup kitchens" shall mean any nonprofit corporation or
 25        association, other than the Idaho Foodbank Warehouse, Inc., one  of  whose
 26        regular activities is the furnishing or providing of food or food products
 27        to others without charge.
 28        (g)  "Nonsale  clothier"  shall mean any nonprofit corporation or associa-
 29        tion, one of whose primary purposes is  the  furnishing  or  providing  of
 30        clothes to others without charge.
 31        (h)  "Clothes"  shall mean garments in general, designed or intended to be
 32        worn by humans and shall include footwear in addition to wearing apparel.
 33        (i)  "Center for independent living" shall mean a private, nonprofit, non-
 34        residential organization in which at least fifty-one percent (51%) of  the
 35        principal  governing board, management and staff are individuals with dis-
 36        abilities and that:
 37             (i)   Is designed and operated within a local community by  individu-
 38             als with disabilities;
 39             (ii)  Provides  an array of independent living services and programs;
 40             and
 41             (iii) Is cross-disability.
 42        (j)  "Political subdivision" means:
 43             (i)    A governmental organization which:
 44                  1.  Embraces a certain territory,
 45                  2.  Is organized for public advantage and not in the interest of
 46                  private individuals or classes,
 47                  3.  Has been delegated functions of government, and
 48                  4.  Has the statutory power to levy taxes; or
 49             (ii)   A public health district  created  by  section  39-408,  Idaho
 50             Code; or
 51             (iii)  A  soil  conservation  district as defined in section 22-2717,
 52             Idaho Code; or
 53             (iv)   A drainage district created pursuant to chapter 29, title  42,
 54             Idaho Code; or
 55             (v)    An  irrigation  district  created  pursuant to title 43, Idaho
  1             Code; or
  2             (vi)   A state grazing board created by section 57-1204, Idaho  Code;
  3             or
  4             (vii)  A  water  measurement  district  created  pursuant  to section
  5             42-705 or 42-706, Idaho Code; or
  6             (viii) A ground water management district created pursuant to chapter
  7             51, title 42, Idaho Code.
  8        (k)  "Agency of the state of Idaho" shall mean an office  or  organization
  9        created  by  the constitution or statutes of this state and constituting a
 10        component part of the executive, judicial or  legislative  branch  of  the
 11        government of this state.
 12        (l)  "Volunteer  fire  department"  means  an  entity  exempt from federal
 13        income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
 14        and which primarily provides fire protection, or fire prevention on a not-
 15        for-profit basis to surrounding residents.
 16        (m)  "Licensed emergency medical service agency (EMS)" means an  emergency
 17        medical service licensed by the EMS bureau of the department of health and
 18        welfare and  which is exempt from federal income taxation pursuant to sec-
 19        tion  501(c)(3)  of the Internal Revenue Code and which provides emergency
 20        medical services on a not-for-profit basis to surrounding residents.
 21        (n)  "Qualifying senior citizen center" means an entity exempt from income
 22        tax pursuant to section 501(c)(3) of the Internal Revenue Code  and  which
 23        is  a  community  facility  for  the organization and provision of a broad
 24        spectrum of services, which shall include provision of  health  (including
 25        mental health), social, nutritional, and educational services and the pro-
 26        vision of facilities for recreational activities for older individuals.
 27        (3)  The  exemption  granted by subsection (1)(f) of this section does not
 28    include any association or other organization whose members are political sub-
 29    divisions or state agencies unless the organization is expressly created under
 30    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 31        (4)  The exemptions granted by subsection  (1)  of  this  section  do  not
 32    include  the use of tangible personal property by a contractor used to improve
 33    real property of an exempt entity when such use is within the definition  pro-
 34    vided  by  section  63-3615(b),  Idaho  Code, whether the use tax liability is
 35    included in a contract total or stated separately in a contract.
 36        (5)  There is exempted from the taxes imposed in this chapter, the renting
 37    of a place to sleep to an individual by the Idaho Ronald McDonald House.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 15467C2

This bill would extend a sales tax exemption to Project
P.A.T.C.H., which stands for "planned assistance for troubled
children."  This exemption is already provided for several other
schools with similar missions and all regular educational
institutions. Project Patch is a residential school, treatment
facility, and wilderness program located in Garden Valley, Idaho
since 1990.  It is fully licensed by Idaho Health & Welfare and
accredited by the Northwest Association of Accredited Schools,
Idaho Department of Education, and Joint Commission of
Accreditation on Health Care Organizations.

                           FISCAL NOTE

Approximately $10,300, based on what Project Patch paid in Idaho
Sales Tax in 2005 ($205,429 in Idaho taxable purchases X 5%).

Name: Rep. Smylie 
Phone: 332-1000
Rep. Schaefer

STATEMENT OF PURPOSE/FISCAL NOTE                         H 744