2006 Legislation
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HOUSE BILL NO. 475 – Museum admission, exempt sales tax


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Bill Status

H0475...............................................by REVENUE AND TAXATION
MUSEUM ADMISSION - SALES TAX - Amends existing law to provide a sales and
use tax exemption for admissions to and purchases by museums; and to define
01/25    House intro - 1st rdg - to printing
01/26    Rpt prt - to Rev/Tax
02/22    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
02/27    3rd rdg - PASSED - 67-1-2
      AYES -- Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, 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(Sali), Sayler, Schaefer, Shepherd(2), Shepherd(8),
      Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
      Wills, Wood, Mr. Speaker
      NAYS -- Cannon
      Absent and excused -- Anderson, Trail
    Floor Sponsor - McGeachin
    Title apvd - to Senate
02/28    Senate intro - 1st rdg - to Loc Gov
03/03    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 31-4-0
      AYES -- Andreason(Hatch), Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Corder, Darrington, Davis, Fulcher,
      Gannon, Geddes, Goedde, Jorgenson, Kelly, Keough, Langhorst, Lodge,
      Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder,
      Stennett, Sweet, Werk, Williams
      NAYS -- Compton, Hill, Little, Stegner
      Absent and excused -- None
    Floor Sponsor - Corder
    Title apvd - to House
03/09    To enrol
03/10    Rpt enrol - Sp signed
03/13    Pres signed
03/14    To Governor
03/15    Governor signed
         Session Law Chapter 89
         Effective: 07/01/06

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 475
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  5        CORRECTION.
  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)  Admissions to and purchases by museums, as defined in subsection  (2)
 30        of this section.
 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.
  1        (b)  "Hospital" shall include nonprofit institutions licensed by the state
  2        for the care of ill persons. It shall not extend to nursing homes or simi-
  3        lar institutions.
  4        (c)  "Health-related  entities" shall mean the Idaho Cystic Fibrosis Foun-
  5        dation, Idaho Epilepsy League, Idaho Lung  Association,  March  of  Dimes,
  6        American   Cancer   Society,  Mental  Health  Association,  The  Arc,  The
  7        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
  8        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
  9        trophy Foundation, National Multiple Sclerosis Society,    Rocky  Mountain
 10        Kidney  Association,  American  Diabetes  Association, Easter Seals, Idaho
 11        Community Action Agencies, Idaho Primary Care  Association  and  community
 12        health  centers who are members of the Idaho Primary Care Association, the
 13        Idaho Diabetes Youth Programs, Special Olympics Idaho, the  Idaho  Women's
 14        and  Children's  Alliance,  and  the Family Services Alliance of Southeast
 15        Idaho, together with said entities' local or regional  chapters  or  divi-
 16        sions.
 17        (d)  "Canal  companies"  shall  include  nonprofit  corporations which are
 18        incorporated solely for the purpose of operating and maintaining  and  are
 19        engaged  solely  in operation and maintenance of dams, reservoirs, canals,
 20        lateral and drainage ditches, pumps or pumping plants.
 21        (e)  "Forest protective associations" shall mean associations  whose  pur-
 22        pose  is  the furnishing, operating and maintaining of a protective system
 23        for the detection, prevention and suppression of forest  or  range  fires.
 24        Forest  protective associations shall include only those associations with
 25        which the state of Idaho has contracted or become a member of pursuant  to
 26        chapter 1, title 38, Idaho Code.
 27        (f)  "Food banks or soup kitchens" shall mean any nonprofit corporation or
 28        association,  other  than the Idaho Foodbank Warehouse, Inc., one of whose
 29        regular activities is the furnishing or providing of food or food products
 30        to others without charge.
 31        (g)  "Nonsale clothier" shall mean any nonprofit corporation  or  associa-
 32        tion  one  of  whose  primary  purposes  is the furnishing or providing of
 33        clothes to others without charge.
 34        (h)  "Clothes" shall mean garments in general, designed or intended to  be
 35        worn by humans and shall include footwear in addition to wearing apparel.
 36        (i)  "Center for independent living" shall mean a private, nonprofit, non-
 37        residential  organization in which at least fifty-one percent (51%) of the
 38        principal governing board, management and staff are individuals with  dis-
 39        abilities and that:
 40             (i)   Is  designed and operated within a local community by individu-
 41             als with disabilities;
 42             (ii)  Provides an array of independent living services and  programs;
 43             and
 44             (iii) Is cross-disability.
 45        (j)  "Political subdivision" means:
 46             (i)    A governmental organization which:
 47                  1.  Embraces a certain territory,
 48                  2.  Is organized for public advantage and not in the interest of
 49                  private individuals or classes,
 50                  3.  Has been delegated functions of government, and
 51                  4.  Has the statutory power to levy taxes; or
 52             (ii)   A  public  health  district  created  by section 39-408, Idaho
 53             Code; or
 54             (iii)  A soil conservation district as defined  in  section  22-2717,
 55             Idaho Code; or
  1             (iv)   A  drainage district created pursuant to chapter 29, title 42,
  2             Idaho Code; or
  3             (v)    An irrigation district created pursuant  to  title  43,  Idaho
  4             Code; or
  5             (vi)   A  state grazing board created by section 57-1204, Idaho Code;
  6             or
  7             (vii)  A water  measurement  district  created  pursuant  to  section
  8             42-705 or 42-706, Idaho Code; or
  9             (viii) A ground water management district created pursuant to chapter
 10             51, title 42, Idaho Code.
 11        (k)  "Agency  of  the state of Idaho" shall mean an office or organization
 12        created  by the constitution or statutes of this state and constituting  a
 13        component  part  of  the  executive, judicial or legislative branch of the
 14        government of this state.
 15        (l)  "Volunteer fire department"  means  an  entity  exempt  from  federal
 16        income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
 17        and which primarily provides fire protection, or fire prevention on a not-
 18        for-profit basis to surrounding residents.
 19        (m)  "Licensed  emergency medical service agency (EMS)" means an emergency
 20        medical service licensed by the EMS bureau of the department of health and
 21        welfare and  which is exempt from federal income taxation pursuant to sec-
 22        tion 501(c)(3) of the Internal Revenue Code and which  provides  emergency
 23        medical services on a not-for-profit basis to surrounding residents.
 24        (n)  "Qualifying senior citizen center" means an entity exempt from income
 25        tax  pursuant  to section 501(c)(3) of the Internal Revenue Code and which
 26        is a community facility for the organization  and  provision  of  a  broad
 27        spectrum  of  services, which shall include provision of health (including
 28        mental health), social, nutritional, and educational services and the pro-
 29        vision of facilities for recreational activities for older individuals.
 30        (o)  "Museum" means a public institution or an entity exempt  from  income
 31        tax  pursuant  to  section  501(c)(3)  of the Internal Revenue Code, which
 32        stores, preserves and exhibits objects of art, history, science  or  other
 33        objects  of historical, educational or cultural value on a permanent basis
 34        in a building, portion of a building or outdoor location  and  which  pro-
 35        vides museum services to the public on a regular basis.
 36        (3)  The  exemption  granted by subsection (1)(f) of this section does not
 37    include any association or other organization whose members are political sub-
 38    divisions or state agencies unless the organization is expressly created under
 39    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 40        (4)  The exemptions granted by subsection  (1)  of  this  section  do  not
 41    include  the use of tangible personal property by a contractor used to improve
 42    real property of an exempt entity when such use is within the definition  pro-
 43    vided  by  section  63-3615(b),  Idaho  Code, whether the use tax liability is
 44    included in a contract total or stated separately in a contract.
 45        (5)  There is exempted from the taxes imposed in this chapter, the renting
 46    of a place to sleep to an individual by the Idaho Ronald McDonald House.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 15414

     This bill provides an exemption from sales tax for two
limited categories of transactions by museums: Purchases and
admissions. (It does not exempt museum merchandise sales from the
sales tax.)
     Museums are narrowly defined in the bill to be limited to
public institutions and private 501 (c)(3) exempt not-for-profit
institutions. They are further defined through the use of an
adaptation of the American Association of Museums definition.
These limitations are designed to limit potential abuses and to
provide limited fiscal impact, while assisting the narrow
category of educational institutions for which it is intended to

                           FISCAL NOTE

     Estimated reduction of $150,000 to the General Fund.

Name: Rep. Janice McGeachin
Phone: 208-332-1000
Rep. Carlos Bilbao

STATEMENT OF PURPOSE/FISCAL NOTE                         H 475