2006 Legislation
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HOUSE BILL NO. 686 – Sales tax exmptn/shooting range fee

HOUSE BILL NO. 686

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Bill Status



H0686...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTIONS - Adds to existing law to provide an exemption from
sales tax for certain fees and membership dues related to nonprofit hunting
or shooting sports.
                                                                        
02/14    House intro - 1st rdg - to printing
02/15    Rpt prt - to Rev/Tax
02/24    Rpt out - rec d/p - to 2nd rdg
02/27    2nd rdg - to 3rd rdg
03/02    3rd rdg - PASSED - 54-13-3
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Black, Bolz, Brackett, Chadderdon, Clark, Collins, Crow,
      Denney, Edmunson, Ellsworth, Eskridge, Field(23), Garrett, Hart,
      Harwood, Henderson, Jaquet, Kemp, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Moyle, Nielsen, Nonini, Pence,
      Raybould, Ring, Rydalch, Sali, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Skippen, Smith(24), Smylie, Snodgrass,
      Stevenson, Trail, Wills, Wood
      NAYS -- Bilbao, Boe, Bradford, Cannon, Deal, Henbest, Lake, Mitchell,
      Pasley-Stuart, Ringo, Rusche, Smith(30), Mr. Speaker
      Absent and excused -- Block, Field(18), Roberts
    Floor Sponsor - Sali
    Title apvd - to Senate
03/03    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 27-8-0
      AYES -- Andreason, Brandt, Broadsword, Burkett(Clark), Burtenshaw,
      Cameron, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill,
      Jorgenson, Keough, Langhorst, Lodge, Malepeai, Marley, McGee,
      McKenzie, Pearce, Richardson, Schroeder, Stennett, Sweet, Williams
      NAYS -- Bunderson, Coiner, Compton, Corder, Kelly, Little, Stegner,
      Werk
      Absent and excused -- None
    Floor Sponsor - Sweet
    Title apvd - to House
03/23    To enrol
03/24    Rpt enrol - Sp signed
03/27    Pres signed
03/28    To Governor
03/30    Governor signed
         Session Law Chapter 236
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 686
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TAXATION; AMENDING CHAPTER 36, TITLE 63, IDAHO CODE, BY THE  ADDI-
  3        TION  OF A NEW SECTION 63-3622SS, IDAHO CODE, TO PROVIDE AN EXEMPTION FROM
  4        TAXATION FOR CERTAIN FEES AND MEMBERSHIP DUES RELATED TO NONPROFIT HUNTING
  5        OR SHOOTING SPORTS; DECLARING AN EMERGENCY  AND  PROVIDING  A  RETROACTIVE
  6        EFFECTIVE DATE.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Chapter  36,  Title 63, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 63-3622SS, Idaho Code, and to read as follows:
                                                                        
 11        63-3622SS.  HUNTING  OR  SHOOTING SPORTS. There is exempted from the taxes
 12    imposed by this chapter any fees that may be charged for the use of the facil-
 13    ity at shooting ranges or shooting competitions by nonprofit organizations  or
 14    membership dues charged by nonprofit hunting or shooting sports organizations.
                                                                        
 15        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 16    declared to exist, this act shall be in full force and effect on and after its
 17    passage and approval, and retroactively to July 1, 2002.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                           RS 15891C1
                                   
    
    This legislation adds a new section 63-3622SS to Idaho Code,
    providing a sales tax exemption for fees charged at shooting
    ranges and shooting competitions by nonprofit organizations. 
    It also provides a sales tax exemption for membership dues
    charged by nonprofit hunting and shooting sports
    organizations.  
    
    Because of an unexpected 2005 Tax Commission interpretation
    that shooting range fees are subject to sales tax, some
    nonprofit organizations were determined to owe sales tax on
    the subject fees. Many organizations have been put in
    serious financial jeopardy by this new interpretation of
    Idaho sales tax statutes.  They will not only owe sales tax
    that they had previously believed was not required to be
    collected, but will also be subject to the imposition of
    interest and penalties which could be relatively
    substantial.  
    
    The retroactive portion found in SECTION 2 will provide
    refunds to the two nonprofit hunting and shooting sports
    organizations known to have paid tax liability assessments
    based on Tax Commission audits.  These non-profit hunting
    and shooting sports organizations provide an extremely
    valuable public service that includes firearms safety and
    hunter education.  
    
    
    
    
    
                           FISCAL NOTE
                                   
    The impact on the general fund will be minimal.  The total
    amount of known refunds will be a few thousand dollars.  The
    Tax commission has insufficient data to calculate the fiscal
    impact on an ongoing basis since these taxes have not been
    collected historically.    
    
    
    Contact
    Rep. Bill Sali
    332-1000  
    Sen. Gerry Sweet, Sen. Russ Fulcher, Rep. Cliff Bayer

    
    STATEMENT OF PURPOSE/FISCAL NOTE                    H 686