2007 Legislation
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HOUSE BILL NO. 68 – Sales tax exmptn, Valley House


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Bill Status

H0068...............................................by REVENUE AND TAXATION
SALES TAX EXEMPTIONS - Amends existing law to provide that donations to,
sales to, and purchases by the Valley House Homeless Shelter located in
Twin Falls, Idaho, shall be exempt from sales and use taxes.
01/30    House intro - 1st rdg - to printing
01/31    Rpt prt - to Rev/Tax
02/01    Rpt out - rec d/p - to 2nd rdg
02/02    2nd rdg - to 3rd rdg
02/05    3rd rdg - PASSED - 59-10-1
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
      LeFavour, Luker, Mathews, Moyle, Nonini, Pasley-Stuart, Patrick,
      Pence, Raybould, Ring, Ringo, Ruchti, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
      Stevenson, Trail, Vander Woude, Wills, Wood(27)
      NAYS -- Harwood, Loertscher, Marriott, Mortimer, Nielsen, Roberts,
      Rusche, Thayn, Wood(35), Mr. Speaker
      Absent and excused -- McGeachin
    Floor Sponsor - Smith(24)
    Title apvd - to Senate
02/06    Senate intro - 1st rdg - to Loc Gov

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 68
                             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.; and
 29        (j)  Donations to, sales to or purchases by the Advocates for Survivors of
 30        Domestic Violence and Sexual Assault, Inc., a nonprofit corporation. ; and
 31        (jk)  Sales to or purchases by nonprofit organizations offering free  den-
 32        tal clinic services to children.; and
 33        (jl)  Admissions to and purchases by museums, as defined in subsection (2)
 34        of this section; and
 35        (m)  Donations  to,  sales  to, and purchases by the Valley House Homeless
 36        Shelter, a private, nonprofit, nondenominational organization  located  in
 37        Twin Falls, Idaho.
 38        (2)  As  used  in this section, these words shall have the following mean-
 39    ings:
 40        (a)  "Educational institution" shall mean  nonprofit  colleges,  universi-
 41        ties,  public  charter schools organized pursuant to chapter 52, title 33,
 42        Idaho Code, and other  primary and secondary schools, the income of  which
 43        is  devoted solely to education and in which systematic instruction in the
  1        usual branches of learning is given.  This  definition  does  not  include
  2        schools  primarily teaching business, dancing, dramatics, music, cosmetol-
  3        ogy, writing, gymnastics, exercise and other special  accomplishments  nor
  4        parent-teacher  associations,  parent  groups,  alumni  or other auxiliary
  5        organizations with purposes related to  the  educational  function  of  an
  6        institution or collective group of institutions.
  7        (b)  "Hospital" shall include nonprofit institutions licensed by the state
  8        for the care of ill persons. It shall not extend to nursing homes or simi-
  9        lar institutions.
 10        (c)  "Health-related  entities" shall mean the Idaho Cystic Fibrosis Foun-
 11        dation, Idaho Epilepsy League, Idaho Lung  Association,  March  of  Dimes,
 12        American   Cancer   Society,  Mental  Health  Association,  The  Arc,  The
 13        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
 14        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
 15        trophy Foundation, National Multiple  Sclerosis  Society,  Rocky  Mountain
 16        Kidney  Association,  American  Diabetes  Association, Easter Seals, Idaho
 17        Community Action Agencies, Idaho Primary Care  Association  and  community
 18        health  centers who are members of the Idaho Primary Care Association, the
 19        Idaho Diabetes Youth Programs, Special Olympics Idaho, the  Idaho  Women's
 20        and  Children's  Alliance,  and  the Family Services Alliance of Southeast
 21        Idaho, together with said entities' local or regional  chapters  or  divi-
 22        sions.
 23        (d)  "Canal  companies"  shall  include  nonprofit  corporations which are
 24        incorporated solely for the purpose of operating and maintaining  and  are
 25        engaged  solely  in operation and maintenance of dams, reservoirs, canals,
 26        lateral and drainage ditches, pumps or pumping plants.
 27        (e)  "Forest protective associations" shall mean associations  whose  pur-
 28        pose  is  the furnishing, operating and maintaining of a protective system
 29        for the detection, prevention and suppression of forest  or  range  fires.
 30        Forest  protective associations shall include only those associations with
 31        which the state of Idaho has contracted or become a member of pursuant  to
 32        chapter 1, title 38, Idaho Code.
 33        (f)  "Food banks or soup kitchens" shall mean any nonprofit corporation or
 34        association,  other  than the Idaho Foodbank Warehouse, Inc., one of whose
 35        regular activities is the furnishing or providing of food or food products
 36        to others without charge.
 37        (g)  "Nonsale clothier" shall mean any nonprofit corporation  or  associa-
 38        tion  one  of  whose  primary  purposes  is the furnishing or providing of
 39        clothes to others without charge.
 40        (h)  "Clothes" shall mean garments in general, designed or intended to  be
 41        worn by humans and shall include footwear in addition to wearing apparel.
 42        (i)  "Center for independent living" shall mean a private, nonprofit, non-
 43        residential  organization in which at least fifty-one percent (51%) of the
 44        principal governing board, management and staff are individuals with  dis-
 45        abilities and that:
 46             (i)   Is  designed and operated within a local community by individu-
 47             als with disabilities;
 48             (ii)  Provides an array of independent living services and  programs;
 49             and
 50             (iii) Is cross-disability.
 51        (j)  "Political subdivision" means:
 52             (i)    A governmental organization which:
 53                  1.  Embraces a certain territory,
 54                  2.  Is organized for public advantage and not in the interest of
 55                  private individuals or classes,
  1                  3.  Has been delegated functions of government, and
  2                  4.  Has the statutory power to levy taxes; or
  3             (ii)   A  public  health  district  created  by section 39-408, Idaho
  4             Code; or
  5             (iii)  A soil conservation district as defined  in  section  22-2717,
  6             Idaho Code; or
  7             (iv)   A  drainage district created pursuant to chapter 29, title 42,
  8             Idaho Code; or
  9             (v)    An irrigation district created pursuant  to  title  43,  Idaho
 10             Code; or
 11             (vi)   A  state grazing board created by section 57-1204, Idaho Code;
 12             or
 13             (vii)  A water  measurement  district  created  pursuant  to  section
 14             42-705 or 42-706, Idaho Code; or
 15             (viii) A ground water management district created pursuant to chapter
 16             51, title 42, Idaho Code.
 17        (k)  "Agency  of  the state of Idaho" shall mean an office or organization
 18        created by the constitution or statutes of this state and  constituting  a
 19        component  part  of  the  executive, judicial or legislative branch of the
 20        government of this state.
 21        (l)  "Volunteer fire department"  means  an  entity  exempt  from  federal
 22        income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
 23        and which primarily provides fire protection, or fire prevention on a not-
 24        for-profit basis to surrounding residents.
 25        (m)  "Licensed  emergency medical service agency (EMS)" means an emergency
 26        medical service licensed by the EMS bureau of the department of health and
 27        welfare and  which is exempt from federal income taxation pursuant to sec-
 28        tion 501(c)(3) of the Internal Revenue Code and which  provides  emergency
 29        medical services on a not-for-profit basis to surrounding residents.
 30        (n)  "Qualifying senior citizen center" means an entity exempt from income
 31        tax  pursuant  to section 501(c)(3) of the Internal Revenue Code and which
 32        is a community facility for the organization  and  provision  of  a  broad
 33        spectrum  of  services, which shall include provision of health (including
 34        mental health), social, nutritional, and educational services and the pro-
 35        vision of facilities for recreational activities for older individuals.
 36        (o)  "Museum" means a public institution or an entity exempt  from  income
 37        tax  pursuant  to  section  501(c)(3)  of the Internal Revenue Code, which
 38        stores, preserves and exhibits objects of art, history, science  or  other
 39        objects  of historical, educational or cultural value on a permanent basis
 40        in a building, portion of a building or outdoor location  and  which  pro-
 41        vides museum services to the public on a regular basis.
 42        (3)  The  exemption  granted by subsection (1)(f) of this section does not
 43    include any association or other organization whose members are political sub-
 44    divisions or state agencies unless the organization is expressly created under
 45    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 46        (4)  The exemptions granted by subsection  (1)  of  this  section  do  not
 47    include  the use of tangible personal property by a contractor used to improve
 48    real property of an exempt entity when such use is within the definition  pro-
 49    vided  by  section  63-3615(b),  Idaho  Code, whether the use tax liability is
 50    included in a contract total or stated separately in a contract.
 51        (5)  There is exempted from the taxes imposed in this chapter, the renting
 52    of a place to sleep to an individual by the Idaho Ronald McDonald House.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 16650

Valley House Homeless Shelter is a private, nonprofit organization
in Twin Falls, Idaho, providing shelter and food to homeless
individuals and families.  Ninety percent (90%) of the budget is
from charitable giving of local organizations or individuals.  This
legislation would allow the approximately $40,000.00 of annuals 
taxable expenditures to be exempt from sales tax.

                           FISCAL NOTE

               Approximately $2,400.00 annually.

Name:  Representative Leon Smith 
Phone: (208) 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                          H 68