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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
]]]] 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
2 RELATING TO EXEMPTIONS FROM SALES AND USE TAXES; AMENDING SECTION 63-3622O,
3 IDAHO CODE, TO PROVIDE THAT DONATIONS TO, SALES TO, AND PURCHASES BY THE
4 VALLEY HOUSE HOMELESS SHELTER LOCATED IN TWIN FALLS, IDAHO, SHALL BE
5 EXEMPT FROM SALES AND USE TAXES AND TO MAKE TECHNICAL CORRECTIONS.
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
2
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,
3
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
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.
Contact
Name: Representative Leon Smith
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 68