2008 Legislation
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HOUSE BILL NO. 567<br /> – Sales tax exmptn/digital learning


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Bill Status

H0567...............................................by REVENUE AND TAXATION
IDAHO DIGITAL LEARNING ACADEMY - Amends existing law to provide that the
Idaho Digital Learning Academy is an educational institution for sales and
use tax exemption purposes.

02/27    House intro - 1st rdg - to printing
02/28    Rpt prt - to 2nd rdg
02/29    2nd rdg - to 3rd rdg
03/03    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
      Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
      Lake, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
      Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
      Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
      Shepherd(08), Shirley, Shively, Smith(24), Smith(30), Snodgrass,
      Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
      Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- LeFavour
    Floor Sponsor - Shirley
    Title apvd - to Senate
03/04    Senate intro - 1st rdg - to Loc Gov
03/07    Rpt out - rec d/p - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/13    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsors - Bastian & Acting Senator Sagness
    Title apvd - to House
03/13    To enrol
03/14    Rpt enrol - Sp signed
03/17    Pres signed - To Governor
03/17    Governor signed
         Session Law Chapter 172
         Effective: 07/01/08

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008


                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 567

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT

  5    Be It Enacted by the Legislature of the State of Idaho:

  6        SECTION  1.  That Section 63-3622O, Idaho Code, be, and the same is hereby
  7    amended to read as follows:

  8        63-3622O.  EXEMPT PRIVATE AND PUBLIC ORGANIZATIONS. (1) There are exempted
  9    from the taxes imposed by this chapter:
 10        (a)  Sales to or purchases by hospitals, health-related  entities,  educa-
 11        tional  institutions,  forest  protective associations and canal companies
 12        which are nonprofit organizations; and
 13        (b)  Donations to, sales to, and purchases by  the  Idaho  Foodbank  Ware-
 14        house, Inc.; and
 15        (c)  Donations  to, sales to, and purchases by food banks or soup kitchens
 16        of food or other tangible personal property used by  food  banks  or  soup
 17        kitchens  in the growing, storage, preparation or service of food, but not
 18        including motor vehicles or trailers; and
 19        (d)  Sales of clothes to,  donations  of  clothes  to,  and  purchases  of
 20        clothes by nonsale clothiers; and
 21        (e)  Sales to or purchases by centers for independent living; and
 22        (f)  Sales  to or purchases by the state of Idaho and its agencies and its
 23        political subdivisions; and
 24        (g)  Sales to or purchases by volunteer fire departments or licensed emer-
 25        gency medical service agencies; and
 26        (h)  Sales to or purchases by a qualifying senior citizen center; and
 27        (i)  Sales to or purchases by the Blind Services Foundation, Inc.; and
 28        (j)  Donations to, sales to or purchases by the Advocates for Survivors of
 29        Domestic Violence and Sexual Assault, Inc., a nonprofit corporation.; and
 30        (k)  Sales to or purchases by nonprofit organizations offering free dental
 31        clinic services to children.; and
 32        (l)  Admissions to and purchases by museums, as defined in subsection  (2)
 33        of this section.
 34        (2)  As  used  in this section, these words shall have the following mean-
 35    ings:
 36        (a)  "Educational institution" shall mean  nonprofit  colleges,  universi-
 37        ties,  public  charter schools organized pursuant to chapter 52, title 33,
 38        Idaho Code, the Idaho digital learning  academy  established  pursuant  to
 39        chapter  55,  title  33,  Idaho  Code,  and  other   primary and secondary
 40        schools, the income of which is devoted solely to education and  in  which
 41        systematic  instruction  in  the usual branches of learning is given. This
 42        definition does not include schools primarily teaching business,  dancing,
 43        dramatics,  music,  cosmetology,  writing,  gymnastics, exercise and other


  1        special accomplishments nor parent-teacher  associations,  parent  groups,
  2        alumni  or other auxiliary organizations with purposes related to the edu-
  3        cational function of an institution or collective group of institutions.
  4        (b)  "Hospital" shall include nonprofit institutions licensed by the state
  5        for the care of ill persons. It shall not extend to nursing homes or simi-
  6        lar institutions.
  7        (c)  "Health-related entities" shall mean the Idaho Cystic Fibrosis  Foun-
  8        dation,  Idaho  Epilepsy  League,  Idaho Lung Association, March of Dimes,
  9        American  Cancer  Society,  Mental  Health  Association,  The   Arc,   The
 10        Children's Home Society of Idaho, American Heart Association, Idaho Ronald
 11        McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dys-
 12        trophy  Foundation,  National  Multiple  Sclerosis Society, Rocky Mountain
 13        Kidney Association, American Diabetes  Association,  Easter  Seals,  Idaho
 14        Community  Action  Agencies,  Idaho Primary Care Association and community
 15        health centers who are members of the Idaho Primary Care Association,  the
 16        Idaho  Diabetes  Youth Programs, Special Olympics Idaho, the Idaho Women's
 17        and Children's Alliance, and the Family  Services  Alliance  of  Southeast
 18        Idaho,  together  with  said entities' local or regional chapters or divi-
 19        sions.
 20        (d)  "Canal companies" shall  include  nonprofit  corporations  which  are
 21        incorporated  solely  for the purpose of operating and maintaining and are
 22        engaged solely in operation and maintenance of dams,  reservoirs,  canals,
 23        lateral and drainage ditches, pumps or pumping plants.
 24        (e)  "Forest  protective  associations" shall mean associations whose pur-
 25        pose is the furnishing, operating and maintaining of a  protective  system
 26        for  the  detection,  prevention and suppression of forest or range fires.
 27        Forest protective associations shall include only those associations  with
 28        which  the state of Idaho has contracted or become a member of pursuant to
 29        chapter 1, title 38, Idaho Code.
 30        (f)  "Food banks or soup kitchens" shall mean any nonprofit corporation or
 31        association, other than the Idaho Foodbank Warehouse, Inc., one  of  whose
 32        regular activities is the furnishing or providing of food or food products
 33        to others without charge.
 34        (g)  "Nonsale  clothier"  shall mean any nonprofit corporation or associa-
 35        tion, one of whose primary purposes is  the  furnishing  or  providing  of
 36        clothes to others without charge.
 37        (h)  "Clothes"  shall mean garments in general, designed or intended to be
 38        worn by humans and shall include footwear in addition to wearing apparel.
 39        (i)  "Center for independent living" shall mean a private, nonprofit, non-
 40        residential organization in which at least fifty-one percent (51%) of  the
 41        principal  governing board, management and staff are individuals with dis-
 42        abilities and that:
 43             (i)   Is designed and operated within a local community by  individu-
 44             als with disabilities;
 45             (ii)  Provides  an array of independent living services and programs;
 46             and
 47             (iii) Is cross-disability.
 48        (j)  "Political subdivision" means:
 49             (i)    A governmental organization which:
 50                  1.  Embraces a certain territory,
 51                  2.  Is organized for public advantage and not in the interest of
 52                  private individuals or classes,
 53                  3.  Has been delegated functions of government, and
 54                  4.  Has the statutory power to levy taxes; or
 55             (ii)   A public health district  created  by  section  39-408,  Idaho


  1             Code; or
  2             (iii)  A  soil  conservation  district as defined in section 22-2717,
  3             Idaho Code; or
  4             (iv)   A drainage district created pursuant to chapter 29, title  42,
  5             Idaho Code; or
  6             (v)    An  irrigation  district  created  pursuant to title 43, Idaho
  7             Code; or
  8             (vi)   A state grazing board created by section 57-1204, Idaho  Code;
  9             or
 10             (vii)  A  water  measurement  district  created  pursuant  to section
 11             42-705 or 42-706, Idaho Code; or
 12             (viii) A ground water management district created pursuant to chapter
 13             51, title 42, Idaho Code.
 14        (k)  "Agency of the state of Idaho" shall mean an office  or  organization
 15        created  by  the constitution or statutes of this state and constituting a
 16        component part of the executive, judicial or  legislative  branch  of  the
 17        government of this state.
 18        (l)  "Volunteer  fire  department"  means  an  entity  exempt from federal
 19        income taxation pursuant to section 501(c)(3) of the Internal Revenue Code
 20        and which primarily provides fire protection, or fire prevention on a not-
 21        for-profit basis to surrounding residents.
 22        (m)  "Licensed emergency medical service agency (EMS)" means an  emergency
 23        medical service licensed by the EMS bureau of the department of health and
 24        welfare and  which is exempt from federal income taxation pursuant to sec-
 25        tion  501(c)(3)  of the Internal Revenue Code and which provides emergency
 26        medical services on a not-for-profit basis to surrounding residents.
 27        (n)  "Qualifying senior citizen center" means an entity exempt from income
 28        tax pursuant to section 501(c)(3) of the Internal Revenue Code  and  which
 29        is  a  community  facility  for  the organization and provision of a broad
 30        spectrum of services, which shall include provision of health,  (including
 31        mental health), social, nutritional, and educational services and the pro-
 32        vision of facilities for recreational activities for older individuals.
 33        (o)  "Museum"  means  a public institution or an entity exempt from income
 34        tax pursuant to section 501(c)(3) of  the  Internal  Revenue  Code,  which
 35        stores,  preserves  and exhibits objects of art, history, science or other
 36        objects of historical, educational or cultural value on a permanent  basis
 37        in  a  building,  portion of a building or outdoor location and which pro-
 38        vides museum services to the public on a regular basis.
 39        (3)  The exemption granted by subsection (1)(f) of this section  does  not
 40    include any association or other organization whose members are political sub-
 41    divisions or state agencies unless the organization is expressly created under
 42    the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
 43        (4)  The  exemptions  granted  by  subsection  (1)  of this section do not
 44    include the use of tangible personal property by a contractor used to  improve
 45    real  property of an exempt entity when such use is within the definition pro-
 46    vided by section 63-3615(b), Idaho Code, whether  the  use  tax  liability  is
 47    included in a contract total or stated separately in a contract.
 48        (5)  There is exempted from the taxes imposed in this chapter, the renting
 49    of a place to sleep to an individual by the Idaho Ronald McDonald House.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 17964

The purpose of this legislation is to clarify the tax-exempt status
of the Idaho Digital Learning Academy.  The Idaho Digital Learning
Academy was created by the Idaho legislature in 2002 in Title 33,
Chapter 55 to provide "choice, accessibility, flexibility, quality,
and equity in curricular offerings for students in this state." 
Under this current statute, IDLA's tax exempt status fell under a
"host district".  IDLA's enrollment growth now warrants its
independence from a host district.  This proposed legislation
clarifies IDLA's tax-exempt status independently from a host

                           FISCAL NOTE

                   There is no fiscal impact.

Name: Representative Mack Shirley       Senator Stan Bastian
Phone: (208) 332-1000                   Senator Dick Sagness
Representative Pete Nielsen             Donna Vakili, IDLA
Representative Rich Wills               (208) 342-0207
Representative Donna Boe

STATEMENT OF PURPOSE/FISCAL NOTE                         H 567