Read the full stored bill text
LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
732
BY
REVENUE
AND
TAXATION
COMMITTEE
AN
ACT
1
RELATING
TO
SALES
AND
USE
TAX;
AMENDING
SECTION
63
-
3622O,
TO
PROVIDE
A
SALES
2
AND
USE
TAX
EXEMPTION
FOR
DONATIONS
TO,
SALES
TO,
OR
PURCHASES
BY
THE
3
SALVATION
ARMY
AND
TO
MAKE
TECHNICAL
CORRECTIONS;
AND
DECLARING
AN
4
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
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
ex
-
9
empted
from
the
taxes
imposed
by
this
chapter:
10
(a)
Sales
to
or
purchases
by
hospitals,
health
-
related
entities,
edu
-
1
1
cational
institutions,
forest
protective
associations
and
canal
compa
-
12
nies
that
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
18
not
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
25
emergency
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
29
of
Domestic
Violence
and
Sexual
Assault,
Inc.,
a
nonprofit
corporation;
30
and
31
(k)
Sales
to
or
purchases
by
nonprofit
organizations
offering
free
den
-
32
tal
clinic
services
to
children;
and
33
(l)
Admissions
to
and
purchases
by
museums,
as
defined
in
subsection
34
(2)
of
this
section
;
and
35
(m)
Donations
to,
sales
to,
or
purchases
by
the
Salvation
Army
.
36
(2)
As
used
in
this
section,
these
words
shall
have
the
following
mean
-
37
ings:
38
(a)
"Educational
institution"
shall
mean
nonprofit
colleges,
univer
-
39
sities,
public
charter
schools
organized
pursuant
to
chapter
52,
title
40
33,
Idaho
Code,
the
Idaho
digital
learning
academy
established
pursuant
41
to
chapter
55,
title
33,
Idaho
Code,
and
other
primary
and
secondary
42
2
schools,
the
income
of
which
is
devoted
solely
to
education
and
in
which
1
systematic
instruction
in
the
usual
branches
of
learning
is
given.
This
2
definition
does
not
include
schools
primarily
teaching
business,
danc
-
3
ing,
dramatics,
music,
cosmetology,
writing,
gymnastics,
exercise
and
4
other
special
accomplishments
nor
parent
-
teacher
associations,
parent
5
groups,
alumni
or
other
auxiliary
organizations
with
purposes
related
6
to
the
educational
function
of
an
institution
or
collective
group
of
in
-
7
stitutions.
8
(b)
"Hospital"
shall
include
nonprofit
institutions
licensed
by
the
9
state
for
the
care
of
ill
persons.
It
shall
not
extend
to
nursing
homes
10
or
similar
institutions.
1
1
(c)
"Health
-
related
entities"
shall
mean
the
Idaho
Cystic
Fibrosis
12
Foundation,
Idaho
Epilepsy
League,
Idaho
Lung
Association,
March
of
13
Dimes,
American
Cancer
Society,
Camp
Rainbow
Gold,
Mental
Health
As
-
14
sociation,
The
Arc,
The
Children's
Home
Society
of
Idaho,
American
15
Heart
Association,
Idaho
Ronald
McDonald
House,
United
Cerebral
Palsy,
16
Arthritis
Foundation,
Muscular
Dystrophy
Foundation,
National
Mul
-
17
tiple
Sclerosis
Society,
Rocky
Mountain
Kidney
Association,
American
18
Diabetes
Association,
Easter
Seals,
Idaho
Community
Action
Agencies,
19
Idaho
Primary
Care
Association
and
community
health
centers
that
are
20
members
of
the
Idaho
Primary
Care
Association,
the
Idaho
Association
of
21
Free
and
Charitable
Clinics
and
its
member
clinics,
the
Idaho
Diabetes
22
Youth
Programs,
Special
Olympics
Idaho,
the
Idaho
Women's
and
Chil
-
23
dren's
Alliance,
and
the
Family
Services
Alliance
of
Southeast
Idaho,
24
together
with
said
entities'
local
or
regional
chapters
or
divisions.
25
(d)
"Canal
companies"
shall
include
nonprofit
corporations
that
are
26
incorporated
solely
for
the
purpose
of
operating
and
maintaining
and
27
are
engaged
solely
in
operation
and
maintenance
of
dams,
reservoirs,
28
canals,
lateral
and
drainage
ditches,
pumps
or
pumping
plants.
29
(e)
"Forest
protective
associations"
shall
mean
associations
whose
30
purpose
is
the
furnishing,
operating
and
maintaining
of
a
protective
31
system
for
the
detection,
prevention
and
suppression
of
forest
or
range
32
fires.
Forest
protective
associations
shall
include
only
those
associ
-
33
ations
with
which
the
state
of
Idaho
has
contracted
or
become
a
member
of
34
pursuant
to
chapter
1,
title
38,
Idaho
Code.
35
(f)
"Food
banks
or
soup
kitchens"
shall
mean
any
nonprofit
corporation
36
or
association,
other
than
the
Idaho
Foodbank
Warehouse,
Inc.,
one
of
37
whose
regular
activities
is
the
furnishing
or
providing
of
food
or
food
38
products
to
others
without
charge.
39
(g)
"Nonsale
clothier"
shall
mean
any
nonprofit
corporation
or
associ
-
40
ation,
one
of
whose
primary
purposes
is
the
furnishing
or
providing
of
41
clothes
to
others
without
charge.
42
(h)
"Clothes"
shall
mean
garments
in
general,
designed
or
intended
to
43
be
worn
by
humans,
and
shall
include
footwear
in
addition
to
wearing
ap
-
44
parel.
45
(i)
"Center
for
independent
living"
shall
mean
a
private,
nonprofit,
46
nonresidential
organization
in
which
at
least
fifty
-
one
percent
(51%)
47
of
the
principal
governing
board,
management
and
staff
are
individuals
48
with
disabilities
and
that:
49
3
(i)
Is
designed
and
operated
within
a
local
community
by
individ
-
1
uals
with
disabilities;
2
(ii)
Provides
an
array
of
independent
living
services
and
pro
-
3
grams;
and
4
(iii)
Is
cross
-
disability.
5
(j)
"Political
subdivision"
means:
6
(i)
A
governmental
organization
that:
7
1.
Embraces
a
certain
territory,
8
2.
Is
organized
for
public
advantage
and
not
in
the
interest
9
of
private
individuals
or
classes,
10
3.
Has
been
delegated
functions
of
government,
and
1
1
4.
Has
the
statutory
power
to
levy
taxes;
or
12
(ii)
A
public
health
district
created
by
section
39
-
408,
Idaho
13
Code;
or
14
(iii)
A
soil
conservation
district
as
defined
in
section
22
-
2717,
15
Idaho
Code;
or
16
(iv)
A
drainage
district
created
pursuant
to
chapter
29,
title
17
42,
Idaho
Code;
or
18
(v)
An
irrigation
district
created
pursuant
to
title
43,
Idaho
19
Code;
or
20
(vi)
A
state
grazing
board
created
by
section
57
-
1204,
Idaho
21
Code;
or
22
(vii)
A
water
measurement
district
created
pursuant
to
section
23
42
-
705
or
42
-
706,
Idaho
Code;
or
24
(viii)
A
ground
water
management
district
created
pursuant
to
25
chapter
51,
title
42,
Idaho
Code.
26
(k)
"Agency
of
the
state
of
Idaho"
shall
mean
an
office
or
organization
27
created
by
the
constitution
or
statutes
of
this
state
and
constituting
a
28
component
part
of
the
executive,
judicial
or
legislative
branch
of
the
29
government
of
this
state.
30
(l)
"Volunteer
fire
department"
means
an
entity
exempt
from
federal
31
income
taxation
pursuant
to
section
501(c)(3)
of
the
Internal
Revenue
32
Code
and
which
primarily
provides
fire
protection
or
fire
prevention
on
33
a
not
-
for
-
profit
basis
to
surrounding
residents.
34
(m)
"Licensed
emergency
medical
service
agency"
means
an
emergency
35
medical
service
(EMS)
licensed
by
the
Idaho
military
division
and
which
36
is
exempt
from
federal
income
taxation
pursuant
to
section
501(c)(3)
of
37
the
Internal
Revenue
Code
and
which
provides
emergency
medical
services
38
on
a
not
-
for
-
profit
basis
to
surrounding
residents.
39
(n)
"Qualifying
senior
citizen
center"
means
an
entity
exempt
from
in
-
40
come
tax
pursuant
to
section
501(c)(3)
of
the
Internal
Revenue
Code
and
41
which
is
a
community
facility
for
the
organization
and
provision
of
a
42
broad
spectrum
of
services,
which
shall
include
provision
of
health,
43
including
mental
health,
social,
nutritional,
and
educational
services
44
and
the
provision
of
facilities
for
recreational
activities
for
older
45
individuals.
46
(o)
"Museum"
means
a
public
institution
or
an
entity
exempt
from
income
47
tax
pursuant
to
section
501(c)(3)
of
the
Internal
Revenue
Code,
which
48
stores,
preserves
and
exhibits
objects
of
art,
history,
science
or
49
other
objects
of
historical,
educational
or
cultural
value
on
a
perma
-
50
4
nent
basis
in
a
building,
portion
of
a
building
or
outdoor
location
and
1
which
provides
museum
services
to
the
public
on
a
regular
basis.
2
(3)
The
exemption
granted
by
subsection
(1)(f)
of
this
section
does
not
3
include
any
association
or
other
organization
whose
members
are
political
4
subdivisions
or
state
agencies
unless
the
organization
is
expressly
created
5
under
the
joint
powers
provision
of
sections
67
-
2328
through
67
-
2333,
Idaho
6
Code.
7
(4)
The
exemptions
granted
by
subsection
(1)
of
this
section
do
not
in
-
8
clude
the
use
of
tangible
personal
property
by
a
contractor
used
to
improve
9
real
property
of
an
exempt
entity
when
such
use
is
within
the
definition
pro
-
10
vided
by
section
63
-
3615(b),
Idaho
Code,
whether
the
use
tax
liability
is
in
-
1
1
cluded
in
a
contract
total
or
stated
separately
in
a
contract.
12
(5)
There
is
exempted
from
the
taxes
imposed
in
this
chapter
the
renting
13
of
a
place
to
sleep
to
an
individual
by
the
Idaho
Ronald
McDonald
House.
14
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
15
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
16
July
1,
2026.
17