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SALES AND USE TAX (SUT)

SUT - 1	What is Idaho’s sales tax rate? The sales tax rate is 6%. Sales tax applies to the sale, rental, or lease of tangible personal property and some services.  (Sales of food are taxed, but sales of prescription drugs are not.) Additional taxes apply to sales of lodging at hotels, motels, and campgrounds.  There's a list of Idaho cities and counties that impose a local option sales tax in SUT - 14.  Ref: Idaho Code Section 63-3619 Contact us if you need more information. Return to Questions
SUT - 2	What is use tax? Use tax is a complementary tax to the sales tax.  It's imposed on the consumption, use, or storage of goods in Idaho, if sales tax wasn't paid on the purchase of the goods.  Most Idaho sales tax exemptions also apply to use tax. The use tax rate and sales tax rates are the same. Use tax is paid directly to the state, instead of to the seller of the goods. Individuals can report use tax on their annual Idaho income tax return or submit it directly to the Tax Commission.  Businesses must have a use tax permit if they buy items without paying sales tax. There's more information about Use Tax on our Web & Catalog Shoppers page and in our Use Tax Brochure. Ref: Idaho Code Section 63-3621 Contact us if you need more information. Return to Questions
SUT - 3	Does a nonprofit organization have to pay sales tax? Most religious, charitable, and nonprofit organizations are required to pay sales tax on the purchase of goods they buy for their own use and collect tax when they make taxable sales. For more information, see Sales Tax Brochure #50, Nonprofit Groups & Churches. Ref: Idaho Code Section 63-3622O and Idaho Administrative Rule 085 Contact us if you need more information. Return to Questions
SUT - 4	Do I need an Idaho seller's permit? Idaho law requires retailers who are "doing business" in Idaho to get a seller’s permit and collect sales tax on the sale of goods they ship or deliver to customers in Idaho. In general, if a company owns property in Idaho or has employees or sales representatives working in Idaho, it's doing business in Idaho. All retailers doing business in Idaho must file regular Idaho sales tax returns to pay the tax they collect. Here are some of the activities that indicate you are doing business in Idaho: 1.  Having a physical presence in Idaho (whether permanent or temporary), such as: An office, warehouse, sales or sample room, or storage place Maintaining a stock of goods Renting or leasing property (other than real property) to a customer who uses the property in Idaho Servicing tangible personal property in Idaho Having a salesman, agent, or representative who comes to Idaho to sell, deliver, install, or take orders.  (It doesn't matter whether the salesman, agent, or representative is your employee, or whether he lives in Idaho or another state. 2.  Presence can also be established by the relationship of one business to another that is doing business in Idaho.  If a parent, subsidiary, or other commonly-owned company is in business in Idaho, then all other members of the same group that are in a similar line of business are subject to Idaho's sales tax laws.      For more information, see our brochures on Retailers and Out-Of-State Businesses Ref: Idaho Code Section 63-3611 Contact us if you need more information. Return to Questions
SUT - 5	How do I get an Idaho seller’s permit to start my business? Use Form IBR-1 to apply for an Idaho Seller's Permit and/or a withholding account. An Idaho Seller's Permit isn't transferable. If you have questions about sales tax, refer to the Tax Commission's sales tax brochures or call Taxpayer Services at (208) 334-7660 in the Boise area or (800) 972-7660 toll free. You can complete and submit the IBR-1 form on-line at business.idaho.gov. You should receive your permit in about 10 days using this system.  Or, you can download the IBR-1 and mail the application to the Idaho State Tax Commission, Attn: Account Registration, PO Box 36, Boise ID 83722-3220 or fax it to (208) 334-5364. You should receive your permit within four weeks. Contact us if you need more information. Return to Questions
SUT - 6	How do I cancel my Idaho Seller's Permit? If you file your return by mail, check the "cancel account" box in the upper right portion of Form 850. If you file your return electronically, please contact the Tax Commission to cancel your account. You can use one of the following options: Send an e-mail to processing@tax.idaho.gov. Include your name, the company name (if applicable), your position with the company, the permit number, the last day of business, the reason for closing the business, and a daytime phone number. If your mailing address has changed, please give your new address. Fax a letter to (208) 334-5364 with the above information. Mail a letter with the above information to:  Idaho State Tax Commission, Attn: Account Registration, PO Box 36, Boise ID 83722-3220. Contact us if you need more information. Return to Questions
SUT - 7	When does a sale occur? Sale means any transfer of title to tangible personal property for consideration.  It includes exchange and barter. The sale occurs when title passes.  Unless otherwise agreed, title passes to the buyer when the seller delivers the goods, even if a title document is delivered at a different time or place. Ref: Idaho Code Section 63-3612 Contact us if you need more information. Return to Questions
SUT - 11	Do I owe sales tax if I buy something on the Internet? When you buy items on the Internet and they're shipped to you in Idaho, the items are subject to sales tax. Some retailers who don't have a presence in Idaho aren't required to collect Idaho sales tax. If you are not charged Idaho sales tax on your purchase, you owe use tax. Individuals can report use tax on their annual Idaho income tax return or submit it to the Tax Commission using Form 850-U [PDF]. Businesses must have a use tax permit if they buy items without paying sales tax. Ref: Idaho Code Section 63-3621 Contact us if you need more information. Return to Questions
SUT - 12	I have a business selling online; do I have to collect Idaho sales tax? If you have an Idaho seller's permit* and you're shipping products to customers in Idaho, you must collect Idaho sales tax on sales made through the Internet. If you have an out-of-state business making sales through the Internet to customers in Idaho, and your activity indicates that you're doing business in Idaho, you must have an Idaho seller’s permit and collect the Idaho sales tax. If you have an out-of-state business making sales through the Internet to customers in Idaho, but aren't doing business in Idaho, you don't need to collect Idaho sales tax; your customers will be required to pay Idaho use tax. (However, if you're a wine direct shipper, special rules apply.) *If you have a new business selling on the Internet and need an Idaho seller's permit, register online at business.idaho.gov and complete the Idaho Business Registration Form (IBR-1.)  Or, you can download the IBR-1 and mail the application to the Idaho State Tax Commission, Attn: Account Registration, PO Box 36, Boise ID 83722-3220 or fax it to (208) 334-5364. If you need more information about Idaho seller's permits, see Frequently Asked Question SUT- 4. Ref: Idaho Code Section 63-3610 Contact us if you need more information. Return to Questions
SUT- 13	As a buyer, what documentation do I give a seller to show that I qualify for a sales tax exemption? If you qualify for an exemption, you must give the seller an exemption certificate to document that fact. The ST-101 form is the most commonly used exemption certificate; however, there are others for specific sales tax exemptions. All of the exemption certificates are available on our Web site. If the exemption is documented on an ST-101 form, you don't have to give the buyer a new certificate every time you make a purchase. Your ST-101 form remains valid even when the sales tax rate changes, as long as the information on the certificate is accurate.   For more information about sales tax exemptions, see our Sales Tax Brochures. Ref: Idaho Sales Tax Administrative Rule 128 Contact us if you need more information. Return to Questions
SUT - 14	Are there any local sales taxes in Idaho? Yes. Some Idaho resort cities, counties, and auditorium districts have a local option sales tax in addition to the state sales tax. Contact the following to get up-to-date information on their current local option tax. Cities: Donnelly - (208) 325-8859 Driggs - (208) 354-2362 Hailey - (208) 788-4221 Ketchum - (208) 726-3841 Lava Hot Springs - (208) 776-5820 McCall - (208) 634-7142 Riggins - (208) 628-3394 Sandpoint - (208) 263-3317 Stanley - (208) 774-2286 Sun Valley - (208) 622-4438 The laws for local sales tax for cities are in Chapter 10, Title 50, Idaho Code (50-1043 through 50-1049). Counties: Nez Perce County - (208) 799-3030 The laws for local sales tax for counties are in Chapter 26, Title 63, Idaho Code (63-2601 through 63-2605). Auditorium Districts (lodging tax): Greater Boise Auditorium District - (208) 334-7660 Pocatello/Chubbuck Auditorium District - (208) 233-1525 The laws for auditorium district tax are in Chapter 49, Title 67, Idaho Code (67-4917 through 67-4917C) Contact us if you need more information. Return to Questions
SUT - 15	How long has Idaho had a sales tax? Idaho sales tax began in 1965. The rate has changed as follows: July 1965 through February 1983  3% March 1983 through May 1983  4% June 1983 through June 1984  4 1/2% July 1984 through March 1986  4% April 1986 to April 2003  5% May 2003 to June 2005  6% July 2005 to September 2006  5% Oct. 2006 to current  6% Contact us if you need more information. Return to Questions