Radio interview covers yard sales, sales tax, and more

Many people aren’t sure if they need to collect and pay Idaho sales tax in situations like school carnivals, holiday bazaars, pet sales, and yard sales. Philip Johnson, Tax Research Specialist at the Tax Commission, recently appeared on KBSU’s Idaho Matters radio show to answer some common questions about sales tax and the occasional sales exemption. Listen to the interview here.

Almost every seller in Idaho must have a seller’s permit, collect sales tax, and send in the tax. However, you don’t need to do that if you qualify for the occasional sales exemption.

In the interview, Philip explains that “the occasional seller’s exemption is a provision that allows people who aren’t resellers—people who make two or fewer sales per year—to make sales without collecting sales tax.”

The occasional sales exemption doesn’t apply in some circumstances, such as selling pets for profit or having more than two yard sales per year. Paying sales tax at these times often comes down to the honor system.

The sales tax exemption “is an Idaho idea of having self-compliance,” Philip said. “There’s no form to fill out, and you don’t have to submit paperwork to the Tax Commission. It’s a self-monitored program.”

For more information about yard sales, pet sales, and the occasional sales exemption, visit the Occasional Sellers web page.