Companies often give free medical products or drugs to practitioners, entities or individuals. This donor company giving the items away is the user of the items. As the user, the donor company owes tax on the items. The recipient does not owe use tax on the items received.
Giver’s responsibility:
You must pay Idaho use tax on the value of medical products or drugs you give away if you didn’t pay tax on the items when you bought them. Retailers or wholesalers giving away items owe use tax on the price they paid. Manufacturers owe use tax on the fabricated value.