Idaho State Tax Commission

Production Exemption

Buyer's responsibility when making exempt purchases

You must keep records of all your purchases, and show whether you paid tax on them.

  • Records must show what you bought, how much you paid for the goods, and how much tax you paid.
  • Your accounting records must include the standard books and records maintained in a business.
  • Keep all your records for at least four years.
Exemption certificates

To buy an item exempt from sales tax, give the seller a completed exemption certificate.

  • ST-101, Sales Tax Resale or Exemption Certificate. Fill in the form:
    1. Write the name and address of both the seller and your business at the top.
    2. In section 2 "Producer Exemptions," check the box for the producer exemption(s) you qualify for.
    3. List any products you produce on the line at the bottom of section 2.
    4. Under "Buyer," at the bottom of the page, sign the form. Fill in the rest of the fields (name, title, EIN or driver's license information, and date).
  • Optional short version of ST-101
    • Retailers can print or stamp a short version of the ST-101 on sales invoices, or
    • Purchasers can print the short version on their purchase orders.
    • This shorter version must be completed for each sale. The wording must be:

      I certify that the property I've purchased will be used by me directly and primarily in the process of producing tangible personal property by mining, manufacturing, processing, fabricating, or farming, or as a repair part for equipment used primarily as described above. This tax exemption qualifies if this statement is signed by the buyer and the name, address, and nature of the buyer's business are shown on the invoice. Any person who signs this certification with the intention of evading payment of tax is guilty of a misdemeanor.
      [Indicate spaces for NATURE OF BUSINESS and SIGNATURE OF BUYER]
  • If you buy from out-of-state businesses that are registered Idaho retailers, you can complete the Uniform Sales and Use Tax Certificate - Multijurisdiction instead of Form ST-101. Fill in the form:
    1. Write the name and address of both the seller and your business at the top.
    2. Check the box for "Manufacturer."
    3. Write your Idaho sellers permit number in the ID section.
    4. Sign and fill in out the bottom of the form.

Remember: Even if you buy from a seller who has your exemption certificate, not everything is exempt.

  • Some items are always taxable.
  • Some items are taxable if they're not used in qualifying activities.

Page last updated February 20, 2021. Last full review of page: Dec. 26, 2017.

This information is for general guidance only. Tax laws are complex and change regularly. We can't cover every circumstance in our guides. This guidance may not apply to your situation. Please contact us with any questions. We work to provide current and accurate information. But some information could have technical inaccuracies or typographical errors. If there's a conflict between current tax law and this information, current tax law will govern.