Idaho State Tax Commission

Retailers

tax.idaho.gov/retailers

Collecting sales tax in Idaho

Retailers must collect tax correctly on all Idaho sales. It's important for retailers to understand:

  • What is a taxable sale?
  • How does a taxable sale become exempt?
  • Which sales aren't taxable?
Taxable sales

Retail sales of the following goods and services are taxable in Idaho:

Tangible personal property

Anything you can feel, see, touch, weigh, or measure, other than real property

Admission charges

Examples:

  • Tickets to a movie
  • Cover charges at a club
  • The price to see an entertainer
Fees charged for use of a facility or for use of tangible personal property for recreation

Examples:

  • Membership fees to health clubs
  • Renting a park for a picnic
  • Greens fees at golf clubs
  • Participation in a recreational sports league
Providing hotel, motel, lodging, or campground accommodations

Examples:

  • Renting a room for 30 days or less, including personal homes as well as commercial hotels
  • Renting a banquet room at a hotel
  • Renting a campsite
Custom-made tangible personal property

Examples:

  • Materials and labor for a custom-built desk
  • Materials and labor for a made-to-order suit or dress
  • Materials and labor for a commissioned piece of art
Labor to produce, process, or fabricate tangible personal property

Examples:

  • The labor fee to make a table from a customer's lumber
  • The fee to cut or form a customer's metal
  • The fee to embroider a logo on customer-owned clothing
  • The labor fee to assemble a bicycle, either by the seller or a third party
Any publication, or labor to print or imprint

Examples:

  • A subscription to a newspaper or magazine
  • A newspaper bought at a grocery store
  • The fee to have business cards printed
  • The fee to engrave a customer's trophy
Food, meals, and drinks and the labor to prepare or serve them

Examples:

  • A hamburger and soda at a drive-in
  • A cocktail at a lounge
  • The price to cater food for a party
  • Personal chef service
Renting or leasing tangible personal property

Examples:

  • Renting a boat
  • Leasing a car
  • Renting bowling shoes at a bowling center
  • Leasing a copy machine
  • Renting clothing

Exempt sales

Some goods and services can be exempt from tax if the buyer gives the seller a completed resale/exemption certificate. These sales usually fall into one of the following categories:

The buyer is exempt from all sales tax

Examples:

  • Idaho Foodbank Warehouse, Inc.
  • State and federal credit unions
The buyer's industry is exempt from all sales tax

Examples:

  • Nonprofit hospital
  • Nonprofit canal company incorporated solely for farm irrigation
The buyer will use the goods in an exempt activity

Examples:

  • Manufacturing company that will use the goods more than 50% of the time to produce tangible personal property for sale to others. The goods must be directly used in and necessary to the production process.
  • Church that buys food for its food bank
The buyer will resell the goods or services

Examples:

  • Registered Idaho retailer
  • Wholesaler that doesn't make retail sales
Accepting a resale/exemption certificate from your customer:
  • Your customer must give you a completed form ST-101, Sales Tax Resale or Exemption Certificate
  • The exemption certificate must have all applicable questions answered, and be signed and dated
  • Keep the certificate and don't charge tax on future qualifying sales to the customer
Note: A few items are exempt for all taxpayers (no exemption certificate is required):

Examples:

  • Bullion
  • Membership fees in a nonprofit hunting or shooting sports organization
  • Official documents (e.g., deeds, licenses)
  • Electricity, water, and natural gas delivered to a consumer through pipes or mains

Nontaxable sales

Sales of the following goods and services aren't taxable in Idaho:

Real property sales, rentals, or leases

Examples:

  • Office space
  • Living space (but motel or hotel rooms rented for 30 days or less are taxable)
  • Lockers, such as those used at amusement parks, gyms, and airports
  • Boat docks
  • Billboards
  • Parking spaces (but campground or trailer park accommodations of 30 days or less are taxable)
  • Storage space
  • Booth space at fairs (but renting personal property for use in the booth is taxable)
  • Facilities rented for recreation if:
    • There's a charge for admission to the facility, and
    • Tax is collected on the admission charge
Telephone tolls and utility charges
Transit fees

Examples:

  • Taxicab fares
  • Bus tolls
  • Airplane tickets on chartered or regularly scheduled flights
Software that isn't tangible personal property

Examples:

  • Custom computer software
  • Software delivered electronically
  • Software loaded by the seller and left on the buyer's device (no discs, drives, etc. left with buyer)
  • Some remotely accessed computer software

Note: Digital videos, games, music, and books that the buyer has a permanent right to use are tangible personal property.

Page last updated November 21, 2019. Last full review of page: March 26, 2018.

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.