Idaho State Tax Commission

Idaho State Tax Commission

Logging Exemption

Do you harvest forest trees that you or someone else will sell? If so, you might qualify to buy some equipment and supplies without paying sales or use tax. This is called the logging exemption.

Businesses that qualify for the exemption

To be eligible for this exemption:

  • Your business must engage in a qualifying logging activity. This includes:
    • Cutting forest trees
    • Thinning forest trees
    • Skidding, decking, and loading forest trees
  • The trees you harvest must be intended for sale by whoever owns them.
  • You must report your business' profit or loss on an income tax return.

Note: Logging doesn't have to be your main business to qualify for the exemption.

Example:

Road builders could qualify for this exemption if they move forest trees from a road right-of-way:

  • The harvested trees must be sold by their owner.
  • The equipment must be primarily used in the logging process. (See Idaho Code section 63-3607A.)

Businesses that don't qualify for the exemption

Operations that aren't eligible for the exemption include:

  • Harvesting forest trees for your own use
  • Harvesting forest trees for use by your business
  • Harvesting firewood for your own use

Page last updated July 24, 2018. Last full review of page: July 24 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.