Use tax is a tax on goods you use or store in Idaho that haven't been properly taxed. You owe Idaho use tax if you didn't pay sales tax on goods that aren't exempt. The use tax rate is the same as the sales tax rate.
Use tax is one of the most overlooked and misunderstood taxes.
All states that have sales tax also have a use tax.
Idaho established its use tax law in 1965, which is the same year as the sales tax law.
You probably owe use tax if you're an individual or if you operate a business that:
- Shops online or buys items from sellers that don't collect Idaho sales tax
- Buys from out-of-state sellers that don't collect sales tax
- Takes items out of sales inventory to give away or use
- Uses untaxed goods in a taxable activity
- Gets a refund of Idaho tax paid on fuels
- Uses goods when performing a nontaxable service
- Is a multi-level marketing business or buys from multi-level sellers
- Provides free samples or giveaways
- Repairs goods covered under an optional warranty or maintenance agreement
- Brings equipment, supplies or vehicles into Idaho for permanent use
- Brings business assets into Idaho for temporary use
- Does contracting work on real property in Idaho