Tax Commission News Release
Some out-of-state retailers required to collect Idaho sales tax
BOISE, IDAHO — Aug. 15, 2018 — A new state law requires certain out-of-state retailers to collect Idaho sales tax on their sales to Idaho customers.
Out-of-state retailers must collect the tax and forward it to the Idaho State Tax Commission if:
- The out-of-state seller has an agreement with an Idaho retailer to refer potential buyers to the out-of-state seller for a commission that’s paid on each resulting sale, and
- Total sales to Idaho buyers through these agreements exceed $10,000 in the preceding 12 months.
Qualifying referrals can include a link on a website, a written or oral presentation, or any other similar third-party purchase opportunity. The new law went into effect on July 1, 2018.
The Tax Commission has contacted 500 out-of-state retailers about compliance with Idaho’s new law. Any out-of-state retailer required or wishing to collect state sales tax for its Idaho customers can register online through tax.idaho.gov/ibr.
Meanwhile, the Tax Commission is carefully analyzing how the U.S. Supreme Court’s recent “Wayfair” ruling affects out-of-state retailers making sales to Idaho citizens. The agency also continues to follow developing legal issues related to the court’s decision. The Wayfair ruling upholds a South Dakota statute requiring out-of-state retailers to collect and forward the tax to South Dakota if the retailer has an economic connection as opposed to a physical presence in that state.
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