Idaho State Tax Commission

Idaho State Tax Commission

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

For more information, visit tax.idaho.gov. See the guidance in the “Quick Picks” section. 

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.

 

Posted 08-15-2018
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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.