Tax Commission News Release
Some online sellers, marketplace facilitators required to collect Idaho sales tax
BOISE, IDAHO — May 22, 2019 — A new state law requires some online sellers and marketplace facilitators to get permits and collect Idaho sales tax on sales to Idaho customers starting June 1, 2019.
The law applies to out-of-state retailers whose sales in Idaho exceed $100,000 a year. It also affects out-of-state marketplace facilitators whose sales in Idaho—both their own and sales for third parties—exceed $100,000 a year. The facilitators will need separate Idaho seller’s permits for their own sales and the third-party sales.
Idaho retailers that also are marketplace facilitators must collect sales tax on any third-party sales they facilitate in Idaho starting June 1. Even Idaho retailers that already have a seller’s permit for their Idaho sales will need to apply for a separate seller’s permit to collect tax on their third-party sales.
The new law is in response to the U.S. Supreme Court’s 2018 Wayfair decision, which allowed states to require out-of-state retailers to collect a state’s sales tax even if the retailers don’t have a physical presence in that state.
The Idaho State Tax Commission has contacted about 500 out-of-state retailers about compliance with Idaho’s new law, as well as vendors that provide sales tax filing and reporting services for sellers. Any retailer required or wishing to collect state sales tax for its Idaho customers can register online through tax.idaho.gov/ibr.
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