Idaho State Tax Commission

Idaho State Tax Commission

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Tax Commission News Release

Use tax payment required on Internet, other untaxed purchases

BOISE, IDAHO — March 18, 2015 — If you’re gathering information to file your 2014 Idaho individual income tax return, don’t forget those untaxed purchases you made last year. If you didn’t pay sales tax when you bought the merchandise, you owe a 6 percent use tax if the goods were used, given away, stored, or consumed in Idaho.  

For example, when shoppers buy goods on the Internet, by telephone, or from a mail-order catalog, sellers might not charge sales tax if they’re not Idaho retailers. The shoppers are responsible for paying tax directly to the Idaho State Tax Commission. And those who buy merchandise in a state where no sales tax is charged – such as Oregon or Montana – owe use tax if they bring the goods into Idaho. 

Check your invoices or receipts to see whether sales tax was collected on the following types of purchases: 

  • Merchandise bought over the Internet (including digital music, movies, books, games, etc.)
  • Magazine subscriptions
  • Book and record clubs 
  • Catalog purchases 
  • Purchases in a state where no sales tax is charged (e.g., Oregon, Montana)

If sales tax wasn’t collected, Idaho makes it easy for you to pay your use tax when you file your annual income tax return, which is due by April 15. Simply total your untaxed purchases, multiply that total by .06, and enter that amount (rounded to the nearest dollar) on the appropriate line of your income tax return (see below): 

  • Full-year residents who file Form 40 (Idaho Individual Income Tax Return) can pay their use tax on line 28 of the tax return. 
  • Part-year residents can pay use tax on line 48 of Form 43 (Idaho Part-Year Resident & Nonresident Income Tax Return). 

You can also fill out Form 850-U (Idaho Self-Assessed Use Tax Worksheet and Return), available at tax.idaho.gov, and pay use tax at any time during the year.

It’s estimated that Idaho is losing about $46.4 million a year in revenue because of unpaid use tax from online sales. Last year, more than 10,000 Idahoans paid use tax totaling more than $640,000 with their 2013 income tax returns. 

For more information about use tax, visit tax.idaho.gov, watch the Tax Commission’s Use Tax video on YouTube, or call the Tax Commission at 334-7660 in the Boise area or toll free at (800) 972-7660.

 

Posted 03-18-2015

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