25448A

Schools that make taxable sales are retailers. They must get an Idaho seller’s permit, collect sales tax on taxable sales, and forward the tax to the Tax Commission.

Concessions

You must collect sales tax on sales you make at concession stands. You must separately list the amount of tax on the receipt. This is true even if you want whole-dollar transaction amounts.

EXAMPLE 1 You charge $3.00 plus tax for a drink. The current sales tax rate is 6%. The receipt would show:

Drink	$3.00
Sales tax	$0.18
Total	$3.18

EXAMPLE 2 The total amount you charge for a drink is $3.00. The receipt would show:

Drink	$2.83
Sales tax	$0.17
Total	$3.00

Note: If you don’t separately state the tax, you must charge tax on the whole-dollar amount (e.g., $3.00 + $0.18 = $3.18).

Provide a receipt

Sometimes schools with high-volume or even-dollar sales don’t automatically give receipts. But you must give your customers a receipt if they ask for it. A receipt showing the amount of tax you charged is the only proof they have to show they properly paid sales tax.

Events

As a school, you must collect sales tax on admission charges to such events as sporting events, games, dances, plays, carnivals, and reunions.

Suggested donation

If you suggest a price for an admission, even if you call it a donation, you must collect sales tax.
If you don’t set or suggest a price (or donation amount) and admission is allowed, don’t collect sales tax.

School fundraiser auctions

A bidder typically will pay more than an item is worth at a fundraiser so they can give a cash donation. If you follow the right procedures, you won’t have to charge tax on this donation amount.

An item sold at a fundraiser auction can be taxed on the fair market value of the item. Fair market value is what an informed and reasonable buyer would expect to pay. There are several ways to determine fair market value:

Price paid as recorded on a printed receipt
Current price advertised by a major retailer
Value as appraised by an expert
Replacement cost

If you don’t properly document the fair market value, you could be held responsible for sales tax on the full bid amount. Keep clear and complete records showing what you sold, how much you sold it for, the amount donated, and the amount of tax charged.

Not everything is taxable. Don’t tax auctioned services (e.g., washing a car, mowing a lawn).

School fundraisers (charitable gaming, e.g., raffles, bingo)

The Idaho Lottery Commission regulates games of chance, including raffles and bingo. Check with the Idaho Lottery Commission website to ensure you meet the requirements, such as license applications, fees, background checks and confirming that a certain percentage of proceeds goes to charitable causes.

Don’t charge sales tax on sales of raffle tickets. Raffles are games of chance; there’s no guaranteed prize.

School carnivals

Carnivals include a variety of activities and events. Not all items and activities are taxable.

Taxable items include sales of merchandise and games with guaranteed prizes.

Merchandise examples: student-designed T-shirts, calendars, school souvenirs, recipe books, baked goods, art and craft items, concessions
Games with guaranteed prizes examples: fishing booth, wheel of fortune, pick-a-duck

Nontaxable items include sales of services and games of chance.

Service examples: face painting, hair coloring, group art activities (e.g., murals, graffiti)
Game of chance examples: cakewalk, musical chairs, dunk tank, darts, toss (e.g., water balloon, dime, ring), bingo, guess how many items in jar, casino games

EXAMPLES Ball toss. The contestant buys a $5 ticket at the game booth, allowing the contestant five throws — five chances to win a prize. This is a game of chance and isn’t taxable. Total: $5.

Pick-A-Duck. The contestant buys a $5 ticket at the game booth, allowing the contestant to choose a duck. This is a guaranteed prize — a sale — and is taxable. Total: $5 plus sales tax.

Ticket can be used at any booth. In this case you shouldn’t charge tax on the original sale. You’ll need to calculate how many tickets were redeemed at taxable booths. If you had 72 $5 tickets used at taxable booths, you should report $20.37 sales tax.

72 x 5 = 360
$360/1.06 = 339.6226 (sale amount)
339.6226 x .06 = $20.37

Admission to a charitable event

A qualified nonprofit school doesn’t have to collect tax on sales of admissions to a charitable event when all the following are true:

The event isn’t primarily recreational or commercial
Any entertainment value is minimal compared with the price of admission
The event promoter pays tax on all taxable goods or services used during the event

Example A school hosts a fundraising event that includes dinner served by a local caterer, a performance by a local amateur band, and an auction run by a professional auctioneering service. Tickets are $200 per person.

The school doesn’t have to collect tax on the $200 charge
The school pays tax on the dinner, including the caterer’s service fees
The auctioneering service will be responsible for collecting sales tax on auctioned items

Renting out facilities

You must collect tax when you rent out your school facilities for recreational or entertainment uses.

Exempt use – resale

You don’t have to charge tax to anyone paying to use your school facility for recreation or entertainment if they’ll charge admission to their event. Since this is a purchase for resale, they must provide you with a properly completed Form ST-101 – Sales Tax Resale or Exemption Certificate. They’ll collect sales tax on their admission charges and forward that tax to us.

Exempt use – educational purposes

You shouldn’t collect tax if you rent out your school facilities to anyone who will use it for an educational purpose, even if they’ll charge admission.

Read our Recreation and Admissions guide for more information on recreational and educational uses.

Summary of taxable and nontaxable sales

These aren’t complete lists, but here are examples of the sales on which you should and shouldn’t charge tax.

Taxable sales by schools

You should charge tax on these sales:

Activity tickets or cards
Admission fees – athletic events, dances, plays, assemblies, movies, carnivals. This includes any additional fees (e.g., cover charges, minimum charges, reserved seats)
Assets – buses and surplus equipment
Athletic department sales – tennis balls, bats, knee pads
Band equipment and uniforms
Book club and book fair sales
Bookstore sales
Class rings
Clothing sales and rentals – jackets, hats, T-shirts, uniforms, shorts, physical education wear, school spirit wear
Computer training workbooks
Concession sales
Dorm room rentals for short durations. (Other room taxes may apply; see Hotels, Motels and Short-Term Rentals)
Textbooks and workbooks
Faculty room coffee and soda pop
Fund-raiser sales of taxable goods and services
Magazine subscriptions
Meals – all sales except those that the federal school lunch program reimburses
Pictures
Program sales at games
Renting school facilities to anyone who will use them for recreational purposes (e.g., a gym or auditorium)
School store sales
School supplies – pens, papers, art supplies, book covers
Vending machine sales
Yearbooks

Nontaxable sales by schools

You shouldn’t charge tax on these sales:

Advertising space in annuals, athletic or performing arts programs
Book replacement fees
Breakage fees – lab shop
Car washes
Discount cards
Dues – class or club dues
Meals to students that the federal school lunch program pays for
Library fines
Raffle tickets
Rental of school facilities for recreational purposes when admission will be charged
Note: The renter must provide you with an exemption certificate (Form ST-101), collect sales tax on the admission charge, and forward the tax to us.
Rental of school facilities for nonrecreational purposes, such as educational or religious programs
Sales totaling 11 cents or less
Shared income from events or sales when another person or group, such as a parent-teacher association, collects and pays the tax
Towel laundry service
Tuition
Vending machine commissions, if the vending machine operator pays tax on the sales through the machine

Laws and Rules for Schools

Learn more about schools and sales tax:

Exempt Private and Public Organizations (Idaho Code section 63-3622O)
Exemptions on Purchases by Political Subdivisions, Sales by the State of Idaho, its Departments, Institutions, and All Other Political Subdivisions (Sales Tax Rule 094)
Imposition and Rate of the Use Tax – Exemptions (Idaho Code section 63-3621; Sales Tax Rule 072)
Rentals or Leases of Tangible Personal Property (Sales Tax Rule 024)
Retailer (Idaho Code section 63-3610; Sales Tax Rule 018)
Sale (Idaho Code section 63-3612)
Sales Price (Idaho Code section 63-3613; Sales Tax Rule 043)
Sales Through Vending Machines (Sales Tax Rule 058)

Schools Buying Exempt

Purchases must be billed to and paid directly by the school for them to be exempt.

A purchase is billed directly to a school if any of the following applies:

The school has a contract with the seller for the item.
The seller bills the school for the purchase.
A school employee pays with a credit card issued to the school.

A school is paying directly for a purchase if it gives the seller a payment such as:

A check from the school
Electronic payment from the school
Payment of charges on a qualifying credit card held by a school employee that’s in the school’s name

Note: The school isn’t paying for the sale directly if it reimburses the employee. An employee’s personal check, credit card or cash is not direct payment from the school.

As the school, you must give the seller a completed Form ST-101 – Sales Tax Resale or Exemption Certificate, on exempt purchases. The seller must keep the certificate and any other documentation. The seller shouldn’t charge tax on future qualifying sales to you.

Teachers

If you’re a teacher buying supplies for your classroom using your own funds, you can’t use your school’s exemption.

Purchases by student activity groups

Purchases that student activity groups make are exempt only if all the following apply:

The associated “student body fund” pays the bill.
The school is responsible for the funds.
The school gives a completed Form ST-101 – Sales Tax Resale or Exemption Certificate, to the seller.

Purchases by school-affiliated organizations

There’s a difference between a school and an organization affiliated with the school. Affiliates such as a PTA or an alumni association aren’t exempt from paying sales tax.

Affiliates must pay tax on all purchases, even if the purchase is on behalf of the school. This includes supplies and equipment.

Exception: They can buy products for resale (such as for fundraisers) tax exempt, The organization is then operating as a retailer and must have a valid seller’s permit, collect sales tax, file a sales tax return, and forward the tax to the state. They can’t use the school’s sellers permit.

Idaho or Federal Governments Buying Exempt

To be tax exempt, the sale must be billed to and paid directly by the qualified government agency.

Billed to government

A sale is billed to qualified federal and Idaho government agencies if any of the following applies:

The government agency has a contract with the seller.
The seller will bill the government agency for the sale.
The buyer pays with a qualifying credit card issued to the government agency.

Qualifying credit card

Qualifying credit cards include:

Federal government – GSA SmartPay cards
Idaho state government – Visa cards issued by US Bank labeled “Tax Exempt”
Idaho local government – Credit card bills the agency pays directly. Charges that an employee is responsible for or reimbursed for don’t qualify.

Paid directly by government

A sale is paid directly by a government if the seller receives payment directly from the government agency. These payment types include:

A check from the government agency
Electronic payment from the government agency
Payment of charges on a qualifying credit card the government agency provides
A government agency’s purchase order to the seller (only for cash sales)

Charges to credit cards issued to employees of government agencies don’t qualify if the agency will reimburse the employee. In such cases, the seller isn’t billing the sale directly to the government because the employee is responsible for paying the credit card company.

Documenting sales to governments

The buyer must properly complete the appropriate exemption certificate and give it to the seller:

Form ST-104HM

Buyers complete Form ST-104HM – Sales Tax Exemption on Lodging Accommodations and Instructions, for hotel and other lodging purchases when the buyer pays with a qualifying credit card that’s both billed to and paid by the government agency.

Form ST-104G

Buyers complete Form ST-104G – Sales Tax Exemption Claim – for Cash Purchases by Government Agencies, for cash purchases.

The buyer must complete and give the seller a separate Form ST-104G for each cash transaction.
This form can’t be used for a traveling government employee’s lodging, meals or private car expenses.
Other states’ governments can’t use this form.

Sellers can accept a government purchase order in place of a completed Form ST-104G to prove the sale is both billed to and paid by the government agency.

Form ST-101

Buyers should complete Form ST-101 – Sales Tax Resale or Exemption Certificate, for most other exempt purchases of goods or services. In section 3, the seller should check the box for “Government Entity (U.S./Idaho).”

Search Category: Sales Tax