Search Category: Sales Tax

Sales Tax Distribution by County- SPTD Base/Excess (S3) 12/2024

Sales Schools Make

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.

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

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

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 pdf 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

School Exemptions Laws and Rules

Learn more about schools and sales tax:

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 pdf 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.

Purchases by student activity groups

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

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 pdf 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 pdf 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 pdf 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).”

Foreign Diplomats Buying Exempt

The U.S. Diplomatic Tax Exemption Program provides diplomatic tax exemption cards (DTEC) to eligible foreign diplomats, consular officers and staff members. The U.S. Office of Foreign Missions sets the levels of tax exemption, and the levels can vary based on international reciprocity.

DTECs provide a point-of-sale exemption from Idaho sales tax and other similar taxes. Cards contain text on the front and back showing the level of exemption authorized, including degrees of restriction such as a minimum purchase requirement.

“Mission Tax Exemption – Official Purchases Only”

DTECs labeled with this text allow foreign missions to buy items necessary for the mission’s operations and functions exempt from sales and other similar taxes. Cardholders must pay for all purchases with a check, credit card or wire transfer in the name of the foreign mission.

“Personal Tax Exemption”

DTECs labeled with this text allow eligible foreign mission members and their dependents to make personal purchases in the United States exempt from sales and other similar taxes. Sellers can only sell tax-exempt to the individual identified and pictured on the card. The cardholder can’t transfer or loan the card to any other person, even if that person also is eligible to buy exempt. The cardholder can use any form of payment.

Documenting sales to foreign diplomats

The cardholder must present the card in person at the time of purchase. The seller can verify the card’s validity at https://egov.ofm.state.gov/tecv or by calling the federal government’s Office of Foreign Missions during business hours.

Sellers should document why they didn’t charge tax on a sale to a foreign diplomat by doing any of the following:

  • Photocopy the front and back of the tax exemption card.
  • Record the diplomat’s name, the mission he or she represents, the federal tax exemption number, the card’s expiration date and what they sold tax exempt.
  • If they sold to someone with a diplomatic tax exemption card labeled as “Mission Tax Exemption – Official Purchases Only,” sellers should document the payment type — check, credit card or wire transfer — in the name of the foreign mission.

Governments and Sales Tax Laws and Rules

Government Projects and Contractors

Many government agencies use contractors to make improvements to real property. Idaho requires contractors to pay tax on materials they use to alter, improve or repair real property in Idaho. This includes materials that contractors use when they work for government agencies.

Government agencies can buy materials for their construction contracts without owing Idaho sales tax. But if the government agency provides those untaxed materials to their contractor, the contractor owes use tax.

Contractors owe tax on the materials they use in a real property project. It doesn’t matter whether the contractor buys or makes the materials, or the government agency provides the materials for the project. Because of this, contractor bids should include:

  • Use tax on materials the government agency bought tax exempt and gave the contractor to use
  • Sales tax on materials the contractor buys for real-property improvement contracts

Contractors should include these taxes in the bid because they’re part of their cost. The government agency will reimburse contractors for the taxes they paid when they bill the agency for those taxes.

Exception: Materials donated to a government agency for incorporation into a real property project aren’t subject to use tax. This is the only exception.

Contractors can read more about their tax responsibilities in our Contractors Working in Idaho guide.

Sales Governments Make

Idaho is barred by federal law from requiring federal government agencies to collect Idaho sales tax on their sales.

Idaho state and local governments that make taxable sales must get an Idaho seller’s permit and collect and forward tax to the Tax Commission. (See our Retailers guide.) Taxable sales that Idaho state and local governments make include:

  • Equipment rentals (e.g., sprayers, the container rental portion of trash pick-up service)
  • Gravel, equipment, surplus property, signs
  • Maps, books, forms, reports, photocopies and other documents (unless the fee for the document is set by law or the buyer makes a public records request as defined in Idaho Code section 74-102)
  • Items sold to prison inmates
  • Vending machine sales
  • Library cards
  • Admission charges (e.g., sporting events, swimming pools, concerts, zoos)
  • Fees to use recreation facilities (e.g., parks, gyms)
  • Recreation program fees (e.g., baseball, football, basketball)

Online Sellers Take These Steps

Steps

  1. Register for an Idaho seller’s permit. You can do that online at tax.idaho.gov/ibr.
  2. Forward the tax to the Tax Commission. Collect Idaho sales tax and file a sales tax return. See Filing and Paying.
    1. Register for a free Taxpayer Access Point (TAP) account after you get your Idaho seller’s permit in the mail.
    2. You can file and pay online through TAP.
  3. Keep records of all purchases and sales your business makes. See the Retailers Recordkeeping section for more information.

Third-Party Sellers

As of June 1, 2019, Idaho law requires marketplace facilitators to collect and forward Idaho sales tax on third-party sales in Idaho. Have your marketplace facilitator provide written verification of the sales tax they’re reporting. If your marketplace facilitator isn’t collecting and forwarding tax on your sales, please include it on your own seller’s permit.