Search Category: Sales Tax
Direct Pay Authority for Sales Tax
Direct pay authority allows businesses to buy all items exempt from tax. The businesses pay any tax due directly to the Tax Commission instead of to a vendor.
You might be approved for direct pay authority if all of these are true:
- You qualify for sales tax exemptions.
- You buy many items from different vendors.
- You’ve demonstrated proper accounting and technical internal controls to comply with the Idaho Sales Tax Act.
- The vendors you buy from have trouble tracking which items you buy are exempt and which aren’t (even though you supply them with an exemption certificate).
To apply
Your request must be in writing.
- Send it to:
- Mail address: Sales Tax Audit Bureau, Idaho State Tax Commission, PO Box 36, Boise ID 83722-0410.
- Email: Submit a question. You should receive a response within 5 to 7 business days.
- Write “Direct Pay Authority Request” at the top of your letter or email
- Describe your reasons for needing direct pay authority and how it would benefit both you and the Tax Commission.
- Include this information in your letter:
- The name of your business
- What goods or services you produce (what your business does)
- What goods or services you typically need to buy exempt from sales tax
- What percentage of your purchases in Idaho are exempt from sales tax
- The sales price for these purchases in the past 12 months
- Your anticipated sales price for these purchases in the next 12 months
- Which exemption certificate you use (e.g.,
Form ST-101 – Sales Tax Resale or Exemption Certificate) to buy exempt from your vendors - How you buy exempt from vendors without an exemption certificate (e.g., Optional short version of Form ST-101)
After you apply
Our Sales Tax Audit Bureau will review your request. If we need additional information, we’ll contact you. Please allow four to six weeks to hear from us.
Using your Direct Pay Authorization
Your direct pay authorization is valid for a defined period. Check the document for its expiration date.
- Provide your vendors with a copy of your direct pay authority certificate to keep on file.
- Contact us 45 to 60 days before your authorization’s expiration date to request a renewal.
- Please contact us to cancel your authorization if it’s no longer is needed. Use a mail or email address in the “To apply” section above.
- Let your vendors know if you cancel your authorization.
Temporary Seller’s Permits
Temporary seller’s permits allow you to make infrequent retail sales in Idaho. Sellers who typically get temporary permits are ones who, for example, sell at events such as farmers markets or craft fairs, have a seasonal stand for fireworks or Christmas trees, or sell from home once in a while.
There are two kinds of temporary seller’s permits.
For all Idaho events and other sales activities
This permit is good for selling at your own sales activities and any Idaho events for up to 90 days.
For a specific Idaho event
This permit is good only for selling at one specific event, which can last up to 90 days.
Get this type of temporary permit only if you don’t already have the other temporary permit for your own sales, or a regular seller’s permit.
You can get up to three temporary seller’s permits per calendar year before you need a regular seller’s permit.
You can’t get a temporary seller’s permit if you:
- Sell, lease, or rent out vehicles.
- Rent out short-term lodging.
In these cases, you’ll need a regular seller’s permit. The only exception is if you only rent out lodging on a short-term rental marketplace like Airbnb or VRBO, and that marketplace collects and sends in all taxes due for all your Idaho sales. Make sure to verify that the marketplace is reporting your sales.
Aren’t sure if you need a temporary or regular seller’s permit? See Who needs a permit.
Applying
How you apply depends on which kind of temporary seller’s permit you want:
- For your own sales activities and any events: Go to TEMPORARY seller’s permit and choose Seller WITHOUT event ID at the bottom of the page.
- For a specific event: Contact the event promoter for instructions.
Filing and paying
See Filing and Paying.
More you should know
Every seller in Idaho who needs a seller’s permit – even a temporary one – is a retailer. See:
Laws and rules
- Idaho Code section 63-3622K — Sales Tax Occasional Sales
- Sales Tax Rules
Sales Tax Rules Committee
This committee is responsible for sales and use tax rules as well as hotel/motel and campground sales tax rules. Subscribe to Tax Professionals for updates.
Contacts
| Position | Name | Contact Information |
|---|---|---|
| Rules Coordinator | Kimberlee Stratton | kimberlee.stratton@tax.idaho.gov |
| Tax Specialist and Committee Chair | Philip Johnson | philip.johnson@tax.idaho.gov |
Upcoming meetings
Rules under discussion (status board)
Sales and Use (35.01.02)
| Rule | Description | Current Status | Rule Draft |
|---|---|---|---|
| 35.01.02 | We will perform a comprehensive review of the entire chapter. | Our first meeting will be June 4 at 1 p.m. |
Hotel/Motel Room and Campground Sales (35.01.06)
| Rule | Description | Current Status | Rule Draft |
|---|---|---|---|
| 35.01.06 | We will perform a comprehensive review of the entire chapter. | Our first meeting will be June 4 at 1 p.m. |
Meetings history
| Date | Recordings |
|---|---|
Promoter-Sponsored Events
A promoter-sponsored event is either of these:
- A regular series of events where retailers conduct business, such as farmers markets, swap meets, flea markets, gun shows, and fairs.
- An event where two or more retailers offer, sell, or exchange products or services. The event promoter charges them a fee to appear, charges attendees a fee to enter, or both.
Retailers can be businesses, individuals, or even nonprofit organizations that sell, or make it known that they sell, a product or related service. A retailer is someone who does any of the following:
- Sells or rents a tangible personal property (goods). (See Idaho Code section 63-3610.)
- Charges admission.
- Charges a fee for the use of tangible personal property or a facility for recreation.
See the Sales and Use Taxes overview for more about what a sale is.
Special groups should see Sales a Nonprofit Makes or Sales a School Makes for more information about events these groups often hold and how sales tax applies.
Sellers at promoter-sponsored events
As a retailer (seller) at a promoter-sponsored event, you need to register for the event using the Event ID from the promoter. You’ll also need to do one of the following:
- Use your regular seller’s permit, if you have one. During event registration, choose the option for I have a regular seller’s permit Report event sales with your other sales by your normal due date.
- Use a temporary seller’s permit you got for your own activities (such as your own farm stand). During event registration, choose the option for I am not making taxable sales. Include your permit’s Reference # (from top of permit), its Valid from date, and its Valid through date in the Products I am selling field. Report event sales with your other sales within 15 days after your permit expires.
- Get a temporary seller’s permit specific to the event when you register, only if you don’t already have another seller’s permit. You’ll need to apply for more permits if the event lasts longer than 90 days (such as farmers markets that run several months). Report your sales within 15 days after the event ends.
Video: How to register for a temporary seller’s permit (event specific)
Promoters of events
As the event organizer, you’re considered a “promoter” and your event is considered a “promoter-sponsored event.” You must register your event with the Tax Commission.
Important: You could be charged a penalty of $25 per participant (to a maximum of $1,000) for not submitting the appropriate form for any event for which you’re the promoter.
- Beforehand, you must register your event online.
- You’ll enter information about yourself and your event.
- After you review what you entered and reach the confirmation page, we’ll send you an email with an Event ID. The email also includes instructions about how to share this Event ID with the participants (sellers) at your event.
- You’ll receive a series of emails as your event date approaches. Use it to confirm that all your participants have completed their required actions.
If your participants aren’t online
We can send you paper forms to give to event participants who can’t use the link you give them. Contact us at Submit a question with this information:
- Your full name, business name, and email address
- Your phone number and mailing address (street or PO box, city, state, and ZIP)
- The name of your event
- Where the event will be held
- The beginning and ending dates of the event
- How many forms you need
Charging admissions
You must collect sales tax on the price of any admission you charge. See the Admissions section on this webpage: Taxable Sales – Recreation and Admissions.
Questions
If you have any technical difficulties, contact us at Submit a question.
If you have questions about sales tax or being an event promoter, email Submit a question or call (208) 334-7660 in the Boise area or toll-free at (800) 972-7660. Please note that due to the volume of emails we’re receiving, you should receive a response within 5 to 7 business days.
Hearing-impaired callers, use the Idaho Relay Service at (800) 377-3529.
Other tax requirements
Whether you’re in business for yourself, or you represent a corporation or partnership, you’ll need to file an Idaho income tax return if your gross income from Idaho meets the filing requirement. If you have employees in Idaho, you may also need to file and pay employee taxes.
IRP Basics Guide
This guide explains Idaho’s sales and use tax laws for IRP registrants. The guide describes motor vehicles, trailers, and glider kits that you can buy tax free under the IRP exemption. It also covers what you must pay tax on, and the requirements for keeping sales and use tax records and for filing returns.
Defining an IRP fleet
A fleet is one or more vehicles registered under the International Registration Plan (IRP).
- The fleet must have at least one qualifying motor vehicle. The motor vehicle must have a maximum gross weight of at least 26,000 pounds.
- The rest of the fleet can consist of a mixture of motor vehicles, trailers and glider-kit vehicles.
An individual or company can have more than one fleet.
Buying Exempt for an IRP Fleet
You might be able to buy or lease motor vehicles, trailers, and glider-kit vehicles for your IRP fleet tax free if all the following apply:
- You’re a commercial or private carrier in the business of transporting one or more of the following:
- People
- Commodities you or someone else owns
- You’ll operate the motor vehicle, glider-kit vehicle or trailer in an IRP fleet substantially used in interstate commerce.
“Substantially used in interstate commerce” means a fleet that has at least 10 percent of its accrued mileage outside of Idaho in any reporting period. The IRP’s reporting period begins July 1 and ends June 30. - You complete Form ST-104IC – Sales Tax Exemption Certificate – Interstate Commerce Vehicles, and give it to the dealer, retailer or county assessor (or DMV).
Buying motor vehicles exempt
- The motor vehicle must be over 26,000 maximum gross weight, and you must immediately register it in an IRP fleet.
- You can title or base plate the vehicle in any state.
- You must register a leased vehicle in your business’ name.
Farm vehicles or noncommercial vehicles as defined by Idaho Code section 49-123 don’t qualify for the exemption.
Buying trailers exempt
- You must register a rented or leased trailer in your business’ name.
- You must place the trailer in an IRP fleet.
Buying glider kits exempt
- You must have someone use the glider kit to assemble a glider-kit vehicle*.
- You must immediately register the glider-kit vehicle in an IRP fleet.
* A “glider-kit vehicle” means every large truck created from a kit that a manufacturer of large trucks makes. The glider-kit vehicle is a new truck chassis, special-ordered from the factory, without engine or transmission. You have someone install a remanufactured engine and transmission into the chassis.
You might qualify for an International Fuel Tax Agreement (IFTA) license if you’re an IRP registrant. The license allows you to reduce paperwork and standardize fuels use tax reporting. See IFTA Licensees.
Taxing an IRP Fleet
The reporting period for each year is July 1 through June 30. You must report your IRP fleet’s total state-by-state mileage during the reporting period. Use Idaho Transportation Department’s IRP Idaho Schedule B.
If an IRP fleet’s total mileage outside of Idaho drops below 10 percent for any reporting period, you owe use tax. You must pay use tax on the fair market value of any motor vehicle, trailer or glider kit that you bought exempt for that fleet. Calculate the fair market value of those vehicles as of the last day of the reporting period (June 30). You must pay the use tax to the Tax Commission.
Taxing items you use in business
If you’re an IRP registrant, you must pay tax on repair parts, supplies and other business items you buy.
- Oil
- Recordkeeping equipment (e.g., computers, log books)
- Engine and truck body repair parts
- After-market accessories
If you’re an IRP registrant that’s also a common carrier, you can buy items exempt in Idaho if all of the following apply:
- You use your own vehicles to ship the goods outside Idaho.
- You use the goods outside Idaho in your business as a common carrier.
Examples:- Shipping materials you use to move household goods
- Shipping materials you use to ship packages
- You have a bill of lading showing that you shipped the goods out of state.
Recordkeeping for IRP Registrants
As an IRP registrant, you and the retailers or dealers you work with must keep records from the sale or lease of motor vehicles, trailers and glider kits you buy without paying tax under the IRP exemption.
Sellers
Dealers and retailers that sell or lease motor vehicles, trailers or glider kits under the IRP exemption must have the buyer complete a Form ST-104IC – Sales Tax Exemption Certificate – Interstate Commerce Vehicles. Dealers and retailers must keep a copy of the completed Form ST-104IC for at least four years.
Buyers
- When you buy a motor vehicle, trailer or glider kit exempt, you must keep records to verify that at least 10 percent of the IRP fleet mileage is outside Idaho for each reporting period.
- Keep records that show you paid tax on repair parts you bought in Idaho for qualifying motor vehicles, trailers and glider kits.
- Maintain normal books of account.
- Keep documents that support entries in the books of account.
Examples:- Bills
- Receipts
- Invoices
- Job or work orders
- Lease contracts
- All schedules or working papers used to prepare your tax returns
Your records must include:
- The total purchase price of anything you bought, leased or used in your business
- The amount of sales tax you paid to a vendor or use tax you paid on your tax return
- All sales and use tax returns
Keep all sales and use tax records for at least four years. If you don’t file returns, you should keep your records for seven years.
Laws and Rules for IRP
Learn more about IRP:
- Motor Vehicles and Trailers Used in Interstate Commerce — Sales Tax Rule 101
- Motor Vehicles, Used Manufactured Homes, Vessels, All Terrain Vehicles, Trailers, Utility Type Vehicles, Specialty Off-Highway Vehicles, Off-Road Motorcycles, Snowmobiles and Glider Kits — Idaho Code section 63-3622R
- Purchases Shipped Out-of-State by a Common Carrier — Idaho Code section 63-3622P
Off-Highway Vehicles Basics Guide
Snowmobiles, All-Terrain Vehicles, Utility-Type Vehicles and Motorbikes, etc.
Sales or use tax is due on the sale, lease, rental, transfer, donation or use of off-highway vehicles in Idaho unless a valid exemption applies. This guide explains sales and use tax requirements for buyers and sellers of off-highway vehicles that are used on public roads or off road. This guide applies to the following transactions:
- Sales and leases by Idaho dealers and retailers
- Sales between private parties, including family members
- Sales by financial institutions
- Bartering goods or services for an off-highway vehicle
- Bringing an off-highway vehicle that you bought in another state into Idaho
- Giving or receiving an off-highway vehicle as a gift or prize
- Selling or transferring ownership between businesses or related parties in a business
- Renting out or leasing out off-highway vehicles by individuals or businesses that aren’t dealers
There are many types of off-highway vehicles, including:
- All-terrain vehicles (ATVs)
- Utility-type vehicles (UTVs)
- Specialty off-highway vehicles (SOHVs)
- Motorbikes
- Off-highway motorbikes
- Snowmobiles
Off-highway vehicles used on the water are included in the Boats and Trailers guide.
Off-highway vehicles
| Vehicle Type | Idaho Code Section of Definition | Controlling Idaho Code Section for Nonresident Buyer and Production Exemptions |
|---|---|---|
| All-terrain vehicle (ATV) | 67‑7101(1) | Nonresident buyer: 63‑3622R; Production: 63‑3622HH |
| Utility-type vehicle (UTV) | 67‑7101(17) | Nonresident buyer: 63‑3622R; Production: 63‑3622HH |
| Specialty off-highway vehicle (SOHV) | 67‑7101(16) | Nonresident buyer: 63‑3622R |
| Motorbike, AKA: trailbike, enduro bike, trials bike, motorcross bike, dual purpose motorcycle | 67‑7101(9) | Nonresident buyer: 63‑3622R |
| Off-highway motorbike, AKA: trailbike, enduro bike, trail bike, motorcross bike, dual purpose motorcyle | 63‑3622HH(3) | Nonresident buyer: 63‑3622R |
| Snowmobile | 63‑3622HH(2) | Production: 63‑3622HH |
| Snowmobile | 67‑7101(15) | Nonresident buyer: 63‑3622R |
Motorcycles
Motorcycles are often grouped with these off-highway vehicles, but Idaho law defines them as motor vehicles. See the guides for Motor Vehicles – Dealers and Motor Vehicles – Private Parties and Nondealer Retailers.