Search Category: Sales Tax

Boat Docks

Boat docks installed by a contractor are real property. The contractor must pay sales or use tax on the materials purchased.

  • The contractor doesn’t charge tax to the customer.
  • Repair of the dock is a real property repair. The contractor who repairs the dock must pay sales or use tax on the materials.

Tangible personal property

Sellers of docks, without installation, are retailers of tangible personal property. Retailers must collect sales tax if they don’t install it or pay a third party to install it.

Examples of taxable items include:

  • A boat lift or other equipment that doesn’t become real property
  • The sale, rent or lease of equipment
  • Repair parts

Note: Renting dock space is renting real property and isn’t taxable.

Boats Recordkeeping

Dealers and retailers that sell or lease boats or trailers

Your records for selling or leasing boats or trailers must be the same as any retailer.

Businesses that sell or transfer boats or trailers to a related party

Document the sale or transfer. Your records should include all of the following:

  • Date of sale or transfer
  • Sales price of the boats or trailers
  • Identifying information about the boats or trailers (e.g., vehicle identification number)
  • Documentation that tax due was collected and forwarded to the Tax Commission on all sales of boats or trailers
  • How the parties are related
  • Registration and title documents showing whether you paid tax when you bought the boats or trailers

If the sale or transfer is exempt, complete pdf Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions. See requirements for exempt related-party sales and transfers in the Sales of boats or trailers by private parties section.

Individuals that sell a boat or trailer

Document the sale. Your records should include all the following:

  • Date of sale
  • Identifying information about the off-highway vehicle (e.g., hull number, vehicle identification number)
  • Sales price of the boat or trailer
  • Copies of sale documents

Notes:

  • If you hold yourself out as a seller and make one or more sales of any boat or trailer or anything else in a year, you’re a retailer. See Retailers.
  • If, in a calendar year, you sell five or more vehicles or vessels that require registration, you must apply for a dealer’s license. See Idaho Transportation Department “Vehicle Dealers.“

Individuals that give away a boat or trailer

Document the gift or donation. Your records should include all the following:

  • Date of gift
  • Identifying information about the boat or trailer (e.g., hull number, identification number)
  • Copies of transfer documents
  • Documentation to show sales or use tax was paid at purchase

You and the recipient must complete and sign a pdf Form ST-133GT – Use Tax Exemption Certificate – Gift Transfer Affidavit. The recipient needs the completed form when he or she registers or titles the boat or trailer.

Boats Laws and Rules

Learn more about boats, documented vessels, and boat trailers:

Learn more about Idaho tax statutes 

Learn more about our Rules 

Boats Basics Guide

Sales or use tax is due on the sale, lease, rental, transfer, donation or use of boats and trailers in Idaho unless a valid exemption applies. This guide explains sales and use tax requirements for buyers and sellers of boats and trailers. 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 a boat or trailer
  • Bringing a boat or trailer that you bought in another state into Idaho
  • Giving or receiving a boat or trailer as a gift or prize
  • Selling or transferring ownership between businesses or related parties in a business
  • Renting out or leasing out boats or trailers as nondealer individuals or businesses that aren’t dealers

Definitions

A vessel is any type of watercraft that can be used for transportation on water. This includes:

  • Boats
  • Seaplanes used on the water
  • Kayaks
  • Jet Ski®
  • Paddleboards

The following aren’t vessels:

  • Float houses
  • Diver’s aids designed primarily to propel a diver below the water
  • Nonmotorized devices such as inflatable air mattresses, single inner tubes and water toys

A documented vessel is a ship that is at least 26 feet long, weighs 5 net tons or more and is registered through the United States Coast Guard. Vessel documentation is a national form of registration.

A boat trailer is a vehicle designed to carry a boat while being pulled by a motor vehicle.

Boats and Trailers Brought into Idaho

Sales tax might be due if you bring a motor vehicle or motorized vessel into Idaho.

Individuals

You might need to pay use tax on a boat or trailer that you bought outside of Idaho but intend to use inside the state.

When tax is due

  • You’re an Idaho resident Note: You might be able to reduce the amount of Idaho tax if you paid sales tax in another state. Keep your receipt.
  • You owned a boat or trailer for less than 90 days before moving to Idaho
  • You’re a member of the military, temporarily stationed in Idaho (Exceptions: See immediately below.)

When tax isn’t due

  • You’re a new Idaho resident and you owned or acquired the boat or trailer more than 90 days before moving to the state, see pdf Form ST-102 – Use Tax Exemption Certificate, New Resident
  • You’re an active member of the military, with a home of record other than Idaho, and either of the following is true:
    • You owned or acquired the boat or trailer before you received orders to transfer to Idaho
    • You owned or acquired the boat or trailer more than 90 days before moving to Idaho
    Note: The shorter time period applies.
You must provide a completed pdf Form ST-102NM – Use Tax Exemption Certificate, Nonresident Military, when you register the boat or trailer in Idaho.

Businesses

You owe tax on boats and trailers you own and move into Idaho if both of the following are true:

  • They’re titled in the name of a business entity
  • Any sales tax you paid was less than Idaho’s sales tax rate

You owe tax on the fair market value of the boat or trailer when you first use it in Idaho.

Tax you properly paid to another state can offset the tax you owe in Idaho with credit for sales tax paid to that state.

Special rules apply to transient equipment. (See Sales Tax Rule 073.)

Sales of Boats and Trailers by Dealers and Retailers

Sales price

Dealers and retailers must collect sales tax on the sales price of boats and trailers at the time of the sale unless an exemption applies. Items that are nontaxable aren’t part of the sales price. The final amount you charge your customer can include both taxable and nontaxable items.

What sales price includes

Sales price includes the following items, even if you separately state them on the invoice:

  • Freight or shipping charges to transport the boat or trailer to the seller before the sale
  • U.S. federal excise tax imposed on the manufacturer, wholesaler, or importer before the sale
  • All options and accessories (e.g., GPS system, depth finder, upgraded features, theft-deterrent systems)
  • Services, including charges for labor the dealer or retailer provides as part of the sale agreement (e.g., painting, coating, rust proofing, washing, waxing, cleaning, lettering)
    Note: See exemptions for service charges on certain new vessels sold by dealers as of July 1, 2019, below.
  • Labor charges before the sale (e.g., installation, fabrication, repairs required by the buyer including both parts and labor)
    Note: See “Exemption for labor to install accessories on new vessels,” below (effective July 1, 2019).
  • Mandatory service and warranty agreements
  • Dealer documentation, credit card and other service fees
  • Insurance settlements used to buy a replacement boat
  • Manufacturer’s rebates
  • Auction fees (e.g., gate fees, buyer’s fees, seller’s premiums)

What sales price doesn’t include

The sales price doesn’t include the following items if you separately state them on the invoice:

  • Retailer’s discounts or rebates
  • Title and registration fees a government agency imposes
  • Optional service and warranty agreements
  • Finance charges (e.g., loan origination fees, interest)
  • Optional insurance (e.g., Gap insurance)

Note: A customer down payment doesn’t reduce the taxable sales price.

Exemption for labor to install accessories on new vessels

Effective July 1, 2019, dealers’ labor or service charges to install accessories on certain new factory-delivered vessels are exempt.

The exemption covers vessels that fall into any of the following categories:

  • Sold with a motor
  • 11 feet or more
  • Canoes, kayaks, paddleboards and inflatable boats and similar watercraft that are at least 11 feet long and sold with a motor

Examples of labor installing accessories on new factory-delivered vessels that qualify for the exemption are:

  • Storage racks
  • Sealant, hull protectant, waterproofing
  • Sound systems
  • Anti-theft devices
  • Boat covers; bimini tops

Note: “Accessories” doesn’t include service or maintenance contracts.

Reference: Idaho Code section 63-3622OO, effective July 1, 2019.

Trade-in allowances

You can accept merchandise as full or partial payment of a boat or trailer you sell. The amount allowed on the traded-in merchandise reduces the taxable sales price, which is the amount you charge tax on.

  • You must put the traded merchandise into your resale inventory.
  • The trade-in and all documentation must take place at the time of the sale. If not, the trade-in allowance doesn’t reduce the taxable price.

Note: You can accept manufactured homes or modified park model recreational vehicles as trade-ins, but they don’t reduce the taxable price.

A leased boat or trailer you accept as a trade-in reduces the taxable sales price if both these criteria are met:

  • The customer has paid the lease in full.
  • The customer paid sales tax on the buyout of the lease.

Read this chart to see what is and isn’t included in the calculation of taxable sales price: pdf Vehicles and Vessels: Taxable Sales Price.

Exempt sales of boats or trailers by dealers and retailers

Most people must pay sales tax when they buy boats and trailers in Idaho. Only a few can buy boats and trailers tax exempt from Idaho dealers and retailers. Certain conditions must apply.

You could be held responsible for paying the sales tax yourself if you don’t collect it when you should.

Idaho buyers

Individual buyers don’t qualify for any exemption if they provide an Idaho driver’s license, Idaho address or Idaho contact information.

Military buyers

A military member who buys a boat or trailer to use in Idaho must pay tax even if Idaho isn’t the member’s state of residence.

Nonresident buyers

A nonresident can be an individual, a company or organization. A business or organization is a nonresident if it’s not formed under Idaho laws, isn’t required to register with the Idaho Secretary of State to do business in the state, doesn’t have significant contacts with Idaho, and doesn’t have consistent operations in Idaho.

A nonresident that buys a boat or trailer for use outside Idaho might qualify for an exemption if all of the following apply:

  • The boat or trailer is intended for use outside Idaho and won’t require titling in Idaho.
  • The nonresident will take it out of Idaho and immediately register and title it (if required) in another state or foreign country.
  • It won’t be used in Idaho for more than 90 days in any consecutive 12-month period. (A day of use in Idaho is 16 hours during any 24-hour period.)

If the criteria above are met, an exemption can apply to:

  • Vessels with an attached motor, regardless of length
  • Vessels without a motor, 11 feet or more in length (Exception: paddleboards, inflatable boats, canoes, kayaks or similar watercraft are taxable if purchased in Idaho.)
  • Transport trailers

The exemption doesn’t apply to accessories that aren’t part of the boat or trailer bought in Idaho (e.g., life jacket, tow ropes, wakeboard).

A nonresident that buys a boat or trailer to take out of state doesn’t qualify for the exemption if an Idaho resident is included as one of the following:

  • Co-buyer on the sales invoice or retail purchase agreement
  • Co-borrower on loan applications
  • Co-applicant for title or registration
  • Party on any other sales documents

Each nonresident buyer must give you a completed pdf Form ST-104NR – Sales Tax Exemption Certificate – Nonresident Vehicle/Vessel. Keep the form for your records, and forward a copy to the Tax Commission in one of these ways:

  • Scan and email to: vehicles@tax.idaho.gov.
  • Mail to: Idaho State Tax Commission – Tax Discovery Bureau, PO Box 36, Boise ID 83722-0410.

Government agencies, schools, some nonprofit organizations and American Indian tribes

Buyers listed below are exempt from sales tax on everything they buy, including boats and trailers.

  • U.S. federal government agencies
  • Idaho state and political subdivisions (such as cities and counties)
  • Public schools
  • Some nonprofit schools
  • Certain nonprofit and health organizations specifically exempted by Idaho law (e.g., nonprofit hospitals, qualified health organizations)
  • American Indian tribal governments and tribal-owned entities

These agencies and organizations must give you a completed pdf Form ST-101 – Sales Tax Resale or Exemption Certificate>. Keep the exemption certificate for your records. The exemption doesn’t apply to buyers who are employees purchasing an item for personal use and not on behalf of the exempt agency. You could be held liable for the sales tax on taxable purchases if you don’t collect it.

Note: For a complete list of exempt agencies and organizations, see our Exemptions guide.

Members of American Indian tribes

The laws for buying a boat or trailer tax free are different for individual members of American Indian tribes than for the tribes themselves. Tribal members must take delivery of the boat or trailer on a reservation for the sale to be exempt from sales tax.

The buyer must give you, the dealer or retailer, a completed pdf Form ST-133 – Sales Tax Exemption Certificate – Family or American Indian Sales. Keep the form for your records. Your records must clearly show that you delivered the off-highway vehicle to the reservation. Otherwise, you could be held liable for the sales tax.

This chart lists all available vehicle and vessel sales/use tax exemptions including boats and trailers: pdf Vehicles & Vessels: Exemption Certificates.

Servicing boats or trailers by dealers and retailers

Repair work for off-highway vehicles takes many forms.

This pdf Vehicles and Vessels: Repairs chart explains how to buy, bill and charge tax on parts used in different types of off-highway vehicle repairs in Idaho, including repairs under warranty.

Read Boat repair, including winterization fees for more information.

Note: You owe tax on the tools and shop supplies you buy for making repairs.

Printing and Publishing Sales

Sales

The total amount you charge for most printed materials is taxable. This includes what you charge for labor and services to make a finished product, even if the materials are owned by your customer.

Taxable sales

As a printer, you’ll charge tax on such things as:

  • Artwork printed on a physical item (e.g., mugs, T-shirts) or delivered on physical storage media
  • Printing or imprinting on a physical material
  • Digital books, when the buyer has a permanent right to use
  • Mats and matting services
  • Typography
  • Binding and finishing services
  • Setting and composition charges, both by hand and machine
  • Design fees that are included in making a finished product (e.g., stationery, business cards, signs)
    Note: If you only charge a fee to create a design (e.g., logo) for your customer — without anything else — it’s not taxable since there’s no transfer of tangible personal property
  • Engraving
    Note: You must charge tax on engraving fees even if the item you’re working on is the customer’s own property.
  • Author’s alterations and corrections (e.g., design, content)
  • Vending machine sales from a machine the customer operates (e.g., self-service photocopiers, printers, engraving machines)

Nontaxable sales

Some services related to mailing printed materials aren’t taxable. These services include:

  • Addressing
  • Stamping
  • Supplying or attaching government postage
  • Sealing
  • Inserting or wrapping property into direct-mail advertising

Sales of advertising spots that are displayed or circulated in your newspaper or magazine aren’t taxable.

You must list these charges separately on the customer’s invoice, or the charges are taxable.

Exempt sales

Sales to manufacturers, producers or wholesalers

Manufacturers, producers and wholesalers can buy the following without paying tax:

  • Labels or name plates (including the printing on them) when used to put on their own product or container
  • Items that accompany manufactured products when sold to the ultimate consumer (e.g., packing inserts, individual folding boxes, setup boxes)
  • Items supplied to the customer when the product is sold (e.g., direction sheets, instruction books, manuals, pamphlets)

Sales to Idaho or U.S. government agencies

Sales billed to and paid directly by the U.S. federal government or an Idaho government agency (state, county or city) are exempt. They can pay the charges by check, credit card or cash. The qualifying agency must give you a completed pdf Form ST-101, Sales Tax Resale or Exemption Certificate. Or, when they pay with cash, they can use a pdf Form ST-104G, Sales Tax Exemption Claim for Cash Purchases by Government Agencies.

Sales to exempt organizations

Qualifying organizations can buy printed items exempt when they pay or are billed for it directly. The sale is taxable if employees pay the charges themselves, even if they are later reimbursed by an exempt organization. Qualified organizations are listed in Idaho Code section 63-3622O and on pdf Form ST-101, Sales Tax Resale or Exemption Certificate. The organization must give you a completed Form ST-101.

Sales to certain nonprofits

Sales of printed literature to a nonprofit can qualify for the exemption if all of these apply:

  • The nonprofit both publishes and sells the literature.
  • Profits of the organization don’t benefit any private person or shareholder.
  • The literature is in one of the following formats:
    • Books
    • Periodicals
    • Pamphlets
    • Tracts
    • Audio
    • Video
    • Machine-readable media

The nonprofit must give you a completed pdf Form ST-101, Sales Tax Resale or Exemption Certificate.

Printing and Publishing Exemption

Qualifying for the production exemption

If you manufacture, process or fabricate goods that you’ll sell, you might qualify to buy some equipment and supplies without paying sales or use tax. Read more in our Production Exemption guide.

Historically, many printers qualified for this exemption because they primarily produced tangible personal property for resale. Tangible personal property means something you can feel, see and touch. Today, some printers primarily produce digital goods that aren’t tangible personal property. Those printers no longer qualify for the exemption.

Tangible property a printer produces

Examples:

  • Printed products
    • Photographs
    • Posters, flyers and printed promotional items
    • Newspapers and magazines
  • Products sold on physical storage media
    • Photographs on a portable storage drive
    • Posters, flyers and other promotional materials on a secure digital card
    • Magazines or newspapers on a thumb drive

Items a printer produces that aren’t tangible personal property

Examples:

  • Newspapers or magazines that are accessed online only
  • Digital photographs delivered electronically
  • Leased or rented digital products (leasing and renting are not a permanent right to use)
  • Information stored in and accessed only from an electronic medium — other than digital products (see above)

Printers that qualify for the production exemption

If more than 50% of your business operation is devoted to producing tangible personal property for sale, you can buy certain equipment and supplies exempt. You must primarily and directly use the necessary and essential equipment and supplies to produce tangible personal property for sale.

Separately operated business segment

A portion of your business might qualify for the production exemption if it’s a separately operated business segment that’s primarily printing products for resale. To qualify, you must keep separate accounting records for that business segment. This includes separately recording income, expenses, wages and assets of the business segment. You also must have employees primarily dedicated to operating the separate business segment.

Printers that don't qualify for the production exemption

If more than 50% of your business operation isn’t producing tangible personal property for sale, you don’t qualify for the production exemption. You must pay sales tax on all items you buy.

Exceptions:

  • You buy an item that isn’t taxable (e.g., downloaded computer software).
  • You’ll resell the item.

Buying Goods for Resale – Printing and Publishing

Buying if you qualify for the production exemption

You can buy certain goods exempt if you qualify for the production exemption. But you must carefully evaluate your purchases to see if they’re exempt when you’re a printer making and selling a mixture of both tangible personal property and non-tangible pesonal property (e.g., digital media).

Purchases that can qualify

Examples of items that might qualify for the exemption:
  • Computer hardware and software that operate production equipment
  • Film processors
  • Photo printing equipment
  • Typesetting equipment
  • Cameras
  • Contact frames
  • Plate burners and processors
  • Step-and-repeat machines
  • Color-key proofing systems
  • Laminated proofing systems
  • Offset and letter presses
  • Cutters to size material before printing and in the bindery process
  • Stitchers, trimmers, folders, gluers, drills, punches and binders used in the bindery process
  • Paper, ink and other supplies which become part of the product
  • Chemicals, catalysts and other materials that make your product more marketable
  • Copiers
To buy qualifying items exempt, give the seller a completed pdf Form ST-101, Sales Tax Resale or Exemption Certificate.

Purchases that don't qualify

Examples of items you must pay tax on when you buy them:

  • Air compressors used to clean production equipment
  • Equipment used in maintenance and repair activities
  • Equipment and supplies used in selling and distribution activities
  • Office equipment and supplies
  • Cleaning supplies
  • Coffee, coffee cups

Free newspapers

Certain equipment and materials used directly and primarily to produce free newspapers are exempt. The equipment and materials must be essential to the publication of free newspapers. A publication qualifies as a free newspaper if all of the following apply:
  • Its largest source of revenue comes from advertising.
  • Its content has at least 10% informative material that doesn’t produce income.*
  • It’s produced in a newspaper format, as defined by Sales Tax Rule 127.
  • It’s publicly distributed without charge.
The buyer must give you a completed pdf Form ST-101, Sales Tax Resale or Exemption Certificate.

Percentage computed on an average annual column inch basis.

Vending machines

If you operate a self-service copier, you might be able to buy it exempt. An automated device that sells taxable goods and accepts only legal money as payment is exempt. This includes devices that allow customers to print photocopies or photographs when they insert legal money into the machine. Legal money means coins, bills, debit cards or credit cards.

The operator of a vending machine must follow special rules related to sales tax on sales from the vending machine. See Vending Machines and Retailers.

To buy the vending machine exempt, give the seller a completed pdf Form ST-101, Sales Tax Resale or Exemption Certificate.

Read more in our Vending Machines guide.

Recordkeeping for Printing and Publishing

You must keep records of all the purchases and sales your business makes. You must have a valid seller’s permit and your records must show that you properly collected, reported and forwarded taxes to Idaho. Learn how to register for a free permit on our Idaho Business Registration Information page.

Records you must keep

  • Normal books of account. (Books of account can include information stored on computers.)
  • Documents that support entries in the books of account.
    Examples:
    • Bills
    • Receipts
    • Invoices
    • Cash register tapes
    • Job or work orders
    • Contracts
    • All schedules or working papers used to prepare your tax returns
  • All records of sales (and credit granted for returned items).
  • Purchases.
  • Tax returns.
  • Tax payments.
  • Copies of Form ST-101, Sales Tax Resale or Exemption Certificate, for all exempt buyers.
    Note: Keep buyers’ exemption certificates for as long as you do business with those buyers, plus four years. We’ll bill you for tax due if you don’t have completed exemption certificates for buyers you sell to tax exempt.

What the records must show

  • Gross receipts from sales and services made in Idaho, even sales that you or your customer might consider exempt from tax. If you deliver the product or service somewhere other than your place of business, you also must keep records that prove where delivery took place.
  • The identity of customers claiming an exemption, the type of exemption, and what you sold them tax exempt.
  • All deductions claimed in filing returns.
  • The total purchase price of anything bought for sale, rental, lease, or your own use.
  • The amount of sales tax collected from your customer or that you paid to a vendor.
  • Sales Tax Resale or Exemption Certificate, for all exempt buyers.
    Note: Keep buyers’ exemption certificates for as long as you do business with those buyers, plus four years. We’ll bill you for tax due if you don’t have completed exemption certificates for buyers you sell to tax exempt.

You must keep all sales and use tax records for at least four years. You should keep records for seven years if you don’t file returns.