Search Category: Sales Tax
Renting and Leasing Tangible Personal Property: Basics Guide
This guide explains sales and use tax requirements for anyone who rents out or leases out their tangible personal property in Idaho to others.
Tangible personal property
“Tangible personal property” means personal property that can be seen, weighed, measured, felt or touched, or perceived in any way by the senses. See Idaho Code section 63-3616.
Tangible personal property includes vehicles, boats, equipment, clothing and many other things. You can rent out or lease out most tangible personal property for a specific period.
Wholesalers Basics Guide
If you’re a wholesaler and only sell to resellers, you can buy goods you’ll sell without paying sales tax (tax exempt).
Wholesaler defined
A wholesaler can be an individual, a business, a nonprofit organization, or a government agency. A wholesaler:
- Only sells goods to a customer who will resell them, or
- Only leases goods to a company that will lease or rent the goods to someone else
Buying Goods for Resale – Wholesalers
Form ST-101
If you buy goods for resale from Idaho sellers, you must give them a completed 
Form ST-101 – Sales Tax Resale or Exemption Certificate.
Fill in the form:
- Write the name and address of both the seller and your business at the top of the form.
- In section 1 “Buying for Resale,” line a — write the nature of your business and describe the products you sell.
- On line b — check the second box that says “Wholesale only; no retail sales”. Wholesalers don’t need a permit to buy exempt for resale.
- Under “Buyer” at the bottom of the page — sign the form. Fill in the rest of the fields (name, title, EIN or driver’s license information, and date).
Out-of-state businesses
If you’re an out-of-state business that buys from registered Idaho retailers, you can give them a completed Uniform Sales and Use Tax Certificate – Multijurisdiction instead of form ST-101.
Fill in the form:
- Write the name and address of both the seller and your business at the top of the form.
- Check the box for “Wholesaler.”
- Write “Wholesale sales only” in the section that asks for your permit number.
Note: If you have an Idaho permit, write it in the permit number section. - Sign and fill out the bottom of the form.
The seller should keep the certificate and not charge tax on your future qualifying purchases.
Pay tax on goods you won’t resell
You must pay tax on items you buy that aren’t for resale to your customers.
Examples
- Warehouse shelving, equipment, and supplies
- Merchandise display racks
- Cash registers
- Cash register tape and sales invoices
- Flyers handed out to customers
- Advertising inserts
- Office equipment and supplies
- Goods you take from your resale inventory to use yourself or give away
Selling Goods – Wholesalers
Selling to resellers
Wholesalers can sell goods without collecting tax from customers who will resell the goods. If the customers won’t resell all the goods, you must collect tax on the items they won’t resell. (See Selling at retail below.) To sell goods to a customer without collecting tax:
- Your customer must give you a completed Form ST-101 – Sales Tax Resale or Exemption Certificate
- Keep the certificate and don’t charge tax on future qualifying sales to the customer
The resale/exemption certificate must have all areas that apply completed, and be signed and dated.
Selling at retail
If you only make wholesale sales, you don’t need a seller’s permit. But if you sell to customers that don’t resell all the goods you sell them, you’re acting as a retailer for those sales. Retailers must get an Idaho seller’s permit and collect sales tax. Read more on our Retailers page.
Wholesalers Recordkeeping
You must keep records of all the purchases and sales your business makes. Your records must show that taxes have been properly reported and forwarded to the Tax Commission.
Records you must keep
- Normal accounting books (which can include information stored on computers). Normal records include general ledgers, sales journals, purchases journals, etc.
- Documents that support entries in the books of account.
Examples:
- Receipts
- Customer invoices and credit granted for returned items
- Cash register tapes
- Job/work orders
- Contracts
- Purchasing records
- Bank and credit card statements
- Tax returns and all schedules or working papers used to prepare the returns
- Copies of sales tax resale or exemption certificates. Keep certificates as long as the buyer is a customer, plus four years.
What the records must show
- Gross receipts from sales and services made in Idaho – even sales that you or your customer may consider exempt from tax. If you deliver the product or service somewhere other than your place of business, you must also keep records that prove where delivery took place.
- The identity of customers claiming an exemption, the type of exemption, and what was sold exempt
- All untaxed sales claimed on tax 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
Keep all sales and use tax records for at least four years.
- You must keep all sales and use tax records for at least four years unless you have written permission from the Tax Commission to destroy them.
- If you don’t have an Idaho seller’s permit number, you’ll need to keep your records for seven years.
Laws and Rules for Wholesalers
Learn more about wholesalers:
- Retail Sale – Sale at Retail — Idaho Code section 63-3609; Sales Tax Rule 011
- Retailer — Idaho Code section 63-3610; Sales Tax Rules 018 and 068
- Retailer Engaged in Business in this State — Idaho Code section 63-3611
- Substantial Nexus — Idaho Code section 63-3615A
- Permits – Issuance – Revocation – Penalties — Idaho Code section 63-3620; Sales Tax Rules 070, 122, and 123
- Exemptions – Exemption and Resale Certificates – Penalties — Idaho Code section 63-3622; Sales Tax Rule 128
- Returns and Payments — Idaho Code section 63-3623
- Taxes as State Money — Idaho Code section 63-3623A
- Responsibility for Tax — Idaho Code section 63-3627; Sales Tax Rule 118
- Administration — Idaho Code section 63-3624; Sales Tax Rule 111
Coupons, Vouchers and Gift Cards – Food, Meals and Drinks
Customers often use coupons, vouchers or gift cards to pay for all or part of the bill. Tax these payment types as follows.
Coupons
| Does a third party reimburse you? | Charge sales tax on: | Example |
|---|---|---|
| Yes | Total sales price before you subtract the discount amount | Manufacturer’s coupon |
| No | Sales price after you subtract the discount amount | Coupon you distribute in a newspaper or online |
Vouchers
Vouchers are something that a customer can use for a discount on a product or service, such as a two-for-one dinner or a manicure at a reduced price. The customer buys the voucher in advance from a third-party provider, such as Groupon.
| Do you know how much the customer paid for the voucher? | Charge sales tax on: |
|---|---|
| Yes | Amount the customer paid for the voucher |
| No | Face value of the voucher |
Keep documentation to support the tax calculation on all discounted sales.
Gift cards and certificates
Don’t charge tax when a customer buys gift cards or certificates because they’re a form of payment. Charge sales tax on the price of the goods that someone buys using the gift cards or certificates.
You can’t treat a gift card redemption like it’s a retailer’s discount coupon, even if you sold the gift card or certificate at less than its face value.
Buying Goods for Resale – Food, Meals, and Drinks
Some of the things you use to sell or serve food, meals and drinks are exempt.
Exempt goods when buying for resale
You can buy goods without paying tax if the goods are all of the following:
- For resale to customers
- Included in the fee charged to customers
- Single-use items used by the customers
- Food and drink ingredients
- Disposable containers (e.g., cups, plates, “to-go” containers, sacks)
- Disposable supplies (e.g., straws, paper napkins, paper placemats, toothpicks, plastic eating utensils)
- Drinks or food included in the price of other food, meals or drinks (e.g., hors d’oeuvres, popcorn, candy)
You must give your vendor a completed Form ST-101 – Sales Tax Resale or Exemption Certificate, to buy these goods exempt.
Taxable goods
You must pay tax on items that you don’t intend to sell, aren’t included in the price to your customer or that your customers don’t directly use up.
- Waxed paper, plastic wrap, foil, paper towels, cleaning supplies
- Linens, silverware, glassware, tablecloths, towels, nondisposable napkins and cookware
- Furniture, fixtures, other depreciable property
- Menus
- Tablet devices your customer might use to view a menu, order, pay, or play games (If the tablet devices are amusement devices, you must have a decals for each device.)
- Items available to the public or employees (e.g., restroom supplies)
Food, Meals, and Drinks Guide
This guide explains Idaho sales and use tax law for furnishing, preparing, or serving food, meals or drinks. It describes how you should charge your customers tax and when to pay tax on what you buy to operate your business.
Many types of businesses sell food, meals or drinks, including:
- Full-service restaurants
- Casual dining (e.g., fast food and food courts)
- Bars
- Coffee shops
- Private clubs
- Cafeterias
- Food Trucks
- Sidewalk vendors
- Caterers
- Meal delivery services
- Grocery and convenience stores
- Personal chefs (e.g., preparing and serving food or drinks for customers who supply the ingredients)
- Meal kit retailers (e.g., meals that require the buyer to prepare the food)
- Meal kits delivered to a home or business
- Meals prepared beforehand to be taken home to eat later
Sales Price – Food, Meals, and Drinks
Taxable parts of a customer’s bill
- Charges for food or drinks served
- Cover charges
- Service charges other than tips
- Charges to prepare or serve food, drinks and meals for customers who supply the ingredients
Nontaxable parts of a customer’s bill
- Tips that are all of these:
- Separately stated on the receipt
- Paid to the service provider as additional income
- Not used to avoid sales tax on the actual meal price
- Delivery charge that is both of these:
- Separately stated on the receipt
- Not used to avoid sales tax on the actual meal price
- Charges for playing games on tablets or similar devices.
Note: You don’t charge customers sales tax, but you do need to purchase amusement device decals.
Separate statement of sales tax
You must separately list the amount of tax on the receipt even if you want whole-dollar transaction amounts.
Example
If the final 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 charge tax on the whole-dollar amount (i.e, $3.00 x current sales tax rate = sales price).
Sometimes businesses 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.
When you collect sales tax from customers for the State of Idaho, you must accurately track the tax you collect and forward it to the Tax Commission.
Food delivery fees and other charges
There are different types of meal delivery models, and the fees charged vary. Taxability depends on who the retailer is, what is charged, and how charges are shown on the invoice.
Example 1: Customer orders directly from restaurant
The restaurant sells $30 of food to the customer. It’s the retailer. It collects tax. The delivery company delivers food on behalf of the restaurant.
| Food | Taxable | $30.00 |
| Delivery fee | Not taxable | 4.99 |
| Tax | 1.80 | |
| Total | $36.79 |
Example 2: Customer orders directly from delivery service
The delivery company sells $30 of food to the customer and adds a 10% service charge. It’s the retailer. It collects tax. The delivery company buys food for resale from the restaurant.
| Food | Taxable | $30.00 |
| Service charge | Taxable | 3.00 |
| Delivery fee | Not taxable | 4.99 |
| Tax | 1.98 | |
| Total | $39.97 |
Example 3: Customer orders directly from delivery service
The delivery company sells $30 of food to the customer. It adds a 10% service charge and a surge charge because of high delivery demand. It’s the retailer. It collects tax. The delivery company buys food for resale from the restaurant.
| Food | Taxable | $30.00 |
| Service charge | Taxable | 3.00 |
| Delivery fee | Not taxable | 4.99 |
| Surge charge* | Not taxable | 2.99 |
| Tax | 1.98 | |
| Total | $42.96 |
*The surge charge is delivery-related.
Example 4: Customer orders directly from delivery service
The delivery company sells $8 of food to the customer. The food order is small, so the delivery company adds a small-order charge. It’s the retailer. It collects tax. The delivery company buys food for resale from the restaurant.
| Food | Taxable | $8.00 |
| Small-order fee* | Taxable | 2.00 |
| Service charge** | Taxable | 1.00 |
| Delivery fee | Not taxable | 4.99 |
| Tax | .66 | |
| Total | $16.65 |
*The small-order charge is food-related. **The service charge is 10% of the food cost.
- A tip added to a delivery fee isn’t taxable.
- If you’re a retailer, you must have a valid Idaho seller’s permit. You can’t collect sales tax without one. You can get a permit at no charge. See the Retailers guide.