Search Category: Sales Tax
Lodging: Exempt Rentals
Lodging rentals involving certain government agencies, and qualifying organizations might be exempt.
Lodging rentals to certain government agencies and qualifying organizations
Only lodging rentals that are directly billed and paid by the federal government, Idaho state or local government, and qualifying organizations is exempt.
To rent lodging exempt, the buyer must complete and present one of these exemption certificates:
Form ST-104HM – Sales Tax Exemption on Lodging Accommodations and Instructions- Form ST-101 – Sales Tax Resale or Exemption Certificate
Note: Lodging is taxable if the employee pays and is reimbursed.
Lodging that religious organizations provide
Religious organizations can provide lodging rentals exempt if both of the following apply:
- They use the proceeds of the lodging rentals only for the organization’s religious worship, education or recreation programs.
- They offer the lodging only to members of the religious organization (e.g., it’s not available to the general public in regular competition with commercial businesses).
- A summer camp a church offers to church youth only
- A members-only overnight retreat for the congregation
The religious organization doesn’t need attendees to fill out an exemption certificate, but it must keep records to show it met the exemption requirements.
Sales Not Related to Lodging
Many lodging providers make sales of property or services that aren’t related to lodging. For information about those sales, see the following guides:
- Restaurants and Bars
- Vending machines
- Gift shops
- Golf, tennis, gym and spa services (guide not yet available)
Lodging: Buying Goods for Resale
You can buy exempt some of the things you use to sell lodging, other services and property.
Nontaxable goods
You don’t have to pay tax on goods you place in lodging, such as:
- Facial tissue, toilet tissue and disposable laundry bags
- Soap, lotion, shampoo and conditioner
- Disposable drinking glasses, disposable utensils, shoe-shine cloths and shower caps
- Stationery, envelopes, notepads and matches
Note: The goods must be included in the lodging charge, to be directly consumed by the customer in such a way that it can’t be reused.
You must give your vendor a completed Form ST-101 – Sales Tax Resale or Exemption Certificate, to buy these goods exempt.
Taxable goods
Pay tax on items that are any of the following:
- Not included in the lodging charge
- Not directly used by the customer
- Cleaning supplies
- Garbage can liners
- Not disposable
- Bath towels, bath mats, linens and bedding
- Glassware, silverware and china
- Furniture and fixtures
- Bibles, books, magazines and directories
- Any items available to the general public
Lodging: Filing Returns
Report and pay the lodging taxes using the correct form:
Sales
For Idaho state sales tax and other retail sales tax, use the customized Form 850 the Tax Commission sends you.
- See the Form 850 instructions.
- See more in Filing and Paying
Travel and Convention
For the Travel and Convention tax, use the personalized Form 1152 the Tax Commission sends you.
- See the Form 1152 instructions.
- Learn more from our Travel and Convention Tax guide.
Auditorium Districts
For auditorium district taxes, use the personalized form the Tax Commission sends you.
Currently, we administer the taxes for three auditorium districts:
- Greater Boise Auditorium District (see Form 1250 instructions)
- Idaho Falls Auditorium District (see Form 4150 instructions)
- Pocatello-Chubbuck Auditorium District (see Form 4250 instructions)
Learn more from our Auditorium Districts guide.
City sales taxes
Report and pay city sales taxes directly to jurisdictions that charge them.
Lodging: Recordkeeping
You must keep records of all the purchases and sales that your business makes. Your records must show that you properly collected, reported, and paid or forwarded taxes to Idaho.
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
- Bills
- Receipts
- Invoices
- Cash register tapes
- Job or work orders
- Contracts
- All schedules or working papers used to prepare your tax returns
- Copies of Sales Tax Resale or Exemption certificates
- Lease agreement (and related documentation) if a room is continuously occupied for more than 30 days
Keep all records for transactions involving sales or use tax, including these items:
- Sales (and credit granted)
- Purchases
- Tax returns
- Tax payments
What your records must show
- Gross receipts from sales and services made in Idaho, even sales that you or your customer think are exempt. 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 or the service was performed.
- The total purchase price of anything you bought for sale, rental, lease or your own use.
- The amount of sales tax you collected from your customer or you paid to a vendor.
- The identity of customers claiming an exemption, the type of exemption, and what you sold them exempt.
- All deductions you claim when filing returns.
We’ll bill you for the tax due if you don’t keep records to explain why you didn’t tax certain sales.
Lodging: Laws and Rules
Learn more about hotels, motels and short-term rentals:
- Sale — Idaho Code section 63-3612; Sales Tax Rule 011
- Exempt Private and Public Organizations — Idaho Code section 63-3622O
- Responsibility for Tax — Idaho Code section 63-3627; Sales Tax Rule 118
- Returns and Payments — Idaho Code section 63-3623
- Sales Price — Idaho Code section 63-3613; Sales Tax Rules 043
- Taxes as State Money — Idaho Code section 63-3623A
- Hotels, Motels and Campgrounds — Sales Tax Rule 028
- Fees Charged for Fax Services — Sales Tax Rule 053
- Sales and Purchases by Religious Organizations — Sales Tax Rule 086
- Definitions [Short-Term or Vacation Rental Marketplaces] — Idaho Code section 63-1803
- Limiting Tax Duties of Short-Term Rental Marketplaces – Collection of Tax — Idaho Code section 63-1804
- Definitions [Department of Commerce] — Idaho Code section 67-4711
- Assessment – Council Account [Department of Commerce] — Idaho Code section 67-4718
- Hotel/Motel Room and Campground — Sales Tax Rules 000-021
- Imposition and Rate of the Use Tax – Exemptions — Idaho Code section 63-3621
- Incidental Sales by Religious Corporations or Societies — Idaho Code section 63-3622KK; Sales Tax Rules 086
Explanation of Terms – Online Sellers
Economic nexus
As of June 1, 2019, retailers without a physical presence in Idaho (out of-state retailers) must collect Idaho sales tax if their sales in Idaho exceed $100,000 in the current or previous calendar year.
Marketplace facilitators
A marketplace facilitator is a person that provides a marketplace for third-party sellers. You’re a marketplace facilitator if you meet all three of the following criteria:
- You contract with third-party sellers to help them sell their products through a physical or electronic marketplace.
- You receive consideration for performing the contract (consideration payment, benefit, or even deduction of fees from a transaction).
- You engage, directly or indirectly, in any of the following:
- With respect to the seller’s product, you:
- Provide payment processing services
- Provide fulfillment or storage services
- List products for sale, set prices, or take orders
- Brand sales as those of the marketplace facilitator’s
- Advertise, promote, provide customer service (including help with returns or exchanges)
- You communicate the offer or the acceptance of the offer between buyer and seller.
- You own or operate the infrastructure (physical or electronic) or the technology that brings a buyer together with a seller.
- You provide a virtual currency that buyers use to purchase products from sellers.
- You or an affiliated person conduct software development or research and development described in section 3.a. (above) if the activities are directly related to a physical or electronic marketplace you operate for third-party sellers.
- With respect to the seller’s product, you:
Physical presence
If you make sales in Idaho, you’re required to collect Idaho sales tax on those sales if you have a physical presence in the state (whether permanent or temporary). This includes:
- Having an office, warehouse, sales or sample room, or storage place
- Maintaining a stock of goods
- Renting or leasing property (other than real property) to a customer who uses the property in Idaho
- Servicing tangible personal property in Idaho
- Having a salesman, agent, or representative who comes to Idaho to sell, deliver, install, or take orders. (It doesn’t matter whether the salesman, agent, or representative is your employee or lives in Idaho or another state.)
Presence also can be established by the relationship of one business to another that’s doing business in Idaho. See Idaho Code section 63-3615A.
Click-through Nexus – Online Sellers
Are you out of state and have referral (“click-through”) agreements with Idaho retailers?
This sometimes is called relationship nexus.
You must have a valid Idaho seller’s permit, collect sales tax, file sales tax returns, and forward the tax to the state if you meet all these criteria:
- You have no physical presence in Idaho.
- You entered into an agreement with one or more Idaho retailers.
- The agreement is for the Idaho retailer to refer customers to your business.
- You made retail sales to Idaho customers exceeding $10,000 during the preceding 12 months.
- You meet the criteria described in Out-of-State Retailers (Engaged in Business in this State) – House Bill 578.
To get an Idaho seller’s permit if you don’t already have one, see Take these steps.
Watch the Taxing Remote Sales in and into Idaho video
Laws and Rules for Online Sellers
- Marketplace facilitator — Idaho Code section 63-3605E
- House Bill 259 (2019)
- Retailer engaged in business in this state — Idaho Code section 63-3611
- House Bill 578 (2018)
Questions
If you have questions about your responsibilities in this area, please contact us at 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.
Online Sellers Guide
Should you be collecting sales tax on your Idaho sales? Are you a remote seller or do you operate an online marketplace?
An Idaho law affects retailers and marketplace facilitators as of June 1, 2019. Idaho passed the law in response to the U. S. Supreme Court Wayfair decision regarding economic nexus.
- You might need to collect Idaho sales tax on sales in Idaho, even if you’re not located in the state.
- If you already have an Idaho seller’s permit, you might need to get an additional permit if you operate as a marketplace facilitator.
Law requirements
Out-of-state retailers
Retailers without a physical presence in Idaho must collect Idaho sales tax when their sales in Idaho exceed $100,000 in the current or previous year. See Sections A and B of Guides for Different Business Types.
Marketplace facilitators
Marketplace facilitators without a physical presence in Idaho must collect Idaho sales tax when the combined total of their own sales in Idaho and their third-party sales in Idaho exceeds $100,000 in the current or previous year. They must have separate seller’s permits for their sales in Idaho and their third-party sales. See sections C, D, and E of Guides for Different Business Types.
Idaho retailers
Retailers with a physical presence in Idaho who also are marketplace facilitators must collect Idaho sales tax on their third-party sales in Idaho. They must have separate seller’s permits for their sales in Idaho and their third-party sales. See sections E and F of “Guides for Different Business Types.”
Retailers with a physical presence in Idaho must collect Idaho sales tax on their sales in Idaho. Read our Retailers guide for more information.
Out-of-state sellers who have certain agreements with Idaho retailers can find more information on the Click-Through Nexus page.