Search Category: Sales Tax
Motor Vehicles – Farming and Ranching
Motor vehicles that are required to be licensed are almost always taxable, but there are a few specific exemptions for farmers and ranchers.
These vehicles qualify for the exemption
Farmers and ranchers can buy a vehicle exempt if it:
- Isn’t licensed and it’s used exclusively in qualifying farming activities.
Example: A truck used to feed livestock, and never driven on public roads. - Isn’t required to be licensed and is used in qualifying farming activities.
Examples:- Farm tractor
- Harvester
- Cultivator
- Reaper
- Binder
- Combine
- Planter
These vehicles don’t qualify for the exemption
- Vehicles that are licensed
Examples:- Any motor vehicle that must be licensed for use on public roads. This includes vehicles with restricted-use plates and recreational-use stickers.
- Recreational vehicles and recreation-related vehicles
Examples:- Snowmobiles
- Off-highway motorbikes
- ATVs
- Motorcycles
- Motor homes
- Park model recreational vehicles
Buying an exempt motor vehicle
To buy a qualifying vehicle exempt:
- Give the seller a completed
Form ST-101 – Sales Tax Resale or Exemption Certificate. - Give the completed exemption certificate to the Department of Motor Vehicles (DMV) office when you title the vehicle. Don’t license the motor vehicle for use on the highway, or the exemption won’t apply.
Change Use of Exempt Item – Farming and Ranching
If you change the primary use of an item
If you buy an item exempt to use in a farming or ranching activity, it becomes taxable if you stop using it in a farming activity. You must then pay tax on the fair market value of the item.
Note: The opposite isn’t true. If you pay tax on an item because you use it in a non-production activity, you can’t claim a tax credit if you begin to use it in a production activity.
Buyer’s Responsibility – Farming and Ranching
Buyer’s responsibility when making exempt purchases
You must keep records of all your purchases, and show whether you paid tax on them.
- Records must show what you bought, when you bought it, how much you paid for the goods, and how much tax you paid.
- Your accounting records must include the standard books and records maintained in a business.
- Keep all your records for at least four years. (You may need to keep them for seven years if you don’t file sales tax returns).
Use tax
When you buy, use, or store taxable goods in Idaho, but didn’t pay sales tax when you bought them, you owe use tax.
Use tax is often due when:
- You buy goods from an internet retailer that doesn’t collect tax
- You buy a taxable item from a seller who didn’t charge sales tax because the seller has your exemption certificate on file
- You buy an item in a state that doesn’t have sales tax, then bring the item to Idaho
- You change how you use an exempt item (See If you change the primary use of an item.)
Learn more about use tax on our Sales and Use Taxes section.
Exemption Certificates – Farming and Ranching
To buy an item exempt from sales tax, give the seller a completed exemption certificate.
ST-101, Idaho Resale or Exemption Certificate
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.
- In section 2 “Producer Exemptions,” check the box for the producer exemption(s) you qualify for.
- List any products you produce on the line at the bottom of section 2.
- 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).
- The seller should keep the form and not charge you tax on exempt items in the future.
Optional short version of ST-101
- Retailers can print or stamp a short version of the ST-101 on sales invoices, or
- Purchasers can print the short version on their purchase orders.
- This shorter version must be completed for each sale. The wording must be:
I certify that the property I’ve purchased will be used by me directly and primarily in the process of producing tangible personal property by mining, manufacturing, processing, fabricating, or farming, or as a repair part for equipment used primarily as described above. This tax exemption qualifies if this statement is signed by the buyer and the name, address, and nature of the buyer’s business are shown on the invoice. Any person who signs this certification with the intention of evading payment of tax is guilty of a misdemeanor.
[Indicate spaces for NATURE OF BUSINESS and SIGNATURE OF BUYER]
Note: Even if you buy from a seller who has your form ST-101 or short version exemption certificate, not everything is exempt.
- Some items are always taxable.
- Some items are taxable if they’re not used in qualifying activities.
Multijurisdictional
- If you’re also registered to sell goods in another state, you can use the Uniform Sales and Use Tax Certificate – Multijurisdiction to buy goods that you’ll sell, instead of form ST-101.
Fill in the form:- Write the name and address of both the seller and your business at the top.
- Check the box for “Retailer” if you sell to end users or “Wholesaler” if you sell to buyers who’ll resell the goods
- Write your Idaho seller’s permit number in the ID section.
- Sign and fill in out the bottom of the form.
- The seller should keep the form and not charge you tax in the future.
Note: You can only use the multi-jurisdiction exemption certificate to buy goods you’ll resell.
Sales by or to Farmers and Ranchers
Sales by farmers and ranchers
When you make more than two retail sales in a 12-month period, you must have a valid Idaho seller’s permit and charge tax, unless a valid exemption exists. Read more in our Retailers guide.
Remember to document all untaxed sales. This is done by having your customers complete a resale or exemption form, such as an ST-101, for your records.
You can get an Idaho seller’s permit free of charge from the Tax Commission.
Livestock Sales
When you sell livestock, you must collect sales tax unless a valid exemption applies.
Sales of livestock are exempt when:
- Sold for resale with a valid form ST-101 on file
- Sold at a public livestock auction chartered by the Idaho Department of Agriculture
- Sold by a breeder or an association of breeders
- Sold by farmers, dairymen, livestock breeders or feeders that are going out of business
- Auctioned at a 4-H event
- Sold by an association of livestock producers
- Sold by a nonprofit cooperative, religious, fraternal, or benevolent organization, as long as the sale isn’t part of the organization’s regular course of business
- Auctioned at an Idaho auction market operated by an Idaho licensed auctioneer selling not more than 20 animals a week or more than 80 animals a month, provided the auction market is bonded under the provisions of the Federal Packers and Stockyards Act of 1921
Livestock includes cattle, calves, sheep, mules, horses, swine, or goats. Sales of other animals don’t qualify.
Wholesalers
If you only sell goods to a customer who will resell them, you may be a wholesaler. Read more in our Wholesalers guide.
- Don’t charge sales tax if the buyer gives you a completed exemption certificate (e.g., ST-101).
Vendors that sell to farmers and ranchers
- If you sell to farmers or ranchers, don’t charge sales tax on exempt items if the farmer or rancher gives you a completed exemption certificate (e.g., ST-101).
- If you have a completed certificate on file, don’t collect sales tax on exempt sales to the buyer in the future.
Note: Not everything is exempt for farmers. You must charge tax on items that aren’t exempt from sales tax. Read more on selling to farmers and ranchers in our Retailers guide.
Laws and Rules for Farming and Ranching
Learn more about farming or ranching:
- Production Exemption (Idaho Code section 63-3622D; Sales Tax Rule 079)
- Production Exemption Shall Not Apply to Recreation-Related Vehicles (Idaho Code section 63-3622HH)
- Definition of Farming (Idaho Code section 63-3603)
- Farming and Ranching (Sales Tax Rule 083)
- Irrigation Equipment and Supplies (Idaho Code section 63-3622W; Sales Tax Rule 096)
- Sales of Livestock (Idaho Code section 63-3622MM; Sales Tax Rule 134)
- Certificates for Resale and Other Exemption Claims (Idaho Code section 63-3622; Sales Tax Rule 128)
- Application and Payment of Use Tax (Idaho Code section 63-3621; Sales Tax Rule 072)
Production Exemption – General
Sales by Producers
Or vendors selling to them
Businesses That Qualify
For the production exemption
Purchases That Qualify
For the production exemption
Change Use
Of an exempt item
Taxable Items
Even with a production exemption
Buyer’s Responsibility
To keep records, pay use tax
Farming and Ranching
Do you operate a farm or ranch that produces farm and ranch goods you’ll sell? Or are you a custom farmer or rancher that performs qualifying activities for a farmer or rancher? If so, you might qualify for the production exemption.
If you qualify for the production exemption, you can buy some equipment and supplies without paying sales or use tax. The production exemption includes special rules for farmers and ranchers.
Sales by Farmers and Ranchers
Or vendors selling to them
Businesses That Qualify
For the production exemption
Purchases That Qualify
For the production exemption
Motor Vehicles
That might qualify for the production exemption
Change Use
Of an exempt item
Taxable Items
Even with a production exemption
Buyer’s Responsibility
To keep records, pay use tax
Exemption Certificates
Laws and Rules
Lumber Manufacturing: Production Exemption
Do you manufacture rough or finished lumber that you’ll sell? If so, you might qualify for the production exemption.
If you qualify for the production exemption, you can buy some equipment and supplies without paying sales or use tax. This guide talks about sales and use tax issues that are unique to lumber manufacturers.
Are you logging instead of producing lumber? See Logging.
Sales
Selling lumber you manufacture or vendors selling to you
Businesses That Qualify
Purchases That Qualify
Change Use
Of an exempt item
Taxable Items
Even with a production exemption
Buyer’s Responsibility
To keep records, pay use tax
Mining: Production Exemption
Do you own or operate a mine that removes minerals from the earth and processes those minerals for sale? Or are you a custom miner that performs qualifying services for a miner? If so, you might qualify for the production exemption.
If you qualify for the production exemption, you can buy some equipment and supplies without paying sales or use tax.
Sales by Miners
Or vendors selling to them
Businesses That Qualify
For the production exemption
Purchases That Qualify
For the production exemption
Change Use
Of an exempt item
Buyer’s Responsibility
To keep records, pay use tax
Taxable Items
Even with a production exemption