Search Category: Sales Tax

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 a statewide 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.

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:

Learn more about Idaho tax statutes 

Learn more about our Rules 

Production Exemption – General

Sales by Producers

Or vendors selling to them

Sales

Businesses That Qualify

For the production exemption

Businesses

Purchases That Qualify

For the production exemption

Purchases

Change Use

Of an exempt item

Change Use

Taxable Items

Even with a production exemption

Taxable Items

Buyer’s Responsibility

To keep records, pay use tax

Buyer’s Responsibility

Exemption Certificates

Exemption Certificates

Laws and Rules

Laws and Rules

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

Sales

Businesses That Qualify

For the production exemption

Businesses

Purchases That Qualify

For the production exemption

Purchases

Motor Vehicles

That might qualify for the production exemption

Motor Vehicles

Change Use

Of an exempt item

Change Use

Taxable Items

Even with a production exemption

Taxable Items

Buyer’s Responsibility

To keep records, pay use tax

Buyer’s Responsibility

Exemption Certificates

Exemption Certificates

Laws and Rules

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

Sales

Businesses That Qualify

Businesses

Purchases That Qualify

Purchases

Change Use

Of an exempt item

Change Use

Taxable Items

Even with a production exemption

Taxable Items

Buyer’s Responsibility

To keep records, pay use tax

Buyer’s Responsibility

Exemption Certificates

Exemption Certificates

Laws and Rules

Laws and Rules

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

Sales

Businesses That Qualify

For the production exemption

Businesses

Purchases That Qualify

For the production exemption

Purchases

Change Use

Of an exempt item

Change Use

Buyer’s Responsibility

To keep records, pay use tax

Buyer’s Responsibility

Taxable Items

Even with a production exemption

Taxable Items

Exemption Certificates

Exemption Certificates

Laws and Rules

Laws and Rules

Laws and Rules for Logging

Learn more about loggers:

Learn more about Idaho tax statutes 

Learn more about our Rules 

Businesses That Qualify for Logging Exemption

Businesses that qualify for the exemption

To be eligible for this exemption:

  • Your business must engage in a qualifying logging activity. This includes:
    • Cutting forest trees
    • Thinning forest trees
    • Skidding, decking, and loading forest trees
  • The trees you harvest must be intended for sale by whoever owns them.
  • You must report your business’ profit or loss on an income tax return.

Note: Logging doesn’t have to be your main business to qualify for the exemption.

Businesses that don’t qualify for the exemption

Operations that aren’t eligible for the exemption include:

  • Harvesting forest trees for your own use
  • Harvesting forest trees for use by your business
  • Harvesting firewood for your own use

Purchases that Qualify for Logging Exemption

Purchase Requirements

An item qualifies for the exemption, if it meets all of the following requirements:

  • Primarily used in the logging process.
    See Idaho Code section 63-3607A.
  • Necessary or essential – you can’t harvest trees without it.
  • Directly used in or consumed during logging – after the beginning and before the end of the process:
    • The logging process begins when you first handle forest trees at the site of the activity.
    • The process ends when the logs are placed on transportation vehicles at the loading site, ready to be shipped.
  • Tangible personal property – must not become real property.
  • Allowable by law – must not be specifically excluded from the logging exemption by law or rule.

Exempt Purchases — Logging

Qualifying loggers can buy the following items exempt:

Equipment used for harvesting forest trees for resale

Examples:

  • Chain saws and chain saw parts and supplies – including chains, saw parts, oil mix, bar oil, and bar covers
  • Skidders, tree harvesters, feller bunchers, log processors, unlicensed log loaders and jammers, and parts for qualifying equipment

Supplies used in harvesting forest trees

  • Fuel, oil, and antifreeze for qualifying equipment
  • Chokers, skidder cable, and yarders
  • Radio Signal System (Talkie Tooters)
  • Tree marking paint

Taxable items – Logging

Even if you qualify for the logging exemption, some items are still taxable. The following commonly used items are taxable to loggers:

Safety equipment and supplies, regardless of use

Examples

  • Fire suppression equipment, including fire trucks and extinguishers
  • Hard hats, helmets, gloves, shoulder pads, ear plugs, calk boots, safety chaps

Equipment and supplies used for slash disposal or brush piling and clearing

Examples

  • Brush rakes and clearing machines, including tractors and tractor parts and supplies
  • Fuel used in slash disposal equipment

Equipment and supplies used in reforestation activities

Equipment and materials used for road construction

Examples

  • Dozers, road graders, loaders, excavators – including parts and supplies
  • Fuel used in road construction equipment
  • Materials used to build culverts, bridges, gates, fences, guardrails, or anything else that becomes part of real property. This includes fill materials.
  • Dust suppression products
  • Explosives

Recreational vehicles and aircraft, regardless of use

Examples

  • Snowmobiles, ATVs, SOHVs
  • Helicopters, airplanes – including any parts and supplies
  • Fuel used off-road if tax wasn’t paid

Licensed motor vehicles and trailers

Except trucks and trailers licensed under the International Registration Plan (IRP) or similar pro rata plan and part of a fleet used at least 10% of the time outside Idaho

Examples

  • Log trucks and trailers – including parts and supplies
  • Log loaders and jammers – if licensed
  • Tie downs and slings

Items and supplies for personal use

Examples

  • Shirts, pants, suspenders, boots

Office, maintenance, or janitorial equipment and supplies

Marketing, promotional, sales, or transportation equipment and supplies

Equipment and supplies to analyze or model financial results

Motor vehicles

Motor vehicles that are for use on public roads are taxable.