Search Category: Sales Tax
Recordkeeping for Sales and Purchases
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
- Documents that support entries in the books of account
Examples:- Bills
- Receipts
- Invoices
- Cash register tapes
- Credits granted
- Job or work orders
- Contracts
- All schedules or working papers used to prepare your tax returns
- Copies of sales tax resale or exemption certificates (e.g., Form ST-101)
Note: Keep resale or exemption certificates for as long as the nonprofit does business with that buyer, plus four years We’ll bill you for tax due if you don’t have completed exemption certificates for buyers you sell exempt to. - Tax returns
- Tax payments
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 must also keep records that prove where delivery took place.
- The identity of customers claiming an exemption, the type of exemption, and what you sold them exempt.
- All deductions claimed in filing returns.
- The total purchase price of anything you 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.
You must keep all sales and use tax records and exemption certificates for at least four years. (You should keep them for seven years if you don’t file returns.)
Laws and Rules For Nonprofit and Religious Groups
Learn more about nonprofit and religious groups:
- Imposition and Rate of the Use Tax – Exemptions (Idaho Code section 63-3621; Sales Tax Rule 072)
- Sale (Idaho Code section 63-3612)
- Exempt Private and Public Organizations (Idaho Code section 63-3622O)
- Money-Operated Dispensing Equipment (Idaho Code section 63-3622II; Sales Tax Rule 095)
- Incidental Sales by Religious Corporations or Societies (Idaho Code section 63-3622KK)
- School, Church and Senior Citizen Meals (Idaho Code section 63-3622J)
- Literature (Idaho Code section 63-3622I)
- Sales To and Purchases By Nonprofit Organizations (Sales Tax Rule 085)
- Sales and Purchases By Religious Organizations (Sales Tax Rule 086)
- Boy Scout, Girl Scout and 4-H Group Sales and Purchases (Sales Tax Rule 089)
- Occasional Sales (Idaho Code section 63-3622K; Sales Tax Rule 099)
- Yard Sales, Sales (Sales Tax Rule 097)
- Vehicles and Vessels – Gifts, Military Personnel, Nonresident, New Resident, Tax Paid to Another State, Sales to Family Members, Sales to American Indians, and Other Exemptions (Sales Tax Rule 107)
- Motor Vehicles, Used Manufactured Homes, Vessels, All-Terrain Vehicles, Trailers, Utility Type Vehicles, Specialty Off-Highway Vehicles, Off-Road Motorcycles, Snowmobiles and Glider Kits (Idaho Code section 63-3622R)
- Computer Equipment, Software, and Data Services (Sales Tax Rule 027)
- Hunting or Shooting Sports (Idaho Code section 63-3622SS)
Governments
This guide explains how Idaho sales tax laws apply to government organizations. It includes how Idaho taxes the sales and purchases by governments.
Governments that are exempt
Sales to all government agencies and their political subdivisions are taxable, with the following exceptions:
- Idaho government entities and political subdivisions are exempt from sales and use tax. They include:
- The State of Idaho, its agencies and its departments
- Any Idaho city, county, township, school district, irrigation district, cemetery district, local improvement district, fire protection district or other taxing jurisdiction
- Certain organizations created through joint-powers agreements established under Idaho laws are exempt from Idaho sales and use taxes.
- All federal government agencies are exempt from Idaho sales and use taxes.
- Qualified foreign diplomats are exempt from Idaho sales and use taxes.
Recordkeeping
People selling to government agencies, and government agencies selling to others, must keep records of all sales. Their records must show that they properly collected, reported, and paid or forwarded taxes to Idaho.
Read the Recordkeeping portion of the Retailers guide for more information.
Schools
This guide explains how Idaho sales tax laws apply to schools like yours. It includes how Idaho taxes sales and purchases by schools. The guide also covers donations you receive, requirements for keeping records, and filing returns.
Schools exemption
A school that Idaho law defines as an educational institution can buy everything exempt from sales tax. Educational institutions are non-profit, offering a diversified course of study in the usual branches of learning. Their income is devoted only to education and they’re one of the following:
- Nonprofit colleges and universities (both public and private)
- Nonprofit primary and secondary schools (both public and private)
- Idaho public charter schools
- The Idaho Digital Learning Academy
A non-Idaho college, university, primary or secondary school also can buy everything exempt if it’s a qualifying educational institution.
Can’t buy exempt
For this exemption, educational institution does not include:
- Schools that primarily teach:
- Business
- Dancing
- Dramatics
- Music
- Cosmetology
- Writing
- Gymnastics
- Exercise
- Other special skills
- Parent-teacher associations, parent groups, alumni and other auxiliary groups whose purpose is to help an exempt school
- For-profit schools, colleges and universities, even when offering a full and diverse curriculum
Recordkeeping
Schools must keep the same records as any retailer. Those requirements are detailed below.
You must keep records of all sales by your school. Your records must show that you properly collected, reported and paid or forwarded taxes to Idaho.
Records you must keep
- Normal books of account
- Documents that support entries in the books of account, such as
- Bills
- Receipts
- Invoices
- Cash register tapes
- Credit invoices or memos
- Job or work orders
- Contracts
- All schedules or working papers used to prepare your tax returns
- Copies of sales tax resale or exemption certificates (e.g., Form ST-101) given to you when you sell items tax exempt to customers or rent out facilities to them.
Note: Keep resale or exemption certificates for as long you do business with that customer, plus four years. We could bill you for tax due if you don’t have completed exemption certificates for buyers you sell (or rent) tax exempt to. - Tax returns
- Tax payments
What the records must show
- Gross receipts from sales and services made in Idaho, even sales that you 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 you bought for sale, rental, lease or your own use.
- The amount of sales tax collected or paid.
You must keep all Idaho sales and use tax records and exemption certificates for at least four years.
Nonprofit and Religious Groups
This guide explains how Idaho sales and use tax laws apply to nonprofit organizations and religious groups. It includes how Idaho taxes sales and purchases that these groups make. This guide also covers donations made to the groups, requirements for keeping records for sales and use taxes, and filing returns.
There are many types of organizations that don’t operate to make a profit:
- Health organizations
- Social-service organizations
- Charitable organizations
- Museums
- Religious organizations, including:
- Churches
- Synagogues
- Temples
- Mosques
- Fellowship groups
- Spiritual groups
- Social clubs
- Civic organizations
This guide refers to these organizations as “nonprofits.”
Sales to and purchases by nonprofits in Idaho are taxable unless an exemption applies.
Taxable transactions include:
- Buying, renting or leasing tangible personal property
- Admissions to events
- Using property or facilities for recreation
- Hotel accommodations
Aircraft
If you’re thinking of buying or selling an aircraft in Idaho, you may have some questions about registration and taxes. The Idaho State Tax Commission and the Idaho Division of Aeronautics have partnered to provide you the information you need to help make your aircraft transaction (sale, lease, or purchase) and registration a success.
When aircraft can be sold or purchased tax exempt
There are some cases in which the sale of an aircraft may be exempt.
- The customer is exempt from all taxes (like the U.S. government).
- The aircraft will be used primarily to transport passengers or freight for hire.
In this case the exemption applies to:- Commercial airlines,
- Air ambulance services, and
- Charter flight businesses.
The exemption doesn’t apply to:
- Hot air balloons,
- Gliders, and
- Other recreational craft.
- The aircraft will be used primarily for agricultural spraying, dusting, seeding, livestock and predatory animal control, or forest and wildlife conservation.
- Aircraft sold to nonresidents — even if delivery is taken in Idaho — if the buyer certifies that the aircraft:
- Will be taken directly out of Idaho and immediately registered in another state or nation, and
- Won’t be required to be registered under Idaho laws, and
- Won’t be used or stored in Idaho more than 90 days in any 12-month period.
- Aircraft purchased by aircraft dealers for resale (see Resale Exemption).
To buy tax exempt, the customer must complete and sign 
Form ST-134AC – Sales Tax Exemption Certificate Aircraft – Exempt Use or Form ST-134NR – Sales Tax Exemption Certificate Aircraft – Nonresidents. See our Retailers and Wholesalers guides.
What you can buy tax exempt
Registered dealer
If you’re a registered dealer making a purchase for resale, you must give your supplier a completed form ST-101. Once the supplier has your ST-101 on file, you can buy aircraft and any parts needed for their repair exempt from tax, as long as the items are held in inventory for resale.
Retail sales
As a retailer, you can sell an aircraft, its repair parts, and oil exempt from sales tax if your customer is holding the aircraft for resale, rental, or lease in the normal course of business. In this case, your customer must provide you a completed form ST-101.
When use tax is due
Use tax is a tax on goods that you put to use or store in Idaho. If you haven’t paid sales tax on these goods, you owe use tax (unless the items are held for resale or an Idaho exemption applies). If you’ve paid the correct sales tax to another state — at least equal to or greater than Idaho’s tax — you don’t owe use tax. The sales tax must be separately stated on your receipt. The use tax rate is the same as the sales tax rate. Use tax is paid to the state using Form 850-U – Self-Assessed Use Tax Return and Instructions.
Purchases by aircraft dealers
You must pay tax when you buy items that will be used by your business rather than being held for resale. If your vendor didn’t charge sales tax, you owe Idaho a use tax. Any item you originally purchased for resale but withdrew from inventory for business or personal use is also subject to use tax. You pay use tax to the state using your regular sales tax return.
Aircraft leases
If the sale of the aircraft is considered taxable, then the lease of the aircraft is also taxable. For more information on leases, see our Renting and Leasing Tangible Personal Property guide.
How tax applies to aircraft used for flight instruction
Aircraft used primarily for flight instruction aren’t considered to be held for resale, so their purchase is taxable (as are their parts and oil). When aircraft held for resale are used for flight instruction, a reasonable fair rental value must be established for the aircraft use, and the business giving the instruction must pay use tax on that value.
The purchase of the flight instruction by a student isn’t subject to sales tax.
How tax applies to aircraft used for flying services
The purchase of aircraft used primarily for flying services, such as recreational flights, is taxable (as are the aircraft parts and oil). Recreational flights include balloon rides, sightseeing, wildlife viewing, and similar activities.
Applying tax to runways (instead of roads)
For more information
- Idaho Code sections 63-3608, 63-3609, 63-3610, 63-3611, 63-3622GG, 36-6312, 36-3614
- Sales Tax Administrative Rule 037: Aircraft and Flying Services
- Sales Tax Administrative Rule 038: Flying Clubs
Boats, Trailers, and Other Watercraft
This guide explains sales and use tax requirements for buyers and sellers of boats and trailers.
Basics Guide
Brought into Idaho
Boats and trailers bought in another state and brought into Idaho
Dealer Sales
Sales of boats and trailers by dealers and retailers
Dealer Leases
Leases and rentals of boats and trailers by dealers and retailers
Private Party Sales
Sales of boats and trailers by private parties
Private Party Rentals
Leasing out or renting out your own boat or trailer
Donating
Donating or giving away a boat or trailer
Repairs
Boat repair, including winterization fees
Sales on Water
Sales and services provided on navigable waters
Boat Docks
Boat dock installation or repair
Recordkeeping
Laws and Rules
Ground, Air, and Railroad Businesses
Basics Guide
Ground
For ground transportation companies
Air
For air transportation companies
Rail
For railroad transportation companies
Sales to Passengers
Sales to passengers are taxable
Complimentary Items
Complimentary items are taxable
Motor Vehicles
Dealers
For motor vehicle dealers
Nondealers
For nondealer retailers and private parties
Off-Highway Vehicles
Basics Guide
Dealer Sales
Sales of off-highway vehicles by dealers and retailers
Dealer Leases
Leases and rentals of off-highway vehicles by dealers and retailers
Private Party Sales
Sales of off-highway vehicles by private parties
Private Party Rentals
Leasing out or renting out your own off-highway vehicle
Donating
Donating or giving away an off-highway vehicle