Search Category: Sales Tax
Hotels, Motels and Short-Term Rentals
This guide explains Idaho sales and use, Travel and Convention, and auditorium district tax laws for hotels, motels and other businesses that provide lodging in Idaho.
Basics Guide
Rental Marketplaces
Includes vacation rentals
Taxes to Charge
Nonlodging Sales
That lodging providers make
Exempt Lodging
For qualifying organizations
Buying Exempt
General
All retail sales in Idaho are taxable unless specifically exempted by Idaho or federal law. A sale is exempt from sales and use tax only if Idaho law specifically allows an exemption. For example:
- The buyer is:
- An organization that can buy all goods and services exempt from sales and use tax
- An organization or person that can buy certain goods or services exempt from sales and use tax
- The goods or services:
- Will be used in a certain way, so they may be exempt from either sales tax, use tax, or both
- Are exempt from sales and use tax for all buyers
- Are for resale, so they’re exempt from sales and use tax
Restrictions can apply to any tax-exempt sale or use. In all cases, the buyer and seller must keep clear and complete records to explain why tax wasn’t charged or paid. Usually, the buyer must complete an exemption certificate.
If the sale is taxable and the buyer doesn’t pay tax to the seller, the buyer owes use tax. The amount of use tax due is the same amount as if the seller had charged Idaho sales tax.
This guide will cover:
- Buyers that aren’t charged tax
- Goods and services that are or can be exempt because:
- They’re exempt from sales tax for all buyers
- The buyer will use them in an exempt way, or
- The buyer will resell them
Documentation
- The buyer must give the seller a completed
Form ST-101 – Sales Tax Resale or Exemption Certificate (Read more about exemption certificates.) - The exempt buyer should check the box(es) that apply. Read the Form ST-101 instructions. In some cases, sellers must keep a copy of the documents the buyer provides.
- Where noted, alternate documents are acceptable or required.
- The seller should keep the certificate and any other documentation and not charge tax on future qualifying sales to the buyer.
- The exemption certificate must be completed, signed, and dated.
- Buyers that are never taxed don’t have to pay use tax.
We may bill sellers or buyers for the tax due if they don’t keep records to explain why sales weren’t taxed.
Medical Products
This guide explains Idaho sales and use tax laws for buying and selling medical supplies and prescriptions.
Production Exemption
Does your business manufacture, process, or fabricate goods that you’ll sell? If so, you might qualify to buy some equipment and supplies without paying sales or use tax. This is called the production exemption.
Logging
Do you harvest forest trees that you or someone else will sell? If so, you might qualify to buy some equipment and supplies without paying sales or use tax. This is called the logging exemption.
Are you a lumber manufacturer instead? See Lumber Manufacturing: Production Exemption.
Sales
Selling timber you harvest or vendors selling to loggers
Businesses That Qualify
For the exemption
Purchases That Qualify
For the exemption
Change Use
Of an exempt item
Taxable Items
Even with a logging exemption
Buyer’s Responsibility
To keep records, pay use tax
City Sales Taxes
Some Idaho resort cities have a local sales tax in addition to the state sales tax. These local sales taxes are sometimes also referred to as local “option” taxes because the taxes are decided by the voters in the community affected.
Resort cities have a choice in what’s taxed and can include everything that’s subject to the state sales tax. Some, but not all, choose to limit the local sales tax to lodging, alcohol by the drink, and restaurant food.
Cities with local sales taxes
Contact the following cities directly for questions about their local sales tax:
- Bellevue – (208) 788-2128
- Bonners Ferry – (208) 267-3105
- Cascade – (208) 382-4279
- Crouch – (208) 462-4687
- Donnelly – (208) 325-8859
- Driggs – (208) 354-2362
- Hailey – (208) 788-4221
- Harrison – (208) 689-3212
- Irwin – (208) 483-4000
- Kellogg – (208) 786-9131
- Ketchum – (208) 726-3841
- Lava Hot Springs – (208) 776-5820
- Mackay – (208) 588-2274
- McCall – (208) 634-7142
- Ponderay – (208) 265-5468
- Riggins – (208) 628-3394
- Salmon – (208) 756-3214
- Sandpoint – (208) 263-3317
- Stanley – (208) 774-2286
- Sun Valley – (208) 622-4438
- Swan Valley – (208) 680-3116
- Victor – (208) 787-2940
Related information
- Our Sales/Use Tax Hub page links to all sales/use resources
- Some areas have an Auditorium District tax
Laws and rules
Learn more about local sales tax for cities:
- Idaho Code Title 50, Chapter 10 — MUNICIPAL CORPORATIONS – FINANCES
Sales and Use Tax Guides
Sales and Use Tax Forms
Use Tax Basics Guide
Use tax is a tax on goods you use or store in Idaho that haven’t been properly taxed. You owe Idaho use tax if you didn’t pay sales tax on goods that aren’t exempt. The use tax rate is the same as the sales tax rate.
You probably owe use tax if you’re an individual or if you operate a business that:
- Shops online or buys items from sellers that don’t collect Idaho sales tax
- Buys from out-of-state sellers that don’t collect sales tax
- Takes items out of sales inventory to give away or use
- Uses untaxed goods in a taxable activity
- Gets a refund of Idaho tax paid on fuels
- Uses goods when performing a nontaxable service
- Is a multi-level marketing business or buys from multi-level sellers
- Provides free samples or giveaways
- Repairs goods covered under an optional warranty or maintenance agreement
- Brings equipment, supplies or vehicles into Idaho for permanent use
- Brings business assets into Idaho for temporary use
- Does contracting work on real property in Idaho
Calculating use tax due
You owe use tax based on the taxable price of an item. The Idaho use tax rate is the same as the Idaho sales tax rate.
The amount of use tax you owe is based on a recent sales price of the item, or when the item first becomes taxable. Without proof of a recent purchase price, you owe tax on the item based on its fair market value.
- Charlotte visits her family in Oregon. She buys some furniture while she’s there and brings it back to Idaho to use. The Oregon company assembles the furniture, and she brings it back in her trailer. She owes use tax on the taxable portion of the purchase price, which consists of the furniture and the assembly fee. A month later, she buys clothes from an online store based in New York that doesn’t collect Idaho sales tax. Charlotte owes use tax on the clothing.
- Raj buys a used pickup in Montana and brings it home to Idaho where he uses it in qualifying production activities on his farm. The pickup is not registered and is used strictly in the feedlot. He doesn’t owe use tax on the pickup because it qualifies for the production exemption. After using the pickup in the feedlot for two years, Raj registers the pickup to use on public roads. Raj owes use tax on the fair market value of the pickup when it first becomes taxable, which is when he registers it.
Also see the Sales and Use Taxes Basics Guide for what the taxable purchase price includes, what it doesn’t, and how discounts and rebates affect the taxable purchase price.
Recordkeeping
Individuals
Individuals can use the worksheet format in Form 850-U – Self-Assessed Use Tax Return and Instructions, to track their untaxed purchases.
Businesses and organizations
Many businesses keep a use-tax accrual account to post tax due when they post purchases on which tax is due. Some businesses keep a use tax worksheet that lists purchases and inventory withdrawals on which use tax is due.
Whatever method your business uses, you must keep the records at least four years if you have a use tax permit. Businesses that don’t have a permit must keep records for at least seven years.
Laws and rules
Learn more about use tax:
- Retailer Engaged in Business in This State (Idaho Code section 63-3611)
- Sales Price (Idaho Code section 63-3613)
- Storage (Idaho Code section 63-3615)
- Tangible Personal Property (Idaho Code section 63-3616)
- Imposition and Rate of the Use Tax – Exemptions (Idaho Code section 63-3621)
- Use Tax on Transient Equipment (Idaho Code section 63-3621A)
- Returns and Payments (Idaho Code section 63-3623)
- Retail Sales: Sale at Retail (Sales Tax Rule 011)
- Sales Price or Purchase Price Defined (Sales Tax Rule 043)
- Application and Payment of Use Tax (Sales Tax Rule 072)
- Tangible Personal Property Bought or Shipped to Idaho (Sales Tax Rule 073)
- Time and Imposition of Tax, Returns, Payments and Partial Payments (Sales Tax Rule 105)
- 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)
How to Report, File and Pay Use Tax
Individuals
- You make a large dollar purchase such as an airplane, boat, unregistered vehicle, art or jewelry.
- Boats: Use Boat Registration Sales Tax Affidavit.
- Other items: Use Form 850-U – Self-Assessed Use Tax Return and Instructions.
- Pay use tax due by the 20th of the month after you buy the item.
- Boats: Use
- You make small purchases such as office supplies, magazines, books and clothes. Calculate, report and pay tax in one of the following ways:
- Report and pay use tax due on Form 850-U – Self-Assessed Use Tax Return and Instructions.
- Report and pay use tax due on your Form 40, Idaho Individual Income Tax Return, or Form 43, Idaho Part-Year Resident & Nonresident Income Tax Return.
- Report and pay use tax due on
Businesses and organizations
Retailers and wholesalers
Retailers and wholesalers must report and pay use tax they owe on their regularly filed sales tax return.
Not retailer or wholesaler
Businesses that aren’t retailers or wholesalers report and pay use tax according to the following scenarios:
- You owe use tax most months: Get a use tax permit. See tax.idaho.gov/ibr for more information about registering for an account. There’s no cost to obtain a permit.
- You make large-dollar purchases infrequently: Use Form 850-U – Self-Assessed Use Tax Return and Instructions, to pay use tax by the 20th of the month after you buy the item.
- You make small, frequent purchases: Report and pay the use tax yearly on Form 41, Idaho Corporation Business Tax Return, or Form 41S, Idaho S Corporation Income Tax Return.