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.

Example Road builders could qualify for this exemption if they move forest trees from a road right-of-way:

The harvested trees must be sold by their owner.
The equipment must be primarily used in the logging process. See Idaho Code section 63-3607A.

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

Printing and Publishing

This guide explains Idaho sales and use tax for commercial printers. Commercial printers are retailers who produce printed materials that they’ll sell.

Basics Guide

Sales

The total amount you charge for most printed materials is taxable

Exemption

You might qualify to buy some equipment and supplies without paying sales or use tax

Buying Goods

You can buy certain goods exempt if you qualify for the production exemption

Recordkeeping

Laws and Rules

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