Exempt Sales – Food, Meals and Drinks | Idaho State Tax Commission

Sales of food, meals and drinks to certain customers, governments and organizations are exempt.

Sales to Idaho or U.S. government agencies

Sales billed to and paid directly by the U.S. federal government or an Idaho government agency (state, county or city) are exempt. They can pay the charges by check, credit card or cash. The qualifying agency must give you a completed Form ST-101 – Sales Tax Resale or Exemption Certificate to buy the food, meals or drinks exempt. Or, when paying with cash, a Form ST-104G – Sales Tax Exemption Claim – for Cash Purchases by Government Agencies, can be used. Traveling government employees can’t use this form to buy meals, drinks or lodging exempt.

Note: Sales to any other state’s government agency are taxable if you sell or deliver the food within Idaho, even if that state doesn’t have a sales tax.

Sales to organizations exempt from Idaho sales and use tax

Qualifying organizations can buy food, meals and drinks exempt when they pay or are billed for it directly. Employees can’t pay the charges and be reimbursed. Qualified organizations are listed in Idaho Code section 63-3622O and on Form ST-101 – Sales Tax Resale or Exemption Certificate. The organization must give you a Form ST-101 that’s filled out completely and accurately to buy food, meals or drinks exempt. Otherwise, you could be responsible for paying that tax yourself.

Note: An organization with tax-exempt status from the IRS isn’t necessarily exempt from paying Idaho sales tax. Qualified exempt organizations are listed on Form ST-101, Sales Tax Resale or Exemption Certificate.

Programs that provide nutritional meals for the aging

Meals that are part of a program to provide nutritional meals for seniors under Title III of the Older Americans Act (OAA) are exempt. The seniors don’t need an exemption certificate to buy the meals. You as the provider of the meals must give your vendor a completed

Form ST-101 – Sales Tax Resale or Exemption Certificate, to buy the meal ingredients exempt.

Note: The OAA covers people 60 or older. Meals sold through the program to customers under 60 years old are taxable.

Church meals sold to their members

Food, meals and drinks a religious organization sells at a church function are exempt if the meals are only available to members of the church. Church members don’t need an exemption certificate to buy the meals. You as the seller of the meals must give your vendor a completed Form ST-101 – Sales Tax Resale or Exemption Certificate, to buy the meal ingredients exempt.

Note: Churches are generally not exempt from paying taxes on their purchases. Exceptions to this rule are in Sales Tax Rule 086.

Sales of food, meals and drinks by cooperative groups

Cooperative living groups (e.g. fraternities and sororities) that prepare and serve meals to only their members aren’t retailers. They’re consumers and must pay tax on their purchases. These groups don’t charge sales tax on allocated fees to members for meals, even if those fees are separately stated or part of a lump sum for room and board. Cooperative living groups selling to nonmembers are retailers that must get a seller’s permit and charge sales tax.

Note: A business that a cooperative group hires to provide the meals is a retailer and must charge tax on the meals.

Sales of food, meals and drinks by boarding houses

Meals that boarding houses furnish are taxable if they are separately stated. The boarding house can buy certain items to prepare the meals exempt for resale.
When the regular board and room charges include the cost of meals, the boarding house is not selling the meals. Instead, the boarding house is the consumer of items used to prepare the meals and must pay tax on all goods used to prepare and serve the meals.