Retailers must collect tax correctly on all Idaho sales. It’s important for retailers to understand:
- What is a taxable sale?
- How does a taxable sale become exempt?
- Which sales aren’t taxable?
Taxable sales
Retail sales of the following goods and services are taxable in Idaho:
Tangible personal property
Anything you can feel, see, touch, weigh, or measure, other than real property
Admission charges
Examples
- Tickets to a movie
- Cover charges at a club
- The price to see an entertainer
Fees charged for use of a facility or for use of tangible personal property for recreation
Examples
- Membership fees to health clubs
- Renting a park for a picnic
- Greens fees at golf clubs
- Participation in a recreational sports league
Providing hotel, motel, lodging, or campground accommodations
Examples
- Renting a room for 30 days or less, including personal homes as well as commercial hotels
- Renting a banquet room at a hotel
- Renting a campsite
Custom-made tangible personal property
Examples
- Materials and labor for a custom-built desk
- Materials and labor for a made-to-order suit or dress
- Materials and labor for a commissioned piece of art
Labor to produce, process, or fabricate tangible personal property
Examples
- The labor fee to make a table from a customer’s lumber
- The fee to cut or form a customer’s metal
- The fee to embroider a logo on customer-owned clothing
- The labor fee to assemble a bicycle, either by the seller or a third party
Any publication, or labor to print or imprint
Examples
- A subscription to a newspaper or magazine
- A newspaper bought at a grocery store
- The fee to have business cards printed
- The fee to engrave a customer’s trophy
Food, meals, and drinks and the labor to prepare or serve them
Examples
- A hamburger and soda at a drive-in
- A cocktail at a lounge
- The price to cater food for a party
- Personal chef service
Renting or leasing tangible personal property
Examples
- Renting a boat
- Leasing a car
- Renting bowling shoes at a bowling center
- Leasing a copy machine
- Renting clothing
Exempt sales
Some goods and services can be exempt from tax if the buyer gives the seller a completed resale/exemption certificate. These sales usually fall into one of the following categories:
The buyer is exempt from all sales tax
Examples
- Idaho Foodbank Warehouse, Inc.
- State and federal credit unions
The buyer’s industry is exempt from all sales tax
Examples
- Nonprofit hospital
- Nonprofit canal company incorporated solely for farm irrigation
The buyer will use the goods in an exempt activity
Examples
- Manufacturing company that will use the goods more than 50% of the time to produce tangible personal property for sale to others. The goods must be directly used in and necessary to the production process.
- Church that buys food for its food bank
The buyer will resell the goods or services
Examples
- Registered Idaho retailer
- Wholesaler that doesn’t make retail sales
Accepting a resale/exemption certificate from your customer:
- Your customer must give you a completed form ST-101, Sales Tax Resale or Exemption Certificate
- The exemption certificate must have all applicable questions answered, and be signed and dated
- Keep the certificate and don’t charge tax on future qualifying sales to the customer
Note: A few items are exempt for all taxpayers (no exemption certificate is required):
Examples
- Bullion
- Membership fees in a nonprofit hunting or shooting sports organization
- Official documents (e.g., deeds, licenses)
- Electricity, water, and natural gas delivered to a consumer through pipes or mains
Nontaxable sales
Sales of the following goods and services aren’t taxable in Idaho:
Real property sales, rentals, or leases
Examples
- Office space
- Living space
But motel or hotel rooms rented for 30 days or less are taxable - Lockers, such as those used at amusement parks, gyms, and airports
- Boat docks
- Billboards
- Parking spaces
But campground or trailer park accommodations of 30 days or less are taxable - Storage space
- Booth space at fairs
But renting personal property for use in the booth is taxable - Facilities rented for recreation if:
- There’s a charge for admission to the facility, and
- Tax is collected on the admission charge
Telephone tolls and utility charges
Transit fees
Examples
- Taxicab fares
- Bus tolls
- Airplane tickets on chartered or regularly scheduled flights
Software that isn’t tangible personal property
Examples
- Custom computer software
- Software delivered electronically
- Software loaded by the seller and left on the buyer’s device
No discs, drives, etc. left with buyer - Some remotely accessed computer software
Note:
Digital videos, games, music, and books that the buyer has a permanent right to use are tangible personal property.