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.
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 “Keeping records” portion of the Retailers guide for more information.