The transportation company must pay tax on items it gives passengers as part of the ticket price. The company must:
- Pay Idaho sales or use tax on the sales price of items it buys in Idaho, even if the items aren’t distributed to passengers in Idaho
- Pay Idaho use tax on the cost of items distributed in Idaho if both of the following apply:
- The company didn’t pay sales tax in the state where it bought the items
- Passengers receive the items during trips that begin or end in Idaho
If Idaho use tax is due on complimentary items, it’s calculated in either of these ways:
- On the actual cost of the items distributed in Idaho
- If records aren’t accurate, the company should multiply the cost of items it gave passengers by the percentage of Idaho miles in the trip