When transportation companies like buses, airlines or railways sell passengers property that isn’t included in the price of a ticket, the property is taxable.
- Food and drinks
- Souvenirs
- Reading materials
Transportation companies making taxable sales are retailers who must have an Idaho seller’s permit. They must collect sales tax on items they sell, unless the passenger is exempt. They must then forward any sales tax they collect to the Tax Commission. See “Retailers.”
The transportation company can buy the items exempt. They must collect tax when they sell to passengers.
The transportation company must charge Idaho sales tax when it sells products during a trip that starts or ends in Idaho.
- If the company’s records show where products sold are ordered and delivered during a trip that starts or ends in Idaho, the company must charge Idaho sales tax on 100 percent of the sales price of the products ordered or delivered in the state.
- If the company’s records don’t show where products were ordered or delivered during a trip that starts or ends in Idaho, it can prorate the sales tax due to Idaho. The company should multiply the total sales in a trip by the percentage of Idaho miles in the trip. The company must charge Idaho sales tax on the proportionate total of sales it made in Idaho during the trip.
Note: Passengers can buy products exempt if they qualify for a valid exemption and give the transportation company a completed 
Form ST-101 – Sales Tax Resale or Exemption Certificate.