T63CH36

Title 63 > T63CH36

Sections (106)

63-3601

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3601. Title of act. This act is known and may be cited as The Idaho Sales Tax Act. History: [63-3601, added 1965, ch. 195, sec. 1, p. 408.]

63-3602

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3602. Definitions. When used in this chapter, the terms defined in sections 63-3603 through 63-3618 , Idaho Code, shall have the meanings respectively ascribed to them, except as the context or other provisions of this chapter may require. History: [63-3602, added 1965, ch. 195, sec. 2, p. 408; am. 1991, ch. 321, sec. 1, p. 834.]

63-3603

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3603. Farming. The terms farm and farming refer to and mean the business of operating for gain or profit a ranch or farm and include stock, dairy, poultry, fish, fur, fruit and truck farms, ranches, ranges and orchards, and custom farming. History: [63-3603, added 1965, ch. 195, sec. 3, p. 408; am. 1987, ch. 326, sec. 1, p. 682.]

63-3604

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3604. In this state — In the state. The terms in this state or in the state mean within the exterior limits of the state of Idaho and include all territory within these limits owned by or ceded to the United States of America. History: [63-3604, added 1965, ch. 195, sec. 4, p. 408.]

63-3604B

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3604B. Includes and including. The terms includes and including when used in this act shall not be deemed to exclude other things otherwise within the meaning of the term defined. History: [(63-3604B) 63-3605, added 1965, ch. 195, sec. 5, p. 408; am. and redesig. 2019, ch. 320, sec. 7, p. 955.]

63-3605C

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3605C. Logging. The term logging means the harvesting of forest trees by cutting, skidding, loading, thinning or decking, regardless of whether the forest trees are owned by the person performing the harvesting when such harvesting is for resale of the product harvested. History: [(63-3605C) 63-3605A, added 1989, ch. 257, sec. 1, p. 632; am. 1990, ch. 431, sec. 1, p. 1195; am. and redesig. 2019, ch. 320, sec. 8, p. 955.]

63-3605E

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3605E. marketplace facilitator. The term marketplace facilitator means a person that contracts with sellers to facilitate for consideration, including the deduction of fees from a transaction, the sale of the seller’s products through a physical or electronic marketplace operated by the person, and engages: (1) Directly or indirectly, through one (1) or more affiliated persons, in any of the following: (a) Transmitting or otherwise communicating the offer or acceptance between the buyer and seller; (b) Owning or operating the infrastructure, electronic or physical, or the technology that brings buyers and sellers together; (c) Providing a virtual currency that buyers are allowed or required to use to purchase products from the seller; or (d) Software development or research and development activities related to any of the activities described in subsection (2) of this section, if the activities are directly related to a physical or electronic marketplace operated by the person or an affiliated person; and (2) In any of the following activities, with respect to the seller’s products: (a) Payment processing services; (b) Fulfillment or storage services; (c) Listing products for sale; (d) Setting prices; (e) Branding sales as those of the marketplace facilitator; (f) Taking orders; (g) Advertising or promotion; or (h) Providing customer service or accepting or assisting with returns or exchanges. History: [63-3605E, added 2019, ch. 320, sec. 1, p. 948.]

63-3605H

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3605H. Mining. The term mining means the extraction from the earth of a mineral as defined in sections 47-701 and 47-701A , Idaho Code, excepting therefrom geothermal resources, and includes the further processing of such mineral. History: [(63-3605H) 63-3605B, added 1993, ch. 319, sec. 1, p. 1175; am. and redesig. 2019, ch. 320, sec. 9, p. 956.]

63-3605J

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3605J. Modular building. The term modular building, as defined in section 39-4301 , Idaho Code, is a substantially complete building designed to be affixed to real property. The term modular building, includes all components incorporated in such modular building at the time of manufacture and remaining unchanged at the time of the original retail sale. Furniture, fixtures, furnishings, appliances, and attachments not incorporated as component parts of the modular building at the time of manufacture shall be subject to the sales and use tax separately and distinctly from the sales price of a modular building. Refrigerators, ranges, draperies, and wood burning stoves placed in the modular home by the manufacturer shall be deemed to be components incorporated into such modular building. History: [(63-3605J) 63-3606A, added 1971, ch. 213, sec. 1, p. 935; am. 1986, ch. 30, sec. 10, p. 93; am. 1996, ch. 46, sec. 1, p. 120; am. 2007, ch. 252, sec. 14, p. 750; am. and redesig. 2019, ch. 320, sec. 10, p. 956.]

63-3605L

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3605L. Motor vehicle. The term motor vehicle means a vehicle registered or required to be registered for use on public roads. The term motor vehicle does not include vehicles not required to be registered pursuant to section 49-426 , Idaho Code, or intended for off-road use only, including snowmobiles, boats and aircraft, and all-terrain vehicles and off-road motorcycles when not used on public roads. History: [(63-3605L) 63-3606B, added 1999, ch. 42, sec. 1, p. 85; am. and redesig. 2019, ch. 320, sec. 11, p. 956.]

63-3606

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3606. New manufactured home. (1) The term new manufactured home means a manufactured home, as defined in section 39-4105 , Idaho Code, that is sold for the first time at retail. The sale of a new manufactured home by a licensed manufacturer to a licensed retailer who provides a valid resale certificate is exempt from sales and use tax under this chapter. The term new manufactured home includes all components incorporated in such manufactured home at the time of manufacture and remaining unchanged at the time of the original retail sale thereof. (2) Furniture, fixtures, furnishings, appliances and attachments not incorporated as component parts of the manufactured home at the time of manufacture shall be subject to the sales and use tax separately and distinctly from the sales price of a new manufactured home at the time of its first retail sale. Items incorporated into the new manufactured home as component parts by the manufacturer are taxed at the same rate as the new manufactured home. History: [63-3606, added 1965, ch. 195, sec. 6, p. 408; am. 1976, ch. 297, sec. 1, p. 1025; am. 1986, ch. 30, sec. 9, p. 92; am. 2021, ch. 31, sec. 1, p. 73.]

63-3606C

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3606C. new park model recreational vehicle. (1) The term new park model recreational vehicle means a park model recreational vehicle as defined in section 49-117 , Idaho Code, that is sold for the first time at retail. The term new park model recreational vehicle includes all components incorporated in such park model recreational vehicle at the time of manufacture and remaining unchanged at the time of the original retail sale thereof. (2) Furniture, fixtures, furnishings, appliances and attachments not incorporated as component parts of the park model recreational vehicle at the time of manufacture shall be subject to the sales and use tax separately and distinctly from the sales price of the new park model recreational vehicle. Refrigerators, ranges, draperies and wood-burning stoves placed in a new park model recreational vehicle by the manufacturer shall be deemed to be components incorporated into such park model recreational vehicle. History: [63-3606C, added 2017, ch. 134, sec. 14, p. 324.]

63-3607

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3607. Person. The term person includes any individual, firm, copartnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, cooperative, assignee, or any other group or combination acting as a unit. History: [63-3607, added 1965, ch. 195, sec. 7, p. 408.]

63-3607A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3607A. Primary or primarily. (1) With respect to the use of tangible personal property, primary or primarily means the predominant or greatest use of the property. (2) In determining the primary use of tangible personal property, all uses of the property shall be aggregated into total taxable uses and total nontaxable uses pursuant to the provisions of this chapter. The primary use shall be the greater of the total taxable use or total nontaxable use. (3) The use of tangible personal property shall be measured in terms of hours, miles, gallons or other measure commonly or customarily used to measure or determine use of the property. History: [63-3607A, added 2013, ch. 8, sec. 1, p. 17.]

63-3608

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3608. Purchase. The term purchase means any transfer, rental, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration. A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price is a purchase. A transfer for a consideration of any publication or of tangible personal property which has been produced, fabricated, or printed to the special order of the customer is also a purchase. History: [63-3608, added 1965, ch. 195, sec. 8, p. 408.]

63-3609

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3609. Retail sale — Sale at retail. The terms retail sale or sale at retail means a sale for any purpose other than resale in the regular course of business or lease or rental of property in the regular course of business where such rental or lease is taxable under section 63-3612 (h), Idaho Code. (a) All persons engaged in constructing, altering, repairing or improving real estate are consumers of the material used by them; all sales to or use by such persons of tangible personal property are taxable whether or not such persons intend resale of the improved property. (b) For the purpose of this chapter, the sale or purchase of personal property incidental to the sale of real property or used mobile or manufactured homes is deemed a sale of real property. History: [63-3609, added 1965, ch. 195, sec. 9, p. 408; am. 1967, ch. 290, sec. 1, p. 805; am. 1971, ch. 213, sec. 2, p. 935; am. 1985, ch. 140, sec. 1, p. 383; am. 1986, ch. 30, sec. 11, p. 93; am. 1996, ch. 46, sec. 2, p. 120; am. 1998, ch. 48, sec. 1, p. 195; am. 2021, ch. 31, sec. 2, p. 74.]

63-3610

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3610. Retailer. The term retailer includes: (a) Every seller who makes any retail sale or sales of tangible personal property and every person engaged in the business of making retail sales at auction of tangible personal property owned by the person or others. (b) Every person engaged in the business of making sales for storage, use, or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use, or other consumption. (c) Every person making more than two (2) retail sales of tangible personal property during any twelve (12) month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy, or every person making fewer sales who holds himself out as engaging in the business of selling such tangible personal property at retail or who sells a motor vehicle. (d) When the state tax commission determines that it is necessary for the efficient administration of this act to regard any salesmen, representatives, peddlers, or canvassers as agents of the dealers, distributors, supervisors, or employers under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors, or employers, the state tax commission may so regard them and may regard the dealers, distributors, supervisors, or employers as retailers for the purpose of this act. (e) Persons conducting both contracting and retailing activities. Such persons must keep separate accounts for the retail portion of their business and pay tax in the usual fashion on this portion. History: [63-3610, added 1965, ch. 195, sec. 10, p. 408; am. 1967, ch. 290, sec. 2, p. 805; am. 1995, ch. 54, sec. 1, p. 123; am. 1999, ch. 42, sec. 2, p. 85.]

63-3611

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3611. Retailer engaged in business in this state. Retailer engaged in business in this state as used in this chapter means any retailer who: (1) Engages in recurring solicitation of purchases from residents of this state or otherwise purposefully directs its business activities at residents of this state; and (2) Has sufficient contact with this state, in accordance with the constitution of the United States, to allow the state to require the seller to collect and remit sales or use tax on sales of tangible personal property or services made to customers in this state. (3) The term retailer engaged in business in this state includes any of the following: (a) Any retailer maintaining, occupying or using, permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business or maintaining a stock of goods. (b) Any retailer having any representative, agent, salesman, canvasser or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, installing or the taking of orders for any tangible personal property. (c) Any retailer, with respect to a lease or rental, deriving rentals from a lease or rental of tangible personal property situated in this state. (d) Any retailer engaging in any activity in connection with servicing or installing tangible personal property in this state. (e) Any retailer with substantial nexus in this state within the meaning of section 63-3615A , Idaho Code. (f) Any retailer having a franchisee or licensee operating under its trade name if the franchisee or licensee is required to collect the tax under the provisions of this section. (g) (i) Any retailer that has an agreement, directly or indirectly, with one (1) or more persons engaged in business in this state pursuant to this section under which, for a commission or other consideration, the persons refer potential purchasers to the retailer directly, whether by a link on an internet website, written or oral presentation, or otherwise; and (ii) The cumulative gross receipts from sales by the retailer to purchasers who are referred by all retailers engaged in business in this state pursuant to this section with such an agreement are greater than ten thousand dollars ($10,000) during the immediately preceding twelve (12) months. For purposes of this paragraph, gross receipts means receipts from sales to customers located in this state who were referred to the retailer by persons in this state with such an agreement with the retailer. (iii) For purposes of this paragraph, a retailer may rebut the presumption that it is soliciting sales in Idaho through persons in this state with whom it has an agreement as described in subparagraph (i) of this paragraph. For purposes of administering such rebuttal,

63-3612

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3612. Sale. (1) The term sale means any transfer of title, exchange or barter, conditional or otherwise, of tangible personal property for a consideration and shall include any similar transfer of possession found by the state tax commission to be in lieu of, or equivalent to, a transfer of title, exchange or barter. (2) Sale shall also include the following transactions when a consideration is transferred, exchanged or bartered: (a) Producing, fabricating, processing, printing, or imprinting of tangible personal property for consumers who furnish, either directly or indirectly, the tangible personal property used in the producing, fabricating, processing, printing, or imprinting. (b) Furnishing, preparing, or serving food, meals, or drinks and nondepreciable goods and services directly consumed by customers included in the charge thereof. (c) A transfer of possession of property where the seller retains the title as security for the payment of the sales price. (d) A transfer of the title or possession of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication. (e) Admission to a place or for an event in Idaho, provided that an organization conducting an exempt function as defined in section 527 or exempted by section 501(c)(3) of the Internal Revenue Code, as incorporated in section 63-3004 , Idaho Code, and collecting any charges for attendance at the aforementioned event, shall not have those admission charges be defined as a sale if the event: (i) Is not predominately recreational or commercial; and (ii) Any included entertainment value is minimal when compared to the charge for attendance; and (iii) Such entity has paid sales and use tax on taxable property or services used during the event. (f) The use of or the privilege of using tangible personal property or facilities for recreation. (g) Providing hotel, motel, campground, or trailer court accommodations, nondepreciable goods directly consumed by customers and included services, except where residence is maintained continuously under the terms of a lease or similar agreement for a period in excess of thirty (30) days. (h) The lease or rental of tangible personal property. (i) The intrastate transportation for hire by air of freight or passengers, except (1) as part of a regularly scheduled flight by a certified air carrier, under authority of the United States, or (2) when providing air ambulance services. (3) As used in subsections (2)(b) and (2)(g) of this section, goods directly consumed by customers shall not be interpreted to mean any linens, bedding, cloth napkins or similar nondisposable property. History: [63-3612, added 1965, ch. 195, sec. 12, p. 408; am. 1988, ch. 346, sec. 1, p. 1025; am. 1988, ch. 352, sec. 1, p. 1053; am. 1993, ch. 26, sec. 1, p. 87; am. 1997, ch. 62, sec. 1, p. 121; am. 1999, ch. 204, sec. 2, p. 551.]

63-3613

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3613. Sales price. (a) The term sales price means the total amount for which tangible personal property, including services agreed to be rendered as a part of the sale, is sold, rented or leased, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following: 1. The cost of the property sold. However, in accordance with such rules as the state tax commission may prescribe, a deduction may be taken if the retailer has purchased property for some purpose other than resale or rental, has reimbursed his vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold or rented the property prior to making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property. 2. The cost of materials used, labor or service cost, losses, or any other expense. 3. The cost of transportation of the property prior to its sale. 4. The face value of manufacturer’s discount coupons. A manufacturer’s discount coupon is a price reduction coupon presented by a consumer to a retailer upon purchase of a manufacturer’s product, the face value of which may only be reimbursed by the manufacturer to the retailer. (b) The term sales price does not include any of the following: 1. Retailer discounts allowed and taken on sales, but only to the extent that such retailer discounts represent price adjustments as opposed to cash discounts offered only as an inducement for prompt payment. 2. Any sums allowed on merchandise accepted in payment of other merchandise, provided that this allowance shall not apply to the sale of a new manufactured home, a new park model recreational vehicle or a modular building as defined herein. 3. The amount charged for property returned by customers when the amount charged therefor is refunded either in cash or credit; but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned. 4. The amount charged for labor or services rendered in installing or applying the property sold, provided that said amount is stated separately and such separate statement is not used as a means of avoiding imposition of this tax upon the actual sales price of the tangible personal property; except that charges by a manufactured homes dealer or park model recreational vehicle dealer for set up of a manufactured home or park model recreational vehicle shall be included in the sales price of such manufactured home or park model recreational vehicle. 5. The amount of any tax (not including, however, any manufacturers’ or importers’ excise tax) imposed by th

63-3614

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3614. Seller. The term seller means every person making sales at retail or retail sales to a buyer or consumer, whether as agent, broker or principal. History: [63-3614, added 1965, ch. 195, sec. 14, p. 408; am. 1991, ch. 176, sec. 1, p. 429; am. 1992, ch. 16, sec. 1, p. 40.]

63-3615

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3615. Storage — Use. (a) The term storage includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer. (b) The term use includes the exercise of any right or power over tangible personal property incident to the ownership or the leasing of that property or the exercise of any right or power over tangible personal property by any person in the performance of a contract, or to fulfill contract or subcontract obligations, whether the title of such property be in the subcontractor, contractor, contractee, subcontractee, or any other person, or whether the titleholder of such property would be subject to the sales or use tax, unless such property would be exempt to the titleholder under section 63-3622D , Idaho Code, except that the term use does not include the sale of that property in the regular course of business. (c) Storage and use do not include the keeping, retaining, or exercising of any right or power over tangible personal property for the purpose of subsequently transporting it outside the state for use thereafter solely outside the state, or for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside the state, and thereafter used solely outside the state. History: [63-3615, added 1965, ch. 195, sec. 15, p. 408; am. 1967, ch. 290, sec. 5, p. 805; am. 1969, ch. 261, sec. 2, p. 800; am. 1971, ch. 55, sec. 1, p. 127; am. 1984, ch. 239, sec. 27, p. 584; am. 1985, ch. 256, sec. 2, p. 710; am. 1991, ch. 2, sec. 4, p. 14; am. 1991, ch. 321, sec. 2, p. 834; am. 1994, ch. 376, sec. 1, p. 1209; am. 1995, ch. 54, sec. 3, p. 124.]

63-3615A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3615A. Substantial nexus. (1) Subject to the limitation in subsection (2) of section 63-3611 , Idaho Code, a retailer has substantial nexus with this state if both of the following apply: (a) The retailer and an in-state business maintaining one (1) or more locations within this state are related parties; and (b) The retailer and the in-state business use an identical or substantially similar name, trade name, trademark or goodwill to develop, promote or maintain sales, or the in-state business provides services to, or that inure to the benefit of, the out-of-state business related to developing, promoting or maintaining the in-state market. (2) Two (2) entities are related parties under this section if they meet any one (1) of the following tests: (a) Both entities are component members of the same controlled group of corporations under section 1563 of the Internal Revenue Code; (b) One (1) entity is a related taxpayer to the other entity under the provisions of section 267 of the Internal Revenue Code; (c) One (1) entity is a corporation and the other entity and any party, for which section 318 of the Internal Revenue Code requires an attribution of ownership of stock from that party to the entity, own directly, indirectly, beneficially, or constructively at least fifty percent (50%) of the value of the outstanding stock of the corporation; or (d) One (1) or both entities is a limited liability company, partnership, estate or trust, none of which is treated as a corporation for federal income tax purposes, and such limited liability company, partnership, estate or trust and its members, partners or beneficiaries own in the aggregate directly, indirectly, beneficially, or constructively at least fifty percent (50%) of the profits, capital, stock or value of the other entity or both entities. (3) The provisions of this section shall not apply to a retailer that had sales in this state in the previous year in an amount of less than one hundred thousand dollars ($100,000). (4) The definition of Internal Revenue Code in section 63-3004 , Idaho Code, shall apply to this section. History: [63-3615A, added 2008, ch. 49, sec. 2, p. 121.]

63-3616

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3616. Tangible personal property. (a) The term tangible personal property means personal property which may be seen, weighed, measured, felt or touched, or which is in any other manner perceptible to the senses. (b) The term tangible personal property includes any computer software except the following: custom computer programs; computer software that is delivered electronically; remotely accessed computer software; and computer software that is delivered by the load and leave method where the vendor or its agent loads the software at the user’s location but does not transfer any tangible personal property containing the software to the user. As used in this subsection, the term remotely accessed computer software means computer software that a user accesses over the internet, over private or public networks, or through wireless media, where the user has only the right to use or access the software by means of a license, lease, subscription, service or other agreement. Notwithstanding the foregoing exclusions of certain types of computer software from the definition of tangible personal property, tangible personal property shall include computer software that constitutes digital music, digital books, digital videos and digital games when the purchaser has a permanent right to use such software and, regardless of the method of delivery or access. If the right to use digital music, digital books, digital videos or digital games is conditioned upon continued payment from the purchaser it is not a permanent right of use. (i) As used in this subsection, the term computer software means any computer program, part of a program or any sequence of instructions for automatic data processing equipment or information stored in an electronic medium. (ii) As used in this subsection, the term custom computer program means any computer software, as defined in this subsection, which is written or prepared exclusively for a customer and includes those services represented by separately stated charges for the modification of existing prewritten programs when the modifications are written or prepared exclusively for a customer. The term does not include a canned or prewritten program which is held or existing for general or repeated sale, lease or license, even if the program was initially developed on a custom basis or for in-house use. Modification to an existing prewritten program to meet the customer’s needs is custom computer programming only to the extent of the modification, and only to the extent that the actual amount charged for the modification is separately stated on invoices, statements, and other billing documents supplied to the purchaser. (c) The term tangible personal property does not include advertising space when sold to an advertiser or its agent by the publisher of the newspaper or the magazine in which the advertisement is displayed or circulated. History: [63-3616, added 1965, ch. 195, sec

63-3618

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3618. Taxpayer. The term taxpayer means any person subject to or liable for any taxes imposed by this act. History: [63-3618, added 1965, ch. 195, sec. 18, p. 408.]

63-3619

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3619. Imposition and rate of the sales tax. An excise tax is hereby imposed upon each sale at retail at the rate of six percent (6%) of the sales price of all retail sales subject to taxation under this chapter and such amount shall be computed monthly on all sales at retail within the preceding month. (a) The tax shall apply to, be computed on, and collected for all credit, installment, conditional or similar sales at the time of the sale or, in the case of rentals, at the time the rental is charged. (b) The tax hereby imposed shall be collected by the retailer from the consumer. (c) The state tax commission shall provide schedules for collection of the tax on sales which involve a fraction of a dollar. The retailer shall calculate the tax upon the entire amount of the purchases of the consumer made at a particular time and not separately upon each item purchased. The retailer may retain any amount collected under the bracket system prescribed which is in excess of the amount of tax for which he is liable to the state during the period as compensation for the work of collecting the tax. (d) It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that if added it or any part thereof will be refunded. Any person violating any provision of this section is guilty of a misdemeanor. (e) The tax commission may by rule provide that the amount collected by the retailer from the customer in reimbursement of the tax be displayed separately from the list price, the price advertised on the premises, the marked price, or other price on the sales slip or other proof of sale. (f) The taxes imposed by this chapter shall apply to the sales to contractors purchasing for use in the performance of contracts with the United States. History: [63-3619, added 2003, ch. 318, sec. 7, p. 876; am. 2006, 1st Ex. Sess., ch. 1, sec. 18, p. 61.]

63-3620

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3620. Permits — Issuance — Revocation — Penalties. (a) Every retailer engaged in business in this state, before conducting business within this state, shall file with the state tax commission an application for a seller’s permit. Every application for a permit shall be made upon a form prescribed by the state tax commission and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and such other information as the state tax commission may require. The applications, or any information contained thereon, may be made available by the tax commission to authorized representatives of state or federal agencies. The application shall be signed by the owner if he is a natural person or by an individual authorized by the seller to sign the application. Except as provided in subsection (f) of this section, permits shall be issued without charge. (b) The state tax commission, for the efficient administration of this chapter, may issue: (1) Temporary seller’s permits. No retailer shall be issued more than three (3) temporary permits in one (1) calendar year. A temporary permit shall be valid only for the period of time shown on the face thereof. (2) Wholesaler’s permits to persons who are not retailers but who purchase tangible personal property for resale. A wholesaler’s permit shall be valid for no more than twelve (12) consecutive months and may be renewed by the commission. (c) The person signing the application shall certify that the applicant will actively engage in or conduct a business making sales subject to tax under this chapter. (d) After compliance by the applicant with the requirements set out above and in section 63-3625 , Idaho Code, the state tax commission shall grant and issue to each applicant a permit. A permit shall not be assignable, and shall be valid only for the person in whose name it is issued. The permit or a copy thereof shall at all times be conspicuously displayed at each place where the person to whom it is issued conducts business. (e) A seller whose permit has been previously suspended or revoked shall pay the state tax commission a fee of ten dollars ($10.00)fortherenewalorissuanceofapermitintheeventofafirstrevocationandtwenty-fivedollars($25.00) for renewal after each successive revocation unless the suspension or revocation is for inactivity pursuant to section 63-3620A , Idaho Code. (f) Whenever any person fails to comply with any provision of this chapter relating to the sales tax or any rules of the state tax commission relating to the sales tax prescribed and adopted under this chapter, the state tax commission may revoke or suspend any one (1) or more of the permits held by the person or may deny a new permit to such person. Notice of revocation or denial shall be given in the manner provided for deficiencies in taxes in section 63-3629 , Idaho Code, which s

63-3620A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3620A. Revocation, suspension or expiration of permits held by persons not actively engaged in business. (1) A permit shall be held only by persons actively engaged in making sales subject to tax under this chapter. Any person not so engaged shall forthwith surrender his permit to the state tax commission for cancellation. The state tax commission may revoke the permit of a person not actively engaged in making sales subject to tax under this chapter. (2) Notice of revocation shall be given in the manner provided for deficiencies in taxes in section 63-3629 , Idaho Code, which shall be subject to review as provided in section 63-3631 , Idaho Code. (3) A permit held by a person who, for a period of twelve (12) consecutive months, reports no sales shall expire automatically upon the state tax commission providing notice of the expiration to the last known address of the person to whom the permit was issued. (4) The state tax commission may provide by rule for the temporary suspension of permits held by persons engaged in seasonal business or who may otherwise temporarily not be actively engaged in the business of making sales subject to tax under this chapter. History: [63-3620A, added 1988, ch. 86, sec. 2, p. 172; am. 1996, ch. 46, sec. 6, p. 125; am. 1996, ch. 210, sec. 2, p. 682.]

63-3620B

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3620B. Agreements to collect and remit sales tax. (1) The state tax commission may enter into agreements with persons who may not be otherwise liable to collect and remit sales or use taxes for the collection of sales and use taxes due on their sales of tangible personal property or taxable services to customers in this state. These agreements shall be made on terms and conditions determined by the commission to be in the best interests of the state. (2) The state tax commission is authorized to participate in the northwest regional sales tax pilot project with states, especially the states of Washington and Utah, and selected businesses, to simplify the sales and use tax administration and to enter into joint agreements for that purpose. (a) Agreements to participate in the pilot project shall establish provisions for the administration, imposition and collection of sales and use taxes resulting in revenues paid that are substantially the same as would be paid under this chapter. (b) Business parties to the agreements are excused from complying with the provisions of this chapter to the extent a different procedure is required by the agreements. (c) Agreements authorized in subsection (2) of this section shall terminate on June 30, 2001. History: [63-3620B, added 1998, ch. 49, sec. 2, p. 200; am. 1999, ch. 252, sec. 2, p. 653.]

63-3620C

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3620C. Promoter sponsored events. (1) The operator or promoter contracting with persons for participation in a promoter sponsored event, as a prerequisite to renting or leasing space to any person for conducting business as a retailer on any premises owned or controlled by that operator or promoter, shall obtain: (a) Written evidence that the retailer holds a valid seller’s permit issued pursuant to this chapter or will apply to the state tax commission for a regular or temporary seller’s permit; or (b) A written statement from the retailer that the retailer is not offering for sale any item that is taxable under this chapter or is otherwise not required to hold a valid seller’s permit. (2) Such written evidence or statements shall be in such form and contain such information as the state tax commission shall require. The operator or promoter shall submit the documents to the state tax commission within ten (10) days following the beginning of the event. (3) (a) The state tax commission may appoint a sponsor or promoter as its agent for issuing temporary seller’s permits to participants in the event and for accounting for such permits. (b) A sponsor or promoter appointed to issue temporary permits under this subsection shall be entitled to a credit or refund of income or franchise taxes imposed under chapter 30, title 63 , Idaho Code, in the amount of one dollar ($1.00)foreachsuchtemporarypermitissuedbythesponsororpromoterduringthetaxableyear.(4)Anyoperatororpromoterofapromotersponsoredeventwhofailstocomplywiththissectionmaybesubjecttoaminimumpenaltyoffiftydollars($50.00) per event and twenty-five dollars ($25.00)foreachsellerovertwo(2)sellersforwhomsuchrecordsrequiredbysubsection(1)ofthissectionarenotobtained,butnottoexceedonethousanddollars($1,000) for each such event. Under no circumstances, shall an operator or a promoter be responsible for sales or use tax not remitted by a retailer at a promoter sponsored event. (5) The penalties provided in subsection (4) of this section shall not apply: (a) Unless the state tax commission shall have previously given notice to the operator or promoter or its officer, agent or employee, by certified mail, of the requirements of this section and of a violation of this section by the operator or promoter or its officer, agent or employee; or (b) If the operator or promoter shows that such failure was due to reasonable cause and not to willful neglect. (6) The state tax commission shall give notice of any penalty provided in this section and it shall assess such penalties in the manner provided for deficiencies of tax. (7) Promoter sponsored event, as used in this section, means a swap meet, flea market, gun show, fair or similar activity involving a series of sales sufficient in number, scope and character to constitute a regular course of business; or any event at which two (2) or mor

63-3620E

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3620E. collection of tax by marketplace facilitators. (1) A marketplace facilitator shall register with the state tax commission and collect, report, and pay state sales and use taxes on any retail sale facilitated by the marketplace facilitator. A marketplace facilitator shall not collect, report, or pay any local sales tax or any other tax or assessment that is not imposed by this chapter. (2) A marketplace facilitator that has physical presence in this state but has not previously facilitated a retail sale in the state of Idaho shall have forty-five (45) days to comply with this section upon completion of the marketplace facilitator’s first facilitated retail sale in Idaho. (3) A marketplace facilitator that does not have physical presence in this state must comply with this section once the combined total of its own sales and any sales it facilitates for retailers or authorized agents of the retailer exceeds one hundred thousand dollars ($100,000). (4) A marketplace facilitator is not liable under this section for failure to file, collect, and remit sales and use taxes if the marketplace facilitator demonstrates that the error was due to incorrect or insufficient information given to the marketplace facilitator by the retailer or authorized agent of the retailer. This subsection shall not apply if the marketplace facilitator and the retailer or authorized agent of the retailer are related parties. (5) No class action on behalf of customers may be brought against a marketplace facilitator in any court of this state that arises from or is in any way related to an overpayment of sales or use tax collected on sales facilitated by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. Nothing in this subsection affects a customer’s right to seek a refund as provided under section 63-3626 , Idaho Code. (6) The state tax commission may waive penalties and interest if a marketplace facilitator seeks liability relief and the state tax commission finds that a reasonable cause exists. History: [63-3620E, added 2019, ch. 320, sec. 3, p. 950.]

63-3620F

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3620F. distribution of tax collected by marketplace facilitators and out-of-state retailers. (1) State sales and use taxes collected by retailers without a physical presence in Idaho, as described in section 63-3611 (3)(h), Idaho Code, and state sales and use taxes collected on transactions facilitated for third-party sellers by marketplace facilitators, as described in section 63-3605E , Idaho Code, shall be distributed as provided in this section. (2) All state sales and use taxes described in subsection (1) of this section shall be distributed by the state tax commission as follows: (a) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims under this section. All refunds authorized for payment by the state tax commission shall be paid through the state refund account and those moneys are continuously appropriated; and (b) All remaining funds received pursuant to this section shall be distributed to the tax relief fund established in section 57-811 , Idaho Code. (3) Marketplace facilitators must obtain a separate seller’s permit and collect and remit under that separate permit for state sales and use taxes collected on transactions facilitated for third-party sellers. History: [63-3620F, added 2019, ch. 320, sec. 4, p. 950; am. 2022, ch. 318, sec. 2, p. 1012; am. 2023, ch. 200, sec. 14, p. 552.]

63-3621

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3621. Imposition and rate of the use tax — Exemptions. (1) An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property acquired on or after October 1, 2006, for storage, use, or other consumption in this state at the rate of six percent (6%) of the value of the property, and a recent sales price shall be presumptive evidence of the value of the property unless the property is wireless telecommunications equipment, in which case a recent sales price shall be conclusive evidence of the value of the property. (2) Every person storing, using, or otherwise consuming, in this state, tangible personal property is liable for the tax. His liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer maintaining a place of business in this state or engaged in business in this state given to the purchaser is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. A retailer shall not be considered to have stored, used, or consumed wireless telecommunications equipment by virtue of giving, selling, or otherwise transferring such equipment at a discount as an inducement to a consumer to commence or continue a contract for telecommunications service. (3) Every retailer engaged in business in this state and making sales of tangible personal property for the storage, use, or other consumption in this state, not exempted under section 63-3622 , Idaho Code, shall, at the time of making the sales or, if storage, use, or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use, or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the state tax commission. (4) The provisions of this section shall not apply when the retailer pays sales tax on the transaction and collects reimbursement for such sales tax from the customer. (5) Every retailer engaged in business in this state or maintaining a place of business in this state shall register with the state tax commission and give the name and address of all agents operating in this state the location of all distributions or sales houses or offices or other places of business in this state and such other information as the state tax commission may require. (6) For the purpose of the proper administration of this act and to prevent evasion of the use tax and the duty to collect the use tax, it shall be presumed that tangible personal property sold by any person for delivery in this state is sold for storage, use, or other consumption in this state. The burden of proving the sale is tax-exempt is on the person who makes the sale, unless he obtains from the purchaser a resale certificate to the effect that the property is purchased for resale or rental. It shall be presum

63-3621A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3621A. Use tax on transient equipment. (a) As used in this section, the term transient equipment means tangible personal property which is: (1) Subject to use tax in this state; and (2) Eligible for depreciation under the federal internal revenue code and actually depreciated on the owner’s federal income tax return; and (3) Present in this state for a cumulative period of time totaling not more than ninety (90) days in any consecutive twelve (12) months. For purposes of this subsection, any part of a day is one (1) day. (b) In the case of transient equipment owned and operated by a nonresident of this state, the use tax imposed by section 63-3621 , Idaho Code, may be the lesser of the amount of tax computed upon: (1) The value of the property. A recent sales price shall be presumptive evidence of the value of the property. If there is no recent sales price, the value shall be the fair market value of the property on the date the property is first brought into Idaho; or (2) The fair rental value of the property during the time the property is located in Idaho. Fair rental value is the amount for which the same or similar property could be leased or rented by the taxpayer from another, unrelated person in the business of leasing or renting such equipment for profit. A taxpayer electing to pay use tax on the fair rental value must establish the value by clear and convincing evidence. Any allowable credit for sales or use taxes paid to another state shall be first exhausted before any tax becomes due under this section. (c) If transient equipment taxed upon its fair rental value ceases to qualify as transient equipment, it shall be taxed as provided in section 63-3621 , Idaho Code, based upon the value at the time the equipment ceased to qualify. (d) A taxpayer may elect to pay tax on the fair rental value on or before the due date of the first tax return on which the use tax is due. The election need not be filed with the state tax commission but must be reflected in the records supporting the computation of the tax shown to be due on the return. After the due date of the first tax return on which the use tax is due, an election may only be made with the written approval of the state tax commission. The commission shall grant approval only upon evidence establishing that at the time the equipment first became subject to use tax in this state, the taxpayer intended a use for the equipment which would have qualified the property as transient equipment. (e) Upon discovery of property subject to use tax in this state in regard to which no use tax has been reported, the state tax commission may assert use tax in the manner provided in section 63-3629 , Idaho Code, based upon the fair rental value if the commission finds that at the time the equipment first became subject to use tax in this state, the taxpayer intended a use for the equipment which would have qualified the property as transient equipm

63-3622

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622. Exemptions — Exemption certificates and resale certificates — Penalties. (a) To prevent evasion of the sales and use tax, it shall be presumed that all sales are subject to the taxes imposed by the provisions of this chapter and the retailer shall have the burden of establishing the facts giving rise to such exemption unless the purchaser delivers to the retailer, or has on file with the retailer, an exemption certificate or resale certificate, in which case the purchaser shall bear the burden of establishing the facts giving rise to the exemption. (b) An exemption certificate shall show the purchaser’s name, business name, address, a federal employer identification number or driver’s license number and state of issue, signature, date, and the reason for and nature of the claimed exemption. (c) A resale certificate shall be signed and dated by, and bear the name and address of, the purchaser or his agent, shall show the federal employer identification number or driver’s license number and state of issue, shall indicate the number of the permit issued to the purchaser or that the purchaser is an out-of-state retailer, and shall indicate the general character of the tangible personal property sold or rented by the purchaser in the regular course of business. If a purchaser who gives a resale certificate makes any use of the property other than retention, demonstration or display while holding it for sale or rent in the regular course of business, the use shall be taxable to the purchaser as of the time the property is first used by him, and the sales price of the property to him shall be deemed the measure of the tax. (d) A seller may accept an exemption certificate or resale certificate from a purchaser prior to the time of sale, at the time of the sale, or at any reasonable time after the sale when necessary to establish the privilege of the exemption. Other than as provided elsewhere in this section, when an exemption certificate or resale certificate, properly executed, is presented to or is on file with the seller, the seller has no duty or obligation to collect sales or use taxes in regard to any sales transaction so documented regardless of whether the purchaser properly or improperly claimed an exemption. A seller so relieved of the obligation to collect tax is also relieved of any liability to the purchaser for failure to collect tax or for making any report or disclosure of information required or permitted under this chapter. The purchaser providing an exemption certificate or resale certificate to a seller shall bear all responsibility and liability for any subsequent audit of the transaction and the seller shall be held harmless. A seller need not accept an exemption certificate or resale certificate that is not readable, legible or copyable. (e) Any person who gives an exemption certificate or resale certificate with the intention of evading payment of the amount of the tax a

63-3622A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622A. Prohibited taxes. There is exempted from the taxes imposed by this chapter the sale at retail, storage, use or other consumption of tangible personal property or taxable services which this state is prohibited from taxing under the constitution of the United States. History: [63-3622A, added 1984, ch. 239, sec. 2, p. 576.]

63-3622B

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622B. Out-of-state contracts. There is exempted from the taxes imposed by this chapter the sale of tangible personal property to contractors for subsequent incorporation into real property outside this state in the performance of a contract to improve the out-of-state realty unless this provision would result in subjection of said contractor to a use or similar excise tax in another state. History: [63-3622B, added 1984, ch. 239, sec. 3, p. 576; am. 1993, ch. 7, sec. 1, p. 24.]

63-3622C

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622C. Motor fuels subject to tax. There are exempted from the taxes imposed by this chapter purchases which are subject to the motor fuels tax imposed by chapter 24, title 63 , Idaho Code, and purchases upon which motor fuels taxes have actually been paid and the sale or use of any fuel which is subsequently transported outside the state for use thereafter outside the state. Nothing in this chapter shall be construed to authorize the imposition of a tax on fuel brought into this state in the fuel tanks of motor vehicles or railroad locomotives in interstate commerce. History: [63-3622C, added 1984, ch. 239, sec. 4, p. 577; am. 1985, ch. 35, sec. 1, p. 69; am. 1987, ch. 18, sec. 7, p. 25; am. 1999, ch. 42, sec. 5, p. 90.]

63-3622D

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622D. Production exemption. There are exempted from the taxes imposed by this chapter: (a) The sale at retail, storage, use or other consumption in this state of: (1) Tangible personal property which will enter into and become an ingredient or component part of tangible personal property manufactured, processed, mined, produced or fabricated for sale, including birds, fish or other wildlife that are hunted or fished on property a business owns, controls or has the right to use and where the business collects sales tax for the charges imposed for the hunting or fishing activity, and including the cost of acquiring such birds, fish or other wildlife and the feed, supplies and labor used to raise or maintain such birds, fish or other wildlife. (2) Tangible personal property primarily and directly used or consumed in or during a manufacturing, processing, mining, farming, fabricating, hunting or fishing operation, including, but not limited to, repair parts, lubricants, hydraulic oil, and coolants, which become a component part of such tangible personal property and including, but not limited to, ammunition, birds, fish or other wildlife; provided that the use or consumption of such tangible personal property is necessary or essential to the performance of such operation. (3) Chemicals, catalysts, and other materials which are used for the purpose of producing or inducing a chemical or physical change in the product or for removing impurities from the product or otherwise placing the product in a more marketable condition as part of an operation described in subsection (a)(2) of this section, and chemicals and equipment used in clean-in-place systems in the food processing and food manufacturing industries. (4) Safety equipment and supplies required to meet a safety standard of a state or federal agency when such safety equipment and supplies are used as part of an operation described in subsection (a)(2) of this section. (5) Plants to be used as part of a farming operation. (6) Grain bin structures, augers, dryers, fans, sweep augers, and other equipment that is used directly and primarily in agricultural production, whether or not such equipment is to become a part of real property and whether or not installed by the farmer, a contractor, or a subcontractor. (7) Equipment and supplies used in the performance of a quality control function used to prepare a crop for storage in a grain bin structure that is directly and primarily used in agricultural production, whether or not such equipment and supplies used in the performance of a quality control function are to become a part of real property and whether or not installed by the farmer, a contractor, or subcontractor. (b) Other than as provided in subsection (c) of this section, the exemptions allowed in subsection (a)(1), (2), (3) and (4) of this section are available only to a business or separately operated segment of a business which is prima

63-3622E

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622E. Containers. There is exempted from the taxes imposed by this chapter the sale or purchase of containers in the following categories: (a) Nonreturnable containers when sold without the contents to persons who place the contents in the container and sell the contents together with the container. (b) Containers when sold with the contents if the sales price of the contents is not required to be included in the measure of the taxes imposed by this act. (c) Returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for filling. History: [63-3622E, added 1984, ch. 239, sec. 6, p. 578.]

63-3622F

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622F. Utilities. There is exempted from the taxes imposed by this chapter the sale or purchase of natural gas, electricity, and water when delivered to consumers at the place of consumption by means of pipes, wires, mains or similar systems. History: [63-3622F, added 1984, ch. 239, sec. 7, p. 578; am. 1993, ch. 26, sec. 3, p. 89.]

63-3622G

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622G. Heating materials. There is exempted from the taxes imposed by this chapter the sale or purchase of any matter used to produce heat by burning, for the purpose of providing heat to any building or for domestic home use, including wood, coal, petroleum and gas. History: [63-3622G, added 1984, ch. 239, sec. 8, p. 578.]

63-3622I

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622I. Literature. (1) There is exempted from the taxes imposed by this chapter the sale or purchase, or the storage, use or other consumption of literature, pamphlets, periodicals, tracts and books published and sold by an entity qualified under section 501(c)(3) of the internal revenue code; no part of the net earnings of which inures to the benefit of a private individual or shareholder. (2) As used in this section, literature includes information available in alternative forms, including audio-visual and magnetic, optical or other machine-readable media. History: [63-3622I, added 1984, ch. 239, sec. 10, p. 579; am. 1989, ch. 322, sec. 1, p. 833; am. 1999, ch. 220, sec. 1, p. 587.]

63-3622J

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622J. School, church and senior citizen meals. There is exempted from the taxes imposed by this chapter the sale of meals by public or private schools under the federal school lunch program or under programs that provide nutritional meals for the aging (Title III of the Older Americans Act, P.L. 109-365), and the sale of meals by a church to its members at a church function. History: [63-3622J, added 1984, ch. 239, sec. 11, p. 579; am. 2015, ch. 17, sec. 1, p. 24.]

63-3622K

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622K. Occasional sales. (a) There are exempted from the taxes imposed by this chapter occasional sales of tangible personal property. (b) As used in this section, the term occasional sale means: (1) A sale of property not held or used by a person in the course of an activity for which he is required to hold a seller’s permit, provided such sale is not one (1) of a series of sales sufficient in number or of such a nature as to constitute the seller a retailer under section 63-3610 (c), Idaho Code. The definition of occasional sales provided in this subsection does not apply to use tax in regard to tangible personal property used to improve real property when such property is obtained, directly or indirectly, from a person in the business of making like or similar improvements to real property. (2) Any transfer of all or substantially all of the property held or used by a person in a business requiring a seller’s permit when, after such transfer, the real or ultimate ownership of such property is substantially similar to that which existed before such transfer. For the purpose of this section, stockholders, bondholders, partners, or other persons holding an interest in a corporation or other entity are regarded as having a real or ultimate ownership of the property of such corporation or other entity. (3) A transfer of capital assets to or by a business when the transfer is accomplished through an adjustment of the beneficial interest of the business and the transferor has paid sales or use taxes pursuant to section 63-3619 or 63-3621 , Idaho Code, on the capital assets, incidental to: (i) A division of joint venture, partnership, or limited liability company assets among the members or partners in exchange for a proportional reduction of the transferee’s interest in the joint venture, partnership, or limited liability company. For the purposes of this section, the term limited liability company means a business organization as defined in chapter 6, title 53 , Idaho Code, or as defined in section 30-6-102 , Idaho Code, as appropriate pursuant to section 30-6-1104 , Idaho Code; (ii) The formation of a partnership, joint venture, or limited liability company by the transfer of assets to the partnership, joint venture, or limited liability company or transfers to a partnership, joint venture, or limited liability company in exchange for proportionate interests in the partnership, joint venture, or limited liability company; (iii) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for stock in proportion to assets contributed; (iv) The transfer of assets of shareholders in the formation or dissolution of a corporation; (v) The transfer of capital assets by a corporation to its stockholders in exchange for surrender of capital stock; (vi) The transfer of assets from a parent corporation to a subsidiary corporation which

63-3622L

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622L. De minimis sales. There is exempted from the taxes imposed by this chapter the sale of articles through a coin-operated vending machine for a total consideration of eleven cents ($.11)orlessandindividualtransactionsinvolvingatotalsalespriceofelevencents($.11) or less. History: [63-3622L, added 1984, ch. 239, sec. 13, p. 579; am. 1987, ch. 18, sec. 3, p. 24; am. 1996, ch. 46, sec. 11, p. 133.]

63-3622M

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622M. Liquor sales. There are exempted from the taxes imposed by this chapter sales of liquor by the state liquor division to a person licensed under the provisions of chapter 9, title 23 , Idaho Code, for resale as liquor by-the-drink. History: [63-3622M, added 1984, ch. 239, sec. 14, p. 580; am. 2009, ch. 23, sec. 59, p. 70.]

63-3622N

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622N. Prescriptions. (a) There are exempted from the taxes imposed by this chapter the following when administered or distributed by a practitioner or when purchased by or on behalf of an individual for use by such individual under a prescription or work order of a practitioner: (1) Drugs, hypodermic syringes, insulin, insulin syringes, artificial eyes, eyeglasses and eyeglass component parts, contact lenses, hearing aids, hearing aid parts and hearing aid accessories; (2) Drugs and supplies used in hemodialysis and peritoneal dialysis; (3) Braces and other orthopedic appliances; (4) Dental prostheses and other orthodontic appliances, including fillings; (5) Catheters, urinary accessories, colostomy supplies, and other prosthetic devices which shall include, but are not limited to, enteral and parenteral feeding equipment and supplies, (tubing, pumps, containers) catheter devices and supplies; (6) Equipment and devices or chemical reagents which are used to test or monitor blood or urine of a diabetic; (7) Other durable medical equipment and devices and related parts and supplies specifically designed for those products which shall include, but are not limited to: oxygen equipment, oxygen cylinders, cylinder transport devices (sheaths, carts), cylinder stands, support devices, regulators, flowmeters, tank wrench, oxygen concentrators, liquid oxygen base dispenser, liquid oxygen portable dispenser, oxygen tubing, nasal cannulas, face masks, oxygen humidifiers, oxygen fittings and accessories, respiratory therapy equipment, room humidifiers, aspirators, aerosol compressors (stationary and portable), ultrasonic nebulizers, volume ventilators, respirators and related device supplies, percussors, vibrators, IPPB, circuits, devices and supplies, air oxygen mixers, manual resuscitators, nebulizers, tubing, emergency oxygen delivery units, patient care equipment, physical and occupational therapy items, hospital beds, trapeze bars and bar stand, bed rails, geriatric chairs, lift recliners, bedside commodes, overbed tables, patient lifts, patient lift slings, traction stands and pulleys, shower seating, shower grip bars, raised toilet seats, toilet safety frames, walking canes, quad canes and accessories, walkers, wheeled walkers, walker accessories, I.V. stands, crawlers, posture back supports for seating, posture back supports, wheelchairs, crutches, crutch pads, tips, grips, restraints, standing frame devices and accessories, hand exercise equipment and putty, specially designed hand utensils, leg weights, paraffin baths, hydrocollators, hydrotherm heating pads, communication aids for physically impaired, specialized seating, desks, work stations, foam wedges, writing and speech aids for the impaired, dressing aids, button loops and zipper aids, grooming aids, dental aids, eating and drinking aids, splints, holders, household aids for the impaired, shampoo trays, reaching aids, foam seating pads, d

63-3622O

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622O. Exempt private and public organizations. (1) There are exempted from the taxes imposed by this chapter: (a) Sales to or purchases by hospitals, health-related entities, educational institutions, forest protective associations and canal companies that are nonprofit organizations; and (b) Donations to, sales to, and purchases by the Idaho Foodbank Warehouse, Inc.; and (c) Donations to, sales to, and purchases by food banks or soup kitchens of food or other tangible personal property used by food banks or soup kitchens in the growing, storage, preparation or service of food, but not including motor vehicles or trailers; and (d) Sales of clothes to, donations of clothes to, and purchases of clothes by nonsale clothiers; and (e) Sales to or purchases by centers for independent living; and (f) Sales to or purchases by the state of Idaho and its agencies and its political subdivisions; and (g) Sales to or purchases by volunteer fire departments or licensed emergency medical service agencies; and (h) Sales to or purchases by a qualifying senior citizen center; and (i) Sales to or purchases by the Blind Services Foundation, Inc.; and (j) Donations to, sales to or purchases by the Advocates for Survivors of Domestic Violence and Sexual Assault, Inc., a nonprofit corporation; and (k) Sales to or purchases by nonprofit organizations offering free dental clinic services to children; and (l) Admissions to and purchases by museums, as defined in subsection (2) of this section. (2) As used in this section, these words shall have the following meanings: (a) Educational institution shall mean nonprofit colleges, universities, public charter schools organized pursuant to chapter 52, title 33 , Idaho Code, the Idaho digital learning academy established pursuant to chapter 55, title 33 , Idaho Code, and other primary and secondary schools, the income of which is devoted solely to education and in which systematic instruction in the usual branches of learning is given. This definition does not include schools primarily teaching business, dancing, dramatics, music, cosmetology, writing, gymnastics, exercise and other special accomplishments nor parent-teacher associations, parent groups, alumni or other auxiliary organizations with purposes related to the educational function of an institution or collective group of institutions. (b) Hospital shall include nonprofit institutions licensed by the state for the care of ill persons. It shall not extend to nursing homes or similar institutions. (c) Health-related entities shall mean the Idaho Cystic Fibrosis Foundation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes, American Cancer Society, Camp Rainbow Gold, Mental Health Association, The Arc, The Children’s Home Society of Idaho, American Heart Association, Idaho Ronald McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dystrophy Foundation, National Multiple Sclerosis Society,

63-3622P

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622P. Purchases shipped out-of-state by a common carrier. There is exempted from the taxes imposed by this chapter the sale or purchase of tangible personal property shipped by the seller via the purchasing carrier under a bill of lading whether the freight is paid in advance, or the shipment is made freight charges collect, to a point outside this state if the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a common carrier. History: [63-3622P, added 1984, ch. 239, sec. 17, p. 581.]

63-3622Q

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622Q. Out-of-state shipments. There is exempted from the taxes imposed by this chapter the sale or purchase of tangible personal property which is shipped to a point outside this state for use outside this state pursuant to a contract of sale by delivery by the vendor to such point by means of: (a) Facilities operated by the vendor; (b) Delivery by the vendor to a carrier for shipment to a consignee at such point; or (c) Delivery by the vendor to a customs broker or forwarding agent for shipment outside this state. History: [63-3622Q, added 1984, ch. 239, sec. 18, p. 581.]

63-3622R

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622R. Motor vehicles, used manufactured homes, vessels, all-terrain vehicles, trailers, Utility type vehicles, specialty off-highway vehicles, off-road motorcycles, snowmobiles and glider kits. There are exempted from the taxes imposed by this chapter: (a) Sales to nonresidents of motor vehicles, trailers, vessels, all-terrain vehicles (ATVs), utility type vehicles (UTVs), specialty off-highway vehicles (SOHVs), motorcycles intended for off-road use and snowmobiles for use outside of this state, even though delivery be made within this state, but only when: (1) The motor vehicles, vessels, ATVs, UTVs, SOHVs, motorcycles intended for off-road use, snowmobiles or trailers will be taken from the point of delivery in this state directly to a point outside this state; and (2) The motor vehicles, vessels, ATVs, UTVs, SOHVs, motorcycles intended for off-road use, snowmobiles and trailers will be registered immediately under the laws of another state, will be titled in another state if required to be titled in that state, will not be used in this state more than ninety (90) days in any twelve (12) month period, and will not be required to be titled under the laws of this state. If the purchaser is a business entity, it must not have been formed under the laws of the state of Idaho in order to qualify for the exemption provided in this section. (3) For the purpose of this subsection, the terms all-terrain vehicle or ATV, utility type vehicle or UTV, and specialty off-highway vehicle or SOHV mean all-terrain vehicle or ATV, utility type vehicle or UTV, and specialty off-highway vehicle or SOHV as defined in section 67-7101 , Idaho Code. (4) For the purpose of this section, the term vessel means any boat intended to carry one (1) or more persons upon the water that is either: (i) Sold together with a motor; or (ii) Eleven (11) feet in length or more, but shall not include canoes, kayaks, paddleboards, inflatable boats or similar watercraft, unless such canoes, kayaks, paddleboards, inflatable boats or similar watercraft are sold together with a motor. (b) Sale of used manufactured homes, whether or not such used manufactured homes are sold for use outside this state, and whether or not such used manufactured homes are sold by a dealer. Every manufactured home sale after its sale as a new manufactured home, as defined in section 63-3606 , Idaho Code, is a sale as a used manufactured home. (c) Sale or lease of motor vehicles with a maximum gross registered weight over twenty-six thousand (26,000) pounds, which shall be immediately registered under the international registration plan, whether or not base plated in Idaho, and the sale or lease of trailers that are part of a fleet of vehicles registered under the international registration plan when such vehicles and trailers are substantially used in interstate commerce. If such a motor vehicle or trailer is not substantially used in interstate commerce dur

63-3622S

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622S. Radio and television broadcasting equipment. There are exempted from the taxes imposed by this chapter receipts from the sale, storage, use or other consumption in this state of tangible personal property directly used and consumed in the production and broadcasting of radio and television programs when the purchase, storage, use or other consumption is by a business or segment of a business which is primarily devoted to such production and broadcasting, provided, that the use or consumption of such tangible personal property is necessary or essential to the performance of such operation. This exemption does not include machinery, equipment, materials and supplies used in a manner that is incidental to the production and broadcasting operation, such as maintenance and janitorial equipment and supplies; nor does it include tangible personal property used in any activities other than actual production and broadcasting operations such as office equipment and supplies, equipment and supplies used in selling and distributing activities, in research, or in transportation activities; nor shall this exemption include motor vehicles or aircraft, without regard to the use to which such motor vehicles or aircraft are put. History: [63-3622S, added 1984, ch. 239, sec. 20, p. 582; am. 1987, ch. 326, sec. 4, p. 684; am. 1999, ch. 42, sec. 10, p. 97; am. 2016, ch. 9, sec. 1, p. 8.]

63-3622T

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622T. Equipment to produce certain newspapers. There are exempted from the taxes imposed by this chapter: (a) Receipts from the sale, storage, use or other consumption in this state of tangible personal property directly used and consumed in the production of publications in a newspaper format which are distributed to the public at large and which rely on advertising revenue as their primary source of income; provided, that the purchase, storage, use or other consumption is by a business or segment of a business which is primarily devoted to such production of said publications; provided, further, that the use or consumption of such tangible personal property is necessary or essential to the performance of such publication business. This exemption does not include machinery, equipment, materials and supplies used in a manner that is incidental to the production of said publications, such as maintenance and janitorial equipment and supplies; nor does it include tangible personal property used in any activities other than the actual production of the publication and shall not include property such as office equipment and supplies, equipment and supplies used in selling and distributing activities, in research or in transportation activities; nor shall this exemption include motor vehicles or aircraft without regard to the use to which such motor vehicles or aircraft are put. (b) Provided, further, that this exemption shall apply when the publication referred to herein is distributed to the public free of charge. (c) Provided, further, that in order for the exemption to be applicable, at least ten percent (10%) of the total publication, computed on an average annual column inch basis, must be devoted to the publication of nonincome producing informative material. History: [63-3622T, added 1984, ch. 239, sec. 21, p. 582; am. 1987, ch. 326, sec. 5, p. 684; am. 1999, ch. 42, sec. 11, p. 98; am. 2016, ch. 9, sec. 2, p. 8.]

63-3622U

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622U. Funeral services. There is exempted from the taxes imposed by this chapter the sale of tangible personal property relating to funeral services by a licensed funeral establishment. History: [63-3622U, added 1984, ch. 239, sec. 22, p. 583.]

63-3622V

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622V. Bullion. There is exempted from the taxes imposed by this chapter: (a) The sale of precious metal bullion or the sale of monetized bullion. (b) For purposes of this section, precious metal bullion means any elementary precious metal which has been put through a process of smelting or refining including, but not limited to, gold, silver, platinum, rhodium, and chromium, and which is in such state or condition that its value depends upon its contents and not upon its form. (c) For purposes of this section, monetized bullion means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but shall not include coins or money sold to be manufactured into jewelry or works of art. History: [63-3622V, added 1984, ch. 239, sec. 23, p. 583.]

63-3622W

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622W. Irrigation equipment and supplies. There are exempted from the taxes imposed by this chapter all sales of irrigation equipment and supplies to be used for agricultural production purposes, whether or not such equipment and supplies are to become a part of real estate and whether or not installed by the farmer, a contractor or subcontractor. History: [63-3622W, added 1984, ch. 239, sec. 24, p. 584; am. 2016, ch. 9, sec. 3, p. 9.]

63-3622X

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622X. Pollution control equipment. (1) There is hereby exempted from the taxes imposed by this chapter the sale, use or purchase of tangible personal property acquired and primarily used for the purpose of meeting air or water quality standards, rules or regulations of a state or federal agency having authority to regulate and set air or water quality emission standards. (2) The exemption provided in subsection (1) of this section applies to and includes: (a) The purchase of dry cleaning equipment that is designed to protect employees from exposure to perchloroethylene as well as retaining the fluid in the machine in order to protect sewer systems and air quality standards. Dry cleaning machines meeting these standards are referred to as dry to dry transfer systems ; (b) The purchase of a liner or reagent required to meet water quality standards, rules or regulations of a state or federal agency having authority to regulate and set water quality standards regardless of whether the liner or reagent later becomes or is intended to become a component of any real property or improvement or fixture thereto; (c) The sale, use or purchase of tangible personal property that becomes a component, fixture or improvement to realty acquired and primarily used for the purpose of meeting air or water quality emission standards, rules or regulations when purchased by: (i) Manufacturing, mining or farming businesses that qualify for the exemption provided by section 63-3622D , Idaho Code, but not including property used to treat drinking water or to treat air or water that is not required for a production process; (ii) Contractors working for manufacturing, mining or farming businesses that qualify for the exemption provided by section 63-3622D , Idaho Code, who purchase, use or install qualifying material at the direction of a project owner, but not including property used to treat drinking water or to treat air or water that is not required for a production process; or (iii) Businesses principally devoted to treating and storing hazardous or toxic waste; and (d) Tangible personal property that is necessary for the operation of property that qualifies for the exemption available in paragraph (c) of this subsection. (3) The exemption provided in subsection (1) of this section does not apply to or include: (a) Motor vehicles or aircraft, without regard to the use to which such motor vehicles or aircraft are put; (b) The sale, use or purchase of fixtures, plumbing fixtures, pipe, pumps or other items used to treat or transport wastewater to a wastewater treatment plant that is owned by a wastewater operator as defined in section 54-2403 , Idaho Code; (c) The sale, use or purchase of fixtures or tangible personal property that is used to treat or transport drinking water by a drinking water operator as defined in section 54-2403 , Idaho Code; (d) The sale, use or purchase of property used to prevent soil erosion

63-3622Y

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622Y. Taxation of aerial passenger tramways and snowgrooming and snowmaking equipment. There is hereby exempted from the taxes imposed in this chapter the sale, storage, use or other consumption of tangible personal property which is parts, material or equipment that will become a component of an aerial passenger tramway as defined in section 6-1102 , Idaho Code, and snowgrooming and snowmaking equipment purchased and used by the owner or operator of a downhill ski area to prepare and maintain the downhill ski slopes accessed by aerial tramways. History: [63-3622Y, added 1995, ch. 288, sec. 1, p. 966.]

63-3622Z

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622Z. Sales by Indian tribes. (1) There is hereby exempted from the taxes imposed by this chapter sales occurring within the boundaries of an Indian reservation located in Idaho when the business or enterprise is wholly owned and operated by an Idaho Indian tribe identified in section 67-4001 , Idaho Code. (2) As used in this section the word reservation means lands which are: (a) Indian lands federally declared to be reservations because they are reserved for Indian tribes by treaty between Indian tribes and any territorial governments, state government, or the United States Government; or, established by acts of the United States congress; or established by formal decision of the executive branch of the United States; or (b) Held by an Idaho Indian tribe not holding lands which meet the definition of subsection (2)(a) of this section and are tribal lands held in trust by the United States for the use and benefit of such tribe but not placed in trust after the effective date of this act. History: [63-3622Z, added 1987, ch. 18, sec. 4, p. 24; am. 1988, ch. 166, sec. 1, p. 296.]

63-3622AA

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622AA. Exemption for official documents. (1) There is hereby exempted from the taxes imposed by this chapter the sale, purchase, or use of records, transcripts, deeds, licenses, reports, and other documents for which a fee, the amount of which is set by the Idaho Code, is imposed or charged. (2) There is exempted from the taxes imposed by this chapter the sale, purchase, or use of public records requested pursuant to section 74-102 , Idaho Code. History: [63-3622AA, added 1984, ch. 284, sec. 1, p. 657; am. 2019, ch. 10, sec. 1, p. 11.]

63-3622BB

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622BB. Research and development at the Idaho national laboratory. There is exempted from the taxes imposed by this chapter: (1) The sale or use of that property primarily or directly used or consumed in connection with research, development, experimental and testing activities, when exclusively financed by the United States in connection with the Idaho national laboratory and any successor thereto. (2) If a facility is used by the United States or one (1) of its management and operating contractors for research and development activities at the Idaho national laboratory and also is used by a person or persons in addition to the United States or one (1) of its management and operating contractors, there is exempted from the taxes imposed by this chapter a percentage of each sale or use of tangible personal property used or consumed at or for the benefit of the facility in the amount that the research and development activities of the United States or its management and operating contractors bear to the total use of the facility by all persons. The state tax commission shall adopt rules to govern the procedures for the calculation, verification and documentation of this allocation. History: [63-3622BB, added 1985, ch. 256, sec. 1, p. 710; am. 1998, ch. 48, sec. 4, p. 198; am. 2018, ch. 152, sec. 1, p. 310.]

63-3622CC

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622CC. Railroad rolling stock. There is exempted from the taxes imposed by this chapter the sale, storage, use or other consumption of tangible personal property which is railroad rolling stock rebuilt or remanufactured in this state and which was used in interstate commerce for at least three (3) consecutive months prior to such rebuilding or remanufacturing. History: [63-3622CC, added 1986, ch. 180, sec. 2, p. 477.]

63-3622DD

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622DD. Parts for railroad rolling stock. There is exempted from the taxes imposed by this chapter the sale, storage, use or other consumption of tangible personal property which is parts, material or equipment used to rebuild or remanufacture railroad rolling stock exempt from tax under section 63-3622CC , Idaho Code. History: [63-3622DD, added 1986, ch. 180, sec. 3, p. 478.]

63-3622EE

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622EE. Purchases for the federal special supplemental food program for women, infants and children (WIC). Commencing October 1, 1987, purchases of food pursuant to section 17 of the federal child nutrition act of 1966 and the school lunch and child nutrition amendment of 1986 are exempt from the taxes imposed by chapter 36, title 63 , Idaho Code, and are exempt from the taxes that may be imposed on such purchases under the provisions of sections 50-1043 through 50-1049 , Idaho Code. History: [63-3622EE, added 1987, ch. 335, sec. 1, p. 708.]

63-3622FF

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622FF. Purchases made with SNAP benefit cards. Purchases of food made with benefits provided under the federal supplemental nutrition assistance program (SNAP) are exempt from the taxes imposed by chapter 36, title 63 , Idaho Code, and are exempt from the taxes that may be imposed on such purchases under the provisions of sections 50-1043 through 50-1049 , Idaho Code. History: [63-3622FF, added 1987, ch. 336, sec. 1, p. 708; am. 2010, ch. 81, sec. 1, p. 161; am. 2013, ch. 34, sec. 1, p. 73.]

63-3622GG

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622GG. Aircraft. There is exempted from the taxes imposed by this chapter: (1) The sale, lease, purchase, or use of aircraft primarily used to provide passenger or freight services for hire as a common carrier only if: (a) The person operates the aircraft under the authority of the laws of this state, the United States or any foreign government; and (b) The aircraft is used to provide services indiscriminately to the public; and (c) The aircraft itself transports the person or property from one (1) location on the ground or water to another. (2) The sale, lease, purchase or use of aircraft primarily used for air ambulance services. (3) The sale, lease or purchase of aircraft for use outside this state by nonresidents, even though delivery be made within this state, but only when: (a) The aircraft will be taken from the point of delivery to a point outside this state; (b) The aircraft will not be used in this state more than ninety (90) days in any twelve (12) month period. (4) Repair and replacement materials and parts installed in or affixed or applied to, or sold, leased or purchased to be installed in or affixed or applied to, aircraft in connection with the remodeling, repair or maintenance of aircraft described under subsections (1), (2), (5), and (6) of this section and industry standard, federal aviation administration (FAA) approved materials, parts and components installed on nonresident privately owned aircraft by qualified employees of an FAA-approved Idaho repair station are exempt. Tools and equipment utilized in performing such remodeling, repair or maintenance are not exempt. (5) The sale, lease, purchase or use of fixed-wing aircraft primarily used as an air tactical group supervisor platform under contract with a governmental entity for wildfire activity. (6) The sale, lease, purchase, or use of aircraft primarily used for agricultural spraying, dusting, seeding, livestock and predatory animal control, or forest and wildlife conservation. History: [63-3622GG, added 1988, ch. 352, sec. 2, p. 1053; am. 1994, ch. 44, sec. 1, p. 72; am. 2001, ch. 98, sec. 1, p. 247; am. 2003, ch. 9, sec. 3, p. 21; am. 2009, ch. 91, sec. 2, p. 268; am. 2012, ch. 47, sec. 1, p. 142; am. 2016, ch. 326, sec. 1, p. 907; am. 2020, ch. 332, sec. 1, p. 966.]

63-3622HH

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622HH. Production exemption shall not apply to sales regarding recreation-related vehicles. (1) Notwithstanding any other provision of law to the contrary, the production exemption provided in section 63-3622D , Idaho Code, shall not apply to sales of or repairs to snowmobiles, off-highway motorbikes, recreational vehicles, or motorcycles and all sales of snowmobiles, off-highway motorbikes, recreational vehicles or motorcycles are subject to the sales and use taxes imposed by this chapter. All repairs to snowmobiles, off-highway motorbikes, recreational vehicles or motorcycles are subject to the sales and use taxes imposed by this chapter. (2) As used in this section, the term snowmobile means any self-propelled vehicle under one thousand (1,000) pounds unladened gross weight designed primarily for travel on snow or ice or over natural terrain which may be steered by tracks, skis or runners, and which is not otherwise registered or licensed under the laws of the state of Idaho. (3) As used in this section, the term off-highway motorbike means any self-propelled two (2), three (3), four (4) or five (5) wheeled motorcycle or motor-driven cycle, excluding tractor, designed for or capable of traveling off developed roadways and highways and also referred to as trailbikes, enduro bikes, trail bikes, motorcross bikes or dual purpose motorcycles. (4) As used in this section, the term recreational vehicle means a motor home, travel trailer, park model recreational vehicle, truck camper or camping trailer, with or without motive power, designed for human habitation for recreational or emergency occupancy. The term recreational vehicle shall not include pickup hoods, shells, or canopies designed, created or modified for occupational usage. School buses or van type vehicles which are converted to recreational use are defined as recreational vehicles. Specific classes of recreational vehicles are defined as follows: (a) The term motor home shall mean a vehicular unit designed to provide temporary living quarters, built into an integral part of or permanently attached to a self-propelled motor vehicle chassis. The vehicle must contain permanently installed independent life support systems which meet the American national standards institute (ANSI) A119.7 standard for recreational vehicles, and provide at least four (4) of the following facilities: cooking, refrigeration or icebox, self-contained toilet, heating and/or air conditioning, a potable water supply system including a faucet and sink, separate 110-125 volt electrical power supply and/or LP-gas supply. (b) The term travel trailer shall mean a vehicular unit, mounted on wheels, designed to provide temporary living quarters for recreational, camping, travel or emergency use and of such size or weight as not to require special highway movement permits when towed by a motorized vehicle. (c) The term fifth-wheel trailer shall mean a vehicular unit equ

63-3622II

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622II. Money-operated dispensing equipment. There is hereby exempted from the taxes imposed by this chapter the sale or purchase of money-operated dispensing equipment which is solely consumed in dispensing a tangible product, amusement or service on which a retail sales tax is imposed or collected by the state of Idaho. As used in this section, money-operated dispensing equipment shall be interpreted narrowly to include only that equipment which consummates a sale by the placement of lawful money in the dispensing equipment and shall not include sales facilitating equipment such as, but not limited to, transportation, warehousing, storage, and display equipment which is consumed in the disposition of an item or product subject to the tax imposed by this chapter. History: [(63-3622II) 63-3622Y, added 1995, ch. 288, sec. 1, p. 966; am. and redesig. 2005, ch. 25, sec. 120, p. 131.]

63-3622JJ

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622JJ. Logging exemption. There are exempted from the taxes imposed by this chapter: (1) The sale at retail, storage, use or other consumption in this state of tangible personal property which is primarily and directly used or consumed in logging including, but not limited to, log loaders, log jammers, log skidders and fuel used in logging trucks, provided that the use or consumption of such tangible personal property is necessary or essential to logging. (2) The exemption allowed by subsection (1) of this section does not include machinery, equipment, materials and supplies used in a manner that is incidental to logging such as maintenance and janitorial equipment and supplies; nor does it include tangible personal property used in any activities other than the actual logging, such as office equipment and supplies, equipment and supplies used in selling or distributing activities or, except for fuel used in logging trucks, in transportation activities; nor shall this exemption include motor vehicles or aircraft, without regard to the use to which such motor vehicles or aircraft are put; nor shall this exemption apply to vehicles or equipment described in section 63-3622HH , Idaho Code. History: [63-3622JJ, added 1990, ch. 431, sec. 4, p. 1197; am. 1996, ch. 263, sec. 1, p. 864; am. 1999, ch. 42, sec. 13, p. 99; am. 2006, ch. 315, sec. 2, p. 982; am. 2007, ch. 111, sec. 3, p. 320; am. 2016, ch. 9, sec. 4, p. 9.]

63-3622KK

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622KK. Incidental sales by religious corporations or societies. (1) Whenever any religious corporation or society as enumerated in section 63-602B , Idaho Code, purchases tangible personal property upon which it has paid the tax imposed by this chapter, or acquires tangible personal property via gift, the sale of such property as well as any other sale defined in sections 63-3612 , 67-4711 and 67-4917A , Idaho Code, by the religious corporation or society shall be exempt from the taxes imposed in this chapter, or by any political subdivision of the state. The exemption provided in this section shall be valid as long as the proceeds from the sale are used exclusively in the programs of the corporations or societies as enumerated in section 63-602B , Idaho Code. If at any time, tangible personal property or other items defined in sections 63-3612 , 67-4711 and 67-4917A , Idaho Code, are offered for sale to or used by the general public in the open market in regular competition with commercial enterprise, the sale shall be subject to the taxes imposed by this chapter or by any political subdivision of the state. (2) As used in this section: (a) Commercial relates to or is connected with trade and traffic or commerce in general and is occupied with business or commerce. (b) Competition means the effort of two (2) or more persons, as defined in section 63-3607 , Idaho Code, acting independently to secure the business of a third person by the offer of the most favorable terms. (c) General public means the community at large as opposed to select members of the community. (d) Market means a place of commercial activity in which articles are bought and sold. History: [(63-3622KK) 63-3622JJ, added 1990, ch. 434, sec. 1, p. 1203; am. and redesig. 1996, ch. 322, sec. 67, p. 1094.]

63-3622LL

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622LL. Media measurement services exemption. There is hereby exempted from the taxes imposed by this chapter the sale or purchase of any television measurement service, radio measurement service, newspaper measurement service or other media measurement service. History: [63-3622LL, added 1997, ch. 396, sec. 1, p. 1258.]

63-3622MM

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622MM. Livestock sold at livestock markets. (1) There are exempted from the taxes imposed by this chapter, the sale, purchase or use of livestock when sold at a livestock market. (2) As used in this section, the term livestock market shall mean: (a) A public livestock market as defined in section 25-1721 , Idaho Code, and holding a charter issued by the Idaho department of agriculture pursuant to chapter 17, title 25 , Idaho Code; and (b) Those organizations expressly exempted from the chartering requirement by section 25-1722 , Idaho Code. (3) As used in this section, the term livestock shall mean cattle, calves, sheep, mules, horses, swine or goats. History: [63-3622MM, added 2002, ch. 52, sec. 1, p. 119.]

63-3622NN

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622NN. Clean rooms. (1) There is exempted from the taxes imposed by this chapter the sale at retail, storage, use or other consumption in this state of tangible personal property which is exclusively used in or to maintain the environment of, or is or becomes a component part of, a clean room, without regard to whether the property is actually contained within the clean room or whether such tangible personal property ultimately becomes affixed to or incorporated into real property. (2) The following definitions apply to this section: (a) Clean room means an environment in a defined space, within a larger building, where humidity, temperature, particulate matter and contamination are precisely and regularly controlled; and (i) Which is a Class 10,000 clean room or better, and (ii) In which the primary activities are: 1. Activities which qualify for the production exemption in section 63-3622D , Idaho Code, resulting in the manufacture of products which are either semiconductors, products manufactured using semiconductor manufacturing processes, or equipment used to manufacture semiconductors; 2. Activities which qualify for the research and development exemption in section 63-3622RR , Idaho Code; or 3. A combination of the activities described in subparagraphs 1. and 2. above. (b) Class 10,000 clean room means a specified area in which the concentration of airborne particulates of five-tenths (0.5) micrometers or larger is regularly maintained at a level of cleanliness no greater than ten thousand (10,000) particles per cubic foot of air. (c) Semiconductor means a small piece of semiconductor material including silicon: (i) On which an integrated circuit is embedded, or (ii) Which is altered in the manufacturing process by primarily using semiconductor processes. (d) Integrated circuit means a complex of multiple active electronic components and their interconnections built upon a semiconductor substrate. (e) Semiconductor manufacturing processes means chemical vapor deposition, plasma vapor deposition, wet and dry etch, chemical mechanical planarization or polishing and such other manufacturing processes generally recognized by the semiconductor industry as being standard processes in the industry. (f) Property is exclusively used for a purpose when its use for any other purpose is insignificant or inconsequential. History: [63-3622NN, added 1999, ch. 130, sec. 1, p. 375; am. 2005, ch. 242, sec. 2, p. 753.]

63-3622OO

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622OO. Labor for new vehicle accessories. (1) There is hereby exempted from the taxes imposed by this chapter a motor vehicle dealer’s labor or service charge to add accessories to new factory-delivered vehicles, when sold in conjunction with the new vehicle. (2) For the purposes of this section: (a) Accessories means an object, feature, or device that does not come standard with a motor vehicle to a motor vehicle dealer from a vehicle manufacturer or distributor, but may be ordered by the retail customer as an addition to the motor vehicle to enhance the performance, effectiveness, or beauty of the motor vehicle. Examples include, but are not limited to, saddlebags for a motorcycle, truck bed coating, and storage racks, chemical or film paint sealant, rustproofing, undercoating, stereo or sound systems, anti-theft devices, alarm systems, wheel locks, window tinting, splash guards, or fabric protection for motor vehicles. Accessories does not mean a service or maintenance contract. (b) Motor vehicle means a passenger car, moped, motorbike, motorcycle, motor-driven cycle, motorized wheelchair, electric personal assistive mobility device, neighborhood electric vehicle, specialty off-highway vehicle, all-terrain vehicle, utility type vehicle, all as defined in chapter 1, title 49 , Idaho Code, or a vessel, as defined in section 63-3622R (a)(4), Idaho Code, or any other motorized vehicle not described in this paragraph. Motor vehicle does not mean aircraft as defined in section 21-101 , Idaho Code, a bus, motor home, recreational vehicle, park model recreational vehicle, farm tractor or other self-propelled farm equipment, any type of trailer, special mobile equipment, commercial vehicle or truck exceeding eight thousand (8,000) pounds, or authorized emergency vehicle, all as defined in chapter 1, title 49 , Idaho Code. History: [63-3622OO, added 2019, ch. 52, sec. 1, p. 140.]

63-3622PP

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622PP. Idaho commemorative silver medallions. There is hereby exempted from the taxes imposed by this chapter the sale or purchase of Idaho commemorative silver medallions through the office of the treasurer of the state of Idaho or through agents designated by the state treasurer pursuant to the issuance of Idaho commemorative silver medallions authorized in section 67-1223 , Idaho Code. History: [63-3622PP, added 2003, ch. 369, sec. 1, p. 979.]

63-3622RR

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622RR. Research and development. (1) There is exempted from the taxes imposed by this chapter, the lease, rental, purchase, sale at retail, storage, use or other consumption in this state of tangible personal property which is primarily used in research and development activities. (2) Research and development means an activity which is: (a) Designed to advance existing knowledge or capability in the field of science or technology, the development of new products, materials, technologies or processes, including new uses for or improvements to existing products, materials, technologies or processes; and (b) Related to the development, design, manufacture, processing, production or fabrication of: (i) A product or potential product which is tangible personal property; or (ii) Machinery, materials or components utilized or potentially utilized in the development, design, manufacture, processing, production or fabrication of a product or potential product which is tangible personal property. History: [63-3622RR, added 2005, ch. 242, sec. 1, p. 752.]

63-3622SS

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622SS. Hunting or shooting sports. There is exempted from the taxes imposed by this chapter any fees that may be charged for the use of the facility at shooting ranges or shooting competitions by nonprofit organizations or membership dues charged by nonprofit hunting or shooting sports organizations. History: [63-3622SS, added 2006, ch. 236, sec. 1, p. 720.]

63-3622TT

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622TT. CUSTOM MEAT PROCESSING. There is hereby exempted from the taxes imposed by this chapter any custom meat processing or packing service, when the consumer furnishes, directly or indirectly, the animal to any seller of meat processing or meat packing services, and any tangible personal property received, however processed, will not be resold. History: [63-3622TT, added 2020, ch. 258, sec. 1, p. 753.]

63-3622UU

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622UU. Personal property tax on rentals. The taxes imposed by this chapter do not apply to charges for personal property tax added to the rent paid for leases of tangible personal property. This exemption applies if: (1) The lessor separately states the charge for property tax to the lessee; and (2) The amount charged to the lessee is not more than the property tax actually paid by the lessor; and (3) The lease agreement is for an initial period of one (1) year or longer. History: [63-3622UU, added 2008, ch. 92, sec. 1, p. 258.]

63-3622VV

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622VV. idaho information technology equipment. (1) On and after July 1, 2020, there is exempted from the taxes imposed by this chapter the purchase or use of eligible server equipment and new data center facilities, as defined in this section. The exemption provided in this section shall be available only to qualifying business entities and contractors installing eligible server equipment or building new data center facilities for qualifying business entities. The exemption provided in this section shall not be available for property that has been the subject of business incentives granted to a taxpayer or its affiliates, pursuant to the Idaho reimbursement incentive act, sections 67-4737 through 67-4744 , Idaho Code. (2) As used in this section: (a) Business entity means a separate legal entity or separately operated segment of business that exists for the primary purpose of engaging in a commercial activity for profit and whose sole purpose is the operation of a data center. For the purposes of this section, a separately operated segment of business is a segment of a business for which separate records are maintained and that is operated by an employee or employees whose primary employment responsibility is to operate the business segment. (b) Cabling means a fiber or copper cable used in data centers to connect information sources to a server or storage device. (c) Capital investment means real or tangible personal property that is purchased for use in Idaho and is used by a business entity for the purpose of operating a data center. (d) Chiller means a cooling system used in data centers to remove heat from an element and deposit it into another element. (e) Commencement of operations means the date on which a certificate of occupancy is issued for a data center. (f) Data center means a facility comprised of one (1) or more buildings in Idaho that is used to house eligible server equipment for the transmission and storage of data where the facility has the following characteristics: (i) Uninterruptible power supplies, generator power, or both; (ii) Sophisticated fire suppression and prevention systems; and (iii) Enhanced physical security and restricted access. (g) Eligible server equipment means new server equipment acquired by a qualifying business entity as described in this subsection that is maintained and operated in a data center located in Idaho for the sole purpose of data transmission and storage services, providing data and transaction processing services, information technology services, or computer collocation services. Eligible server equipment includes servers, rack servers, chillers, storage devices, generators, cabling, and enabling software integral to or installed on such equipment. (h) Generator means an engine used in data centers to convert mechanical energy into electricity. (i) New data center facilities means buildings or structural components of buildings, includ

63-3622WW

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622WW. idaho semiconductors for america act. (1) This section shall be known and may be cited as the Idaho Semiconductors for America Act. (2) It is the intent of the legislature that the Idaho semiconductors for America act will meet all criteria set forth in federal law and program guidelines from the United States department of commerce or other delegated agency of the federal government to implement the domestic fabrication, assembly, testing, advanced packaging, or research and development of semiconductors to mitigate domestic supply chain risks, increase economic competitiveness, protect intellectual property, and decrease national security risks. (3) On and after July 1, 2022, there is exempted from the taxes imposed by this chapter the purchase or use of construction and building materials directly used for a qualifying purpose by a qualifying covered entity for a qualifying project in Idaho during the project term. To qualify for the exemption in this section, an applicant must submit a project outline to the Idaho department of commerce on or before December 31, 2026. Modifications to an approved qualifying project outline must be submitted to the Idaho department of commerce on or before December 31, 2040. (4) As used in this section: (a) Construction and building materials means materials and supplies permanently installed or placed in or on a qualifying project. The term does not mean equipment, tools, and supplies used to construct or build the project. (b) Covered contractor means any contractor, including subcontractors, that incurs costs and taxes from work done for a qualifying covered entity for a qualifying project. (c) Covered entity means a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to engage in a qualifying project. (d) Project term means the time period beginning on July 1, 2022, and ending upon the completion of the construction of the qualifying project, but no later than December 31, 2040. (e) Qualifying covered entity means a covered entity that submits a qualifying project outline to the Idaho department of commerce that: (i) Qualifies for a new, meaningful semiconductor incentive offered by the federal government for the purpose of implementing the domestic fabrication, assembly, testing, advanced packaging, or research and development of semiconductors to mitigate domestic supply chain risks, increase economic competitiveness, protect intellectual property, decrease national security risks, and any other reasons deemed necessary by the federal government. Meaningful incentives by the federal government include but are not limited to funding the CHIPS for America act, 15 U.S.C. 4651 through 4658, or providing and funding other such semiconductor investment tax credits; and (ii) Qualifies for a meaningful incentive from the state of Idaho for a qualifying project for a qualifying pu

63-3622XX

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622XX. Animal adoption and rescue fees. Any fee charged by a local government or a nonprofit entity that has tax-exempt status under section 501(c)(3) of the Internal Revenue Code for the adoption or rescue of an animal is deemed a service fee and not the sale or use of tangible personal property. Such adoption or rescue fees, which may include costs ordinarily and necessarily incurred by the local government or nonprofit entity for the care, feeding, housing, and transportation of such adopted or rescued animal, shall not be subject to the taxes imposed by this chapter and have never been subject to such taxes. History: [63-3622XX, added 2025, ch. 283, sec. 1, p. 1207.]

63-3622YY

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3622XX [63-3622YY]. SMALL SELLER. (1) There is hereby exempted from the taxes imposed by this chapter sales of tangible personal property made by an individual making small sales. A small seller shall not collect or remit any state sales or use tax imposed by this chapter. (2) For purposes of this section, small seller means an Idaho resident making sales that do not exceed five thousand dollars ($5,000)incumulativegrossreceiptsinthecurrentorpreviouscalendaryear.Itshallnotincludepartnerships,corporations,orlimitedliabilitycorporations.(3)Theexemptionprovidedinthissectionshallnotapplyto:(a)Salesofmotorvehicles,trailers,all-terrainvehicles,utilitytypevehicles,specialtyoff-highwayvehicles,motorcyclesintendedforoff-roaduse,snowmobiles,aircraft,vesselsasdefinedinsection67-7003,IdahoCode,alcohol,ortobacco;or(b)Itemspurchasedtobesoldorincorporatedintoitemstobesold.(4)Asmallsellerwithgrossreceiptsexceedingfivethousanddollars($5,000) shall within thirty (30) days file with the state tax commission an application for a temporary seller’s permit and begin collecting sales and use tax. No temporary seller’s permit shall be issued for a period of time greater than the remaining calendar year in which sales exceeded five thousand dollars ($5,000)forasmallseller.Thefollowingyear,suchsellershallapplyforaseller’spermitundertheprovisionsofsection63-3620(a),IdahoCode.(5)Asmallsellershallindicateonsuchseller’sinvoice,ifrequestedbythepurchaser,thatthesalewasexemptfromsalesandusetaxpursuanttotheprovisionsofthissection.(6)Asmallsellershallnotpermanentlymaintain,occupy,oruseanoffice,placeofdistribution,salesorsampleroomorplace,warehouseorstorageplace,orotherplaceofbusinessormaintainastockofgoodswithanticipationofexceedinggrossreceiptsoffivethousanddollars($5,000). (7) A small seller may file an application with the state tax commission for a seller’s permit pursuant to section 63-3620 , Idaho Code, before such seller reaches the five thousand dollar ($5,000)thresholdprovidedinsubsection(2)ofthissection.(8)Nothinginthissectionrelievesasmallsellerfromfilingindividualincometaxreturnsforpersonswhomeetthefilingrequirementsundersection63-3030,IdahoCode.(9)Asmallsellerwithsalesexceedingthreethousanddollars($3,000) annually shall keep such records for not less than four (4) years pursuant to section 63-3624 , Idaho Code. History: [63-3622XX [63-3622YY], added 2025, ch. 86, sec. 1, p. 402.]

63-3623

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3623. Returns and payments. (a) The taxes imposed by this act are due and payable to the state tax commission monthly on or before the twentieth day of the succeeding month. (b) All moneys collected or received by the state tax commission from the taxes, penalties, interest and fees imposed by this act shall be deposited with the state treasurer to be credited by him to the sales tax account created by this act. (c) On or before the twentieth day of the month a return shall be filed with the state tax commission in such form as the state tax commission may prescribe. (d) For the purpose of the sales tax, a return shall be filed by every seller. For the purposes of the use tax, a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property, the storage, use, or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. Returns shall be signed by the person required to file the return or by his duly authorized agent. (e) For the purposes of the sales tax, the return shall show the total sales at retail subject to tax under this act during the reporting period. For the purposes of the use tax, in case of a return filed by a retailer, the return shall show the total sales price of the property sold by him, the storage, use, or consumption of which property became subject to the use tax during the reporting period; in the case of a return filed by a purchaser, the return shall show the total sales price of the property purchased by him, the storage, use, or consumption of which became subject to the use tax during the reporting period. (f) The return shall show the amount of the taxes for the period covered by the return and such other information as the state tax commission deems necessary for the proper administration of this act. (g) The person required to file the return shall mail or deliver the return together with a remittance of any tax due to the state tax commission for the reporting period. (h) The state tax commission, if it deems it necessary in order to insure payment to or facilitate the collection by the state of taxes, may require returns for periods other than monthly periods. (i) For the purposes of the sales tax, gross amounts from rentals or leases of tangible personal property which may be subject to tax under this act shall be reported and the tax paid in accordance with such rules as the state tax commission may prescribe. (j) The state tax commission for good cause may extend, for not to exceed one (1) month, the time for making any return or paying any amount required to be paid under this act. (k) Any person to whom an extension is granted and who pays the tax within the period for which the extension is granted shall pay, in addition to the tax, interest at the rate provided in section 63-3045 , Idaho Code, from the date on which t

63-3623A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3623A. Taxes as state money. All moneys collected by retailers in compliance with this chapter shall, immediately upon collection, be state money and every such retailer shall hold such money for the state of Idaho and for payment to the state tax commission in the manner and at the times required in this chapter. Such money shall not, for any purpose, be considered to be a part of the proceeds of the sale to which the tax relates and shall not be subject to an encumbrance, security interest, execution or seizure on account of any debt owed by the retailer to any creditor other than the state tax commission. History: [63-3623A, added 1983, ch. 220, sec. 2, p. 616.]

63-3623B

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3623B. Amusement devices. (a) For purposes of this section the term amusement device shall mean all coin, currency, or token operated machines and devices which are used for amusement including, but not limited to, game machines, pool tables, juke boxes, electronic games and similar devices. (b) In lieu of the imposition of sales tax upon the use of the amusement device, the owner or lessee or person having the right to impose a charge for use of the amusement device must pay an annual permit fee of thirty-five dollars ($35.00)foreachsuchdevice.(c)Uponpaymentofthepermitfees,thestatetaxcommissionshallissuethepermit(s)totheownerorlesseeorpersonhavingtherighttoimposeachargeforuseoftheamusementdevice.Suchpermitfeemaybeincreasedinaproportionateamountbythecommissionifthestatesalestaxrateincreases.(d)AllapplicationsforapermitrenewalmustbemadetothestatetaxcommissiononorbeforeJuly1ofeachyear.Suchapplicationshallcontainthesameinformationrequiredonanapplicationtosecureaseller’spermitunderthischapterandshallbeaccompaniedbytheannualpermitfeedueforeachdevice.(e)Thestatetaxcommissionshalladoptauniformsystemofproviding,affixinganddisplayingofficialdecals,labelsorotherofficialindiciaevidencingthattheowner,lessee,orpersonhavingtherighttoimposeachargefortheuseoftheamusementdevicehaspaidtheannualpermitfeeforsuchamusementdevice.Nopersonsubjecttoapermitfeeunderthischaptermayimposeachargeorcollectanyconsiderationforuseofsuchamusementdeviceunlesssuchofficialdecal,label,orotherofficialindicia,asrequiredherein,isaffixedtosuchamusementdevice.(f)Inadditiontothepenaltiessetforthaboveandinsection63-3634,IdahoCode,thestatetaxcommissionmayassessthefollowingpenalties:(1)Ifanyowner,lessee,orpersonhavingtherighttoimposeachargefortheuseofanycoin,currencyortokenoperatedamusementdeviceinthisstateshallviolateanyprovisionofthissectionoranyrulepromulgatedunderthissection,thecommissionmayassesspenalties,offiftydollars($50.00) for each device for failure to pay timely permit sticker fees. (2) A person who knowingly secures or attempts to secure an amusement device permit sticker under this section by fraud, misrepresentation, or subterfuge or uses any permit issued under this section in a fraudulent manner shall be subject to a penalty of up to twenty-five thousand dollars ($25,000). (g) The state tax commission shall impose the penalties provided in this section by a notice of deficiency determination in the manner provided in section 63-3629 , Idaho Code, which shall be subject to review as provided in section 63-3631 , Idaho Code. (h) The commission may revoke all permits of any person who operates any amusement device without complying with the provis

63-3624

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3624. Administration. (a) The state tax commission shall enforce the provisions of this act and may prescribe, adopt, and enforce rules relating to the administration and enforcement of this act. The state tax commission may prescribe the extent to which any rule shall be applied without retroactive effect. (b) The state tax commission shall employ qualified auditors for examination of taxpayers’ records and books. The state tax commission shall also employ such accountants, investigators, regional supervisors, assistants, clerks, and other personnel as are necessary for the efficient administration of this act, and may delegate authority to its representatives to conduct hearings, or perform any other duties imposed by this act. (c) Every seller, every retailer, and every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer shall keep such records, receipts, invoices and other pertinent papers as the state tax commission may require. Every such seller, retailer or person who files the returns required under this act shall keep such records for not less than four (4) years from the making of such records unless the state tax commission in writing sooner authorizes their destruction. (d) Retail food stores may petition to the state tax commission to be relieved from the responsibility of retaining detailed invoices of nontaxed sales for which the documentation required in sections 63-3620 , 63-3621 , or 63-3622 , Idaho Code, and any other documentation which may be required by the tax commission, has been obtained by the store from the purchaser. The tax commission shall review each petition and may examine the books and records of the petitioner to insure that the products sold by the petitioner are those sold by a retail food store. The tax commission shall give written notice of its determination to the petitioner as soon as practicable after receiving the written request, but in no event later than sixty (60) days after receiving the petition. As used in this section, retail food stores shall mean those retail stores primarily engaged in selling food for home preparation and consumption described in major group 54 of the standard industrial classification manual (SIC) of 1987, as amended, published by the office of management and budget of the executive office of the president of the United States. (e) The state tax commission, or any person authorized in writing by it, may examine the books, papers, records, and equipment of any person selling tangible personal property and any person liable for the use tax and may investigate the character of the business of the person in order to verify the accuracy of any return made, or, if no return is made by the person, to ascertain and determine the amount required to be paid. (f) Purchasers claiming exemption from tax and retailers whose pertinent records are kept outside of the state mus

63-3625

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3625. Security for tax. The state tax commission, whenever it deems it necessary to insure compliance with this act, may require any person subject to this act to place with it such security as it may determine. The amount of the necessary security shall be fixed by the state tax commission but, except as provided hereafter, shall not be greater than three (3) times the estimated average monthly amount payable by such persons pursuant to this act or ten thousand dollars ($10,000),whicheveramountisthelesser.Inthecaseofpersonshabituallydelinquentintheirobligationsunderthisact,theamountofthesecurityshallnotbegreaterthanfive(5)timestheestimatedaveragemonthlyamountpayablebysuchpersonspursuanttothisactortenthousanddollars($10,000), whichever is the lesser. The amount of the security may be increased or decreased by the state tax commission at any time, subject to the limitations above set forth. The state tax commission may sell the security at public auction or, in the case of security in the form of bearer bonds issued by the United States or the state of Idaho which have a prevailing market price, at a private sale at a price not lower than the prevailing market price if it becomes necessary to make such sale in order to recover any tax, interest or penalties due on any amount required to be collected. Notice of the sale must be given to the person who deposited the security at least ten (10) days before the sale; such notice may be given personally or by mail addressed to the person at the address furnished to the state tax commission and as it appears in the records of the state tax commission. Upon such sale, any surplus above the amounts due shall be returned to the person who placed the security. History: [63-3625, added 1965, ch. 195, sec. 25, p. 408.]

63-3626

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3626. Refunds, limitations, interest. (a) Subject to the provisions of subsection (b) of this section, if any amount due under this chapter has been overpaid, the excess amount may be credited on any amount then due to the state tax commission from the person by whom the excess was paid and any balance refunded to that person. (b) (1) No such credit or refund shall be allowed after three (3) years from the time the payment was made to the state tax commission, unless before the expiration of such period a written claim therefor is filed with the state tax commission by the claimant or the claimant’s representative, but only if the claimant has authorized in writing the representative to file a claim. (2) For periods in regard to which the state tax commission asserts a deficiency under section 63-3629 or 63-3630 , Idaho Code, a claim for refund, relating to the period to which the deficiency relates, must be made on or before the later of: (i) The date provided in subsection (b)(1) of this section; or (ii) The date upon which any administrative or judicial proceeding relating to such deficiency is finally resolved; or (iii) The date specified in any agreement under section 63-3633 (g), Idaho Code. (3) A taxpayer claiming a refund of amounts paid in obedience to such deficiencies must do so by appealing within the time limits prescribed in sections 63-3631 and 63-3049 , Idaho Code. (c) Interest shall be allowed on the amount of such credits or refunds at the rate provided in section 63-3045 , Idaho Code, from the date such tax was paid to the state tax commission. (d) If the state tax commission denies a claim for refund in whole or in part, it shall provide notice of the denial in the manner provided in section 63-3629 (c), Idaho Code. The claimant may petition the state tax commission for a redetermination of the denial as provided in section 63-3631 , Idaho Code. The state tax commission shall issue a final decision pursuant to the requirements of section 63-3045B , Idaho Code. Appeal of a tax commission decision denying in whole or in part a claim for refund shall be made in accordance with and within the time limits prescribed in section 63-3049 , Idaho Code. History: [63-3626, added 1965, ch. 195, sec. 26, p. 408; am. 1970, ch. 223, sec. 1, p. 630; am. 1971, ch. 214, sec. 2, p. 936; am. 1980, ch. 11, sec. 1, p. 24; am. 1981, ch. 290, sec. 4, p. 599; am. 1991, ch. 176, sec. 8, p. 438; am. 1992, ch. 16, sec. 8, p. 48; am. 1997, ch. 62, sec. 7, p. 129; am. 2002, ch. 38, sec. 1, p. 85.]

63-3627

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3627. Responsibility for taxes. (a) Every person with the duty to account for and pay over any tax which is imposed upon or required to be collected by any taxpayer under this chapter on behalf of such taxpayer as an officer, member or employee of such taxpayer, shall be personally liable for payment of such tax, plus penalties and interest, if he fails to carry out his duty. (b) Any such individual required to collect, truthfully account for, and pay over any tax imposed by this chapter who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. No penalty shall be imposed under section 63-3046 (b), Idaho Code, for any offense to which this subsection (b) is applicable. History: [63-3627, added 1965, ch. 195, sec. 27, p. 408; am. 1967, ch. 290, sec. 9, p. 805; am. 1998, ch. 45, sec. 1, p. 192; am. 2003, ch. 7, sec. 1, p. 14.]

63-3628

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3628. Successors’ liability. (a) If any vendor liable for any amount under this act sells out his business or stock of goods, the vendee shall make inquiry of the state tax commission and withhold from the purchase price any amount of tax that may be due under this act until such time as the vendor produces a receipt stating that no amount is due. (b) If the purchaser of a business or stock of goods fails to withhold from the purchase price as above required, he becomes personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price valued in money. (c) The state tax commission shall, as soon as practicable after receiving written inquiry as to the amount due and no later than thirty (30) days after receipt of the inquiry or, if necessary, thirty (30) days from the date the vendor’s records are made available for audit, but in any event no later than sixty (60) days after receiving the inquiry, issue a statement to the purchaser setting forth the amount of tax due by the vendor, if any. Failure of the state tax commission to issue such statement will release the purchaser from any obligation to withhold from the purchase price as above required. History: [63-3628, added 1965, ch. 195, sec. 28, p. 408.]

63-3629

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3629. Deficiency determinations. (a) If the state tax commission is not satisfied with the return or returns of the tax, because of errors or omissions discovered in audits or in any other way, it may compute and determine the amount which is due upon the basis of facts contained in the return or returns or upon the basis of any information within its possession or that may come into its possession and assert a deficiency. One or more deficiency determinations may be made of the amount due for one or for more than one period. In making such determination, the state tax commission may offset overpayments against amounts due. (b) If any person fails to make a return, the state tax commission shall make an estimate of the amount of sales or use subject to tax by this act, and shall in this manner determine the amount of tax due from such person. The estimate shall be made for the period or periods in respect to which the person failed to make a return and shall be based upon any information which is in the state tax commission’s possession or may come into its possession. (c) The state tax commission shall give written notice of its determination and the amount of the deficiency, including any interest and penalties, to the person from whom such deficiency amount is due in the manner prescribed by section 63-3045 , Idaho Code. History: [63-3629, added 1965, ch. 195, sec. 29, p. 408; am. 1993, ch. 94, sec. 9, p. 236.]

63-3630

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3630. Jeopardy determinations. If the state tax commission finds that a taxpayer is about to depart from the state of Idaho or to remove his property therefrom, or to conceal himself or his property therein, or to do any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect the tax for the taxable period or any taxes unless such proceedings be brought without delay, the state tax commission shall thereupon make a determination of the tax or amount of tax, together with interest or penalty, required to be collected, noting that fact upon the determination. Upon giving notice and demand, the amount determined shall be immediately due and payable. In any proceeding in court brought to enforce payment of taxes made due and payable by virture of the provisions of this section, the finding of the state tax commission, made as herein provided, whether made after notice to the taxpayer or not, shall be for all purposes prima facie evidence of the taxpayers design. Collection procedures may be instituted immediately. Any taxpayer deeming himself aggrieved may, within thirty (30) days of receipt of notice, petition to the state tax commission for a redetermination upon payment of the tax together with interest and penalty demanded by the assessment to the state tax commission. History: [63-3630, added 1965, ch. 195, sec. 30, p. 408; am. 1967, ch. 290, sec. 10, p. 805.]

63-3631

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3631. Redetermination. (1) Any person against whom a deficiency determination is made under section 63-3629 , Idaho Code, or in regard to whom the state tax commission proposes to revoke or suspend a permit under section 63-3620 , 63-3620A or 63-3623B , Idaho Code, or any person directly interested, may petition for a redetermination within the time period allowed by section 63-3045 , Idaho Code. If a petition for redetermination is not filed within the time period allowed, the determination becomes final as provided in section 63-3045B , Idaho Code. (2) The state tax commission may decrease or increase the amount of the determination before it becomes final, but the amount may be increased only if a claim for the increase is asserted by the state tax commission at or before the hearing. (3) A person petitioning for a redetermination under subsection (1) of this section may, in support of his petition, submit resale certificates as provided in section 63-3620 or section 63-3621 , Idaho Code, or an exemption certificate as provided in section 63-3622 , Idaho Code, only if such certificates are presented to the tax commission within ninety (90) days of the date of the notice of deficiency determination to which the petition relates. History: [63-3631, added 1965, ch. 195, sec. 31, p. 408; am. 1972, ch. 7, sec. 1, p. 10; am. 1992, ch. 16, sec. 9, p. 49; am. 1993, ch. 94, sec. 10, p. 237; am. 1996, ch. 210, sec. 3, p. 682.]

63-3632

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3632. Interest on deficiencies. Interest upon any deficiency shall be assessed at the rate provided in section 63-3045 , Idaho Code, and calculated in accordance with the provisions of that section. History: [63-3632, added 1965, ch. 195, sec. 32, p. 408; am. 1967, ch. 290, sec. 11, p. 805; am. 1969, ch. 453, sec. 17, p. 1195; am. 1980, ch. 11, sec. 2, p. 24; am. 1981, ch. 290, sec. 5, p. 600; am. 1993, ch. 94, sec. 11, p. 237; am. 2024, ch. 116, sec. 2, p. 501.]

63-3633

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3633. Period of limitation upon assessment and collection. Except as otherwise provided in this section: (a) The amount of taxes imposed by this chapter shall be assessed within three (3) years after the due date of the return or the date the return was filed, whichever is the later, and no proceeding in court without assessment for the collection of such taxes shall be begun after the expiration of such period; provided, however, if an assessment has been made within the prescribed time, such tax may be collected by levy or by a proceeding in court within a period of six (6) years after assessment of the tax and, provided further, that this shall not be in derogation of any of the remedies elsewhere herein provided. The running of the period of limitations provided by this section shall be suspended for the period during which the state tax commission is prohibited from making the assessment or from collecting by levy or a proceeding in court, and for thirty (30) days thereafter. (b) In the case of a false or fraudulent return with the intent to evade tax, or a willful attempt in any manner to defeat or evade tax, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time. (c) In the case of taxes owed by a person who has failed to file a return as provided in section 63-3623 , Idaho Code, the amount of taxes imposed in this chapter shall be assessed within seven (7) years of the time the return upon which the tax asserted to be due should have been filed unless the person had a reasonable belief that no taxes imposed by this chapter were due or payable, in which case within three (3) years of the time the return upon which the taxes asserted to be due should have been filed. (d) The periods of limitation upon assessment and collection provided in this section shall not apply: (1) In cases where the facts disclose a false or fraudulent act with the intent to evade tax, or (2) To taxes collected by a retailer, seller or any other person who has failed to pay over such taxes to the state tax commission. (e) In the case of taxes due during the lifetime of a decedent, or by his estate during the period of administration, a notice of deficiency shall be issued, a claim shall be made, the tax shall be assessed, or any proceeding in court without assessment for the collection of such tax shall be begun, within twelve (12) months after written request for prompt action is filed with the state tax commission by the executor, administrator, or other fiduciary representing the estate of such decedent. This subsection shall not apply if the return for which the request for prompt action relates has not been filed with the state tax commission. (f) No assessment of a deficiency with respect to the tax imposed by this chapter, and no distraint or proceedings in court for its collection shall be made, begun, or prosecuted until a notice under se

63-3634

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3634. Additions and penalties. The additions, penalties and requirements provided by the Idaho Income Tax Act, sections 63-3046 , 63-3075 , 63-3076 and 63-3077 , Idaho Code, shall apply in the same manner and to the same extent to this act as to the Idaho Income Tax Act and shall cover acts, omissions, and delinquencies under this act similar to acts, omissions and delinquencies under the Idaho Income Tax Act and such additions, penalties and requirements shall, for this purpose, be described as and be for acts, omissions, delinquencies and requirements under the Idaho Sales Tax Act; provided, however, that the provisions of section 63-3076 , Idaho Code, shall not prevent the release of information about a specific transaction to any party to such transaction and any individual signing an exemption claim relating to the transaction. The tax commission may release such information only when it determines that the release will benefit the enforcement of this chapter, and not otherwise. History: [63-3634, added 1965, ch. 195, sec. 34, p. 408; am. 1991, ch. 176, sec. 9, p. 439; am. 1992, ch. 16, sec. 10, p. 49; am. 1995, ch. 54, sec. 6, p. 127.]

63-3634A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3634A. Authority to enter agreements. Notwithstanding the provisions of section 63-3634 or 63-3076 , Idaho Code, relating to confidentiality, the state tax commission may enter into a written agreement with the Idaho transportation department providing for exchange of information as both the commission and the department may find necessary to implement the letter and intent of this chapter or the laws relating to the registration of motor vehicles and the issuing of driver’s licenses in this state. The state tax commission is not authorized by this section to disclose any financial information from any tax return filed with the state tax commission other than whether or not an individual filed a resident or nonresident return. History: [63-3634A, added 1988, ch. 314, sec. 1, p. 972; am. 2023, ch. 9, sec. 2, p. 33.]

63-3635

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3635. Collection and enforcement. The collection and enforcement procedures provided by the Idaho Income Tax Act, sections 63-3030A , 63-3038 , 63-3039 , 63-3040 , 63-3042 , 63-3043 , 63-3044 , 63-3045B , 63-3047 , 63-3048 , 63-3049 , 63-3050 through 63-3064 , 63-3065A , 63-3071 and 63-3074 , Idaho Code, shall apply and be available to the state tax commission for enforcement of the provisions of this act and collection of any amounts due under this act, and said sections shall, for this purpose, be considered part of this act and wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under this act, be described as sales and use tax liens and proceedings. History: [63-3635, added 1965, ch. 195, sec. 35, p. 408; am. 1982, ch. 279, sec. 2, p. 711; am. 1991, ch. 2, sec. 5, p. 15; am. 1993, ch. 26, sec. 8, p. 92; am. 1995, ch. 54, sec. 7, p. 127; am. 1996, ch. 46, sec. 16, p. 139.]

63-3637

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3637. sales tax distribution — definitions. For the purposes of section 63-3638 , Idaho Code, the following definitions shall apply: (1) Per capita distribution means the amount to be distributed to cities and counties on the basis of their most current population or population estimates available from the United States census bureau no later than thirty (30) days prior to the next quarterly distribution from the revenue-sharing account. (2) Revenue-sharing account means the account established in the treasury for all sales and use tax revenue to be distributed on a quarterly basis pursuant to section 63-3638 (10), Idaho Code. History: [63-3637, added 2020, ch. 162, sec. 1, p. 470.]

63-3638

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3638. Sales tax — Distribution. All moneys collected under this chapter, except as may otherwise be required in sections 63-3203 , 63-3620F , and 63-3709 , Idaho Code, shall be distributed by the state tax commission as follows: (1) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized under this chapter by the state tax commission shall be paid through the state refund account, and those moneys are continuously appropriated. (2) Five million dollars ($5,000,000)peryeariscontinuouslyappropriatedandshallbedistributedtothepermanentbuildingfund,providedbysection57-1108,IdahoCode.(3)Fourmillioneighthundredthousanddollars($4,800,000) per year is continuously appropriated and shall be distributed to the water pollution control fund established by section 39-3628 , Idaho Code. (4) An amount equal to the sum required to be certified by the chairman of the Idaho housing and finance association to the state tax commission pursuant to section 67-6211 , Idaho Code, in each year is continuously appropriated and shall be paid to any capital reserve fund established by the Idaho housing and finance association pursuant to section 67-6211 , Idaho Code. Such amounts, if any, as may be appropriated hereunder to the capital reserve fund of the Idaho housing and finance association shall be repaid for distribution under the provisions of this section, subject to the provisions of section 67-6215 , Idaho Code, by the Idaho housing and finance association, as soon as possible, from any moneys available therefor and in excess of the amounts the association determines will keep it self-supporting. (5) An amount equal to the sum required by the provisions of sections 63-709 and 63-717 , Idaho Code, after allowance for the amount appropriated by section 63-718 (3), Idaho Code, is continuously appropriated and shall be paid as provided by sections 63-709 and 63-717 , Idaho Code. (6) An amount required by the provisions of chapter 53, title 33 , Idaho Code. (7) An amount required by the provisions of chapter 87, title 67 , Idaho Code. (8) For fiscal year 2011 and each fiscal year thereafter, four million one hundred thousand dollars ($4,100,000),ofwhichtwomilliontwohundredthousanddollars($2,200,000) shall be distributed to each of the forty-four (44) counties in equal amounts and one million nine hundred thousand dollars ($1,900,000) shall be distributed to the forty-four (44) counties in the proportion that the population of the county bears to the population of the state. For fiscal year 2012 and for each fiscal year thereafter, the amount distributed pursuant to this subsection shall be adjusted annually by the state tax commission in accordance with the consumer price index for all urban consumers (CPI-U) as published by the U.S. department of labor, bureau of labor statistics, but in no fiscal year sha

63-3638A

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3638A. Sales tax on liquor to be paid to liquor account. Notwithstanding the provisions of section 63-3638 , Idaho Code, the sales tax collected on the retail sale of liquor and all other merchandise by or on behalf of the director of the state liquor division shall be credited directly to the liquor account, and shall not be or become a part of the sales tax account. History: [63-3638A, added 1982, ch. 255, sec. 12, p. 666; am. 1987, ch. 260, sec. 8, p. 551; am. 2006, ch. 18, sec. 7, p. 70; am. 2009, ch. 23, sec. 60, p. 70.]

63-3640

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3640. Contracts entered into before effective date of increased tax. (1) Commencing October 1, 2006, the purchase, use, storage or other consumption of tangible personal property which is otherwise subject to the taxes imposed by this chapter by persons defined in section 63-3609 (a), Idaho Code, shall be exempt from one cent (1¢) of the taxes imposed by sections 63-3619 and 63-3621 , Idaho Code, if: (a) The tangible personal property is purchased, used, stored or otherwise consumed for incorporation into real property; and (b) The tangible personal property is purchased, used, stored or otherwise consumed in regard to a project performed by such person pursuant to a qualified contract; and (c) The taxpayer claims the exemption in the manner provided by subsection (3) of this section. (2) As used in this section, the term qualified contract means a contract which: (a) Is a written contract; and (b) Was in effect on September 1, 2006, or was submitted for bid or bid in written form on or before September 1, 2006, and subsequently became a written contract; and (c) Was negotiated or bid based upon the sales or use tax being five percent (5%); and (d) Requires the cost of the sales or use tax to be borne by the contractor. (3) A person entitled to the exemption granted in subsection (1) of this section may submit a claim for refund to the state tax commission for the amount of one cent (1¢) of the tax imposed by sections 63-3619 and 63-3621 , Idaho Code, if it has actually been paid by him. The claim for refund shall include: (a) A copy of a written contract which is a qualified contract; and (b) A detailed invoice prepared by the seller showing all items of tangible personal property purchased by the claimant, the sale of which is subject to the exemption granted in subsection (1) of this section; and (c) A document signed by the purchaser certifying that the tangible personal property shown on the invoice required by subsection (3)(b) of this section has in fact been used by him on the project to which the qualified contract relates. (4) Upon receipt of the claim for refund, the state tax commission shall review the claim and, if it finds it to be proper, shall pay the refund together with interest from the date that the claim was filed at the rate established by section 63-3045 , Idaho Code, within thirty (30) days from the date the claim was received by the commission. (5) The use or incorporation into real property of any tangible personal property upon which the exemption provided by subsection (1) of this section has been claimed pursuant to any contract other than a qualified contract shall be a misdemeanor. (6) In addition to the criminal penalties provided by subsection (5) of this section, the use or incorporation into real property of tangible personal property upon which the exemption provided by subsection (1) of this section has been claimed pursuant to any contract which is not a

63-3641

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3641. rebate of sales taxes collected. (1) As provided in and subject to the limitations of this section, a developer of a retail complex shall receive a rebate of sales taxes collected and remitted to the state tax commission under this chapter by qualified retailers within the retail complex to reimburse the developer for project expenses incurred for the installation of approved transportation improvements. (2) As used in this section: (a) Approved transportation improvements means a highway project the cost of which is in excess of six million dollars ($6,000,000)fortheinstallationofaninterchangefromaninterstatehighwayorexpendedontheimprovementofahighwayasdefinedinsection40-109(5),IdahoCode.ToqualifyasanapprovedhighwayimprovementthedeveloperofaretailcomplexmustenterintoanagreementwiththeIdahotransportationboardand/orpoliticalsubdivision.Anapprovedhighwayimprovementshallincludethosecostsdirectlyassociatedwiththehighwayprojectbutshallnotincludeanyimprovementnotwithintheright-of-wayoftheproposedpublichighwayimprovement,improvementsnotspecificallyauthorizedintheagreemententeredinto,ordeveloperfinancedimprovementsrequiredbystateorlocalagenciesaspartofthepermittinganddevelopmentprocessnotwithinthepublichighwayright-of-way.(b)Politicalsubdivisionmeansacity,countyorhighwaydistrictthatreceiveshighwayfundingpursuanttosection40-709,IdahoCode.(c)Qualifiedretailermeansaspecificlocationwithinaretailcomplexoperatedbyaretailerinregardtowhichtheretailer:(i)Hasobtainedaseparateseller’spermitpursuanttosection63-3620,IdahoCode,applicableonlytothatlocationandhascollectedsalesorusetaxesinregardtoretailsalesmadeatthatlocationandhasremittedallsuchtaxestothestatetaxcommissionwithreturnsrelatedtothatpermit;(ii)Hasbeenidentifiedinthemannerrequiredbyrulesofthestatetaxcommissionasassociatedwiththespecificretailcomplex;and(iii)Didnotdirectlyorbyanyrelatedparty(asdefinedinsection63-3615A(2),IdahoCode)operatearetailbusinessinthesamelocationbeforeconstructionoftheretailcomplex.(d)Retailcomplexmeans:(i)One(1)ormorebuildingsinasinglelocationconstructedbyadeveloperapplyingforarebateunderthissection;(ii)Facilitiesreasonablyrelatedtothebuildings,suchasparkinglots,sidewalks,lighting,trafficsignsandaccessoryequipment;and(iii)Forwhichthedeveloperhasexpendedaminimumoffourmilliondollars($4,000,000). (e) Retailer has the same meaning as provided in section 63-3610 , Idaho Code; (f) Retail sales has the same meaning as that term is defined in section 63-3609 , Idaho Code. (3) To obtain the rebate provided by this section, the developer of a retail complex shall file a written claim with the state tax commission. (a) Th

63-3642

TITLE 63 REVENUE AND TAXATION CHAPTER 36 SALES TAX 63-3642. sales and use tax withholding — city and county governments. (1) Any mayor, council, board of commissioners, or any other governing body of a city or county governmental entity that issues an ordinance, resolution, executive order, or proclamation refusing to investigate or enforce any felony provided for in Idaho Code shall not be eligible to receive sales and use tax revenue distributions pursuant to section 63-3638 , Idaho Code. Such funds shall be held back until the city or county governmental entity has certified to the state tax commission that such ordinance, resolution, executive order, or proclamation has been repealed or rescinded. (2) Upon presentation to the attorney general of an authenticated and duly enacted ordinance, resolution, executive order, or proclamation of any mayor, council, board of commissioners, or other governing body of a city or county governmental entity refusing to investigate or enforce any felony provided for in Idaho Code, the attorney general shall notify the state tax commission and the governmental entity of the provisions of this section and provide the governmental entity an opportunity to repeal or rescind the ordinance, resolution, executive order, or proclamation. (3) If a repeal or rescission is certified within one hundred eighty (180) days of the holdback, the state tax commission shall restore the withheld moneys to the city or county governmental entity. If compliance is not certified within one hundred eighty (180) days, the withheld moneys shall be forfeited and deposited in the general fund by the state tax commission. History: [63-3642, added 2023, ch. 119, sec. 1, p. 342.]