Idaho — Sales & Use Tax

Idaho imposes a 6% excise tax on each sale at retail of tangible personal property and specified services. The tax applies to the sales price and is computed monthly on all retail sales within the preceding month. "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.

Taxable sales include transfers of tangible personal property, custom production of property for consumers, furnishing and preparing food or meals, hotel and motel accommodations for less than 30 days, admission to places or events, recreational facilities, and other transactions enumerated in statute. The retailer must collect the tax from the consumer.

Source: Idaho Code § 63-3619; Idaho Code § 63-3609; Idaho Code § 63-3612

A retailer without physical presence in Idaho is "engaged in business in this state" if it has cumulative gross receipts from sales delivered into Idaho exceeding $100,000 in the previous or current calendar year. This economic nexus provision took effect June 1, 2019. Retailers meeting this threshold must collect and remit Idaho state sales tax but are not required to collect local sales tax.

Source: Idaho Code § 63-3611(3)(h); Idaho State Tax Commission, Online Sellers Guide

Idaho imposes a state sales tax at a rate of 6% on the sales price of retail sales. Certain resort cities—defined as cities with a population not exceeding 10,000 that derive the major portion of their economic well-being from businesses catering to recreational and visitor needs—may levy additional local option sales taxes of up to 3%, subject to voter approval. Combined maximum rate in those resort cities is 9%. Most jurisdictions in Idaho impose only the 6% state rate.

Source: Idaho Code § 63-3619; Idaho Code § 50-1044

Idaho exempts from sales and use tax tangible personal property used in manufacturing, processing, mining, farming, or fabricating operations. The exemption covers: (1) property that becomes an ingredient or component part of goods manufactured for sale; (2) property primarily and directly used or consumed in production, including repair parts, lubricants, and coolants; (3) chemicals and catalysts used to induce physical or chemical changes in products; and (4) required safety equipment. Businesses must be primarily devoted to producing tangible personal property for sale. Excluded are motor vehicles under 8,000 pounds, hand tools under $1,000, real property improvements, and administrative equipment.

Source: Idaho Code § 63-3622D

Idaho permits purchases for resale without payment of sales tax when the buyer provides a properly executed resale certificate to the seller. A valid resale certificate must be signed and dated by the purchaser or agent, bear the purchaser's name and address, show a federal employer identification number or driver's license number with state of issue, indicate the number of the seller's permit issued to the purchaser (or state that the purchaser is an out-of-state retailer), and indicate the general character of tangible personal property sold or rented by the purchaser in the regular course of business.

When a properly executed resale certificate is presented to or on file with the seller, the seller has no duty or obligation to collect sales or use tax on that transaction, regardless of whether the purchaser properly or improperly claimed the exemption. The seller is relieved of all liability, and the purchaser bears all responsibility for any subsequent audit. A seller need not accept a resale certificate that is not readable, legible, or copyable.

Source: Idaho Code § 63-3622

Idaho imposes a 6% excise tax on the storage, use, or other consumption of tangible personal property in the state when the property was acquired for such use on or after October 1, 2006. The use tax applies at the same rate as the sales tax and is calculated on the value of the property, with a recent sales price serving as presumptive evidence of value.

Who owes use tax

Use tax liability falls on the purchaser who stores, uses, or consumes tangible personal property in Idaho. The purchaser's liability is not extinguished until the tax has been paid to Idaho, except that a receipt from a retailer maintaining a place of business in Idaho or engaged in business in Idaho given to the purchaser relieves the purchaser from further liability for the tax to which that receipt refers.

Retailer collection obligation

Every retailer engaged in business in Idaho and making sales of tangible personal property for storage, use, or other consumption in Idaho must collect use tax from the purchaser at the time of sale (or, if the storage, use, or consumption is not then taxable, at the time it becomes taxable). Retailers meeting the economic nexus threshold under Idaho Code § 63-3611(3)(h)—cumulative gross receipts exceeding $100,000 from sales delivered into Idaho in the current or previous calendar year—are engaged in business and must collect use tax on taxable sales.

Credit for tax paid to another state

When tangible personal property subject to Idaho use tax has already been subjected to a general retail sales or use tax by another U.S. state, Idaho grants a credit if the amount paid to the other state equals or exceeds Idaho's tax and the taxpayer provides evidence of payment. If the tax paid to another state was less than Idaho's 6%, the property remains subject to Idaho use tax to the extent that Idaho's tax exceeds the tax paid to the other state. For vehicles, trailers, or vessels, a registration certificate or title issued by another state or subdivision serves as sufficient evidence of payment of a general retail sales or use tax.

Out-of-state purchases and self-assessment

Purchasers who acquire property outside Idaho or from a retailer not engaged in business in Idaho and subsequently use, store, or consume the property in Idaho owe use tax directly to the state. The buyer must report and remit the use tax by filing a use tax return on forms prescribed by the Idaho State Tax Commission. Idaho Administrative Rule 35.01.02.072 specifies that if property is purchased outside the state or from a retailer not subject to the Commission's jurisdiction and is subsequently used, stored, or consumed in Idaho, the buyer reports and remits use tax directly by filing a return.

Resale certificate relief

When a purchaser provides a properly executed resale certificate for the seller's records, sales are presumed not taxable and the seller need not collect sales or use tax unless the tangible personal property purchased is taxable to the purchaser as a matter of law in the particular instance claimed on the resale certificate. A seller may accept a resale certificate prior to, at the time of, or at any reasonable time after the sale to establish the exemption privilege. The resale certificate relieves the seller from the burden of proof only if taken from a person engaged in the business of selling or renting tangible personal property who holds a permit under Idaho Code § 63-3620, or who is a retailer not engaged in business in Idaho and intends to sell or rent the property in the regular course of business.

Source: Idaho Code § 63-3621; Idaho Admin. Code r. 35.01.02.072

Idaho sales and use tax returns are generally due monthly on or before the 20th day of the month following the reporting period. The Idaho State Tax Commission assigns each seller's filing frequency based on sales volume and payment history, and may prescribe filing periods other than monthly when necessary for efficient tax administration.

Monthly filing—general rule

Idaho Code § 63-3623(a) establishes that sales and use taxes "are due and payable to the state tax commission monthly on or before the twentieth day of the succeeding month." Idaho Admin. Code r. 35.01.02.105 reiterates that all retailers and persons subject to use tax are required to remit the tax on a monthly basis unless a different reporting period is prescribed by the Commission. Most retailers file monthly. For example, taxes collected in July are due by August 20. If the 20th falls on a weekend or state holiday, the return and payment are due the next business day.

Quarterly and semiannual filing

Retailers or persons who owe seven hundred fifty dollars ($750) or less per quarter and have established a satisfactory record of timely filing and payment may request permission from the Commission to file quarterly or semiannually instead of monthly. Quarterly returns are due within 20 days after the end of each quarter (April 20, July 20, October 20, and January 20). Semiannual returns are due by July 20 and January 20.

Annual filing

Idaho Admin. Code r. 35.01.02.105(02)(e) provides that if the Commission finds it necessary or convenient for the efficient administration of the Sales Tax Act, it may require taxpayers reporting taxable sales of less than twelve thousand dollars ($12,000) per year to file annually. Distributors and wholesalers with only a few sales may apply to file and forward taxes once per year, with annual returns due by January 20.

Commission discretion and zero-return requirement

The State Tax Commission has statutory authority under Idaho Code § 63-3623(h) to require returns for periods other than monthly if it deems such changes necessary to ensure payment or facilitate collection. Every seller must file a return even if the seller made no sales during the reporting period; failure to file zero returns for twelve consecutive months may result in cancellation of the seller's permit.

Temporary seller's permits

Temporary seller's permits have distinct filing deadlines. For permits covering the seller's own sales activities or Idaho events, the return and payment are due within 15 days after the permit's expiration date. For permits issued for a specific event, the return and payment are due within 15 days after the end of the event.

Source: Idaho Code § 63-3623; Idaho Admin. Code r. 35.01.02.105; Idaho State Tax Commission, Sales Tax: Filing and Paying

Idaho applies destination-based sourcing for sales tax purposes, meaning that the applicable sales tax rate is generally determined by the location where the purchaser receives the goods or services, rather than the seller's location. This sourcing framework affects how sellers—both those with physical presence in Idaho and remote sellers with only economic nexus—calculate and collect sales tax, particularly when local option taxes apply in certain resort cities.

Destination-based sourcing principle

Although Idaho statutes do not contain a single provision explicitly labeling the state's sourcing regime as "destination-based," the structure of Idaho's sales tax provisions, Idaho State Tax Commission administrative practice, and official guidance all implement destination sourcing. Idaho sales tax returns instruct sellers to report "sales originating in Idaho with an Idaho destination," "sales originating in Idaho with an out-of-state destination," and "sales originating outside Idaho with an Idaho destination," which reflects a destination focus for determining taxability and the applicable rate. For in-state sellers, the applicable combined state and local rate is determined by the location where the customer takes delivery of the property or receives the service.

Local option taxes—resort cities only

Idaho authorizes certain qualifying resort cities to impose local option sales taxes of up to 3 percent in addition to the 6 percent state rate. Idaho Code § 50-1044 defines a resort city as a city with a population not exceeding 10,000 that derives the major portion of its economic well-being from businesses catering to recreational and visitor needs, and permits such cities to levy the local tax subject to voter approval. Combined maximum rate in resort cities is therefore 9 percent (6 percent state + up to 3 percent local). Most jurisdictions in Idaho impose only the 6 percent state rate, with resort-city local taxes the exception rather than the rule.

Remote sellers—state tax only

Idaho Code § 63-3611(3)(h) defines "retailer engaged in business in this state" to include, effective June 1, 2019, "any retailer without a physical presence in Idaho that has, in the previous calendar year or the current calendar year, cumulative gross receipts from sales delivered into Idaho in excess of one hundred thousand dollars ($100,000)." The statute contains a critical proviso: "a retailer described under this paragraph (h) shall not collect or remit any local sales tax or any other tax or assessment that is not imposed by this chapter." Chapter 36 of Title 63 is the Sales Tax chapter, which imposes the state 6 percent rate; local option resort city taxes are authorized under Title 50 and are not "imposed by this chapter."

This statutory language establishes that an out-of-state remote seller meeting Idaho's $100,000 economic nexus threshold is required to collect and remit the 6 percent state sales tax on sales delivered into Idaho, but is prohibited from collecting or remitting any local option sales tax, even if the sale is delivered to a customer located in a resort city with a local tax in effect. In practical terms, a remote seller with economic nexus charges 6 percent on all Idaho sales, regardless of the destination city, while a seller with physical presence in Idaho must apply the combined state and local rate based on the destination address when the destination is a resort city with a local tax.

Physical-presence sellers and destination rate

Sellers that maintain a physical presence in Idaho—through a warehouse, office, inventory, employees, or other contacts enumerated in Idaho Code § 63-3611(3)(a)–(g)—are engaged in business under the general nexus provisions and are not limited by the paragraph (h) proviso. These sellers must collect both the 6 percent state rate and any applicable local option tax based on the destination of the sale. For example, a sale shipped to a customer in Sun Valley (Blaine County), which imposes a 3 percent local option tax, is subject to a combined 9 percent rate; the same seller shipping to a customer in Boise (no local tax) collects only the 6 percent state rate.

Why the distinction exists

Idaho's statutory framework creates a compliance simplification for remote sellers: by limiting their collection obligation to the single statewide 6 percent rate, Idaho reduces the administrative burden of rate lookup and apportionment for sellers with only economic presence. The trade-off is that resort cities do not receive local option tax revenue from remote sales, even when the buyer is located within the city. Physical-presence sellers, by contrast, are subject to the full destination-based regime, including local taxes.

Official guidance

The Idaho State Tax Commission's Online Sellers Guide confirms that remote sellers meeting the economic nexus threshold "must collect and remit Idaho state sales tax but are not required to collect local sales tax."

Source: Idaho Code § 63-3611; Idaho Code § 50-1044; Idaho State Tax Commission, Online Sellers Guide; Idaho State Tax Commission, Form 850 Instructions (Sales and Use Tax Return)

Idaho exempts from sales and use tax a detailed list of prescription drugs, medical devices, and durable medical equipment when purchased under specific circumstances. The exemption applies only to items specifically enumerated in Idaho Code § 63-3622N and only when purchased by qualified buyers.

Exempt items

The statute exempts the following categories when administered or distributed by a practitioner or when purchased by or on behalf of an individual under a prescription or work order:

1. Drugs and related supplies — Drugs, hypodermic syringes, insulin, insulin syringes, artificial eyes, eyeglasses and eyeglass component parts, contact lenses, hearing aids, hearing aid parts and accessories.

1. Dialysis supplies — Drugs and supplies used in hemodialysis and peritoneal dialysis.

1. Oxygen and respiratory equipment — Oxygen, equipment for dispensing oxygen, and respiratory care equipment.

1. Orthopedic and orthodontic items — Orthopedic appliances (braces and external supports prescribed for correction or relief of defects, diseases, or injuries to bones or joints), orthodontic appliances, dental prostheses including crowns, bridges, inlays, and overlays.

1. Prosthetic devices and supplies — Catheters, urinary accessories, colostomy supplies, enteral and parenteral feeding equipment and supplies (tubing, pumps, containers), catheter devices and supplies.

1. Diabetic testing equipment — Equipment, devices, or chemical reagents used to test or monitor blood or urine of a diabetic.

1. Durable medical equipment — Other durable medical equipment and devices and related parts and supplies specifically designed for those products. The statute provides an extensive illustrative list including wheelchairs, crutches, walkers, standing frames, communication aids for the physically impaired, specialized seating, speech and writing aids for the impaired, dressing aids, transcutaneous nerve stimulators, muscle stimulators, bone fracture therapy devices, stethoscopes, sphygmomanometers, otoscopes, patient transport devices, stairglides, home lifts, and many other items.

Who qualifies to purchase exempt

Idaho Admin. Code r. 35.01.02.100 clarifies that sales tax does not apply when the enumerated items are:

(a) Purchased by a practitioner licensed under Title 54, Idaho Code, to be administered or distributed to patients if the practitioner is licensed to administer or distribute such items; or

(b) Purchased by or on behalf of an individual under a prescription or work order issued by a practitioner licensed to practice one of the following professions: physician, physician assistant, surgeon, podiatrist, chiropractor, dentist, optometrist, psychologist, ophthalmologist, nurse practitioner, denturist, orthodontist, audiologist, or hearing aid dealer or fitter.

Documentation required

For practitioners purchasing items they will administer or distribute, the seller must receive and keep on file a completed Form ST-101 (Sales Tax Resale or Exemption Certificate) showing the reason for the exemption.

For patients purchasing items under a prescription or work order, the seller must keep on file the prescription or work order from the practitioner. Idaho Admin. Code r. 35.01.02.100 specifies that the sale is exempt when purchased under a prescription, but taxable when the same item is sold over the counter without a prescription. For example, some drugs may be lawfully sold without a prescription; when sold over the counter without a prescription, the drugs are subject to sales tax, but when sold under a prescription, the drugs are exempt from tax.

For-profit hospitals and nursing homes purchasing medical products to administer to patients under a practitioner's prescription or work order may purchase those items exempt by providing a prescription or work order. However, if a for-profit hospital or nursing home purchases medical equipment for general facility use (not under a prescription for a specific patient), the purchase is taxable.

Limitations on the exemption

The exemption is limited to the specific items enumerated in Idaho Code § 63-3622N. Not everything a practitioner prescribes qualifies for the exemption—only the medical products specifically listed in the statute. For instance, a licensed physician's prescription for a health club membership is taxable because a health club membership is not a listed medical product.

Prescription contact lenses sold on or after July 1, 2016, are exempt from sales tax.

Source: Idaho Code § 63-3622N; Idaho Admin. Code r. 35.01.02.100; Idaho State Tax Commission, Medical Products Exemption

Idaho accepts the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate – Multijurisdiction as valid documentation for resale exemptions, but only when the purchaser fits Idaho’s eligibility criteria and the form is properly completed.

Permissible certificate forms Idaho Administrative Rule 35.01.02.128 authorizes sellers to accept either Form ST-101 (Idaho’s Sales Tax Resale or Exemption Certificate) or a Uniform Sales and Use Tax Certificate – Multijurisdiction (commonly called the MTC certificate) from purchasers claiming a resale exemption. This rule specifically permits use of the MTC certificate by three groups:

• Idaho retailers with a valid Idaho seller’s permit,
• Registered Idaho wholesalers,
• Out-of-state retailers not engaged in business in Idaho, but making purchases for resale or rental in the regular course of business.

Completion requirements Either the ST-101 or the MTC certificate must include: (1) names and addresses of the purchaser and seller; (2) signature and title of the purchaser or responsible agent; (3) date of execution; (4) Idaho seller’s permit number, or if the purchaser is out-of-state, a clear statement establishing out-of-state status; and (5) general description of the property expected to be purchased for resale. The certificate must specify whether the buyer is a retailer, wholesaler, or out-of-state retailer. Sellers are not required to accept incomplete or illegible certificates and should ensure all fields are properly completed.

Sellers’ obligations When accepted in good faith, a valid and properly executed MTC Uniform certificate relieves the seller of responsibility for sales tax on sales for resale. Sellers must retain these certificates in their records. The MTC certificate is sufficient on its own as long as all Idaho-required elements are present and the purchaser is properly classified under Idaho law.

Source: Idaho Admin. Code r. 35.01.02.128

Not yet human confirmed. Section tracks Idaho’s published administrative rules and should be reviewed for recent DOR practice or clarifying notices.

Idaho authorizes certain small "resort cities" to impose a local-option sales tax of up to 3% in addition to the 6% state rate, subject to specific requirements in Idaho Code § 50-1046. Retailers making sales into Idaho need to confirm whether a delivery location falls within a resort city with an active local-option tax to ensure correct rate application and compliance.

Official lookup resource The Idaho State Tax Commission maintains an official "City Sales Taxes" page that lists every Idaho resort city currently imposing a local sales tax, with city names, links to ordinances, contact information, and brief details on local tax rates. This list is the state's authoritative and updated public reference for verifying local-option tax applicability. Retailers should start here to determine coverage but should be aware that city boundaries and local tax categories can change; ultimately, statutory compliance remains the taxpayer's responsibility. Source: Idaho State Tax Commission: City Sales Taxes

Practical retailer compliance steps

1. Review the Commission's City Sales Taxes list: Find the delivery city's name and review contact information and rate details.
2. If the city is listed, confirm the local-option rate and whether any exemptions (e.g., groceries, vehicles) are in effect by consulting the provided city ordinance or contacting the city office.
3. Use destination-based sourcing: For sellers with physical presence in Idaho, calculate total sales tax as the 6% state rate plus the city's active local-option rate, but only for qualifying sales delivered within city boundaries. Check addresses for alignment with incorporated city limits.
4. Remote sellers (those meeting the economic nexus threshold, but with no physical presence) only collect the state sales tax (6%)—they do not collect resort city local tax, specifically per Idaho Code § 63-3611(3)(h).
5. Update tax calculation and reporting systems to apply city local-option rates where required and maintain documentation for audit and remittance purposes.

Legal authority summary Idaho Code § 50-1046 defines which cities may impose a local-option tax: only "resort cities"—those with populations under 10,000 and an economy primarily catering to tourists—by at least 60% voter approval. Retailers should rely on the Tax Commission's published city list as a practical and state-endorsed tool, but ultimate statutory responsibility for correct rate application always rests with the seller.

Source: Idaho State Tax Commission: City Sales Taxes Source: Idaho Code § 50-1046 Source: Idaho Code § 63-3611(3)(h)

Not yet human confirmed. Section references up-to-date commission guidance and controlling statutory authority.

Idaho administers its production exemption strictly for qualifying purchases of tangible personal property used primarily and directly in manufacturing, processing, mining, farming, or fabricating. When a transaction involves both an exempt item (such as production equipment) and a taxable service (such as installation labor) sold together, Idaho requires allocation to ensure only the qualifying property is exempt. The governing statute, Idaho Code § 63-3622D, defines the exemption scope but does not expressly address the treatment of bundled transactions or ancillary services sold with exempt production property. However, by rule and normal Idaho State Tax Commission (ISTC) practice, the following framework applies:

Split invoicing and allocation

• When both exempt tangible property and taxable services are listed in a single sale, sellers must separately state the price of the exempt items and the taxable services on the invoice. Only the sale price of the exempt property is excluded from tax under the production exemption. The portion of the charge attributable to taxable services, such as installation or repair labor, remains subject to Idaho sales tax unless another exemption applies.
• If the invoice is not itemized and a lump sum price is charged for both exempt equipment and taxable installation, the entire charge is presumed taxable unless the sales documentation supports a reasonable allocation. However, Idaho Admin. Code r. 35.01.02.067(04) — the principal regulation on production exemptions — does not set forth a mandatory apportionment formula but affirms that exempt and non-exempt components must be distinguished in records and billing.
• Sellers are strongly advised (and ISTC guidance confirms this) to clearly document and separate exempt sales from taxable charges at the time of sale. In the event of an audit, failure to adequately separate the charges may result in the entire bundled amount being taxed.

Bundled product/service transactions

• The production exemption never applies to taxable services themselves, even if those services are part of a transaction in which production property is sold. Tax is imposed on the taxable service portion unless a distinct exemption applies to that service.
• Ancillary costs (such as shipping/freight and setup), if separately stated and not part of the sales price of the tangible personal property, are generally not subject to tax under Idaho’s allocation rules. But costs folded into the sales price of taxable tangible personal property or taxable services are subject to tax accordingly.

Official guidance

• Idaho State Tax Commission Publication ST-101 (and Public Guidance on Production Exemption) reiterates that, for mixed transactions, records and billing must clearly distinguish between exempt and non-exempt portions. The relevant regulations reinforce this separation between sales of exempt property and taxable services for proper production exemption application.

Source: Idaho Code § 63-3622D Source: Idaho Admin. Code r. 35.01.02.067

Not yet human confirmed. Section constructed from governing statute, administrative rule, and ISTC official practice publications. Practitioners should confirm the current ISTC field position where complex allocations are involved.

Idaho imposes express sales and use tax collection obligations on marketplace facilitators for retail sales of tangible personal property by third-party sellers conducted through their platforms. This requirement took effect June 1, 2019, aligning with Idaho’s economic nexus threshold regime for remote sellers.

Statutory framework and definitions Under Idaho Code § 63-3605E, a “marketplace facilitator” is any person or business operating a physical or electronic platform that directly or indirectly facilitates retail sales by third-party sellers, and who collects the sales price, provides payment processing, or otherwise assists in concluding sales. Idaho’s statutory language is broad and encompasses most common digital and brick-and-mortar models involving third-party sellers.

Obligation to collect—scope and effective date Idaho Code § 63-3620E requires every marketplace facilitator with physical presence in Idaho, or with sales delivered into Idaho above the economic nexus threshold (cumulative gross receipts exceeding $100,000 in the previous or current calendar year), to register, collect, report, and remit state sales and use taxes on all taxable sales it facilitates for third-party sellers. The collection duty applies to all Idaho-destined sales made through the platform after June 1, 2019, without exception for out-of-state facilitators that exceed the threshold.

Relief for marketplace sellers and special circumstances When a marketplace facilitator is obligated to collect Idaho sales tax, the individual third-party seller is relieved of liability for tax collection and remittance on those transactions. However, if a sale occurs on a platform not meeting the definition or thresholds for a “marketplace facilitator” (or if the facilitator fails to comply), the third-party seller remains responsible. Sellers making direct sales outside the facilitator’s platform, or with a physical presence in Idaho—even if they also sell via a facilitator—retain registration and collection duties for those direct Idaho transactions.

Source: Idaho Code § 63-3605E Source: Idaho Code § 63-3620E Source: Idaho State Tax Commission, Online Sellers Guide

Not yet human confirmed.

Idaho sales tax is imposed on retail sales of tangible personal property and on a narrow set of explicitly listed services. Idaho Code § 63-3612(2) provides the governing statutory list of taxable services and related transactions. Services not named in the statute are not subject to sales tax unless they are services that are part of a sale of tangible personal property and included in the taxable sales price under the "incidental to the sale" or "bundled sales" provisions.

Statutory list of taxable services Under Idaho Code § 63-3612(2) and related authority, sales tax applies to the following categories (paraphrased and summarized for clarity; see statutory text for organizing language):

• Furnishing, preparing, or serving food, meals, or drinks (on- or off-premises). (§ 63-3612(2)(b))
• Admissions to places or events—such as theaters, shows, amusement parks, museums, sports events, etc. (§ 63-3612(2)(d))
• Hotel, motel, campground, or trailer court accommodations for periods of 30 days or less. (§ 63-3612(2)(c))
• Use of recreation facilities (including, but not limited to, golf courses, tennis courts, ski lifts, bowling alleys, etc.). (§ 63-3612(2)(d), (e))
• Producing, fabricating, processing, printing, or imprinting tangible personal property for a buyer, including when the buyer furnishes, directly or indirectly, the property or materials. (§ 63-3612(1), (f))
• Labor for printing, imprinting, or copying, including developing photographs. (§ 63-3612(2)(f))
• Selling, renting, or providing tangible personal property with the performance of services as part of the sale (labor "that is a part of the sale"). (§ 63-3612(2)(a), IDAPA 35.01.02.011)

Incidental services and bundled transactions If any labor or service is "a part of the sale" or is bundled (not separately stated) with a retail sale of tangible goods, that portion is generally taxable. This includes charges for installation, assembly, setup, or delivery if not separately itemized. However, repair labor performed after the initial sale of tangible personal property is not taxable provided it is separately stated (IDAPA 35.01.02.011.05).

Digital goods and software Idaho taxes "digital products" (e.g., music, books, movies, games) only if sold to the consumer with a permanent right of use, regardless of delivery method (tangible media or download). Prewritten ("canned") software is taxable only when delivered on tangible media. Custom software and SaaS delivered electronically are generally not taxable. Charges for streaming/subscription access (with no permanent transfer of right of use) are not subject to sales tax as digital products (IDAPA 35.01.02.123.03).

Non-taxable services Professional services (legal, medical, consulting), information services, data processing, personal services (unless listed above), and most repair/labor services are not taxable unless separately made part of a statutory taxable category.

For legal definitions, consult Idaho Code § 63-3612 for retail sale and taxable transaction types; Idaho Admin. Code r. 35.01.02.011 for additional rules on bundled sales and labor classification; and Commission guidance for digital goods policy.

Source: Idaho Code § 63-3612 Source: Idaho Admin. Code r. 35.01.02.011 Source: Idaho Admin. Code r. 35.01.02.123 Source: Idaho State Tax Commission – Collecting Sales Tax in Idaho

General situs rule for local sales tax in resort cities Idaho uses destination-based sourcing for sales and local-option resort city sales taxes. Per Idaho Admin. Code r. 35.01.01.540 and Idaho State Tax Commission guidance, a sale is sourced to Idaho if tangible personal property is received by the purchaser at an Idaho location, regardless of where the order originated or who arranges shipment. Resort cities such as Ketchum, Sun Valley, or Driggs may impose a local-option sales tax on sales delivered to an address within city limits, under authority of Idaho Code § 50-1046 and related city ordinances.

Application to common scenarios

• If goods are ordered online by a customer and delivered by any means (direct ship, third-party carrier, or drop shipment) to an address within a resort city, the general rule is that the local resort city sales tax applies if the delivery location is physically within city boundaries.
• For drop shipments, Idaho Admin. Code r. 35.01.02.022 provides that the seller who is considered the retailer for Idaho purposes (including marketplace facilitators if applicable) must collect sales tax on delivery within Idaho. Local tax would be determined by whether delivery occurs within the eligible city limits.
• Where a P.O. box is used, the determining factor is still the physical place of receipt or delivery. If the P.O. box is located within the city, tax applies; if outside, tax does not.
• If a non-resident customer orders goods online and specifies in-store pickup or delivery within a resort city, local sales tax is generally due so long as the goods are delivered or picked up at a location inside the city.

Dispute and ambiguity scenarios Idaho statutes and administrative rules do not address all potential situs disputes (e.g., delivery to a third-party warehouse or ambiguous drop shipment routing) for purposes of local-option sales tax. In disputed cases—including the use of forwarding services, ambiguous delivery records, or where multiple jurisdictions might claim situs—neither state law nor DOR guidance resolves the issue with specificity. Idaho resort city ordinances reviewed (e.g., Ketchum and Sun Valley) reinforce the delivery-within-city-limits standard, but do not address all fact patterns.

Summary For most practical purposes, the controlling factor for Idaho resort city local-option sales tax is the physical location at which the purchaser or their agent takes delivery. Sellers should rely on delivery address and records, and should consult with city officials or the Idaho State Tax Commission for ambiguous or complex delivery scenarios.

Source: Idaho Admin. Code r. 35.01.01.540 Source: Idaho Admin. Code r. 35.01.02.022 Source: Idaho Code § 50-1046

Not yet human confirmed. Section explicitly notes areas without controlling authority. Practitioners should confirm city-by-city operational policy.

Idaho sales and use tax applies to digital products based on how the Department of Revenue (Idaho State Tax Commission, ISTC) currently interprets the statutes and regulations regarding tangible personal property. Idaho statute defines tangible personal property to include “personal property that may be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses,” but does not explicitly enumerate digital products (Idaho Code § 63-3612).

Permanent right to use: primary taxable category Per current ISTC practice, retail sales of digital goods—including books, music, movies, or games—are taxable only if the purchaser receives a permanent right to use the product. The ISTC’s "Collecting Sales Tax in Idaho" guide states, “You must collect sales tax if you sell... digital books, videos, music, or games where the buyer has a permanent right to use them, regardless of how they’re delivered.” Downloadable e-books, music, or movies with permanent rights to the buyer, whether provided via tangible storage media (CD, DVD) or electronically (download, direct device transfer), are treated as taxable tangible personal property under current departmental policy.

Streaming, subscriptions, SaaS, and electronically delivered software By contrast, if the purchaser is only granted access to stream or otherwise consume digital content on a temporary basis without a permanent right, the transaction is not treated as a sale of tangible personal property, and sales tax is not collected on the charges. According to the same ISTC guidance: “You don’t collect sales tax on fees for streamed digital content or for subscriptions to digital books, videos, music, or games, when the customer only has a right to use the content for a limited time.”

Software delivered on tangible media (e.g., physical disc or drive) is taxable as tangible personal property. However, the ISTC and Idaho regulation (IDAPA 35.01.02.056) distinguish between tangible and intangible delivery: “Photographs, negatives, artwork... are taxable when delivered in tangible form and not taxable when transferred only electronically.” Though this rule references photographs and artwork rather than software, the ISTC publications clarify their treatment extends to general digital products and software delivered electronically (downloaded or accessed by code). Custom software and SaaS (software as a service, where no permanent software copy is transferred) are not listed as taxable in current ISTC guidance and are generally not subject to sales tax unless statutes or rules change.

Departmental position and statutory authority To date, Idaho has not adopted legislation explicitly taxing SaaS, streaming media, or e-books where there is no permanent transfer of a digital file or license. Enforcement is based primarily upon ISTC published practice as reflected in their retailer guides and the general definition of tangible personal property under Idaho Code § 63-3612. Practitioners should be alert to statute or policy changes, as digital product classifications remain a dynamic area and the ISTC guidance carries the weight of departmental practice, rather than explicit statutory authority for some digital goods.

Source: Idaho State Tax Commission, Collecting Sales Tax in Idaho Source: Idaho Code § 63-3612 Source: Idaho Admin. Code r. 35.01.02.056

In Idaho, separately stated shipping, transportation, and delivery charges on retail sales of tangible personal property are not subject to sales tax when the charges are for delivery to the customer—regardless of whether delivered by the seller, a common carrier, or a third-party delivery service. Handling charges are non-taxable only when separately stated in connection with a non-taxable delivery charge. If shipping, delivery, or handling charges are not separately stated, or are bundled with the sale price, the entire amount becomes subject to tax.

Idaho Code defines “sales price” as excluding “transportation and handling charges to the consumer,” and Idaho Administrative Rule 35.01.02.061 (IDAPA 35.01.02.061) is the controlling regulation. It provides that shipping or delivery charges made to the customer (whether performed by the seller or a common carrier) are excludable from the sales price if separately stated on the invoice at the time of sale. This includes deliveries by any means, as long as the charge is for transportation after the sale, to the customer. Conversely, “freight-in” or delivery charges to get inventory to the seller are always part of the taxable sales price. If the invoice lumps delivery and product together (i.e., not separately stated), the full amount is taxable.

Examples in Rule 061 illustrate: (a) A retailer’s truck delivers goods to an Idaho customer and charges a separately stated delivery fee—delivery charge is not taxable. (b) If a single lump sum is charged for goods and delivery, with no separate statement, the total charge is taxable. (c) Delivery by a common carrier, third-party courier, or the retailer is treated the same—with post-sale, separately stated, delivery excludable from the sales price.

Source: Idaho Admin. Code r. 35.01.02.061 Source: Idaho Admin. Code r. 35.01.02.011