1. BuyING FOR RESALE: Buyers must have an Idaho seller's permit number unless they are wholesalers who make no retail sales or out-of-state retailers with no Idaho business presence (e.g. physical location, representatives, or employees, etc.). An Idaho seller's permit number has nine digits. For example,
000123456. If the number contains an inappropriate number, such as a federal Employer Identiication Number, the certiicate isn't valid. To verify a seller's permit number, contact the Tax Commission or visit our
Web site at tax.idaho.gov.
2.PROduCER EXEMPTIONS: Businesses that produce products for resale can buy goods that are directly and primarily used in the production process without paying tax. Loggers, broadcasters, and publishers of newspapers that are free to the public (with
at least 10% informational content, not ads) are granted a similar exemption. However, a seller must charge these buyers sales tax on any of the following:
•A hand tool with a unit cost of $100 or less
•Transportation equipment and supplies
•Goods used in selling/distribution
•Janitorial or cleaning equipment or supplies
•Maintenance or repair equipment and supplies
•Ofice equipment and supplies
•Any licensed motor vehicle or trailer and parts
•Aircraft and parts
•Recreational vehicle (e.g. snowmobile, ATV, off-road motorcycle, camper, travel trailer)
•Goods that become improvements to real property (e.g. fence posts)
SELLER: You may stamp or imprint a Producer Exemption Claim on the front of your invoice. If customers ill in their exemption claim on a stamped or imprinted statement each time you make an exempt sale to them, you don't have to keep a form ST-101 on ile for them. Contact the Tax Commission to get the required language for the
3.EXEMPT BuyERS: These buyers are exempt from tax on all purchases.
Hospitals: Only licensed nonproit hospitals qualify.
Nursing homes or similar institutions don't.
Schools: Only nonproit schools qualify, including colleges and universities; primary, secondary, and charter schools; and the Idaho Digital Learning Academy. Schools primarily teaching subjects like business,
dancing, dramatics, music, cosmetology, writing, and gymnastics don't qualify. Auxiliary organizations, such
as parent-teacher associations and alumni groups, don't qualify.
Museums: Only nonproit museums qualify. A museum collects, preserves, and displays objects and information to help the public interpret the past and present and to explore the future. Examples include institutions that display science, history, art, and culture.
Centers for Independent Living: To qualify, nonresidential centers must be run by disabled persons and provide independent living programs to people with various disabilities.
Qualifying Health Organizations:
American Cancer Society
American Diabetes Association
American Heart Association
American Lung Association of Idaho
Arc, Inc., The
Children's Home Society of Idaho
Family Services Alliance of Southeast Idaho
Idaho Community Action Agency
Idaho Cystic Fibrosis Foundation
Idaho Diabetes Youth Programs
Idaho Epilepsy League
Idaho Primary Care Association and its Community
Idaho Ronald McDonald House
Idaho Women's and Children's Alliance
March of Dimes
Mental Health Association
Muscular Dystrophy Foundation
National Multiple Sclerosis Society
Rocky Mountain Kidney Association
Special Olympics Idaho
United Cerebral Palsy
Government: Only the federal government and Idaho state, county, or city government qualify. Sales to other states and their political subdivisions are taxable.
4.CONTRACTOR EXEMPTIONS: Three exemptions apply to contractors. In each case, a contractor must
list the job location, project owner, and whether the exemption claim applies to a speciic invoice or purchase order, or to all purchases for a speciic job number.
Nontaxing State: Construction materials for a job in a nontaxing state are exempt from Idaho sales tax. This exemption applies only to materials that will become part of real property and only if the contractor isn't subject to a use tax or a similar tax in the other state. Jobs in Oregon, Montana, and Alaska qualify, as do some jobs in Washington.
Agricultural Irrigation: Irrigation equipment and materials for an agricultural irrigation project are exempt. An irrigation system for a golf course or a residence doesn't qualify.
Production Equipment: A contractor who installs production equipment for a producer/manufacturer can buy the materials for the equipment exempt from tax. This exemption doesn't apply to materials that become part of real property.