Idaho: Temporary Sales Tax Permits and Local Option Taxes
- May 5, 2014 | Gail Cole
Update, 12.8.2014: The Idaho State Tax Commission has updated information regarding requirements for a temporary sales tax permit. Not much has changed, but sellers are reminded that the Nez Perce County local option sales tax expired effective October 1, 2014. Additional information regarding temporary seller's permits in Idaho is available here.
Do sellers that only make periodic sales have to get a sellers permit? In most instances they do, although not all states handle temporary sales in the same way. To remove confusion, the Idaho State Tax Commission has published information explaining when temporary sales tax permits are required.
A temporary seller’s permit is “designed for one-time events such as concerts, fund-raisers, and bazaars.” Temporary sellers may obtain three temporary seller’s permits per year; those wishing to sell at more than three one-day events should obtain a regular seller’s permit.
Yard sales follow different rules. Two home yard sales per calendar year are permitted “without registering as a retailer and getting a seller’s permit to collect sales tax.” To qualify for this exemption from Idaho sales tax, all of the following requirements must be met:
- The sale must last no more than a few days;
- The sale must take place on your premises;
- You cannot sell the same or similar items that you sell in a business;
- You cannot sell items specifically purchased for resale; and
- You must own the items you offer for sale (no consignment sales).
If all of the above requirements are not met, sellers must obtain either a temporary seller’s permit or a regular seller’s permit.
Temporary seller’s permits
- Valid for one event only;
- Valid up to 90 days;
- Limited to three per year;
- Return must be filed, even if no sales were made; and
- Return must be filed within 15 days of the last day of the event.
Regular seller’s permits
- Valid until cancelled;
- Valid for multiple events;
- Return must be filed even if no sales were made during a tax period; and
- Return must be filed regularly, during certain periods.
Tax exempt organizations such as churches and nonprofits are not exempt from collecting sales tax “unless the event meets specific criteria…. Churches and nonprofits must get a seller’s permit if they make retail sales.”
How much tax to collect?
The rate of tax collected during a special event is the tax rate of the location of the event: the Idaho state sales tax plus any applicable local sales taxes. In addition to state and local rates, local option sales taxes may apply.
In Nez Perce County, sellers must collect an additional 0.5% sales tax. Cities in this county include Culdesac, Lapwai, Leland, Lenore, Lewiston and Peck.
In the City of Ketchum, additional local sales tax depends upon the product sold:
- Room sales: 3%
- Liquor by the drink sales: 3%
- Other retail sales (including building materials): 2%
Ketchum’s additional local sales tax does not apply to groceries or motor vehicles.
Local option sales taxes
Several other localities in Idaho have opted to impose local option taxes, called this because the taxes are approved by voters. In most cases, all transactions taxable under the Idaho Sales and Use Tax Act are subject to local taxes in addition to the state sales tax. However, resort cities may choose what is subject to tax, and some “limit the local sales tax to lodging, alcohol by the drink, and restaurant food.”
The following cities have local option sales taxes:
- Ketchum (see above)
- Lava Hot Springs
- Sun Valley
The following counties have local option sales taxes:
- Nez Perce County (see above)
The following auditorium districts have local option sales taxes:
- Greater Boise Auditorium District
- Idaho Falls Auditorium District
- Pocateelo/Chubbuck Auditorium District
Visit the Idaho State Tax Commission website for additional information about local option sales taxes.
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