IDAPA 35.01.02.021 — MULTI-LEVEL MARKETING FIRMS (RULE 021)

Sections 63-3610, 63-3612, Idaho Code
01.
Multi-Level Marketing Firm. A multi-level marketing firm is an organization that can convey to
a person the right to sell a product and the right to convey those rights to another person.
(3-31-22)
02.
Agents. The Idaho Sales Tax Act provides the Commission with the authority to view salesmen,
representatives, peddlers, or canvassers as agents of the dealers or distributors under whom they operate or from
whom they obtain the tangible personal property sold by them, even if such persons are independent contractors. The
Commission may require the dealers or distributors to collect and remit the sales tax on behalf of such agents.
(3-31-22)
03.
Requirement of Multi-Level Marketing Firms to Collect Tax. The Commission may, upon the
request of the multi-level marketing firm or when it finds evidence of material failure to comply with the Idaho Sales
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 022
Page 16
Tax Act or these rules and when the Commission determines that it is necessary for the efficient administration of
such act, require multi-level marketing firms to collect the sales and use tax on all taxable property sold by the multi-
level marketing firm through such agents, whether or not the agents are independent contractors.
(3-31-22)
04.
Notification. The Commission, upon determination that a multi-level marketing firm is required to
collect the tax on taxable sales through its agents, will provide to the multi-level marketing firm, by certified mail, a
notification of the sales and use tax remittance requirements imposed by the Commission.
(3-31-22)
a.
Beginning with the first reporting period after receipt of the notice, the multi-level marketing firm
is responsible for collecting and remitting tax on all sales made by its agents.
(3-31-22)
b.
A taxpayer desiring to seek a redetermination of the notice must file a written protest with the
Commission within the time limit provided in Section 63-3631, Idaho Code and under the procedures provided by
IDAPA 35.02.01.320 - 328, "Tax Administration and Enforcement Administrative Rules."
(3-31-22)