IDAPA 35.01.02.052 — SALE OF TANGIBLE PERSONAL PROPERTY RELATING TO FUNERAL SERVICES (RULE

052).
Sections 54-1103, 63-3609, 63-3612, 63-3613, 63-3622, 63-3622U, Idaho Code
01.
In General. The sale of tangible personal property relating to funeral services by a licensed funeral
establishment is exempt from tax.
(3-31-22)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 053
Page 47
02.
Sales by Licensed Funeral Directors. The exemption applies only when, at the time of sale, the
seller is a person holding a valid funeral director's license issued pursuant to the authority of Title 54, Chapter 11,
Idaho Code. A sale made by any seller not so licensed is not exempt under this provision. For example, a casket sold
by a licensed funeral director as part of a funeral service is exempt. The funeral director's purchase of the casket is a
purchase for resale and, therefore, excluded from the tax. The purchase of a memorial marker is not an integral part of
the funeral service. Accordingly, it is not included within the exemption for tangible personal property related to a
funeral service. The purchase of a memorial marker, therefore, is a taxable transaction regardless of whether it is sold
by a licensed funeral director or by another. Sales of tombstones and grave markers, which are embedded in the sod or
set on foundations, are taxable. The retail selling price includes the charge for cutting, shaping, polishing and
lettering.
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03.
Purchases by Licensed Funeral Directors. The exemption does not include the sales to and
purchases by funeral directors of equipment and supplies used and consumed by funeral directors in the course of
providing funeral services. The funeral director's purchase of equipment and supplies used for embalming and
preparing bodies for burial and all other tangible personal property used or consumed by the funeral director in the
course of his business operations to which title does not pass from the funeral director is taxable.
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04.
Caskets, Vaults, and Burial Receptacles. Caskets, vaults and burial receptacles are exempt when
sold by a licensed funeral director as a part of funeral services, even though they may be improvements to real
property. The funeral director is not a person engaged in improving real property within the meaning of Section 63-
3609(a), Idaho Code; and, therefore, his purchase of these items is not taxable. However, the construction of a
building for use as a mausoleum is an improvement to real property and the sale or use of the materials for the
construction of the mausoleum creates a taxable incident and is taxed in the same manner as other persons improving
real property. See Rule 012 of these rules.
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05.
Use Tax. When licensed funeral directors purchase equipment and supplies from suppliers who do
not collect and remit Idaho sales tax, the funeral directors will be required to report and remit use tax on their taxable
purchases.
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06.
Documenting Purchases for Resale. Funeral directors purchasing tangible personal property for
resale will be required to document the purchase for resale by providing their seller with a resale certificate. See Rule
128 of these rules. The purchase by the funeral director of such items as caskets and special clothing is a purchase for
resale, even though the sale of the same property by the funeral director is exempt.
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07.
Seller's Permit Required. A funeral director is to apply for and maintain a valid seller's permit.
The seller's permit number and sales tax returns are used to report use tax on those items which are subject to use tax.
The funeral director should also report sales tax on the isolated retail sales of tangible personal property which may
be made but which are not related to the providing of any funeral service.
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