IDAPA 35.01.02.074 — DONATIONS TO POLITICAL SUBDIVISIONS AND CERTAIN NONPROFIT ORGANIZATIONS

OF TANGIBLE PERSONAL PROPERTY USED FOR IMPROVEMENTS TO REAL PROPERTY (RULE
074).
Sections 63-3609, 63-3612, 63-3613, 63-3621, 63-3622O, Idaho Code
01.
Donated Property. Effective July 1, 1991, there is an exemption from the use tax for the donation
of tangible personal property which is incorporated into real property, when donated to the state of Idaho, political
subdivisions of this state, or a nonprofit organization as defined in Section 63-3622O, Idaho Code. The exemption
applies whether the tangible personal property is incorporated into real property by the donee, a contractor or
subcontractor or any other person.
(3-31-22)
02.
Purchase of Donated Items. This exemption does not apply to sales tax which is applicable to the
purchase of tangible personal property which will be donated to the state of Idaho, its political subdivisions, or
qualified nonprofit organizations, for incorporation into real property.
(3-31-22)
03.
Property Not Incorporated into Real Property. This exemption does not apply to the sales or use
tax applicable to tangible personal property donated to the state of Idaho, its political subdivisions, or qualified
nonprofit organizations when the property donated will not be incorporated into real property.
(3-31-22)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 077
Page 68
a.
Example 1: A concrete company removes from inventory and donates twenty (20) yards of redi-
mix concrete to a nonprofit Idaho college for the footings of a storage building. Another contractor who is donating
labor for erection of the building places the redi-mix concrete. Neither the redi-mix concrete company nor the
contractor owe use tax.
(3-31-22)
b.
Example 2: The same concrete company donates twenty (20) yards of redi-mix concrete to a
nonprofit organization which is not listed in Section 63-3622O, Idaho Code. The concrete company owes use tax on
the cost of the materials removed from inventory for the donation.
(3-31-22)
c.
Example 3: A contractor buys materials from a local lumber yard which they donate to the
nonprofit Idaho college to be used in building a storage building. This contractor pays sales tax on the material
because the law provides exemption only from use tax.
(3-31-22)
d.
Example 4: A local automobile dealer takes three vehicles from inventory and donates them to the
athletic department of an Idaho university. The exemption does not apply. The automobile dealer owes use tax on his
cost of the vehicles because the vehicles will not become improvements to real property.
(3-31-22)