IDAPA 35.01.02.086 — SALES AND PURCHASES BY RELIGIOUS ORGANIZATIONS (RULE 086)

Sections 63-3612, 63-3622, 63-3622J, 63-3622KK, Idaho Code
01.
In General. The Sales Tax Act does not provide a general exemption from sales or use tax for
religious organizations. Other than the exemptions discussed in this rule, sales and purchases by religious
organizations are taxable.
(3-31-22)
02.
Meals Sold by a Church to Members Only. An exemption is provided by Section 63-3622J,
Idaho Code, for the sale of meals by a church to its members at a church function. For the exemption to apply, the
meals have to be sold to members only.
(3-31-22)
a.
If the meal is open to members only, the church can buy the food without paying tax by providing
the vendor with a properly completed exemption certificate or, if the church holds an Idaho seller's permit number, it
may provide the vendor with a properly completed resale certificate. See Rule 128 of these rules.
(3-31-22)
b.
If the meal is open to persons other than members of the church, this exemption does not apply. See
Subsection 086.03 of this rule.
(3-31-22)
c.
Food purchased to prepare meals which are not sold by the church, such as meals for resident
pastors or for nuns living in a convent or associated with a hospital, is taxable.
(3-31-22)
03.
Incidental Sales by Religious Corporations or Societies. Incidental sales by religious
organizations are exempt from sales taxes by Section 63-3622KK, Idaho Code. The exemption applies to sales of
tangible personal property and other sales defined as subject to sales tax by the Idaho Code, including taxes imposed
on providing hotel/motel and campground accommodations. For the exemption to apply, the following conditions
need to be met:
(3-31-22)
a.
If selling tangible personal property, the goods sold either have been taxed when purchased by the
organization or received as a gift.
(3-31-22)
b.
The proceeds from the sales made by the organization are used exclusively in the programs of the
organization which may include any combination of religious worship, education, and recreation.
(3-31-22)
c.
The sale may not be made to the general public in the open market in regular business competition.
(3-31-22)
d.
Example 1: A church has a used clothing store. The items sold are not exempt from the sales tax
because the store makes sales to the general public in regular competition with similar enterprises.
(3-31-22)
e.
Example 2: A church holds an annual pancake breakfast in its basement. The meal is advertised and
open to the public. If the church pays tax on the breakfast ingredients, it is not required to collect sales tax on the sale
of the meals. Although the meal is open to the general public, the church is not in regular competition with other
food-serving enterprises.
(3-31-22)
f.
Example 3: A school owned by a religious corporation sells school supplies and meals only to its
students. If the school pays tax when it purchases these items, it is not required to collect sales tax on the sales to its
students. If, however, the school has a bookstore or cafeteria which is open to the general public, it does collect sales
tax.
(3-31-22)
g.
Example 4: A school owned by a religious corporation sells admissions to its students to attend
athletic events through the sale of activity cards, and also sells admissions to the general public. The school will
collect sales tax on all admission sales. The sale is open to the general public and is in regular competition with other
recreational events to which admissions are charged.
(3-31-22)
04.
Sales of Literature by a Nonprofit Corporation. Literature which is both published and sold by
qualifying nonprofit corporations is exempt from sales tax. Refer to Rule 085 of these rules.
(3-31-22)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 087
Page 82