IDAPA 35.01.02.088 — SALE OR PURCHASE OF MATTER USED TO PRODUCE HEAT BY BURNING (RULE 088)

Sections 63-3612, 63-3613, 63-3622, 63-3622G, Idaho Code
01.
Scope. Matter used to produce heat by burning includes natural gas, liquefied propane, coal, wood,
oil, petroleum, and their by-products.
(3-31-22)
02.
Limitation. The phrase used to produce heat by burning means the act of incineration of materials
defined in Subsection 088.01 of this rule in a furnace or similar device for the purpose of raising or maintaining the
temperature in an enclosed space, dwelling, or building including a building under construction, and includes heating
water and cooking. Heating fuel delivered in bulk to a dwelling or building for this purpose and properly identified as
such by the vendor in his books and records, on the delivery ticket, and invoice to the customer relieves the vendor of
the responsibility to obtain a sales tax exemption certificate, from the buyer.
(3-31-22)
03.
Liquefied Propane. Sales of liquefied propane in units of fifteen (15) gallons or less, identified in
the vendor's records as cylinder sales, will be considered to be used to produce heat by burning as defined in
Subsection 088.02 of this rule. These sales will not require that a sales tax exemption certificate be obtained from the
buyer, and is exempt from the tax regardless of the use to which the buyer places the liquefied propane.
(3-31-22)
04.
Documentation of Other Exempt Sales. All other sales of natural gas, liquefied propane, coal,
wood, oil, petroleum, and its by-products are taxable, unless specifically exempted or excluded elsewhere in the Sales
Tax Act. Such exempted or excluded sales are documented in the following manner:
(3-31-22)
a.
If purchased for resale, the vendor obtains a properly executed resale certificate. See Rule 128 of
these rules.
(3-31-22)
b.
If purchased to produce heat by burning as defined in Subsection 088.02 of this rule and not bulk
delivered to the customer by the vendor, the vendor either obtains a properly executed exemption certificate from the
buyer, or requires the buyer to complete a stamped or imprinted statement on the face of the sales invoice containing
the following language:
I certify that the gas I have purchased will be used in a furnace or similar device for the purpose of water
heating, cooking, or raising or maintaining the temperature in an enclosed space, dwelling, or building.
This tax exemption statement qualifies if this statement is signed by the buyer and the name and address of
the buyer is shown on the invoice.
Any person who signs this certificate with the intention of evading payment of tax is guilty of a
misdemeanor.
___________________________________
BUYER'S SIGNATURE
The signature of the buyer on this statement be in addition to any other signature required on the invoice.
(3-31-22)
c.
If the buyer claims an exemption from the tax for reasons other than heat by burning, a properly
executed exemption certificate will need to be obtained. See Rule 128 of these rules.
(3-31-22)