IDAPA 35.01.02.094 — EXEMPTIONS ON PURCHASES BY POLITICAL SUBDIVISIONS, SALES BY THE STATE OF

IDAHO, ITS DEPARTMENTS, INSTITUTIONS, AND ALL OTHER POLITICAL SUBDIVISIONS (RULE
094).
Sections 63-3609, 63-3612, 63-3613, 63-3622, 63-3622O, Idaho Code
01.
In General. This rule governs application of the sales and use tax to governmental
instrumentalities. As used herein, the term governmental instrumentalities means the state of Idaho, its agencies,
departments or institutions and all political subdivisions of the state of Idaho; but does not include other states, their
agencies, departments, or institutions and political subdivisions.
(3-31-22)
02.
Extent of Exemptions. The state and all its agencies, departments and institutions are exempt from
the sales and use tax. This exemption does not extend to corporations, the stock of which is owned in whole or in part
by the state, nor does it extend to private agencies to which the state contributes funds. The exemption only applies in
the case of purchases made directly by the state, its agencies, departments, and institutions.
(3-31-22)
03.
Political Subdivisions. Political subdivisions of this state are also exempt from payment of the
sales and use tax. A political subdivision is a governmental organization which embraces a certain territory organized
for public advantage and not in the interest of private individuals or classes to which has been delegated certain
functions of state government. In addition to this, a political subdivision has the power to levy taxes. Included within
the definition of political subdivisions would be all counties, municipalities, townships, towns and villages, public
school districts, cemetery maintenance districts, fire protection districts, local improvement districts and irrigation
districts. Canal companies and ditch companies do not come within the scope of this exemption.
(3-31-22)
04.
Purchases by Contractors. Contractors are consumers under Idaho tax law. Purchases made by
contractors are taxable even though they are to be applied to use on a state or political subdivision construction
project.
(3-31-22)
05.
Sales by Political Subdivisions. Sales by the state, its departments or institutions, counties, cities,
school districts or any political subdivision are subject to sales tax which is to be collected by the political
subdivision. If taxable sales are made, a permit is required. This permit is to be obtained by each sales outlet or by the
office at which regular and current sales records are maintained. Examples of taxable sales are all sales of tangible
personal property, admission charges, fees to use recreational facilities, recreational program fees, copies of
documents for which a fee is not set by Idaho Code and garbage service when receptacles or dumpsters are provided
by the service and part of the fee represents rental of the receptacle.
(3-31-22)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 095
Page 85
a.
Taxable sales. Taxable sales of tangible personal property will include sales of: code books; books
sold by library, book fairs, etc.; maps; crime prevention signs; calendars; cafeteria sales to employees or the public;
office supplies or any sale to employees; concession stands; trees, shrubs, or bedding plants; items sold to prisoners,
such as cigarettes, candy, pop, etc., through vending machines (tax is to be computed on one hundred seventeen
percent (117%) of acquisition cost if the machine is operated by the political subdivision); chemicals for noxious
weeds; unclaimed property; chemicals for pest control; surplus property-assets; gravel, culverts, or pipe; uniforms to
employees; equipment rentals with no operator; grave markers; rental of other property, golf carts, swimsuits; and
nonresident or resident library cards. See Rule 058 of these rules.
(3-31-22)
b.
Admission charges. Taxable admission charges will include those fees for using golf courses and
swimming pools, for attending athletic events, concerts, fireworks displays, and fund raising events.
(3-31-22)
c.
Use of facilities for recreation. Taxable use of facilities for a recreational purpose will include
receipts from the use of park structures, picnic tables, fair grounds, rodeo grounds, gymnasiums, ball parks,
snowmobile areas and campground areas. Exception: If an individual or organization rents or leases one of these
facilities and charges admission to each person using the facility, tax will not be required on its rental or lease of the
facility. However, the individual or organization will be required to register and apply for a seller's permit number,
under which the tax on the admission will be reported and paid. See Rule 030 of these rules.
(3-31-22)
d.
Recreation program fees. Fees to participate in recreational programs are taxable. Some examples
of these programs are city recreational programs in softball, baseball, basketball and football. If instruction is
included in such activities as tennis, golf or swimming, the tax will not be due on the separately stated instructional
portion of the total fee. If not separately stated, the entire fee is taxable.
(3-31-22)
e.
Garbage service. Garbage service is taxable on that portion of the total charge which is the rental of
the receptacle such as a dumpster. If the statement for service includes the rental of the dumpster or other receptacle
but the rental charge is not separately stated, the entire cost of the service is taxable.
(3-31-22)
f.
The examples cited above are not inclusive.
(3-31-22)
06.
Federal Government. Sales to and purchases by the federal government and its instrumentalities
are not subject to Idaho sales or use taxes except as provided by federal laws or regulations. Federal law also prevents
the state of Idaho from imposing sales tax on any sales by the federal government or its instrumentalities. For
purposes of Idaho sales and use tax, the American Red Cross is an instrumentality of the federal government.
(3-31-22)
07.
Other States. Sales to and purchases by states OTHER than Idaho and their political subdivisions
are taxable if delivery occurs in this state.
(3-31-22)