IDAPA 35.01.02.096 — IRRIGATION EQUIPMENT AND SUPPLIES (RULE 096)

Section 63-3622W, Idaho Code
01.
Agricultural Irrigation. The Sales Tax Act exempts all irrigation equipment and supplies which
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 097
Page 86
are used directly for agricultural irrigation. To qualify for the exemption, the irrigation equipment or supplies need to
be used directly and primarily for agricultural irrigation purposes. If the use of the equipment or supplies is only
incidental or only indirectly related to the agricultural irrigation process, the exemption will not apply. Examples
include:
(3-31-22)
a.
An off-highway motorbike or all-terrain vehicle, ATV, used to transport men or equipment is
indirectly related to the irrigation process.
(3-31-22)
b.
Irrigation boots worn to protect the irrigator are incidental to the process and are taxable. (3-31-22)
02.
Nonagricultural Irrigation Equipment or Supplies. Irrigation equipment or supplies used for
any purpose other than agriculture are not exempt. For example, irrigation pipelines or sprinkler systems used on a
golf course are taxable.
(3-31-22)
03.
Real Property Improvements. The exemption applies regardless of whether the equipment
becomes a part of real estate. It is not necessary to distinguish between pipeline which retains its identity as tangible
personal property and pipeline which may become incorporated into real property such as buried mainline pipe.
(3-31-22)
04.
Title to Equipment. The exemption applies regardless of whether the equipment is installed by a
farmer, a contractor, or a subcontractor. The incidence of tax will not turn upon the determination of whether title to
the irrigation equipment passed at the time of sale or subsequent to installation.
(3-31-22)
05.
Exemption Certificate. A buyer's right to the exemption is documented by the use of an
exemption certificate in the manner prescribed by Rule 128 of these rules.
(3-31-22)