IDAPA 35.01.02.109 — AMUSEMENT DEVICES (RULE 109)

Section 63-3623B, Idaho Code
01.
Amusement Devices. "Amusement device" means coin, currency, debit card, credit card, prepaid
arcade card, or token operated machines and devices used for amusement or entertainment. This definition includes,
but is not limited to, game machines; pool tables; jukeboxes; electronic games; video or cinematic viewing devices;
crane, rotary, and pusher machines; and similar devices. It does not include vending machines that are used to sell
tangible personal property or other machines or games described in Subsection 109.03 of this rule.
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02.
Requirement to Obtain Permit. The owner or operator of amusement devices obtain a seller's
permit if the owner or operator makes retail sales other than the use of amusement devices. If the owner or operator
does not make such other retail sales, the owner or operator need not obtain a seller's permit, but will obtain an
amusement device permit for each amusement device in service.
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a.
Owners and operators of amusement devices pay a permit fee for every amusement device in
operation. Section 63-3623B(c), Idaho Code, states that the fee may be increased proportionately to any increase in
the tax rate. The formula to calculate the permit fee is seven hundred dollars ($700) x tax rate. For example, at a tax
rate of five percent (5%) the amount of the permit fee is seven hundred dollars ($700) x five percent (5%) = thirty-
five dollars ($35). If the tax rate is six percent (6%), the permit fee will be forty-two dollars ($42). If any change in
the tax rate becomes effective on July 1 of a given year, the charge for the permit fee will change proportionately on
that date also. If a change in the tax rate occurs on a day other than July 1, the permit fee will be changed on the next
July 1 following the change in the tax rate.
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b.
Upon receiving the appropriate payment, the Commission will issue to the owner or operator of one
(1) or more amusement devices, a permit for each amusement device in service. The owner or operator affixes a
separate permit on each amusement device in service. The permit will be affixed to the machine in such a manner that
it is easily visible. Permits are transferable from one person to another after written notice of the transfer is received
and acknowledged by the Commission. Permits may be transferred from an amusement device that is no longer in
service to another amusement device owned or operated by the same person. An amusement device permit is not
valid unless the name and business address of the owner or operator is typed or printed in black ink on the face of the
permit.
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c.
Video amusement devices may have more than one (1) monitor and be designed to be operated
independently by more than one (1) person. In such cases a separate permit is required for each monitor.
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d.
Amusement device permits are renewed annually. Annual permits are valid from July 1 through
June 30 and are renewed on or before July 1 by the owner or operator of the amusement devices. Amusement devices
acquired after July 1 or placed in service before the next July 1 will require the appropriate fee for a full-year permit.
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e.
If an amusement device permit is lost, stolen, or destroyed, an amusement device permit for the
current year will still need to be affixed to every operating amusement device. This may require the purchase of a new
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 110
Page 105
permit. The Commission will not issue free replacement amusement device permits regardless of the reason for the
loss of the permit.
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03.
Other Amusement Machines or Games. Charges for the use of machines or games which do not
meet the definition in Subsection 109.01 are taxable at the prevailing rate times one hundred percent (100%) of the
gross proceeds received for the use of the device. This applies regardless of the method the owner or operator uses to
determine the charge, such as by the hour or by the game. The owner or operator of such amusement machines or
games will obtain a seller's permit if the owner or operator charges for the use of such machines.
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04.
Cross-Reference. See Rule 095 of these rules regarding purchases of Money-Operated Dispensing
Equipment.
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