IDAPA 35.01.06.016 — EXEMPTIONS (RULE 016)

Sections, 63-3612(g), 63-3624, 63-3622O, 67-4718, 67-4917B & C, 63-1804, Idaho Code.
01.
Exemptions. Except as otherwise provided in this rule, all charges for room occupancy which are
exempt from Idaho sales tax are also exempt from the room sales tax.
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02.
Exempt Entities. Rooms or campground spaces furnished to governmental entities, educational
institutions, or hospitals are exempt from the taxes if and only if the charge for the room or campground space
occupancy is billed directly to and paid directly by the governmental entity, educational institution, or hospital.
(3-31-22)
a.
"Governmental entity" includes the federal government and any of its instrumentalities, the state of
Idaho and any of its agencies or any city, county or taxing district of the state of Idaho. Governmental entity does not
include states other than Idaho or their political subdivisions.
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b.
"Educational institution" means any nonprofit colleges, universities, primary, and secondary
schools in which systematic instruction in the usual branches of learning is given. The exemption does not include
educational institutions that operate for profit or schools primarily teaching special accomplishments, such as
business or cosmetology.
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c.
"Hospital" means a nonprofit institution licensed as a hospital by any state. This exemption does
not include hospitals that operate for profit, nursing homes, or similar institutions.
(3-31-22)
d.
"Billed directly to" means a contractual agreement between the facility operator and the
governmental entity, educational institution, or hospital whereby the charge for the room or campground space is
directed to and is the responsibility of the governmental agency or institution. "Billed directly to" also includes credit
card charges billed to an account opened by an exempt agency, educational institution, or hospital.
(3-31-22)
e.
"Paid directly by" means a remittance tendered directly by the governmental entity, educational
institution, or hospital to the facility operator. It does not include a payment by the governmental entity or institution
to an employee or agent for reimbursement of expenses incurred during business travel. However, "paid directly by"
does include payments made by an exempt entity to a financial institution for credit card charges made on a charge
account in the name of the exempt entity with a credit card issued to the entity itself and not to any individual or
employee.
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f.
Credit cards issued to employees of governmental agencies are NOT considered to be billed
directly to and paid directly by the governmental entity when the employee is responsible for making payment to the
credit card company.
(3-31-22)
03.
Continuous Occupancy Exemptions. All hotel/motel room sales and campground space rentals
are presumed to be short term unless evidence can be provided documenting continuous occupancy. Continuous
occupancy means maintaining residency under the terms of a lease or similar agreement for a continuous period of
time by the same individual or individuals. The continuous occupancy exemption does not apply when a room or
campground space is furnished to a business enterprise that rotates numerous employees as occupants of the room or
space with no one (1) employee remaining continuously for the minimum number of days required to meet the
continuous stay requirements.
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a.
Hotels and Motels. The room charges are exempt from the following taxes when continuous
residency is maintained in a hotel or motel by the same individual or individuals for a period that exceeds thirty (30)
days:
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i.
Sales and Use Tax;
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ii.
Travel and Convention Tax; and
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iii.
Auditorium or Community Center District Tax if the hotel or motel is located within the boundaries
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.06 - Hotel/Motel Room & Campground
State Tax Commission
Sales Tax Administrative Rules
Section 017
Page 6
of the auditorium or community center district.
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b.
Campgrounds. The rental of a campground space is exempt from the following taxes when
continuous residency is maintained by the same individual or individuals in a campground space for a period that
exceeds thirty (30) days:
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i.
Sales and Use Tax;
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ii.
Travel and Convention Tax; and
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iii.
Auditorium or Community Center District Tax does not apply to campground spaces. See
Subsection 016.05 of this rule.
(3-31-22)
c.
This can be documented by a lease or other documentation that shows the period the occupancy is
maintained. A guest registration card verifiable by a billing document is acceptable documentation. See Rule 017 of
these rules for documentation requirements.
(3-31-22)
04.
Rooms Rented for Purposes Other Than Sleeping. Travel and Convention tax applies only to
rooms rented to an individual as a place to sleep. The tax does not apply to rooms rented for other purposes, such as
for meetings. However, both the state sales tax and the Auditorium or Community Center District tax apply to rooms
rented by a hotel or motel for purposes other than sleeping. Rooms supplied with beds are presumed to be rented for
the purpose of sleeping unless the contrary is established by the operator. Rooms, other than dormitory rooms, rented
by an educational institution for purposes other than sleeping, are not taxable as a sale of lodging; however, it is
possible that renting such a room may be taxable as a fee for the privilege of using a facility for a recreational
purpose.
(3-31-22)
05.
Campgrounds Exempted. The Auditorium District or Community Center tax does not apply to
campground charges. The state sales tax and the travel and convention tax apply to the charge for campground
spaces. Sales of spaces in campgrounds owned or operated by the state of Idaho, its agencies or political subdivisions
are subject to the state sales tax but not the travel and convention tax.
(3-31-22)
06.
Foreign Diplomats. The United States Government grants immunity from state taxes to diplomats
from certain foreign countries. The diplomat is issued a federal tax exemption card by the U.S. Department of State.
The card bears a photograph of the holder, a federal tax exemption number, and specific instructions as to the extent
of the exemption granted to the diplomat. Vendors document an exempt charge to a foreign diplomat by:
(3-31-22)
a.
Retaining a photocopy of the front and back of the federal tax exemption card; or
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b.
Recording for their permanent record the name of the bearer, the mission represented, the federal
tax exemption number displayed on the card, the date of expiration, and the nature of the exemption granted to the
diplomat.
(3-31-22)
07.
Direct Pay Authority. A taxpayer granted direct pay authority as provided by IDAPA 35.01.02,
"Idaho Sales and Use Tax Administrative Rules," Rule 112 may not use this authority for hotel/motel room or
campground space charges. State sales tax, Travel and Convention tax, and, when applicable, Auditorium or
Community Center District tax is charged by the hotel, motel, or campground and paid to the hotel, motel, or
campground by the direct pay authority permittee.
(3-31-22)