IDAPA 35.01.09.013 — BREAKAGE OR SPOILAGE (RULE 013)

Sections 23-1051, 23-1319, Idaho Code
01.
Percentage Method. When a beer or wine container is damaged, contents spoiled, or is otherwise
unfit for sale, the beer wholesaler or wine distributor may claim a percentage deduction of their total inventory
purchases during the reporting period when the breakage or spoilage occurred. The taxpayer may claim a deduction
without prior written approval when adequate records are maintained to verify actual breakage or spoilage. The
maximum percentage deductions are one-half of one percent (0.50%) for beer and three-quarters of one percent
(0.75%) for wine.
(4-6-23)
a.
The Tax Commission may revoke the use of the percentage method for any taxpayer at any time.
The Tax Commission will notify the taxpayer in writing that future destructions of breakage or spoilage will require
written approval from the Tax Commission.
(4-6-23)
b.
Any taxpayer who has received written notice revoking the percentage method must file the
destruction request form required by the Tax Commission.
(4-6-23)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.09
Idaho State Tax Commission
Idaho Beer & Wine Taxes Administrative Rules
Section 014
Page 5
02.
Reporting Destruction or Spoilage. Taxpayers will report the destruction or spoilage in the
manner and form required by the Tax Commission when claiming breakage or spoilage exceeding the maximum
percentages allowed or the Tax Commission revokes the percentage method.
(4-6-23)
03.
Deduction for Breakage or Spoilage. A deduction may be claimed by the taxpayer for breakage
or spoilage when reporting beer or wine tax due.
(4-6-23)