Imposition and rate of the use tax — Exemptions

Official textlegislature.idaho.govlast amended 202323 subsections

63-3621. (1) An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property acquired on or after October 1, 2006, for storage, use, or other consumption in this state at the rate of six percent (6%) of the value of the property, and a recent sales price shall be presumptive evidence of the value of the property unless the property is wireless telecommunications equipment, in which case a recent sales price shall be conclusive evidence of the value of the property.

(2) Every person storing, using, or otherwise consuming, in this state, tangible personal property is liable for the tax. His liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer maintaining a place of business in this state or engaged in business in this state given to the purchaser is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. A retailer shall not be considered to have stored, used, or consumed wireless telecommunications equipment by virtue of giving, selling, or otherwise transferring such equipment at a discount as an inducement to a consumer to commence or continue a contract for telecommunications service.

(3) Every retailer engaged in business in this state and making sales of tangible personal property for the storage, use, or other consumption in this state, not exempted under section 63-3622, Idaho Code, shall, at the time of making the sales or, if storage, use, or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use, or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the state tax commission.

(4) The provisions of this section shall not apply when the retailer pays sales tax on the transaction and collects reimbursement for such sales tax from the customer.

(5) Every retailer engaged in business in this state or maintaining a place of business in this state shall register with the state tax commission and give the name and address of all agents operating in this state the location of all distributions or sales houses or offices or other places of business in this state and such other information as the state tax commission may require.

(6) For the purpose of the proper administration of this act and to prevent evasion of the use tax and the duty to collect the use tax, it shall be presumed that tangible personal property sold by any person for delivery in this state is sold for storage, use, or other consumption in this state. The burden of proving the sale is tax-exempt is on the person who makes the sale, unless he obtains from the purchaser a resale certificate to the effect that the property is purchased for resale or rental. It shall be presumed that sales made to a person who has completed a resale certificate for the seller’s records are not taxable and the seller need not collect sales or use taxes unless the tangible personal property purchased is taxable to the purchaser as a matter of law in the particular instance claimed on the resale certificate.

(a) A seller may accept a resale certificate from a purchaser prior to the time of sale, at the time of sale, or at any reasonable time after the sale when necessary to establish the privilege of the exemption. The resale certificate relieves the person selling the property from the burden of proof only if taken from a person who is engaged in the business of selling or renting tangible personal property and who holds the permit provided for by section 63-3620, Idaho Code, or who is a retailer not engaged in business in this state and who, at the time of purchasing the tangible personal property, intends to sell or rent it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or used for some other purpose. Other than as provided elsewhere in this section, when a resale certificate, properly executed, is presented to the seller, the seller has no duty or obligation to collect sales or use taxes in regard to any sales transaction so documented, regardless of whether the purchaser properly or improperly claimed an exemption. A seller so relieved of the obligation to collect tax is also relieved of any liability to the purchaser for failure to collect tax or for making any report or disclosure of information required or permitted under this chapter.

(b) The resale certificate shall bear the name and address of the purchaser, shall be signed by the purchaser or his agent, shall indicate the number of the permit issued to the purchaser or that the purchaser is an out-of-state retailer, and shall indicate the general character of the tangible personal property sold by the purchaser in the regular course of business. The certificate shall be substantially in such form as the state tax commission may prescribe.

(c) If a purchaser who gives a resale certificate makes any storage or use of the property other than retention, demonstration, or display while holding it for sale in the regular course of business, the storage or use is taxable as of the time the property is first so stored or used.

(7) Any person violating any provision of this section is guilty of a misdemeanor and punishable by a fine not in excess of one hundred dollars ($100), and each violation shall constitute a separate offense.

(8) It shall be presumed that tangible personal property shipped or brought to this state by the purchaser was purchased from a retailer for storage, use, or other consumption in this state.

(9) It shall be presumed that tangible personal property delivered outside this state to a purchaser known by the retailer to be a resident of this state was purchased from a retailer for storage, use, or other consumption in this state. This presumption may be controverted by evidence satisfactory to the state tax commission that the property was not purchased for storage, use, or other consumption in this state.

(10) When the tangible personal property subject to use tax has been subjected to a general retail sales or use tax by another state of the United States in an amount equal to or greater than the amount of the Idaho tax, and evidence can be given of such payment, the property will not be subject to Idaho use tax. If the amount paid to the other state was less, the property will be subject to use tax to the extent that the Idaho tax exceeds the tax paid to the other state. For the purposes of this subsection, a registration certificate or title issued by another state or subdivision thereof for a vehicle or trailer or a vessel as defined in section 67-7003, Idaho Code, shall be sufficient evidence of payment of a general retail sales or use tax.

(11) The use tax imposed by this section shall not apply to the use by a nonresident of this state of a motor vehicle registered or licensed under the laws of the state of his residence and not used in this state more than a cumulative period of time totaling ninety (90) days in any consecutive twelve (12) months and if none of the buyers listed on the purchase, registration, or title documents are Idaho residents. A nonresident business entity will be held to the same requirements as a nonresident individual to qualify for the exemption provided in this subsection, except that the nonresident business entity also must not be formed under the laws of the state of Idaho. The use tax herein shall also not apply to any use of a motor vehicle registered or licensed under the laws of the state of residence of a nonresident student while such nonresident student is enrolled as a full-time student in an institution of postsecondary education that is both physically located in Idaho and recognized as accredited by the state board of education.

(12) The use tax imposed by this section shall not apply to the use of household goods, personal effects, and personally owned vehicles or personally owned aircraft by a resident of this state if such articles were acquired by such person in another state while a resident of that state and primarily for use outside this state and if such use was actual and substantial; however, if an article was acquired less than ninety (90) days prior to the time he entered this state, it will be presumed that the article was acquired for use in this state and that its use outside this state was not actual and substantial. The use tax imposed by this section shall not apply to the use of household goods, personal effects, and personally owned vehicles or personally owned aircraft by active duty military personnel temporarily assigned in this state and spouses who accompany them if such articles were acquired prior to receipt of orders to transfer to Idaho or ninety (90) days prior to moving to Idaho, whichever time period is shorter. For purposes of this subsection, "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code. For purposes of this subsection, wherever the term "individual" appears in section 63-3013 or 63-3013A, Idaho Code, the term includes a natural person or a grantor trust as described in sections 673 through 678 of the Internal Revenue Code.

(13)(a) The use tax imposed by this section shall not apply to the storage, use, or other consumption of tangible personal property that is or will be incorporated into real property and has been donated to and has become the property of:

(i) A nonprofit organization as defined in section 63-3622O, Idaho Code;

(ii) The state of Idaho; or

(iii) Any political subdivision of the state.

(b) This exemption applies whether the tangible personal property is incorporated in real property by the donee, a contractor, a subcontractor of the donee, or any other person.

(14) The use tax imposed by this section shall not apply to tastings of food and beverages, including but not limited to wine and beer. For the purposes of this subsection, a tasting of wine and beer shall be defined as the maximum serving allowed by state or federal laws for such occasions provided to a potential customer, at no charge, at a location where like or similar beverages are sold. For nonalcoholic beverages and food, a tasting shall be defined as a sample from a unit available for sale at the tasting location.

(15) The use tax imposed by this section shall not apply to donations of food or beverages, or both, to individuals or nonprofit organizations. For the purposes of this section, "nonprofit organization" means those nonprofit entities currently registered with the secretary of state pursuant to section 30-30-102, Idaho Code.

(16) The use tax imposed by this section shall not apply to a retailer supplying prepared food or beverages free of charge to its employee when that retailer sells prepared food or beverages in its normal course of business.

Amendment history

63-3621, added 2003, ch. 318, sec. 8, p. 877; am. 2006, 1st Ex. Sess., ch. 1, sec. 19, p. 61; am. 2009, ch. 91, sec. 1, p. 265; am. 2011, ch. 18, sec. 1, p. 55; am. 2011, ch. 278, sec. 1, p. 756; am. 2012, ch. 55, sec. 1, p. 154; am. 2013, … m. 2013, ch. 113, sec. 1, p. 272; am. 2014, ch. 113, sec. 1, p. 322; am. 2015, ch. 226, sec. 1, p. 693; am. 2020, ch. 82, sec. 36, p. 206; am. 2021, ch. 205, sec. 1, p. 556; am. 2022, ch. 19, sec. 1, p. 37; am. 2023, ch. 47, sec. 1, p. 191.

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