Idaho Admin. Code r. 35.01.02.021 - MULTI-LEVEL MARKETING FIRMS
Sections 63-3610, 63-3612, Idaho Code
01.
Multi-Level Marketing Firm.
A multi-level marketing firm is an organization that can convey to a person the
right to sell a product and the right to convey those rights to another person.
(3-31-22)
02.
Agents.
The Idaho Sales Tax Act provides the Commission with the authority to view
salesmen, representatives, peddlers, or canvassers as agents of the dealers or
distributors under whom they operate or from whom they obtain the tangible
personal property sold by them, even if such persons are independent
contractors. The Commission may require the dealers or distributors to collect
and remit the sales tax on behalf of such agents. (3-31-22)
03.
Requirement of Multi-Level
Marketing Firms to Collect Tax. The Commission may, upon the request of
the multi-level marketing firm or when it finds evidence of material failure to
comply with the Idaho Sales Tax Act or these rules and when the Commission
determines that it is necessary for the efficient administration of such act,
require multi-level marketing firms to collect the sales and use tax on all
taxable property sold by the multilevel marketing firm through such agents,
whether or not the agents are independent contractors. (3-31-22)
04.
Notification. The
Commission, upon determination that a multi-level marketing firm is required to
collect the tax on taxable sales through its agents, will provide to the
multi-level marketing firm, by certified mail, a notification of the sales and
use tax remittance requirements imposed by the Commission. (3-31-22)
a. Beginning with the first reporting period
after receipt of the notice, the multi-level marketing firm is responsible for
collecting and remitting tax on all sales made by its agents.
(3-31-22)
b. A taxpayer desiring to
seek a redetermination of the notice must file a written protest with the
Commission within the time limit provided in Section
63-3631, Idaho Code and under the
procedures provided by IDAPA 35.02.01.320 - 328, "Tax Administration and
Enforcement Administrative Rules." (3-31-22)
Notes
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