Idaho Admin. Code r. 35.01.02.043 - SALES PRICE OR PURCHASE PRICE DEFINED
Sections 63-3612 and 63-3613, Idaho Code
01.
Sales Price and Purchase
Price. The term sales price and purchase price may be used
interchangeably. Both mean the price paid by the customer or user to the seller
including: (3-31-22)
a. The cost of
transporting goods to the seller. See Rule
061 of these rules.
(3-31-22)
b. Manufacturer's or
importer's excise tax. See Rule
060 of these rules.
(3-31-22)
c. Services agreed to be
rendered as part of the sale. (3-31-22)
d. Separately stated labor charges to produce
or fabricate made to order goods. See Rule
029 of these rules.
(3-31-22)
02.
Services Agreed to Be Rendered as a Part of the Sale. The sales
and use tax is computed on the sales price of a transaction. The term "sales
price" is defined by Section
63-3613, Idaho Code, to include
"services agreed to be rendered as a part of the sale." The following items are
among those that are part of the sales price and, therefore, may not be
deducted before computation of the sales price. This is not intended to be an
exclusive list of such items: (3-31-22)
a.
Any charges for any services to bring the subject of a sale to its finished
state ready for delivery and in the condition specified by the buyer, including
charges for assembly, fabrication, alteration, lubrication, engraving,
monogramming, cleaning, or any other servicing, customizing or dealer
preparation except those exempted in Section
63-3622OO, Idaho Code.
(3-31-22)
b. Any charge based on
the amount or frequency of a purchase, such as a small order charge or the
nature of the item sold, such as a slow-moving charge for an item not
frequently sold. (3-31-22)
c. Any
commission or other form of compensation for the services of an agent,
consultant, broker, or similar person. (3-31-22)
d. Any charges for warranties, service
agreements, insurance coverage, or other services required by the vendor to be
taken as a condition of the sale. If the sale could be consummated without the
payment of these charges, the charges are not part of the sales price if
separately stated. Also, see Rule
049 of these rules.
(3-31-22)
e. Any fuel surcharges
except those charges which the vendor can document are related only to delivery
of the property to the end customer. (3-31-22)
f. Any environmental or disposal fee except
those fees directly imposed by a governmental agency.
(3-31-22)
03.
Charges Not Included. Sales price does not include charges for
interest, carrying charges, amounts charged for optional insurance on the
property sold, or any financing charge. These various charges may be deducted
from the total sales price if they are separately stated in the contract. In
the absence of a separate statement, it will be presumed that the amount
charged is part of the total sales price. (3-31-22)
04.
Gratuities. When a gratuity
is paid in addition to the price of a meal, no sales tax applies to the
gratuity. A gratuity can be paid voluntarily by the customer or be required by
the seller. A gratuity is also commonly known as a tip. (3-31-22)
a. If a gratuity does not meet all of the
following requirements, the gratuity will be taxable: (3-31-22)
i. It is paid to the service provider of the
meal as additional income to the base wages of the service provider;
(3-31-22)
ii. It is separately
stated on the receipt or be voluntarily paid by the customer; and
(3-31-22)
iii. It is not used to
avoid sales tax on the actual price of the meal. (3-31-22)
b. For the purposes of Subsection
043.04 of this rule, the
following definitions apply: (3-31-22)
i.
Meal. Food or drink prepared for or provided to a customer. (3-31-22)
ii. Service provider. An individual directly
involved in preparing or providing a meal to a customer. This includes, but is
not limited to, the server, the busser, the cook and the bartender. This does
not include individuals who manage or own the company if they are not directly
involved in preparing and providing a meal.
(3-31-22)
05.
Service Charges. Amounts designated as service charges, added to
the price of meals or drinks, are a part of the selling price of the meals or
drinks and accordingly, are included in the taxable sales price, even if the
service charges are made in lieu of tips and paid over by the retailer to his
employees. (3-31-22)
Notes
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