Idaho Admin. Code r. 35.01.02.052 - SALE OF TANGIBLE PERSONAL PROPERTY RELATING TO FUNERAL SERVICES
Sections 54-1103, 63-3609, 63-3612, 63-3613, 63-3622, 63-3622U, Idaho Code
01.
In General. The sale of
tangible personal property relating to funeral services by a licensed funeral
establishment is exempt from tax. (3-31-22)
02.
Sales by Licensed Funeral
Directors. The exemption applies only when, at the time of sale, the
seller is a person holding a valid funeral director's license issued pursuant
to the authority of Title 54, Chapter 11, Idaho Code. A sale made by any seller
not so licensed is not exempt under this provision. For example, a casket sold
by a licensed funeral director as part of a funeral service is exempt. The
funeral director's purchase of the casket is a purchase for resale and,
therefore, excluded from the tax. The purchase of a memorial marker is not an
integral part of the funeral service. Accordingly, it is not included within
the exemption for tangible personal property related to a funeral service. The
purchase of a memorial marker, therefore, is a taxable transaction regardless
of whether it is sold by a licensed funeral director or by another. Sales of
tombstones and grave markers, which are embedded in the sod or set on
foundations, are taxable. The retail selling price includes the charge for
cutting, shaping, polishing and lettering. (3-31-22)
03.
Purchases by Licensed Funeral
Directors. The exemption does not include the sales to and purchases by
funeral directors of equipment and supplies used and consumed by funeral
directors in the course of providing funeral services. The funeral director's
purchase of equipment and supplies used for embalming and preparing bodies for
burial and all other tangible personal property used or consumed by the funeral
director in the course of his business operations to which title does not pass
from the funeral director is taxable. (3-31-22)
04.
Caskets, Vaults, and Burial
Receptacles. Caskets, vaults and burial receptacles are exempt when sold
by a licensed funeral director as a part of funeral services, even though they
may be improvements to real property. The funeral director is not a person
engaged in improving real property within the meaning of Section
63-3609(a), Idaho
Code; and, therefore, his purchase of these items is not taxable. However, the
construction of a building for use as a mausoleum is an improvement to real
property and the sale or use of the materials for the construction of the
mausoleum creates a taxable incident and is taxed in the same manner as other
persons improving real property. See Rule
012 of these rules.
(3-31-22)
05.
Use Tax.
When licensed funeral directors purchase equipment and supplies from suppliers
who do not collect and remit Idaho sales tax, the funeral directors will be
required to report and remit use tax on their taxable purchases.
(3-31-22)
06.
Documenting
Purchases for Resale. Funeral directors purchasing tangible personal
property for resale will be required to document the purchase for resale by
providing their seller with a resale certificate. See Rule
128 of these rules. The purchase by
the funeral director of such items as caskets and special clothing is a
purchase for resale, even though the sale of the same property by the funeral
director is exempt. (3-31-22)
07.
Seller's Permit Required. A funeral director is to apply for and
maintain a valid seller's permit. The seller's permit number and sales tax
returns are used to report use tax on those items which are subject to use tax.
The funeral director should also report sales tax on the isolated retail sales
of tangible personal property which may be made but which are not related to
the providing of any funeral service. (3-31-22)
Notes
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