Idaho Admin. Code r. 35.01.02.068 - COLLECTION OF TAX

Section 63-3619, Idaho Code

01. In General. Idaho Sales Tax is an excise tax which is imposed upon each sale at retail. The tax is computed at the time of each sale and the tax on the total sales for the reporting period, usually monthly, will be reported and paid on or before the due date as established by Rule 105 of these rules. (3-31-22)

02. Sales Tax to Be Collected by Retailer. Sales tax is to be collected by the retailer from the customer. The tax will be computed on and collected for all credit, installment, conditional or similar sales when made or, in the case of rentals, when the rental is charged. (3-31-22)

03. Computation of Tax. The retailer will compute the tax upon the total sale to a buyer at a given time and not upon each individual item purchased. (3-31-22)

04. Tax Rate. For the purpose of these rules, the terms "tax rate" or "rate" means the current tax rate as defined in Sections 63-3619 and 63-3621, Idaho Code. References to the tax rate in these rules may not reflect the current rate in effect. (3-31-22)

05. Bracket System for Six Percent Tax Rate. Beginning October 1, 2006, the sales tax rate is six percent (6%). The following schedule is to be used in determining the amount of tax to be collected by a retailer at the time of sale. (3-31-22)

a. Multiply six cents ($0.06) for every whole dollar included in the sale, and (3-31-22)

b. Add for each additional fractional dollar amount of sale the corresponding tax below:

Dollar Amount of Sale	Tax
0.00 - 0.03	- .00
0.04 - 0.20	- .01
0.21 - 0.37	- .02
0.38 - 0.53	- .03
0.54 - 0.70	- .04
0.71 - 0.87	- .05
0.88 - 0.99	- .06

However, sales to a total amount of eleven cents ($0.11) or less are exempt from tax. (3-31-22)

06. Tax to Be Separately Displayed. The amount of tax collected by the retailer is to be displayed separately from the list price, marked price, the price advertised in the premises or other price on the sales slip or other proof of sale. The retailer may retain any amount collected under the bracket system which is in excess of the amount of tax for which he is liable to the state during the period as compensation for the work of collecting that tax. (3-31-22)

07. Reimbursement of Tax From the Buyer to the Seller. If the seller does not collect the sales tax at the time of the sale and it is later determined that sales tax should have been collected, the seller can then collect the sales tax from the buyer if the delinquent tax has been paid by the seller. The legal incidence of the tax is intended to fall upon the buyer, Section 63-3619, Idaho Code. (3-31-22)

a. Example: The Commission determines that certain nontaxed sales by a seller are subject to sales tax and that the seller did not collect the tax and did not have documentation supporting exemption from the sales tax. The Commission issued a Notice of Deficiency Determination to the seller imposing the tax and interest. The assessment then paid by the seller entitles the seller to reimbursement from the buyer. (3-31-22)

b. The seller is also entitled to collect reimbursement from the buyer of the interest paid on the taxes assessed. (3-31-22)

c. The seller is not entitled to reimbursement from the buyer for penalties imposed as part of the assessment against the seller. (3-31-22)

d. The receivable established by the seller seeking reimbursement from the buyer is not subject to expiration of the statute of limitations provided in Section 63-3633, Idaho Code. (3-31-22)

Notes

Idaho Admin. Code r. 35.01.02.068