Idaho Admin. Code r. 35.01.02.074 - DONATIONS TO POLITICAL SUBDIVISIONS AND CERTAIN NONPROFIT ORGANIZATIONS OF TANGIBLE PERSONAL PROPERTY USED FOR IMPROVEMENTS TO REAL PROPERTY

Sections 63-3609, 63-3612, 63-3613, 63-3621, 63-3622O, Idaho Code

01. Donated Property. Effective July 1, 1991, there is an exemption from the use tax for the donation of tangible personal property which is incorporated into real property, when donated to the state of Idaho, political subdivisions of this state, or a nonprofit organization as defined in Section 63-3622O, Idaho Code. The exemption applies whether the tangible personal property is incorporated into real property by the donee, a contractor or subcontractor or any other person. (3-31-22)

02. Purchase of Donated Items. This exemption does not apply to sales tax which is applicable to the purchase of tangible personal property which will be donated to the state of Idaho, its political subdivisions, or qualified nonprofit organizations, for incorporation into real property. (3-31-22)

03. Property Not Incorporated into Real Property. This exemption does not apply to the sales or use tax applicable to tangible personal property donated to the state of Idaho, its political subdivisions, or qualified nonprofit organizations when the property donated will not be incorporated into real property. (3-31-22)

a. Example 1: A concrete company removes from inventory and donates twenty (20) yards of redimix concrete to a nonprofit Idaho college for the footings of a storage building. Another contractor who is donating labor for erection of the building places the redi-mix concrete. Neither the redi-mix concrete company nor the contractor owe use tax. (3-31-22)

b. Example 2: The same concrete company donates twenty (20) yards of redi-mix concrete to a nonprofit organization which is not listed in Section 63-3622O, Idaho Code. The concrete company owes use tax on the cost of the materials removed from inventory for the donation. (3-31-22)

c. Example 3: A contractor buys materials from a local lumber yard which they donate to the nonprofit Idaho college to be used in building a storage building. This contractor pays sales tax on the material because the law provides exemption only from use tax. (3-31-22)

d. Example 4: A local automobile dealer takes three vehicles from inventory and donates them to the athletic department of an Idaho university. The exemption does not apply. The automobile dealer owes use tax on his cost of the vehicles because the vehicles will not become improvements to real property. (3-31-22)

Notes

Idaho Admin. Code r. 35.01.02.074