Idaho Admin. Code r. 35.01.02.086 - SALES AND PURCHASES BY RELIGIOUS ORGANIZATIONS
Sections 63-3612, 63-3622, 63-3622J, 63-3622KK, Idaho Code
01.
In General. The Sales Tax
Act does not provide a general exemption from sales or use tax for religious
organizations. Other than the exemptions discussed in this rule, sales and
purchases by religious organizations are taxable. (3-31-22)
02.
Meals Sold by a Church to Members
Only. An exemption is provided by Section
63-3622J, Idaho Code, for the sale
of meals by a church to its members at a church function. For the exemption to
apply, the meals have to be sold to members only. (3-31-22)
a. If the meal is open to members only, the
church can buy the food without paying tax by providing the vendor with a
properly completed exemption certificate or, if the church holds an Idaho
seller's permit number, it may provide the vendor with a properly completed
resale certificate. See Rule
128 of these rules.
(3-31-22)
b. If the meal is open to
persons other than members of the church, this exemption does not apply. See
Subsection 086.03 of this rule.
(3-31-22)
c. Food purchased to
prepare meals which are not sold by the church, such as meals for resident
pastors or for nuns living in a convent or associated with a hospital, is
taxable. (3-31-22)
03.
Incidental Sales by Religious Corporations or Societies.
Incidental sales by religious organizations are exempt from sales taxes by
Section 63-3622KK, Idaho Code. The
exemption applies to sales of tangible personal property and other sales
defined as subject to sales tax by the Idaho Code, including taxes imposed on
providing hotel/motel and campground accommodations. For the exemption to
apply, the following conditions need to be met: (3-31-22)
a. If selling tangible personal property, the
goods sold either have been taxed when purchased by the organization or
received as a gift. (3-31-22)
b.
The proceeds from the sales made by the organization are used exclusively in
the programs of the organization which may include any combination of religious
worship, education, and recreation. (3-31-22)
c. The sale may not be made to the general
public in the open market in regular business competition. (3-31-22)
d. Example 1: A church has a used clothing
store. The items sold are not exempt from the sales tax because the store makes
sales to the general public in regular competition with similar enterprises.
(3-31-22)
e. Example 2: A church
holds an annual pancake breakfast in its basement. The meal is advertised and
open to the public. If the church pays tax on the breakfast ingredients, it is
not required to collect sales tax on the sale of the meals. Although the meal
is open to the general public, the church is not in regular competition with
other food-serving enterprises. (3-31-22)
f. Example 3: A school owned by a religious
corporation sells school supplies and meals only to its students. If the school
pays tax when it purchases these items, it is not required to collect sales tax
on the sales to its students. If, however, the school has a bookstore or
cafeteria which is open to the general public, it does collect sales tax.
(3-31-22)
g. Example 4: A school
owned by a religious corporation sells admissions to its students to attend
athletic events through the sale of activity cards, and also sells admissions
to the general public. The school will collect sales tax on all admission
sales. The sale is open to the general public and is in regular competition
with other recreational events to which admissions are charged.
(3-31-22)
04.
Sales
of Literature by a Nonprofit Corporation. Literature which is both
published and sold by qualifying nonprofit corporations is exempt from sales
tax. Refer to Rule 085 of these
rules. (3-31-22)
Notes
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