Idaho Admin. Code r. 35.01.02.094 - EXEMPTIONS ON PURCHASES BY POLITICAL SUBDIVISIONS, SALES BY THE STATE OF IDAHO, ITS DEPARTMENTS, INSTITUTIONS, AND ALL OTHER POLITICAL SUBDIVISIONS
Sections 63-3609, 63-3612, 63-3613, 63-3622, 63-3622O, Idaho Code
01.
In General. This rule
governs application of the sales and use tax to governmental instrumentalities.
As used herein, the term governmental instrumentalities means the state of
Idaho, its agencies, departments or institutions and all political subdivisions
of the state of Idaho; but does not include other states, their agencies,
departments, or institutions and political subdivisions. (3-31-22)
02.
Extent of Exemptions. The
state and all its agencies, departments and institutions are exempt from the
sales and use tax. This exemption does not extend to corporations, the stock of
which is owned in whole or in part by the state, nor does it extend to private
agencies to which the state contributes funds. The exemption only applies in
the case of purchases made directly by the state, its agencies, departments,
and institutions. (3-31-22)
03.
Political Subdivisions. Political subdivisions of this state are
also exempt from payment of the sales and use tax. A political subdivision is a
governmental organization which embraces a certain territory organized for
public advantage and not in the interest of private individuals or classes to
which has been delegated certain functions of state government. In addition to
this, a political subdivision has the power to levy taxes. Included within the
definition of political subdivisions would be all counties, municipalities,
townships, towns and villages, public school districts, cemetery maintenance
districts, fire protection districts, local improvement districts and
irrigation districts. Canal companies and ditch companies do not come within
the scope of this exemption. (3-31-22)
04.
Purchases by Contractors.
Contractors are consumers under Idaho tax law. Purchases made by contractors
are taxable even though they are to be applied to use on a state or political
subdivision construction project. (3-31-22)
05.
Sales by Political
Subdivisions. Sales by the state, its departments or institutions,
counties, cities, school districts or any political subdivision are subject to
sales tax which is to be collected by the political subdivision. If taxable
sales are made, a permit is required. This permit is to be obtained by each
sales outlet or by the office at which regular and current sales records are
maintained. Examples of taxable sales are all sales of tangible personal
property, admission charges, fees to use recreational facilities, recreational
program fees, copies of documents for which a fee is not set by Idaho Code and
garbage service when receptacles or dumpsters are provided by the service and
part of the fee represents rental of the receptacle. (3-31-22)
a. Taxable sales. Taxable sales of tangible
personal property will include sales of: code books; books sold by library,
book fairs, etc.; maps; crime prevention signs; calendars; cafeteria sales to
employees or the public; office supplies or any sale to employees; concession
stands; trees, shrubs, or bedding plants; items sold to prisoners, such as
cigarettes, candy, pop, etc., through vending machines (tax is to be computed
on one hundred seventeen percent (117%) of acquisition cost if the machine is
operated by the political subdivision); chemicals for noxious weeds; unclaimed
property; chemicals for pest control; surplus property-assets; gravel,
culverts, or pipe; uniforms to employees; equipment rentals with no operator;
grave markers; rental of other property, golf carts, swimsuits; and nonresident
or resident library cards. See Rule
058 of these rules.
(3-31-22)
b. Admission charges.
Taxable admission charges will include those fees for using golf courses and
swimming pools, for attending athletic events, concerts, fireworks displays,
and fund raising events. (3-31-22)
c. Use of facilities for recreation. Taxable
use of facilities for a recreational purpose will include receipts from the use
of park structures, picnic tables, fair grounds, rodeo grounds, gymnasiums,
ball parks, snowmobile areas and campground areas. Exception: If an individual
or organization rents or leases one of these facilities and charges admission
to each person using the facility, tax will not be required on its rental or
lease of the facility. However, the individual or organization will be required
to register and apply for a seller's permit number, under which the tax on the
admission will be reported and paid. See Rule
030 of these rules.
(3-31-22)
d. Recreation program
fees. Fees to participate in recreational programs are taxable. Some examples
of these programs are city recreational programs in softball, baseball,
basketball and football. If instruction is included in such activities as
tennis, golf or swimming, the tax will not be due on the separately stated
instructional portion of the total fee. If not separately stated, the entire
fee is taxable. (3-31-22)
e.
Garbage service. Garbage service is taxable on that portion of the total charge
which is the rental of the receptacle such as a dumpster. If the statement for
service includes the rental of the dumpster or other receptacle but the rental
charge is not separately stated, the entire cost of the service is taxable.
(3-31-22)
f. The examples cited
above are not inclusive. (3-31-22)
06.
Federal Government. Sales to
and purchases by the federal government and its instrumentalities are not
subject to Idaho sales or use taxes except as provided by federal laws or
regulations. Federal law also prevents the state of Idaho from imposing sales
tax on any sales by the federal government or its instrumentalities. For
purposes of Idaho sales and use tax, the American Red Cross is an
instrumentality of the federal government. (3-31-22)
07.
Other States. Sales to and
purchases by states OTHER than Idaho and their political subdivisions are
taxable if delivery occurs in this state. (3-31-22)
Notes
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