Idaho Admin. Code r. 35.01.02.096 - IRRIGATION EQUIPMENT AND SUPPLIES
Section 63-3622W, Idaho Code
01.
Agricultural Irrigation. The
Sales Tax Act exempts all irrigation equipment and supplies which are used
directly for agricultural irrigation. To qualify for the exemption, the
irrigation equipment or supplies need to be used directly and primarily for
agricultural irrigation purposes. If the use of the equipment or supplies is
only incidental or only indirectly related to the agricultural irrigation
process, the exemption will not apply. Examples include: (3-31-22)
a. An off-highway motorbike or all-terrain
vehicle, ATV, used to transport men or equipment is indirectly related to the
irrigation process. (3-31-22)
b.
Irrigation boots worn to protect the irrigator are incidental to the process
and are taxable. (3-31-22)
02.
Nonagricultural Irrigation
Equipment or Supplies. Irrigation equipment or supplies used for any
purpose other than agriculture are not exempt. For example, irrigation
pipelines or sprinkler systems used on a golf course are taxable.
(3-31-22)
03.
Real Property
Improvements. The exemption applies regardless of whether the equipment
becomes a part of real estate. It is not necessary to distinguish between
pipeline which retains its identity as tangible personal property and pipeline
which may become incorporated into real property such as buried mainline pipe.
(3-31-22)
04.
Title to
Equipment. The exemption applies regardless of whether the equipment is
installed by a farmer, a contractor, or a subcontractor. The incidence of tax
will not turn upon the determination of whether title to the irrigation
equipment passed at the time of sale or subsequent to installation.
(3-31-22)
05.
Exemption
Certificate. A buyer's right to the exemption is documented by the use
of an exemption certificate in the manner prescribed by Rule
128 of these rules.
(3-31-22)
Notes
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