Idaho Admin. Code r. 35.01.06.016 - EXEMPTIONS
Sections , 63-3612(g), 63-3624, 63-3622O, 67-4718, 67-4917B & C, 63-1804, Idaho Code.
01.
Exemptions. Except as otherwise provided in this rule, all charges
for room occupancy which are exempt from Idaho sales tax are also exempt from
the room sales tax. (3-31-22)
02.
Exempt Entities. Rooms or campground spaces furnished to
governmental entities, educational institutions, or hospitals are exempt from
the taxes if and only if the charge for the room or campground space occupancy
is billed directly to and paid directly by the governmental entity, educational
institution, or hospital. (3-31-22)
a.
"Governmental entity" includes the federal government and any of its
instrumentalities, the state of Idaho and any of its agencies or any city,
county or taxing district of the state of Idaho. Governmental entity does not
include states other than Idaho or their political subdivisions.
(3-31-22)
b. "Educational
institution" means any nonprofit colleges, universities, primary, and secondary
schools in which systematic instruction in the usual branches of learning is
given. The exemption does not include educational institutions that operate for
profit or schools primarily teaching special accomplishments, such as business
or cosmetology. (3-31-22)
c.
"Hospital" means a nonprofit institution licensed as a hospital by any state.
This exemption does not include hospitals that operate for profit, nursing
homes, or similar institutions. (3-31-22)
d. "Billed directly to" means a contractual
agreement between the facility operator and the governmental entity,
educational institution, or hospital whereby the charge for the room or
campground space is directed to and is the responsibility of the governmental
agency or institution. "Billed directly to" also includes credit card charges
billed to an account opened by an exempt agency, educational institution, or
hospital. (3-31-22)
e. "Paid
directly by" means a remittance tendered directly by the governmental entity,
educational institution, or hospital to the facility operator. It does not
include a payment by the governmental entity or institution to an employee or
agent for reimbursement of expenses incurred during business travel. However,
"paid directly by" does include payments made by an exempt entity to a
financial institution for credit card charges made on a charge account in the
name of the exempt entity with a credit card issued to the entity itself and
not to any individual or employee. (3-31-22)
f. Credit cards issued to employees of
governmental agencies are NOT considered to be billed directly to and paid
directly by the governmental entity when the employee is responsible for making
payment to the credit card company. (3-31-22)
03.
Continuous Occupancy
Exemptions. All hotel /motel room sales and campground space rentals are
presumed to be short term unless evidence can be provided documenting
continuous occupancy. Continuous occupancy means maintaining residency under
the terms of a lease or similar agreement for a continuous period of time by
the same individual or individuals. The continuous occupancy exemption does not
apply when a room or campground space is furnished to a business enterprise
that rotates numerous employees as occupants of the room or space with no one
(1) employee remaining continuously for the minimum number of days required to
meet the continuous stay requirements. (3-31-22)
a. Hotels and Motels. The room charges are
exempt from the following taxes when continuous residency is maintained in a
hotel or motel by the same individual or individuals for a period that exceeds
thirty (30) days: (3-31-22)
i. Sales and Use
Tax; (3-31-22)
ii. Travel and
Convention Tax; and (3-31-22)
iii.
Auditorium or Community Center District Tax if the hotel or motel is located
within the boundaries of the auditorium or community center district.
(3-31-22)
b. Campgrounds.
The rental of a campground space is exempt from the following taxes when
continuous residency is maintained by the same individual or individuals in a
campground space for a period that exceeds thirty (30) days: (3-31-22)
i. Sales and Use Tax; (3-31-22)
ii. Travel and Convention Tax; and
(3-31-22)
iii. Auditorium or
Community Center District Tax does not apply to campground spaces. See
Subsection 016.05 of this rule.
(3-31-22)
c. This can be
documented by a lease or other documentation that shows the period the
occupancy is maintained. A guest registration card verifiable by a billing
document is acceptable documentation. See Rule
017 of these rules for
documentation requirements. (3-31-22)
04.
Rooms Rented for Purposes Other
Than Sleeping. Travel and Convention tax applies only to rooms rented to
an individual as a place to sleep. The tax does not apply to rooms rented for
other purposes, such as for meetings. However, both the state sales tax and the
Auditorium or Community Center District tax apply to rooms rented by a hotel or
motel for purposes other than sleeping. Rooms supplied with beds are presumed
to be rented for the purpose of sleeping unless the contrary is established by
the operator. Rooms, other than dormitory rooms, rented by an educational
institution for purposes other than sleeping, are not taxable as a sale of
lodging; however, it is possible that renting such a room may be taxable as a
fee for the privilege of using a facility for a recreational purpose.
(3-31-22)
05.
Campgrounds
Exempted. The Auditorium District or Community Center tax does not apply
to campground charges. The state sales tax and the travel and convention tax
apply to the charge for campground spaces. Sales of spaces in campgrounds owned
or operated by the state of Idaho, its agencies or political subdivisions are
subject to the state sales tax but not the travel and convention tax.
(3-31-22)
06.
Foreign
Diplomats. The United States Government grants immunity from state taxes
to diplomats from certain foreign countries. The diplomat is issued a federal
tax exemption card by the U.S. Department of State. The card bears a photograph
of the holder, a federal tax exemption number, and specific instructions as to
the extent of the exemption granted to the diplomat. Vendors document an exempt
charge to a foreign diplomat by: (3-31-22)
a.
Retaining a photocopy of the front and back of the federal tax exemption card;
or (3-31-22)
b. Recording for their
permanent record the name of the bearer, the mission represented, the federal
tax exemption number displayed on the card, the date of expiration, and the
nature of the exemption granted to the diplomat. (3-31-22)
07.
Direct Pay Authority. A
taxpayer granted direct pay authority as provided by IDAPA 35.01.02, "Idaho
Sales and Use Tax Administrative Rules," Rule
112 may not use this authority for
hotel /motel room or campground space charges. State sales tax, Travel and
Convention tax, and, when applicable, Auditorium or Community Center District
tax is charged by the hotel, motel, or campground and paid to the hotel, motel,
or campground by the direct pay authority permittee. (3-31-22)
Notes
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