Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.062 - REPAIRS SALE OF PARTS AND MATERIAL

Current through August 31, 2023
Section
				63-3612,
				63-3613,
				63-3622, Idaho Code
01.
In General
. Repairs normally
			 require both material and labor. Persons engaged in the business of repairing,
			 renovating or altering tangible personal property owned by others are required
			 to collect sales tax upon the parts or material required in the repair or
			 renovation of the property. (3-31-22)
02.
Separate Statement of Parts or
			 Materials
. The sales price of parts or materials need to be separately
			 stated and sales tax is charged on these parts or materials. Separately stated
			 repair labor is not taxable. If parts and materials are not separately stated
			 from the repair labor, the total amount for parts and repair labor is taxable.
			 (3-31-22)
03.
Repairs Covered
			 by Insurance Benefits
. Repairs, the costs of which are covered by
			 insurance benefits, are treated the same as otherwise described in this rule.
			 Sales tax is to be collected on the parts and materials. Separately stated
			 repair labor is not taxable. (3-31-22)
04.
Incidental Material
. In some
			 instances, because of the small amount of materials used in a repair job, the
			 value of the material may be insignificant to the entire repair cost. For
			 example, incidental amounts of material are sometimes used in repairs made to
			 tires, clothing, watches, and shoes. If materials such as buttons, thread,
			 watch parts, tire valve cores and stems are incidental to the repair they will
			 be taxed when purchased by the repairman. Other examples of materials which are
			 incidental to repairs are touch-up paint and soldering materials used in car
			 repairs. Materials are incidental if they have a value which is insignificant
			 and for which a reasonable retail sales price cannot be readily determined.
			 (3-31-22)
05.
Shop
			 Supplies
. Dealer/repair shops should not charge sales tax on shop
			 supplies that are consumed during the repair, such as spray bottles, buffer
			 pads, towels, masking tape, solvents, sandpaper, and other items that have no
			 specific identifiable value billed to the customer and which do not become a
			 part of the item being repaired. These supplies are taxable when purchased by
			 the dealer/repair shop and should not be included as part of the taxable amount
			 billed to the customer. (3-31-22)
06.
Repairs Versus Fabrications
.
			 Repairs and renovations to tangible personal property must not be confused with
			 fabrications of tangible personal property. Fabricated tangible personal
			 property is subject to sales tax on the entire price whether the parts and
			 materials are separately stated or not. See Rules
			 011 and
			 029 of these rules.
			 (3-31-22)
07.
Parts for
			 Resale
. When a repair shop buys parts that will be resold to its
			 customers or an auto dealer buys parts to install in a car which is being
			 reconditioned for sale, they should not pay tax to the supplier if they provide
			 the documents required by Rule
			 128 of these rules.
			 (3-31-22)