Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.052 - SALE OF TANGIBLE PERSONAL PROPERTY RELATING TO FUNERAL SERVICES

Current through August 31, 2023
Sections
				54-1103,
				63-3609,
				63-3612,
				63-3613,
				63-3622,
				63-3622U, Idaho Code
01.
In General
. The sale of
			 tangible personal property relating to funeral services by a licensed funeral
			 establishment is exempt from tax. (3-31-22)
02.
Sales by Licensed Funeral
			 Directors
. The exemption applies only when, at the time of sale, the
			 seller is a person holding a valid funeral director's license issued pursuant
			 to the authority of Title 54, Chapter 11, Idaho Code. A sale made by any seller
			 not so licensed is not exempt under this provision. For example, a casket sold
			 by a licensed funeral director as part of a funeral service is exempt. The
			 funeral director's purchase of the casket is a purchase for resale and,
			 therefore, excluded from the tax. The purchase of a memorial marker is not an
			 integral part of the funeral service. Accordingly, it is not included within
			 the exemption for tangible personal property related to a funeral service. The
			 purchase of a memorial marker, therefore, is a taxable transaction regardless
			 of whether it is sold by a licensed funeral director or by another. Sales of
			 tombstones and grave markers, which are embedded in the sod or set on
			 foundations, are taxable. The retail selling price includes the charge for
			 cutting, shaping, polishing and lettering. (3-31-22)
03.
Purchases by Licensed Funeral
			 Directors
. The exemption does not include the sales to and purchases by
			 funeral directors of equipment and supplies used and consumed by funeral
			 directors in the course of providing funeral services. The funeral director's
			 purchase of equipment and supplies used for embalming and preparing bodies for
			 burial and all other tangible personal property used or consumed by the funeral
			 director in the course of his business operations to which title does not pass
			 from the funeral director is taxable. (3-31-22)
04.
Caskets, Vaults, and Burial
			 Receptacles
. Caskets, vaults and burial receptacles are exempt when sold
			 by a licensed funeral director as a part of funeral services, even though they
			 may be improvements to real property. The funeral director is not a person
			 engaged in improving real property within the meaning of Section
			 63-3609(a), Idaho
			 Code; and, therefore, his purchase of these items is not taxable. However, the
			 construction of a building for use as a mausoleum is an improvement to real
			 property and the sale or use of the materials for the construction of the
			 mausoleum creates a taxable incident and is taxed in the same manner as other
			 persons improving real property. See Rule
			 012 of these rules.
			 (3-31-22)
05.
Use Tax
.
			 When licensed funeral directors purchase equipment and supplies from suppliers
			 who do not collect and remit Idaho sales tax, the funeral directors will be
			 required to report and remit use tax on their taxable purchases.
			 (3-31-22)
06.
Documenting
			 Purchases for Resale
. Funeral directors purchasing tangible personal
			 property for resale will be required to document the purchase for resale by
			 providing their seller with a resale certificate. See Rule
			 128 of these rules. The purchase by
			 the funeral director of such items as caskets and special clothing is a
			 purchase for resale, even though the sale of the same property by the funeral
			 director is exempt. (3-31-22)
07.
Seller's Permit Required
. A funeral director is to apply for and
			 maintain a valid seller's permit. The seller's permit number and sales tax
			 returns are used to report use tax on those items which are subject to use tax.
			 The funeral director should also report sales tax on the isolated retail sales
			 of tangible personal property which may be made but which are not related to
			 the providing of any funeral service. (3-31-22)