Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.094 - EXEMPTIONS ON PURCHASES BY POLITICAL SUBDIVISIONS, SALES BY THE STATE OF IDAHO, ITS DEPARTMENTS, INSTITUTIONS, AND ALL OTHER POLITICAL SUBDIVISIONS

Current through August 31, 2023
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)