Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.073 - TANGIBLE PERSONAL PROPERTY BROUGHT OR SHIPPED TO IDAHO

Current through August 31, 2023
Sections
				63-3615,
				63-3621,
				63-3621A, Idaho Code
01.
Equipment Brought into
			 Idaho
. Equipment or other tangible personal property brought or shipped
			 to Idaho by residents or nonresidents is presumed to be for storage, use, or
			 other consumption in this state. Generally, tangible personal property is
			 subject to use tax on its fair market value when it is first used in Idaho.
			 Special rules apply to transient equipment present in Idaho for ninety (90)
			 days or less in any consecutive twelve (12) month period. See Section
			 63-3621A, Idaho Code, and
			 Subsection 073.03 of this rule. For
			 property a contractor fabricates to install into Idaho real property, see Rule
			 012 of these rules.
			 (3-31-22)
02.
Substantive
			 Use
. Any substantive use of the property in Idaho is sufficient to
			 subject the property to use tax. Use is defined in Section
			 63-3615, Idaho Code, and Rule
			 072 of these rules. The use tax
			 does not apply to the use of items purchased before July 1, 1965, or the use of
			 items excluded from tax by Idaho Code. (3-31-22)
03.
Transient Equipment
.
			 Transient equipment means equipment that is: owned by the user, which is a
			 business based in another state; a depreciable asset for income tax purposes
			 and treated as such on the owner's income tax returns; brought to Idaho and
			 kept here for ninety (90) days or less in any consecutive twelve (12) months;
			 and either was not taxed in another state or, if tax was paid to another state,
			 the amount paid was less than the amount of Idaho use tax due. (3-31-22)
a. A nonresident business that brings
			 transient equipment to Idaho may elect to pay use tax on either the fair market
			 value of the equipment at the time it enters Idaho, or the fair market rental
			 value of transient equipment for the time it is kept in Idaho. Fair market
			 rental value is the amount it would cost to rent or lease similar equipment
			 from an unrelated equipment rental company. (3-31-22)
b. Businesses that elect to pay use tax on
			 the rental value of transient equipment may do so without the approval of the
			 Commission as long as the use tax due on the first month's rental is paid in a
			 timely manner. If the owner fails to pay the tax timely, he will need written
			 approval from the Commission to use this option. (3-31-22)
c. Equipment which remains in Idaho for more
			 than ninety (90) days in any consecutive twelve (12) months is no longer
			 transient. This equipment becomes subject to Idaho use tax on its fair market
			 value at that time. No credit may be taken for use tax paid on fair market
			 rentals against the use tax due at the time equipment ceases to qualify as
			 transient. (3-31-22)
d. Example: A
			 Wyoming contractor brings transient equipment, with a fair market value of one
			 hundred thousand dollars ($100,000), to Idaho for use on a ninety (90) day
			 project. The fair market rental value of the equipment for the ninety (90) days
			 totals fifteen thousand dollars ($15,000). Idaho use tax on the fair market
			 rental value, assuming a rate of six percent (6%), totals nine hundred dollars
			 ($900). The contractor paid three thousand five hundred dollars ($3,500) of
			 sales tax to the state of Wyoming when he bought the equipment new. The
			 contractor is not required to pay tax to Idaho since the tax paid to Wyoming
			 exceeds the amount of Idaho use tax due. (3-31-22)
e. Example: The same contractor in the
			 previous example returns to Idaho within the same twelve (12) months with the
			 same equipment, now with a fair market value of ninety-five thousand dollars
			 ($95,000). As the equipment has now exceeded the ninety (90) day rule for
			 transient equipment, it is subject to Idaho's six percent (6%) use tax on its
			 present value of ninety-five thousand dollars ($95,000) x six percent (6%) =
			 five thousand seven hundred dollars ($5,700). Credit of two thousand six
			 hundred dollars ($2,600) is allowed for sales tax paid to Wyoming, three
			 thousand five hundred dollars ($3,500) less the nine hundred dollar ($900)
			 credit already used on rentals. The contractor owes three thousand one hundred
			 dollars ($3,100) of use tax to Idaho. (3-31-22)