Idaho

Bringing the Economy Home

Topics

Downtown Wallace, Idaho

Your Guide to Idaho's Sales Tax

Background

Chad Case / Getty Images

Downtown Wallace, Idaho

Idaho’s first sales tax went into effect in 1965.  The tax started at three percent and climbed to six percent by 2006, which is the current rate.  The Idaho Tax Commission says retail sales and rentals of tangible personal property, admission fees and fees for recreation or hotel rooms are all subject to the sales tax.

Idaho’s use tax is on goods that are put to use or stored in Idaho and its paid directly to the state.  The use tax applies if sales tax wasn’t paid at the point of purchase.

There are several exemptions to Idaho’s sales tax including; utilities, motor fuels (which are taxed separately), prescription drugs and certain property used for manufacturing, farming and mining. Some local resort communities, counties and districts in Idaho have a local option sales tax in addition to the statewide sales tax.  Those towns include Sun Valley, Ketchum, Driggs, McCall and Sandpoint.

Latest Posts

Did You Pay Idaho Use Tax? Probably Not…

Receipts -- taxes sales tax

Did you remember to include the use tax on your Idaho income tax form? Judging by the numbers, probably not. Idaho is one of 45 states that collects a use tax. But as NPR’s Planet Money reports, the vast majority of taxpayers don’t pay it. There is one mistake, in particular, that lots of people [...]

With $140,000 On The Line, Idaho Girl Scouts Try Their Hand At Lobbying

A Girl Scout rally wouldn't be complete without the Girl Scout pledge. "On my honor, I will try: To serve God and my country, To help people at all times, And to live by the Girl Scout Law."

Famous for its potatoes, trout fishing, and blue AstroTurf, Idaho might not have much in common with Hawaii. But here’s one thing: Idaho and Hawaii are the only two states in the country to tax Girl Scout Cookies. Now, some local Scouts are beefing up their sales pitches and learning to lobby.

Girl Scout Cookies Sold In Idaho? There’s A Tax On That

21 cents of every box of Girl Scout cookies sold in Idaho goes to the state.

For cookie connoisseurs, this might be the best time of year. It’s Girl Scout cookie season. Starting next week, Idaho Girl Scouts will be canvassing neighborhoods and their parents’ offices to take orders for boxes of Thin Mints, Samoas, and all the rest. Each box sells for $3.75, and 22 cents of that goes to [...]

Pregnancy Resource Clinics Ask For Idaho Sales Tax Exemption

Ultrasound Doctor

Requests for new sales tax exemptions have started to surface at the Legislature. The latest would exempt pregnancy resource clinics from sales tax. That means any purchase made by one of the non-profit clinics, wouldn’t be subject to Idaho’s 6 percent sales tax. There is one catch, though. The pregnancy resource clinics must not provide [...]

Open Government Advocate: Tax Incentive Details Should Be Public Info

Greg LeRoy founded Good Jobs First in 1998.

Good Jobs First is a non-partisan, non-profit government transparency advocacy group based in Washington, D.C.  It was founded in 1998 by Greg LeRoy, who is now executive director. LeRoy has been studying tax incentive transparency for more than two decades.  We recently spoke with him to learn more about what he considers ‘transparent enough,’ and [...]

Session Wrap: The Tax Plans That Failed

Inside the Idaho State Capitol dome.

The Legislature’s main duty is to create a  budget that spends less than it takes in.  Lawmakers did. They also agreed to a more than $35 million tax cut for Idaho’s top earners. They’re setting aside about $35 million for the state’s general fund reserves, and they agreed to an almost $35 million pay increase [...]

Some Idaho Lawmakers Want To Capitalize On Skyrocketing Internet Retail Sales

Clearance racks at a Sears store.

Idaho lawmakers are moving forward with a measure to ensure the state’s 6 percent sales tax applies to all online purchases.  It’s called the streamlined sales tax bill.  A similar bill failed last year. The Magic Valley Times-News reports it’s not a new tax, but most people aren’t paying it. Idaho law already requires residents [...]

Idaho Ranks 21st in the Annual State Business Tax Climate Index

Idaho ranks 21st among states with a business friendly tax climate.

According to the Tax Foundation’s annual report on state business tax climate, Idaho ranks in the middle of the pack.  The Foundation looks at corporate, individual income, sales, property and unemployment insurance tax rates to compare states.  You can read more about the methodology here.

December Individual Income Tax Collections Lower Than Expected

moneystack_SiriStafford_getty

The Division of Financial Management released its monthly general fund revenue report today with mixed news.  First the good, sales tax collections exceeded expectations for the month of December, due in large part to the holiday shopping season. “Idaho gross sales tax collections in December were $94.9 million, an increase of 9.0% over the previous [...]

About StateImpact

StateImpact seeks to inform and engage local communities with broadcast and online news focused on how state government decisions affect your lives.
Learn More »

Economy
Education