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.