Your Guide to Idaho's Sales Tax

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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.

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December 29, 2011

When it Comes to Taxes, All Ideas are on the Table

The talk of raising, lowering and changing various taxes in the state has already started with a couple of weeks before the 2012 legislative session kicks off. Each lawmaker I spoke with said Idaho’s corporate and income tax rates could stand to be lowered. Many differed on when and how to do it. Idaho’s corporate […]

December 7, 2011

Corporate, Income and Sales Tax Collections Lower Than Expected in November

The Division of Financial Management today reported Idaho’s main bank account was $5.4 million below November’s forecast. DFM attributes the monthly shortage to weak individual income taxes and sales taxes. Idaho’s sales tax collections have missed projected targets every month this fiscal year. “This month’s performance not only missed its forecast, but it was 4.1% […]

November 23, 2011

Ten Idaho Lawmakers Sign Norquist’s Anti-Tax Pledge

As you’ve probably heard by now, the Joint Select Committee on Deficit Reduction’s negotiations failed this week. Dubbed the supercommittee, it was charged with finding at least $1.2 trillion in debt savings over the next decade. Now the political finger-pointing is well underway. One of the people being blamed for the supercommittee’s failure (often by […]

November 7, 2011

Idaho Sales Tax Collections Aren’t Meeting Expectations

The Division of Financial Management reports Idaho’s general fund balance was $1.6 million less than predicted for the month of October. “This month’s shortage was caused by the sales tax that came in $4.1 million below its target. This shortfall was partially offset by the remaining revenue categories that all came in above their predicted […]

November 2, 2011

One Take on How Tax Incentives Work

Michael Mazerov is a Senior Fellow with the State Fiscal Project at The Center on Budget and Policy Priorities. I contacted the center to discuss the potential shortfalls of Idaho tax incentive programs after coming across this article. The Center on Budget and Policy Priorities is a non-partisan research and policy institute which works at […]

November 1, 2011

Idaho’s Investment Tax Credit Explained

Idaho’s most popular tax incentive is the three percent investment tax credit. Businesses that purchase qualifying new equipment can earn an income tax credit. The credit can offset up to half of a company’s state income tax liability and can be carried forward up to 14 years. Dan John manages tax policy at the Idaho […]

Idaho Tax Incentives: What’s the Tradeoff?

The Idaho Department of Commerce homepage makes no bones about it. They want to recruit new businesses to the Gem State and encourage existing companies to expand by offering a slew of tax credits and incentives to make it happen. The Commerce Department’s website lists 18 different business incentive programs. Many of them are broad […]

October 7, 2011

Idaho’s September Revenue Report Up Slightly from Forecast

Idaho’s Division of Financial Management released its latest revenue report today showing a slight uptick in individual income and corporate tax collections over what state economists had predicted. “Idaho General Fund collections of $229.1 million in September 2011 were $0.1 million above the forecasted amount.” – Division of Financial Management Still, Idaho sales tax collections […]