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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April 16, 2013

Did You Pay Idaho Use Tax? Probably Not…

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 […]

March 19, 2013

Girl Scout Cookie Tax Break Passes Idaho House, Could Face Uphill Battle In The Senate

A sales tax exemption for Girl Scout cookies sold in Idaho will advance to the upper chamber after lawmakers in the House approved the measure 59-11. The Spokesman-Review’s Betsy Russell reports the bill passed without debate. Idaho and Hawaii are the only two states that tax the sale of Girl Scout cookies. In Idaho, 22 […]

February 19, 2013

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

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.

February 7, 2013

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

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 […]

February 1, 2013

Pregnancy Resource Clinics Ask For Idaho Sales Tax Exemption

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 […]

May 3, 2012

Open Government Advocate: Tax Incentive Details Should Be Public Info

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 […]

April 2, 2012

Session Wrap: The Tax Plans That Failed

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 […]

February 22, 2012

Some Idaho Lawmakers Want To Capitalize On Skyrocketing Internet Retail Sales

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 […]

January 26, 2012

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

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.

January 9, 2012

December Individual Income Tax Collections Lower Than Expected

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 […]