BOISE, Idaho — Idaho Gov. Brad Little signed House Bill 144 on Monday to enact a significant tax relief measure for small sellers in the state. The new law exempts qualifying small sellers from the state's sales taxes, aiming to ease the financial burden on individuals engaging in small-scale sales.
The law, which will take effect on July 1, defines a "small seller" as an Idaho resident whose cumulative gross receipts from sales do not exceed $5,000 in the current or previous calendar year. Partnerships and corporations are excluded from this definition.
The exemption, however, does not extend to sales of motor vehicles, trailers, all-terrain vehicles, utility-type vehicles, specialty off-highway vehicles, motorcycles intended for off-road use, snowmobiles, aircraft, vessels, alcohol, and tobacco.
Small sellers must still comply with state regulations regarding individual income tax returns and those with annual sales exceeding $3,000 must still maintain sales records for at least four years.
Should a small seller's gross receipts surpass $5,000, the seller is required to file for a temporary seller’s permit with the state tax commission within 30 days and start collecting sales and use tax. These permits are valid only for the remaining calendar year, after which the seller must apply for a standard seller’s permit.
