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IdahoH 01442025 regular legislative sessionHouseWALLET

TAXATION – Adds to existing law to exempt certain small sellers from sales and use taxes.

Sponsored By: REVENUE AND TAXATION COMMITTEE

Signed by Governor

TAXATION

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Sales tax break for Idaho small sellers

Beginning July 1, 2025, qualifying sales of physical goods by individual Idaho residents are exempt from state sales and use taxes. Sellers qualify with gross sales receipts of no more than $5,000 in the current or immediately preceding calendar year. Partnerships, corporations, and limited liability companies do not qualify. Excluded goods include motor vehicles, trailers, all-terrain vehicles, utility-type vehicles, specialty off-highway vehicles, off-road motorcycles, snowmobiles, aircraft, vessels, alcohol, and tobacco. The exemption also excludes items bought for resale or to become part of goods for sale. Small sellers cannot maintain business locations or stored goods while expecting to exceed the $5,000 limit.

Permit and record rules for small sellers

Beginning July 1, 2025, small sellers exceeding $5,000 in gross receipts must begin collecting state sales and use taxes. They must apply to the Idaho State Tax Commission for a temporary seller’s permit within 30 days of exceeding $5,000. That permit cannot extend beyond that calendar year; sellers must apply for a regular permit the next year. Sellers may also apply for a permit before reaching $5,000. Annual sales above $3,000 require keeping records for at least four years. Sellers must mark an invoice as tax-exempt when the buyer requests it. The exemption does not remove individual income tax filing duties for sellers who meet existing filing requirements.

Sponsors & Cosponsors

Sponsor

  • REVENUE AND TAXATION COMMITTEE

    Affiliation unavailable

Cosponsors

  • Lori Den Hartog

    Republican • Senate

  • Jason A. Monks

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 105 • No: 0

Senate vote • 3/6/2025

Senate Floor Vote

Yes: 35 • No: 0

House vote • 2/12/2025

House Floor Vote

Yes: 70 • No: 0

Actions Timeline

  1. Reported Signed by Governor on March 17, 2025 Session Law Chapter 86 Effective: 07/01/2025

    3/17/2025

  2. Delivered to Governor at 8:10 a.m. on March 11, 2025

    3/11/2025

  3. Returned Signed by the President; Ordered Transmitted to Governor

    3/10/2025Senate

  4. Signed by President; returned to House

    3/10/2025Senate

  5. Received from the House enrolled/signed by Speaker

    3/10/2025Senate

  6. Reported Enrolled; Signed by Speaker; Transmitted to Senate

    3/7/2025House

  7. Returned from Senate Passed; to JRA for Enrolling

    3/6/2025House

  8. Read third time in full – PASSED - 35-0-0

    3/6/2025Senate

  9. Read second time; filed for Third Reading

    2/26/2025Senate

  10. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    2/25/2025Senate

  11. Introduced, read first time; referred to: Local Government & Taxation

    2/13/2025Senate

  12. Received from the House passed; filed for first reading

    2/13/2025Senate

  13. Read Third Time in Full – PASSED - 70-0-0

    2/12/2025House

  14. Read second time; Filed for Third Reading

    2/11/2025House

  15. Reported out of Committee with Do Pass Recommendation, Filed for Second Reading

    2/10/2025House

  16. Reported Printed and Referred to Revenue & Taxation

    2/6/2025House

  17. Introduced, read first time, referred to JRA for Printing

    2/5/2025House

Bill Text

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