IdahoH 07922026 regular legislative sessionHouseWALLET

TAXATION – Amends existing law to revise provisions regarding certain sales tax exemptions for occasional sales and small sellers.

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Bill Overview

Analyzed Economic Effects

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

Occasional sales and vehicle tax rules

Starting July 1, 2026, you can hold up to two yard sales per calendar year without sales tax. If you hold more than two but your total sales are under $5,000 and you live in Idaho, you may still qualify as a small seller and not collect sales tax. Sales of aircraft, boats and vessels, snowmobiles, recreational vehicles, and off‑highway motorbikes are not covered by the listed occasional‑sale exemptions and are generally taxable. Sales of motor vehicles between close family (within the second degree) are generally exempt, unless no sales or use tax was charged on the vehicle’s original purchase. Sales of animals by 4‑H or FFA clubs at fairs or the western Idaho spring lamb sale are exempt.

New sales tax rules for small sellers

Beginning July 1, 2026, Idaho resident individuals with gross receipts of $5,000 or less in the current or prior year do not have to collect sales or use tax. Partnerships, corporations, and LLCs do not qualify. The exemption does not cover motor vehicles, trailers, ATVs, utility vehicles, specialty off‑highway vehicles, off‑road motorcycles, snowmobiles, aircraft, vessels, alcohol, tobacco, or items bought for resale. If your receipts pass $5,000 in a year, you must apply within 30 days for a temporary seller’s permit and collect tax on sales over $5,000; if you pass $7,500, you must collect tax on all sales that year. You may apply early for a regular permit, but you cannot keep a permanent business location or stock goods if you expect to exceed $5,000. If your annual sales are over $3,000, keep records for at least four years, and note the tax‑exempt status on an invoice if a buyer asks. These rules do not change your income tax filing duties.

Sponsors & Cosponsors

Sponsor

WAYS AND MEANS COMMITTEE
Affiliation unavailable

Cosponsors

Lori Den Hartog
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 34 • No: 0

House vote • 3/24/2026

House Floor Vote