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IdahoH 07922026 regular legislative sessionHouseWALLET

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

Sponsored By: WAYS AND MEANS COMMITTEE

Signed by Governor

TAXATION

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 3 costs, 1 mixed.

Tax duties after $5,000 and $7,500

Beginning July 1, 2026, once your yearly sales go over $5,000, you have 30 days to apply for a temporary seller’s permit. You must collect and send sales tax on sales above $5,000 for the rest of that year. The temporary permit ends on December 31. If you expect to exceed $5,000 next year, you must apply for a regular seller’s permit. If your sales top $7,500 in a year, you must collect and send tax on all sales for that year.

No sales tax for $5,000-or-less sellers

Beginning July 1, 2026, an Idaho resident individual with $5,000 or less in sales for the year is a "small seller." While you qualify, you do not collect or send Idaho sales or use tax on those sales. Only individuals qualify—partnerships, corporations, and LLCs do not. Sales of motor vehicles, trailers, ATVs, off‑highway vehicles, motorcycles for off‑road use, snowmobiles, aircraft, boats, alcohol, tobacco, and items bought for resale are not covered. You may choose to apply for a seller’s permit even if you stay under $5,000.

Compliance rules for small sellers

Beginning July 1, 2026, if a buyer asks, you must note on the invoice that a sale was exempt under the small‑seller rule. If your sales are over $3,000 in a year, you must keep records for at least four years. If you expect to exceed $5,000, you may not keep a permanent office, warehouse, or stock of goods as a small seller.

Two tax-free yard sales per year

Beginning July 1, 2026, you get up to two home yard sales per year that are automatically exempt from sales tax. If you hold more than two, you lose that automatic exemption. You can still be exempt as a small seller if your total sales for the year stay under $5,000.

Start date: July 1, 2026

All these small‑seller and yard‑sale rules start on July 1, 2026. Exemptions and new tax duties both begin on that date.

Sponsors & Cosponsors

Sponsor

  • WAYS AND MEANS COMMITTEE

    Affiliation unavailable

Cosponsors

  • Lori Den Hartog

    Republican • Senate

  • Jason A. Monks

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 99 • No: 0

Senate vote • 3/24/2026

Senate Floor Vote

Yes: 34 • No: 0

House vote • 3/12/2026

House Floor Vote

Yes: 65 • No: 0

Actions Timeline

  1. Reported Signed by Governor on March 26, 2026 Session Law Chapter 189 Effective: 07/01/2026

    3/30/2026

  2. Delivered to Governor at 12:58 p.m. on March 26, 2026

    3/26/2026

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

    3/26/2026Senate

  4. Signed by President; returned to House

    3/25/2026Senate

  5. Received from the House enrolled/signed by Speaker

    3/25/2026Senate

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

    3/25/2026House

  7. Returned from Senate Passed; to JRA for Enrolling

    3/24/2026House

  8. Read third time in full – PASSED - 34-0-1

    3/24/2026Senate

  9. Read second time; filed for Third Reading

    3/18/2026Senate

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

    3/17/2026Senate

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

    3/13/2026Senate

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

    3/13/2026Senate

  13. Rules Suspended: Ayes 62 Nays 0 Abs/Excd 8, read in full as required – PASSED - 65-0-5

    3/12/2026House

  14. Read second time; Filed for Third Reading

    3/12/2026House

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

    3/11/2026House

  16. Reported Printed and Referred to Revenue & Taxation

    3/2/2026House

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

    2/27/2026House

Bill Text

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