Bill > H0144

This bill adds a new section to Idaho tax law to provide a sales and use tax exemption for small sellers, defined as Idaho residents with cumulative gross receipts not exceeding $5,000 in the current or previous calendar year. The exemption applies only to individuals and specifically excludes partnerships, corporations, and limited liability companies. Small sellers are not required to collect or remit state sales or use tax, but they cannot sell certain items like motor vehicles, alcohol, tobacco, or items purchased specifically for resale. If a small seller's gross receipts exceed $5,000, they must file for a temporary seller's permit within 30 days and begin collecting sales tax, with the permit valid only for the remaining calendar year. The bill requires small sellers with sales over $3,000 annually to maintain records for at least four years and allows them to voluntarily apply for a seller's permit before reaching the $5,000 threshold. The law does not exempt small sellers from filing individual income tax returns, and it will go into effect on July 1, 2025, with an emergency clause declared by the legislature.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0144/