Form ST-101 — Instructions (continued)
Churches. Churches can buy food for meals they sell to members or qualifying goods for their food bank without paying tax.
Food banks and soup kitchens. Food banks and soup kitchens can buy food or other goods used to grow, store, prepare, or serve food exempt from sales tax. The exemption doesn’t include licensed motor vehicles or trailers. See Idaho Code section 63-3622O.
Heating fuels. Heating fuels such as wood, coal, petroleum, propane, and natural gas are exempt when purchased to heat an enclosed building or a building under construction, or when used for cooking or water heating. See Idaho Code section 63-3622G. Seller: For heating fuel, you can stamp or imprint an exemption statement on the front of the invoice. Contact the Tax Commission to get the required language for the exemption statement. Sales of liquid propane in units of 15 gallons or less that are identified in the vendor’s records as cylinder sales are exempt from tax. You don’t have to keep a Form ST-101 on file for them.
Pollution control items. The following items qualify: tangible personal property purchased to meet air or water quality standards of a federal or state agency; liners and reagents purchased to meet water quality standards; tangible personal property purchased to meet air or water quality standards and which become an improvement to real property of manufacturing, mining, farming or toxic waste treatment and storage businesses; and “dry-to-dry transfer systems” used in the dry cleaning industry. This exemption doesn’t apply to items used in road construction, septic or sewer systems, drinking water treatment, or soil erosion prevention. Motor vehicles and buildings don’t qualify. See Idaho Code section 63-3622X.
Qualified semiconductor projects. Applicants must submit a qualifying project outline to the Idaho Department of Commerce. Qualifying covered entities can purchase materials and supplies permanently installed or placed in or on a qualifying project without paying sales tax. A qualifying project includes activities conducted in Idaho to construct, expand, or modernize a facility for fabrication, assembly, testing, advanced packaging, or research and development of semiconductors. See Idaho Code section 63-3622WW.
Irrigation equipment and supplies. All irrigation equipment and supplies used directly and primarily for agriculture are exempt. See Idaho Code section
Livestock. Sales of cattle, sheep, mules, horses, pigs, and goats are exempt when sold at a public livestock market. Sales of other animals don’t qualify. See Idaho Code section 63-3622MM.
Medical items. Only the following prescribed medical goods qualify if a licensed practitioner will administer or distribute them: drugs, contact lenses, eyeglasses, oxygen, insulin, syringes, prosthetic devices, durable medical equipment, dental and orthopedic appliances (including fillings), urinary and colostomy supplies, enteral and parenteral feeding equipment and supplies, hemodialysis and peritoneal dialysis drugs and supplies, and chemicals and equipment used to test or monitor blood or urine of a diabetic. See Idaho Code section 63-3622N.
Research and development (R&D Purchases of goods that are primarily used to develop, design, manufacture, process, or fabricate a product or potential product qualify for exemption. See Idaho Code section 63-3622RR. The Idaho National Laboratory and its contractors can claim an R&D exemption to buy goods directly and primarily used to advance scientific knowledge in areas that don’t have a commercial application. Items that will become a part of real property don’t qualify. See Idaho Code section 63-3622BB.
In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529