US Laws, Codes, Statutes & Cases

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 36
                                  SALES TAX
    63-3622K.  OCCASIONAL SALES. (a) There are exempted from the taxes imposed
by this chapter occasional sales of tangible personal property.
    (b)  As used in this section, the term "occasional sale" means:
    (1)  A sale of property not held or used by a person in the course of an
    activity for which he is required to hold a seller's permit, provided such
    sale is not one (1) of a series of sales sufficient in number or of such a
    nature as to constitute the seller a "retailer" under section 63-3610(c),
    Idaho Code. The definition of "occasional sales" provided in this
    subsection does not apply to use tax in regard to tangible personal
    property used to improve real property when such property is obtained,
    directly or indirectly, from a person in the business of making like or
    similar improvements to real property.
    (2)  Any transfer of all or substantially all of the property held or used
    by a person in a business requiring a seller's permit when, after such
    transfer, the real or ultimate ownership of such property is substantially
    similar to that which existed before such transfer.  For the purpose of
    this section, stockholders, bondholders, partners, or other persons
    holding an interest in a corporation or other entity are regarded as
    having a "real or ultimate ownership" of the property of such corporation
    or other entity.
    (3)  A transfer of capital assets to or by a business when the transfer is
    accomplished through an adjustment of the beneficial interest of the
    business and the transferor has paid sales or use taxes pursuant to
    section 63-3619 or 63-3621, Idaho Code, on the capital assets, incidental
    to:
         (i)   A division of joint venture, partnership, or limited liability
         company assets among the members or partners in exchange for a
         proportional reduction of the transferee's interest in the joint
         venture, partnership, or limited liability company. For the purposes
         of this section, the term "limited liability company" means a
         business organization as defined in chapter 6, title 53, Idaho Code;
         (ii)  The formation of a partnership, joint venture, or limited
         liability company by the transfer of assets to the partnership, joint
         venture, or limited liability company or transfers to a partnership,
         joint venture, or limited liability company in exchange for
         proportionate interests in the partnership, joint venture, or limited
         liability company;
         (iii) The formation of a corporation by the owners of a business and
         the transfer of their business assets to the corporation in exchange
         for stock in proportion to assets contributed;
         (iv)  The transfer of assets of shareholders in the formation or
         dissolution of a corporation;
         (v)   The transfer of capital assets by a corporation to its
         stockholders in exchange for surrender of capital stock;
         (vi)  The transfer of assets from a parent corporation to a
         subsidiary corporation which is owned at least eighty percent (80%)
         by the parent corporation, which transfer is solely in exchange for
         stock or securities of the subsidiary corporation;
         (vii) The transfer of assets from a subsidiary corporation which is
         owned at least eighty percent (80%) by the parent corporation to a
         parent corporation or another subsidiary which is owned at least
         eighty percent (80%) by the parent corporation, which transfer is
         solely in exchange for stock or securities of the parent corporation
         or the subsidiary which received the assets.
    (4)  The sale, lease or rental of a capital asset in substantially the
    same form as acquired by the transferor and on which the initial
    transferor has paid sales or use taxes pursuant to section 63-3619 or
    63-3621, Idaho Code, when the owners of all of the outstanding stock,
    equity or interest of the transferor are the same as the transferee or are
    members of the same family within the second degree of consanguinity or
    affinity.
    (5)  The sale of substantially all of the operating assets of a business
    or of a separate division, branch, or identifiable segment to a buyer who
    continues operation of the business. For the purpose of this subsection, a
    "separate division, branch, or identifiable segment" shall be deemed to
    exist if, prior to its sale, the income and expense attributable to such
    "separate division, branch, or identifiable segment" could be separately
    ascertained from the books of accounts and records.
    (6)  Sales by persons who are not defined as "retailers" in section
    63-3610, Idaho Code.
    (7)  Sales of animals by any 4-H club or FFA club held in conjunction with
    a fair or the western Idaho spring lamb sale.
    (8)  The sale or purchase of tangible personal property at home yard
    sales; provided however, that no more than two (2) such home yard sales
    per individual calendar year shall be exempt.
    (c)  As used in this section, the term "occasional sale," when applied to
the sale of a motor vehicle, means only:
    (1)  Sales of motor vehicles between members of a family related within
    the second degree of consanguinity, unless a sales or use tax was not
    imposed on the sale of that motor vehicle at the time of purchase, in
    which situation the sale is taxable.
    (2)  Sales of motor vehicles that fall within the scope of the
    transactions detailed in subsection (b)(2) through (b)(5) of this section.
    (d)  The exemption provided by subsection (b)(1), (b)(4), (b)(6) or (b)(8)
of this section shall not apply to the sale, purchase or use of aircraft, as
defined in section 21-201, Idaho Code, nor shall it apply to the sale,
purchase or use of boats or vessels, as defined in section 67-7003, Idaho
Code, nor shall it apply to the sale, purchase or use of snowmobiles,
recreational vehicles or off-highway motorbikes, as defined in section
63-3622HH, Idaho Code.