2005 Idaho Code - 63-3621 — IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 36
                                  SALES TAX
    63-3621.  IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
is hereby imposed on the storage, use, or other consumption in this state of
tangible personal property acquired on or after October 1, 2006, for storage,
use, or other consumption in this state at the rate of six percent (6%) of the
value of the property, and a recent sales price shall be presumptive evidence
of the value of the property unless the property is wireless
telecommunications equipment, in which case a recent sales price shall be
conclusive evidence of the value of the property.
    (a)  Every person storing, using, or otherwise consuming, in this state,
tangible personal property is liable for the tax. His liability is not
extinguished until the tax has been paid to this state except that a receipt
from a retailer maintaining a place of business in this state or engaged in
business in this state given to the purchaser is sufficient to relieve the
purchaser from further liability for the tax to which the receipt refers. A
retailer shall not be considered to have stored, used or consumed wireless
telecommunications equipment by virtue of giving, selling or otherwise
transferring such equipment at a discount as an inducement to a consumer to
commence or continue a contract for telecommunications service.
    (b)  Every retailer engaged in business in this state, and making sales of
tangible personal property for the storage, use, or other consumption in this
state, not exempted under section 63-3622, Idaho Code, shall, at the time of
making the sales or, if storage, use or other consumption of the tangible
personal property is not then taxable hereunder, at the time the storage, use
or other consumption becomes taxable, collect the tax from the purchaser and
give to the purchaser a receipt therefor in the manner and form prescribed by
the state tax commission.
    (c)  The provisions of this section shall not apply when the retailer pays
sales tax on the transaction and collects reimbursement for such sales tax
from the customer.
    (d)  Every retailer engaged in business in this state or maintaining a
place of business in this state shall register with the state tax commission
and give the name and address of all agents operating in this state, the
location of all distributions or sales houses or offices or other places of
business in this state, and such other information as the state tax commission
may require.
    (e)  For the purpose of the proper administration of this act and to
prevent evasion of the use tax and the duty to collect the use tax, it shall
be presumed that tangible personal property sold by any person for delivery in
this state is sold for storage, use, or other consumption in this state. The
burden of proving the sale is tax exempt is upon the person who makes the sale
unless he obtains from the purchaser a resale certificate to the effect that
the property is purchased for resale or rental. It shall be presumed that
sales made to a person who has  completed a resale certificate for the
seller's records are not taxable and the seller need not collect sales or use
taxes unless the tangible personal property purchased is taxable to the
purchaser as a matter of law in the particular instance claimed on the resale
certificate.
    A seller may accept a resale certificate from a purchaser prior to the
time of sale, at the time of sale, or at any reasonable time after the sale
when necessary to establish the privilege of the exemption. The resale
certificate relieves the person selling the property from the burden of proof
only if taken from a person who is engaged in the business of selling or
renting tangible personal property and who holds the permit provided for by
section 63-3620, Idaho Code, or who is a retailer not engaged in business in
this state, and who, at the time of purchasing the tangible personal property,
intends to sell or rent it in the regular course of business or is unable to
ascertain at the time of purchase whether the property will be sold or will be
used for some other purpose. Other than as provided elsewhere in this section,
when a resale certificate, properly executed, is presented to the seller, the
seller has no duty or obligation to collect sales or use taxes in regard to
any sales transaction so documented regardless of whether the purchaser
properly or improperly claimed an exemption. A seller so relieved of the
obligation to collect tax is also relieved of any liability to the purchaser
for failure to collect tax or for making any report or disclosure of
information required or permitted under this chapter.
    The resale certificate shall bear the name and address of the purchaser,
shall be signed by the purchaser or his agent, shall indicate the number of
the permit issued to the purchaser, or that the purchaser is an out-of-state
retailer, and shall indicate the general character of the tangible personal
property sold by the purchaser in the regular course of business. The
certificate shall be substantially in such form as the state tax commission
may prescribe.
    (f)  If a purchaser who gives a resale certificate makes any storage or
use of the property other than retention, demonstration or display while
holding it for sale in the regular course of business, the storage or use is
taxable as of the time the property is first so stored or used.
    (g)  Any person violating any provision of this section is guilty of a
misdemeanor and punishable by a fine not in excess of one hundred dollars
($100), and each violation shall constitute a separate offense.
    (h)  It shall be presumed that tangible personal property shipped or
brought to this state by the purchaser was purchased from a retailer, for
storage, use or other consumption in this state.
    (i)  It shall be presumed that tangible personal property delivered
outside this state to a purchaser known by the retailer to be a resident of
this state was purchased from a retailer for storage, use, or other
consumption in this state. This presumption may be controverted by evidence
satisfactory to the state tax commission that the property was not purchased
for storage, use, or other consumption in this state.
    (j)  When the tangible personal property subject to use tax has been
subjected to a general retail sales or use tax by another state of the United
States in an amount equal to or greater than the amount of the Idaho tax, and
evidence can be given of such payment, the property will not be subject to
Idaho use tax. If the amount paid the other state was less, the property will
be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
the other state. For the purposes of this subsection, a registration
certificate or title issued by another state or subdivision thereof for a
vehicle or trailer or a vessel as defined in section 67-7003, Idaho Code,
shall be sufficient evidence of payment of a general retail sales or use tax.
    (k)  The use tax herein imposed shall not apply to the use by a
nonresident of this state of a motor vehicle which is registered or licensed
under the laws of the state  of his residence and is not used in this state
more than a cumulative period of time totaling ninety (90) days in any
consecutive twelve (12) months, and which is not required to be registered or
licensed under the laws of this state.
    (l)  The use tax herein imposed shall not apply to the use of household
goods, personal effects and personally owned motor vehicles by a resident of
this state, if such articles were acquired by such person in another state
while a resident of that state and primarily for use outside this state and if
such use was actual and substantial, but if an article was acquired less than
three (3) months prior to the time he entered this state, it will be presumed
that the article was acquired for use in this state and that its use outside
this state was not actual and substantial. For purposes of this subsection,
"resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code.
    (m)  The use tax herein imposed shall not apply to the storage, use or
other consumption of tangible personal property which is or will be
incorporated into real property and which has been donated to and has become
the property of:
    (1)  A nonprofit organization as defined in section 63-3622O, Idaho Code;
    or
    (2)  The state of Idaho; or
    (3)  Any political subdivision of the state.
This exemption applies whether the tangible personal property is incorporated
in real property by the donee, a contractor or subcontractor of the donee, or
any other person.