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Discover Idaho’s updated sales tax system for 2024! Learn about state, local, and special taxes, key exemptions, compliance tips, and what’s new this year. Stay informed and stay compliant!

Transcript

1. IDAHO’S SALES IDAHO’S SALES TAX 2024 TAX 2024 TRYKINTSUGI.COM What You Need to Know
2. Introduction Introduction IDAHO’S SALES TAX SYSTEM IMPACTS RESIDENTS AND BUSINESSES ALIKE. RATES DEPEND ON STATE LEGISLATION, COUNTIES, AND LOCAL DISTRICTS. LET’S EXPLORE HOW TAXES ARE STRUCTURED AND THEIR RECENT UPDATES.
3. Idaho's Base Sales Tax STATE SALES TAX: THE STATE SALES TAX: THE FOUNDATION FOUNDATION Idaho’s base state sales tax rate: 6%. Remains unchanged from 2023 to 2024. Applies to most tangible personal property and some services.
4. Local Option Taxes in Idaho Local governments may add taxes for specific needs. Examples: Blaine County: Increased local tax by 0.5% in 2024 for infrastructure. Resort cities like Sun Valley: 1%-3% additional taxes for tourism projects. UNDERSTANDING LOCAL OPTION SALES TAXES UNDERSTANDING LOCAL OPTION SALES TAXES
5. Special Sales Tax Scenarios E-commerce: Remote sellers must collect sales tax if sales exceed $100,000. SaaS Tax: Digital goods and subscription services are taxable at 6.5% in 2024. Exempt Services: Many services (e.g., medical services) are tax-exempt. Key Considerations for Sales Tax Key Considerations for Sales Tax
6. Use Tax: What You Need to Know Applies to out-of-state purchases used in Idaho. Rate: 6%, mirroring the sales tax. EXAMPLES: Online furniture purchases. Out-of-state equipment for Idaho businesses. Ensures fair taxation between in-state and out- of-state sellers. Understanding Idaho’s Use Tax Understanding Idaho’s Use Tax
7. General Sales Tax: Increased from 6% to 6.5% in January 2024. Groceries: Reduced to 3% to ease financial strain. Online Sales: Expanded to digital goods. Tax-Free Holiday: Introduced for back-to- school shopping in August. Motor Vehicles: Tiered tax structure based on vehicle price. Recent Changes to Idaho Sales Tax WHAT’S NEW IN 2024? WHAT’S NEW IN 2024?
8. Determine State Sales Tax: Multiply the sale price by 6%. Add Local Taxes: Multiply the sale price by applicable local tax rates. Sum Up: Combine state and local taxes for total sales tax. E-commerce and SaaS: Apply adjusted rate of 6.5%. Calculating Sales Tax STEP-BY-STEP SALES TAX CALCULATION
9. Special Taxes and Exemptions DIVING INTO EXCISE TAXES AND EXEMPTIONS Excise Taxes: Tobacco: $0.57 per pack. Alcohol: Beer: $0.15/gallon, Wine: $0.45/gallon. Exemptions: Prescription medications. Agricultural equipment.
10. Compliance and Reporting STAYING TAX COMPLIANT STAYING TAX COMPLIANT Collect sales tax at the point of sale. File taxes with the Idaho State Tax Commission: Monthly, quarterly, or annually (based on business size). Failure to comply results in penalties and interest.
11. Closing Thoughts WHY IT MATTERS WHY IT MATTERS Idaho’s sales tax system funds crucial community projects. Compliance ensures smooth business operations and supports state infrastructure. Staying informed on recent changes is key for businesses and residents.
12. THANK YOU TRYKINTSUGI.COM trykintsugi.com +1 (415) 840-8847 growth@trykintsugi.com 156 2nd St, San Francisco, CA 94105, United States