Read the full stored bill text
LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
792
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
SECTION
63
-
3622K,
IDAHO
CODE,
TO
REVISE
A
2
PROVISION
REGARDING
OCCASIONAL
SALES
AND
TO
MAKE
TECHNICAL
CORREC
-
3
TIONS;
AMENDING
SECTION
63
-
3622XX,
IDAHO
CODE,
AS
ENACTED
BY
SECTION
1,
4
CHAPTER
86,
LAWS
OF
2025,
TO
REVISE
PROVISIONS
REGARDING
SMALL
SELLER
5
SALES
TAX
PROVISIONS
AND
TO
REDESIGNATE
THE
SECTION;
AND
DECLARING
AN
6
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
7
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
8
SECTION
1.
That
Section
63
-
3622K,
Idaho
Code,
be,
and
the
same
is
hereby
9
amended
to
read
as
follows:
10
63
-
3622K.
OCCASIONAL
SALES.
(a)
There
are
exempted
from
the
taxes
im
-
1
1
posed
by
this
chapter
occasional
sales
of
tangible
personal
property.
12
(b)
As
used
in
this
section,
the
term
"occasional
sale
s
"
means:
13
(1)
A
sale
of
property
not
held
or
used
by
a
person
in
the
course
of
an
14
activity
for
which
he
is
required
to
hold
a
seller's
permit,
provided
15
such
sale
is
not
one
(1)
of
a
series
of
sales
sufficient
in
number
or
16
of
such
a
nature
as
to
constitute
the
seller
a
"retailer"
under
section
17
63
-
3610(c),
Idaho
Code.
The
definition
of
"occasional
sales"
provided
18
in
this
subsection
does
not
apply
to
use
tax
in
regard
to
tangible
per
-
19
sonal
property
used
to
improve
real
property
when
such
property
is
ob
-
20
tained,
directly
or
indirectly,
from
a
person
in
the
business
of
making
21
like
or
similar
improvements
to
real
property.
22
(2)
Any
transfer
of
all
or
substantially
all
of
the
property
held
or
23
used
by
a
person
in
a
business
requiring
a
seller's
permit
when,
after
24
such
transfer,
the
real
or
ultimate
ownership
of
such
property
is
sub
-
25
stantially
similar
to
that
which
existed
before
such
transfer.
For
the
26
purpose
of
this
section,
stockholders,
bondholders,
partners,
or
other
27
persons
holding
an
interest
in
a
corporation
or
other
entity
are
re
-
28
garded
as
having
a
"real
or
ultimate
ownership"
of
the
property
of
such
29
corporation
or
other
entity.
30
(3)
A
transfer
of
capital
assets
to
or
by
a
business
when
the
transfer
31
is
accomplished
through
an
adjustment
of
the
beneficial
interest
of
the
32
business
and
the
transferor
has
paid
sales
or
use
taxes
pursuant
to
sec
-
33
tion
63
-
3619
or
63
-
3621,
Idaho
Code,
on
the
capital
assets,
incidental
34
to:
35
(i)
A
division
of
joint
venture,
partnership,
or
limited
liabil
-
36
ity
company
assets
among
the
members
or
partners
in
exchange
for
a
37
proportional
reduction
of
the
transferee's
interest
in
the
joint
38
venture,
partnership,
or
limited
liability
company.
For
the
pur
-
39
poses
of
this
section,
the
term
"limited
liability
company"
means
40
a
business
organization
as
defined
in
chapter
6,
title
53,
Idaho
41
2
Code,
or
as
defined
in
section
30
-
6
-
102,
Idaho
Code,
as
appropri
-
1
ate
pursuant
to
section
30
-
6
-
1104,
Idaho
Code;
2
(ii)
The
formation
of
a
partnership,
joint
venture,
or
limited
3
liability
company
by
the
transfer
of
assets
to
the
partnership,
4
joint
venture,
or
limited
liability
company
or
transfers
to
a
5
partnership,
joint
venture,
or
limited
liability
company
in
ex
-
6
change
for
proportionate
interests
in
the
partnership,
joint
7
venture,
or
limited
liability
company;
8
(iii)
The
formation
of
a
corporation
by
the
owners
of
a
business
9
and
the
transfer
of
their
business
assets
to
the
corporation
in
ex
-
10
change
for
stock
in
proportion
to
assets
contributed;
1
1
(iv)
The
transfer
of
assets
of
shareholders
in
the
formation
or
12
dissolution
of
a
corporation;
13
(v)
The
transfer
of
capital
assets
by
a
corporation
to
its
stock
-
14
holders
in
exchange
for
surrender
of
capital
stock;
15
(vi)
The
transfer
of
assets
from
a
parent
corporation
to
a
sub
-
16
sidiary
corporation
which
is
owned
at
least
eighty
percent
(80%)
17
by
the
parent
corporation,
which
transfer
is
solely
in
exchange
18
for
stock
or
securities
of
the
subsidiary
corporation;
19
(vii)
The
transfer
of
assets
from
a
subsidiary
corporation
which
20
is
owned
at
least
eighty
percent
(80%)
by
the
parent
corporation
to
21
a
parent
corporation
or
another
subsidiary
which
is
owned
at
least
22
eighty
percent
(80%)
by
the
parent
corporation,
which
transfer
is
23
solely
in
exchange
for
stock
or
securities
of
the
parent
corpora
-
24
tion
or
the
subsidiary
which
received
the
assets.
25
(4)
The
sale,
lease
or
rental
of
a
capital
asset
in
substantially
26
the
same
form
as
acquired
by
the
transferor
and
on
which
the
initial
27
transferor
has
paid
sales
or
use
taxes
pursuant
to
section
63
-
3619
or
28
63
-
3621,
Idaho
Code,
when
the
owners
of
all
of
the
outstanding
stock,
29
equity
or
interest
of
the
transferor
are
the
same
as
the
transferee
or
30
are
members
of
the
same
family
within
the
second
degree
of
consanguinity
31
or
affinity.
32
(5)
The
sale
of
substantially
all
of
the
operating
assets
of
a
business
33
or
of
a
separate
division,
branch,
or
identifiable
segment
to
a
buyer
34
who
continues
operation
of
the
business.
For
the
purpose
of
this
sub
-
35
section,
a
"separate
division,
branch,
or
identifiable
segment"
shall
36
be
deemed
to
exist
if,
prior
to
its
sale,
the
income
and
expense
attrib
-
37
utable
to
such
"separate
division,
branch,
or
identifiable
segment"
38
could
be
separately
ascertained
from
the
books
of
accounts
and
records.
39
(6)
Sales
by
persons
who
are
not
defined
as
"retailers"
in
section
40
63
-
3610,
Idaho
Code.
41
(7)
Sales
of
animals
by
any
4
-
H
club
or
FFA
club
held
in
conjunction
with
42
a
fair
or
the
western
Idaho
spring
lamb
sale.
43
(8)
The
sale
or
purchase
of
tangible
personal
property
at
home
yard
44
sales;
provided
however,
that
no
more
than
two
(2)
such
home
yard
sales
45
per
individual
calendar
year
shall
be
exempt.
If
a
homeowner
has
more
46
than
two
(2)
home
yard
sales
and
the
total
sales
are
less
than
five
thou
-
47
sand
dollars
($5,000)
in
a
calendar
year,
such
homeowner
may
qualify
as
48
a
small
seller
as
defined
in
section
63
-
3622YY,
Idaho
Code.
49
3
(c)
As
used
in
this
section,
the
term
"occasional
sale
s
,"
when
applied
1
to
the
sale
of
a
motor
vehicle,
means
only:
2
(1)
Sales
of
motor
vehicles
between
members
of
a
family
related
within
3
the
second
degree
of
consanguinity,
unless
a
sales
or
use
tax
was
not
im
-
4
posed
on
the
sale
of
that
motor
vehicle
at
the
time
of
purchase,
in
which
5
situation
the
sale
is
taxable.
6
(2)
Sales
of
motor
vehicles
that
fall
within
the
scope
of
the
transac
-
7
tions
detailed
in
subsection
(b)(2)
through
(b)
(5)
of
this
section.
8
(d)
The
exemption
provided
by
subsection
(b)(1),
(b)
(4),
(b)
(6)
,
or
9
(b)
(8)
of
this
section
shall
not
apply
to
the
sale,
purchase
or
use
of
air
-
10
craft,
as
defined
in
section
21
-
201,
Idaho
Code,
nor
shall
it
apply
to
the
1
1
sale,
purchase
or
use
of
boats
or
vessels,
as
defined
in
section
67
-
7003,
12
Idaho
Code,
nor
shall
it
apply
to
the
sale,
purchase
or
use
of
snowmobiles,
13
recreational
vehicles
or
off
-
highway
motorbikes,
as
defined
in
section
14
63
-
3622HH,
Idaho
Code.
15
SECTION
2.
That
Section
63
-
3622XX,
Idaho
Code,
as
enacted
by
Section
1,
16
Chapter
86,
Laws
of
2025,
be,
and
the
same
is
hereby
amended
to
read
as
fol
-
17
lows:
18
63
-
3622XX
63
-
3622YY
.
SMALL
SELLER.
(1)
There
is
hereby
exempted
from
19
the
taxes
imposed
by
this
chapter
sales
of
tangible
personal
property
made
by
20
an
individual
making
small
sales.
A
small
seller
shall
not
collect
or
remit
21
any
state
sales
or
use
tax
imposed
by
this
chapter.
22
(2)
For
purposes
of
this
section,
"small
seller"
means
an
Idaho
resi
-
23
dent
making
sales
that
do
not
exceed
five
thousand
dollars
($5,000)
in
cumu
-
24
lative
gross
receipts
in
the
current
or
previous
calendar
year.
It
shall
not
25
include
partnerships,
corporations,
or
limited
liability
corporations.
26
(3)
The
exemption
provided
in
this
section
shall
not
apply
to:
27
(a)
Sales
of
motor
vehicles,
trailers,
all
-
terrain
vehicles,
utility
28
type
vehicles,
specialty
off
-
highway
vehicles,
motorcycles
intended
29
for
off
-
road
use,
snowmobiles,
aircraft,
vessels
as
defined
in
section
30
67
-
7003,
Idaho
Code,
alcohol,
or
tobacco;
or
31
(b)
Items
purchased
to
be
sold
or
incorporated
into
items
to
be
sold.
32
(4)
A
small
seller
with
gross
receipts
exceeding
five
thousand
dollars
33
($5,000)
in
a
calendar
year
shall
within
thirty
(30)
days
file
with
the
state
34
tax
commission
an
application
for
a
temporary
seller's
permit
and
begin
col
-
35
lecting
and
remitting
sales
and
use
tax
on
all
sales
exceeding
five
thousand
36
dollars
($5,000)
in
such
calendar
year
.
No
temporary
seller's
permit
shall
37
be
issued
for
a
period
of
time
greater
than
the
remaining
calendar
year
in
38
which
sales
exceeded
five
thousand
dollars
($5,000)
for
a
small
seller.
The
39
following
year,
If
such
seller
reasonably
anticipates
to
exceed
five
thou
-
40
sand
dollars
($5,000)
in
sales
for
the
next
calendar
year,
such
seller
shall
41
apply
for
a
seller's
permit
under
the
provisions
of
section
63
-
3620(a),
42
Idaho
Code.
A
small
seller
with
gross
receipts
exceeding
seven
thousand
five
43
hundred
dollars
($7,500)
in
a
calendar
year
shall
collect
and
remit
sales
and
44
use
tax
on
all
sales
made
during
such
calendar
year.
45
(5)
A
small
seller
shall
indicate
on
such
seller's
invoice,
if
re
-
46
quested
by
the
purchaser,
that
the
sale
was
exempt
from
sales
and
use
tax
47
pursuant
to
the
provisions
of
this
section.
48
4
(6)
A
small
seller
shall
not
permanently
maintain,
occupy,
or
use
an
1
office,
place
of
distribution,
sales
or
sample
room
or
place,
warehouse
or
2
storage
place,
or
other
place
of
business
or
maintain
a
stock
of
goods
with
3
anticipation
of
exceeding
gross
receipts
of
five
thousand
dollars
($5,000).
4
(7)
A
small
seller
may
file
an
application
with
the
state
tax
commission
5
for
a
seller's
permit
pursuant
to
section
63
-
3620,
Idaho
Code,
before
such
6
seller
reaches
the
five
thousand
dollar
($5,000)
threshold
provided
in
sub
-
7
section
(2)
of
this
section.
8
(8)
Nothing
in
this
section
relieves
a
small
seller
from
filing
indi
-
9
vidual
income
tax
returns
for
persons
who
meet
the
filing
requirements
under
10
section
63
-
3030,
Idaho
Code.
1
1
(9)
A
small
seller
with
sales
exceeding
three
thousand
dollars
($3,000)
12
annually
shall
keep
such
records
for
not
less
than
four
(4)
years
pursuant
to
13
section
63
-
3624,
Idaho
Code.
14
SECTION
3.
An
emergency
existing
therefor,
which
emergency
is
hereby
15
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
16
July
1,
2026.
17