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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
839
BY
REVENUE
AND
TAXATION
COMMITTEE
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
SECTION
63
-
3612,
IDAHO
CODE,
TO
REVISE
A
DEF
-
2
INITION;
AMENDING
SECTION
63
-
3613,
IDAHO
CODE,
TO
REVISE
A
DEFINITION;
3
PROVIDING
APPLICABILITY;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
4
RETROACTIVE
APPLICATION.
5
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
6
SECTION
1.
That
Section
63
-
3612,
Idaho
Code,
be,
and
the
same
is
hereby
7
amended
to
read
as
follows:
8
63
-
3612.
SALE.
(1)
The
term
"sale"
means
any
transfer
of
title,
ex
-
9
change
or
barter,
conditional
or
otherwise,
of
tangible
personal
property
10
for
a
consideration
and
shall
include
any
similar
transfer
of
possession
1
1
found
by
the
state
tax
commission
to
be
in
lieu
of,
or
equivalent
to,
a
trans
-
12
fer
of
title,
exchange
or
barter.
13
(2)
"Sale"
shall
also
include
the
following
transactions
when
a
consid
-
14
eration
is
transferred,
exchanged
or
bartered:
15
(a)
Producing,
fabricating,
processing,
printing,
or
imprinting
of
16
tangible
personal
property
for
consumers
who
furnish,
either
directly
17
or
indirectly,
the
tangible
personal
property
used
in
the
producing,
18
fabricating,
processing,
printing,
or
imprinting.
19
(b)
Furnishing,
preparing,
or
serving
food,
meals,
or
drinks
and
nonde
-
20
preciable
goods
and
services
directly
consumed
by
customers
included
in
21
the
charge
thereof.
22
(c)
A
transfer
of
possession
of
property
where
the
seller
retains
the
23
title
as
security
for
the
payment
of
the
sales
price.
24
(d)
A
transfer
of
the
title
or
possession
of
tangible
personal
property
25
which
has
been
produced,
fabricated,
or
printed
to
the
special
order
of
26
the
customer,
or
of
any
publication.
27
(e)
Admission
to
a
place
or
for
an
event
in
Idaho,
provided
that
an
or
-
28
ganization
conducting
an
exempt
function
as
defined
in
section
527
or
29
exempted
by
section
501(c)(3)
of
the
Internal
Revenue
Code,
as
incor
-
30
porated
in
section
63
-
3004,
Idaho
Code,
and
collecting
any
charges
for
31
attendance
at
the
aforementioned
event,
shall
not
have
those
admission
32
charges
be
defined
as
a
sale
if
the
event:
33
(i)
Is
not
predominately
recreational
or
commercial;
and
34
(ii)
Any
included
entertainment
value
is
minimal
when
compared
to
35
the
charge
for
attendance;
and
36
(iii)
Such
entity
has
paid
sales
and
use
tax
on
taxable
property
or
37
services
used
during
the
event.
38
(f)
The
use
of
or
the
privilege
of
using
tangible
personal
property
or
39
facilities
for
recreation.
40
2
(g)
Providing
hotel,
motel,
campground,
or
trailer
court
accommo
-
1
dations,
nondepreciable
goods
directly
consumed
by
customers
and
2
included
services,
except
:
3
(i)
where
Where
residence
is
maintained
continuously
under
the
4
terms
of
a
lease
or
similar
agreement
for
a
period
in
excess
of
5
thirty
(30)
days
.
;
or
6
(ii)
Accommodations
for
redemptions
of
loyalty
or
rewards
program
7
points
where
monetary
consideration
has
not
been
paid
for
the
ac
-
8
commodations
by
the
program
member;
however,
sales
tax
shall
apply
9
to
monetary
consideration
paid
by
a
loyalty
program
to
an
accom
-
10
modations
owner
or
operator
when
loyalty
or
reward
points
are
re
-
1
1
deemed
for
the
providing
of
customer
accommodations.
12
(h)
The
lease
or
rental
of
tangible
personal
property.
13
(i)
The
intrastate
transportation
for
hire
by
air
of
freight
or
passen
-
14
gers,
except
(1)
as
part
of
a
regularly
scheduled
flight
by
a
certified
15
air
carrier,
under
authority
of
the
United
States,
or
(2)
when
providing
16
air
ambulance
services.
17
(3)
As
used
in
subsections
(2)(b)
and
(2)(g)
of
this
section,
goods
"di
-
18
rectly
consumed
by
customers"
shall
not
be
interpreted
to
mean
any
linens,
19
bedding,
cloth
napkins
or
similar
nondisposable
property.
20
SECTION
2.
That
Section
63
-
3613,
Idaho
Code,
be,
and
the
same
is
hereby
21
amended
to
read
as
follows:
22
63
-
3613.
SALES
PRICE.
(a)
The
term
"sales
price"
means
the
total
23
amount
for
which
tangible
personal
property,
including
services
agreed
to
be
24
rendered
as
a
part
of
the
sale,
is
sold,
rented
or
leased,
valued
in
money,
25
whether
paid
in
money
or
otherwise,
without
any
deduction
on
account
of
any
26
of
the
following:
27
1.
The
cost
of
the
property
sold.
However,
in
accordance
with
such
28
rules
as
the
state
tax
commission
may
prescribe,
a
deduction
may
be
29
taken
if
the
retailer
has
purchased
property
for
some
purpose
other
than
30
resale
or
rental,
has
reimbursed
his
vendor
for
tax
which
the
vendor
is
31
required
to
pay
to
the
state
or
has
paid
the
use
tax
with
respect
to
the
32
property,
and
has
resold
or
rented
the
property
prior
to
making
any
use
33
of
the
property
other
than
retention,
demonstration
or
display
while
34
holding
it
for
sale
in
the
regular
course
of
business.
If
such
a
deduc
-
35
tion
is
taken
by
the
retailer,
no
refund
or
credit
will
be
allowed
to
his
36
vendor
with
respect
to
the
sale
of
the
property.
37
2.
The
cost
of
materials
used,
labor
or
service
cost,
losses,
or
any
38
other
expense.
39
3.
The
cost
of
transportation
of
the
property
prior
to
its
sale.
40
4.
The
face
value
of
manufacturer's
discount
coupons.
A
manufacturer's
41
discount
coupon
is
a
price
reduction
coupon
presented
by
a
consumer
to
42
a
retailer
upon
purchase
of
a
manufacturer's
product,
the
face
value
of
43
which
may
only
be
reimbursed
by
the
manufacturer
to
the
retailer.
44
(b)
The
term
"sales
price"
does
not
include
any
of
the
following:
45
1.
Retailer
discounts
allowed
and
taken
on
sales,
but
only
to
the
extent
46
that
such
retailer
discounts
represent
price
adjustments
as
opposed
to
47
cash
discounts
offered
only
as
an
inducement
for
prompt
payment.
48
3
2.
Any
sums
allowed
on
merchandise
accepted
in
payment
of
other
mer
-
1
chandise,
provided
that
this
allowance
shall
not
apply
to
the
sale
of
a
2
"new
manufactured
home,"
a
"new
park
model
recreational
vehicle"
or
a
3
"modular
building"
as
defined
herein.
4
3.
The
amount
charged
for
property
returned
by
customers
when
the
5
amount
charged
therefor
is
refunded
either
in
cash
or
credit;
but
this
6
exclusion
shall
not
apply
in
any
instance
when
the
customer,
in
order
7
to
obtain
the
refund,
is
required
to
purchase
other
property
at
a
price
8
greater
than
the
amount
charged
for
the
property
that
is
returned.
9
4.
The
amount
charged
for
labor
or
services
rendered
in
installing
or
10
applying
the
property
sold,
provided
that
said
amount
is
stated
sepa
-
1
1
rately
and
such
separate
statement
is
not
used
as
a
means
of
avoiding
12
imposition
of
this
tax
upon
the
actual
sales
price
of
the
tangible
per
-
13
sonal
property;
except
that
charges
by
a
manufactured
homes
dealer
or
14
park
model
recreational
vehicle
dealer
for
set
up
of
a
manufactured
15
home
or
park
model
recreational
vehicle
shall
be
included
in
the
"sales
16
price"
of
such
manufactured
home
or
park
model
recreational
vehicle.
17
5.
The
amount
of
any
tax
(not
including,
however,
any
manufacturers'
or
18
importers'
excise
tax)
imposed
by
the
United
States
upon
or
with
respect
19
to
retail
sales
whether
imposed
upon
the
retailer
or
the
consumer.
20
6.
The
amount
charged
for
finance
charges,
carrying
charges,
service
21
charges,
time
-
price
differential,
or
interest
on
deferred
payment
22
sales,
provided
such
charges
are
not
used
as
a
means
of
avoiding
impo
-
23
sition
of
this
tax
upon
the
actual
sales
price
of
the
tangible
personal
24
property.
25
7.
Delivery
and
handling
charges
for
transportation
of
tangible
per
-
26
sonal
property
to
the
consumer,
provided
that
the
transportation
is
27
stated
separately
and
the
separate
statement
is
not
used
as
a
means
of
28
avoiding
imposition
of
the
tax
upon
the
actual
sales
price
of
the
tan
-
29
gible
personal
property;
except
that
charges
by
a
manufactured
homes
30
dealer
or
park
model
recreational
vehicle
dealer
for
transportation
31
of
a
manufactured
home
or
park
model
recreational
vehicle
shall
be
in
-
32
cluded
in
the
"sales
price"
of
such
manufactured
home
or
park
model
33
recreational
vehicle.
34
8.
Manufacturers'
rebates
when
used
at
the
time
of
a
retail
sale
as
a
35
down
payment
on
or
reduction
to
the
retail
sales
price
of
a
motor
vehi
-
36
cle
the
following
products
to
which
the
rebate
applies
:
motor
vehicles
37
as
defined
in
section
63
-
3605L,
Idaho
Code;
and
all
-
terrain
vehicles,
38
utility
type
vehicles,
specialty
off
-
highway
vehicles,
motorbikes,
and
39
snowmobiles,
as
those
terms
are
defined
in
section
67
-
7101,
Idaho
Code
.
40
A
manufacturer's
rebate
is
a
cash
payment
made
by
a
manufacturer
to
a
re
-
41
tailer
or
to
a
consumer
who
has
purchased
or
is
purchasing
the
manufac
-
42
turer's
product
from
the
retailer.
43
9.
The
amount
of
any
fee
imposed
upon
an
outfitter
as
defined
in
section
44
36
-
2102,
Idaho
Code,
by
a
governmental
entity
pursuant
to
statute
for
45
the
purpose
of
conducting
outfitting
activities
on
land
or
water
sub
-
46
ject
to
the
jurisdiction
of
the
governmental
entity,
provided
that
the
47
fee
is
stated
separately
and
is
presented
as
a
use
fee
paid
by
the
out
-
48
fitted
public
to
be
passed
through
to
the
governmental
entity.
49
4
10.
The
amount
of
any
discount
or
other
price
reduction
on
telecommuni
-
1
cations
equipment
when
offered
as
an
inducement
to
the
consumer
to
com
-
2
mence
or
continue
telecommunications
service,
or
the
amount
of
any
com
-
3
mission
or
other
indirect
compensation
received
by
a
retailer
or
seller
4
as
a
result
of
the
consumer
commencing
or
continuing
telecommunications
5
service.
6
(c)
The
sales
price
of
a
"new
manufactured
home"
or
a
"modular
building"
7
as
defined
in
this
chapter
shall
be
limited
to
and
include
only
fifty
-
five
8
percent
(55%)
of
the
sales
price
as
otherwise
defined
herein.
9
(d)
Taxes
previously
paid
on
amounts
represented
by
accounts
found
to
10
be
worthless
may
be
credited
upon
a
subsequent
payment
of
the
tax
provided
in
1
1
this
chapter
or,
if
no
such
tax
is
due,
refunded.
If
such
accounts
are
there
-
12
after
collected,
a
tax
shall
be
paid
upon
the
amount
so
collected.
13
(e)
Tangible
personal
property
when
sold
at
retail
for
more
than
eleven
14
cents
(11¢)
but
less
than
one
dollar
and
one
cent
($1.01)
through
a
vending
15
machine
shall
be
deemed
to
have
sold
at
a
sales
price
equal
to
one
hundred
16
seventeen
percent
(117%)
of
the
price
which
is
paid
for
such
tangible
per
-
17
sonal
property
and/or
its
component
parts
including
packaging
by
the
owner
18
or
operator
of
the
vending
machines.
19
(f)
Sales
price
shall
not
include
a
gratuity
or
tip
received
when
paid
20
to
the
service
provider
of
a
meal.
The
gratuity
or
tip
can
be
either
volun
-
21
tary
or
mandatory,
but
must
be
given
for
the
service
provided
and
as
a
supple
-
22
ment
to
the
service
provider's
income.
23
(g)
The
sales
price
of
a
"new
park
model
recreational
vehicle"
shall
in
-
24
clude
one
hundred
percent
(100%)
of
the
sales
price
as
otherwise
defined
in
25
this
section.
26
SECTION
3.
The
provisions
of
this
act
shall
apply
to
all
appeals
pend
-
27
ing
on
and
after
January
1,
2026,
involving
interpretation
or
application
of
28
sections
63
-
3612
and
63
-
3613,
Idaho
Code.
29
SECTION
4.
An
emergency
existing
therefor,
which
emergency
is
hereby
30
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
its
31
passage
and
approval,
and
retroactively
to
January
1,
2026.
32