Idaho State Statutes - Idaho Attorney Directory

(a) To prevent evasion of the sales and use tax, it shall be presumed that all
sales are subject to the taxes imposed by the provisions of this chapter and
the retailer shall have the burden of establishing the facts giving rise to
such exemption unless the purchaser delivers to the retailer, or has on file
with the retailer, an exemption or resale certificate.
(b) An exemption certificate shall show the purchaser's name, business
name and address (if any), address, and signature and the reason for and
nature of the claimed exemption.
(c) A resale certificate shall be signed by and bear the name and address
of 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 or
rented by the purchaser in the regular course of business. A resale
certificate relieves the seller 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 a permit provided for in this section, 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. If a
purchaser who gives a resale certificate makes any use of the property other
than retention, demonstration or display while holding it for sale or rent in
the regular course of business, the use shall be taxable to the purchaser as
of the time the property is first used by him, and the sales price of the
property to him shall be deemed the measure of the tax.
(d) A seller may accept an exemption or resale certificate from a
purchaser prior to the time of sale, at the time of the sale, or at any
reasonable time after the sale when necessary to establish the privilege of
the exemption. Other than as provided elsewhere in this section, when an
exemption or resale certificate, properly executed, is presented to or is on
file with 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. A seller
need not accept an exemption or resale certificate that is not readable,
legible or copyable.
(e) Any person who gives an exemption or resale certificate with the
intention of evading payment of the amount of the tax applicable to the
transaction is guilty of a misdemeanor and punishable by a fine not exceeding
one thousand dollars ($1,000) or imprisonment for not more than one (1) year,
or by both such fine and imprisonment.
(f) An exemption or resale certificate shall be substantially in such
form as the state tax commission may prescribe. The claim for the exemption
may be a part of the documentation on a sales invoice, purchase order, or
other documentation retained by the retailer with regard to the sale. Unless
the purchaser has an exemption or resale certificate on file with the seller,
the purchaser or his agent must sign the exemption claim, which shall be in
addition to any other signature which the seller normally requires on sales
invoices, purchase orders, or other sales documentation.
(g) It shall be presumed that sales made to a person who has completed an
exemption or 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 or services purchased are taxable to the purchaser as a matter of law
in the particular instance claimed on the exemption certificate.

Click here to visit the Official Idaho State Statutes