Idaho officials are studying last week’s decision by the U.S. Supreme Court that overturned the requirement that retailers must have a physical presence in a state to collect that state’s sales tax.
The Idaho State Tax Commission is looking at how the ruling affects out-of-state retailers, such as online sellers, that make sales to state residents. The commission is also watching any actions by the U.S. Congress on the issue.
A new Idaho law that goes into effect Sunday requires out-of-state retailers to collect Idaho sales tax on their sales to Gem State customers when the seller has an agreement with an Idaho retailer to refer potential buyers to the out-of-state seller for a commission, and the total sales to the Idaho buyers exceeded $10,000 in the previous year.
Any out-of-state retailer that’s required or wishes to collect the state sales tax for its Idaho customers can register online through the Tax Commission’s website at tax.idaho.gov. Idaho citizens who aren’t charged sales tax on their purchases owe a 6 percent use tax if the items are stored or used in Idaho. They can pay the use tax with their annual income tax return. (Idaho Tax Commission)
