Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES
Section 35.01.02.016 - RETAIL SALE OF ASPHALT, CONCRETE, AND CONCRETE PRODUCTS

01. In General. Asphalt, concrete and concrete products are building materials. The sale of such products to construct, alter, repair, or improve real estate is taxable. Separately stated charges for delivery by the vendor and vendor standby time are not taxable.

02. Agricultural Irrigation. Materials purchased for agricultural irrigation are exempt from sales tax whether purchased by the farmer, contractor, or subcontractor. This exemption applies even if the material is permanently affixed to real estate, such as concrete used to line ditches or ponds. See Rule 096 of these rules. The buyer must provide the seller with an exemption certificate. See Rule 128 of these rules.

03. Production Exemption. The retailer who produces and sells asphalt or concrete may qualify to claim the production exemption on equipment and supplies used directly to produce the concrete or asphalt for resale. See Rule 079 of these rules. However, trucks used by a ready-mix operator do not qualify for the production exemption because they are used for transportation. Although they may incidentally contribute to the manufacture of the final article, purchases of the truck, trailer, and the truck-mounted concrete mixer, which becomes a part of the motor vehicle, are not exempt from the tax.