01.
Exclusive Financing Exemption Under
Section 63-3622BB(1),
Idaho Code. The purchase of certain tangible personal property used in
connection with certain activities at the Idaho National Laboratory (INL) is
exempt from sales and use tax. To qualify for this exemption, the property
needs to be tangible personal property primarily or directly used or consumed
in research, development, experimental and testing activities, exclusively
financed by the United States Government. (3-31-22)
a. Qualifying Activity. Research,
development, experimental, and testing activity means any activity of an
original investigation, for the advancement of scientific knowledge in a field
of laboratory science, engineering or technology and does not have an actual
commercial application. (3-31-22)
b. Real Property. The exemption does not
apply to real property or to tangible personal property which will become
improvements or fixtures to real property. See Rules
012 and
067 of these rules.
(3-31-22)
c. Incidental Use of
Property. This exemption does not extend to the incidental use of any tangible
personal property which fails to meet the test of primary or direct use or
consumption. (3-31-22)
i. Areas of support
which are considered incidental include: communications equipment; office
equipment and supplies; janitorial equipment and supplies; training equipment
and supplies; dosimetry or radiation monitoring equipment which lacks the
capability of giving an immediate indication and would not result in an
immediate evacuation of personnel or shutdown of equipment; subscriptions or
technical manuals which provide technology not primarily used or directly
connected to the research activity; and hot and cold laundry operations.
(3-31-22)
ii. Materials of common
support which are considered incidental include: clothing for weather
protection or of a reusable nature; hand tools which are not subject to
contamination at the time of initial use; protective coverings which are
protection from other than radiation or are of a reusable nature; and all
safety equipment and supplies which do not protect from direct radiation
exposure. (3-31-22)
d.
Property Directly Used or Consumed. Tangible personal property primarily or
directly used or consumed in a research and development activity to perform
quality assurance on research equipment is tax exempt. Items of a general
support nature, such as coveralls, are taxable. (3-31-22)
e. Parts for Equipment. The use of tangible
personal property which becomes a component part of research equipment being
calibrated within a calibration lab is tax exempt; whereas, the use of parts
and equipment in calibrating or for the repair of other maintenance equipment
is taxable. (3-31-22)
f.
Radioactive Waste. The initial containment or storage of radioactive waste is
an exempt use. Any further processing or transporting of such waste not
relating to a research and development activity is a taxable use.
(3-31-22)
g. Motor Vehicles. The
purchase of any motor vehicle licensed or required to be licensed by the laws
of this state is taxable. (3-31-22)
h. Agreements with Contractors. The
Commission may enter into agreements with contractors engaged in research at
the INL prescribing methods by which the contractor or contractors may accrue
use tax based on the accounting procedures required by the U.S. Department of
Energy. (3-31-22)
02.
Percentage of Tangible Personal Property Exemption Under Section
63-3622BB(2),
Idaho Code. If a facility is used by the United States or one (1) of its
management and operating contractors for research and development activities at
the INL and also is used by a person or persons in addition to the United
States or one (1) of its management and operating contractors, there is
exempted from the taxes imposed by this chapter a percentage of each sale or
use of tangible personal property used or consumed at or for the benefit of the
facility in the amount that the research and development activities of the
United States or its management and operating contractors bear to the total use
of the facility by all persons. The Commission will calculate, review, and
verify the allocation provided for in this section. (3-31-22)
