Current through September 2, 2024
Sections 63-3612, 63-3622, 63-3622J, 63-3622KK, Idaho Code
01.
In General. The Sales Tax Act does not provide a general exemption from sales or use tax for religious organizations. Other than the exemptions discussed in this rule, sales and purchases by religious organizations are taxable.
02.
Meals Sold by a Church to Members Only. An exemption is provided by Section 63-3622J, Idaho Code, for the sale of meals by a church to its members at a church function. For the exemption to apply, the meals have to be sold to members only.
a. If the meal is open to members only, the church can buy the food without paying tax by providing the vendor with a properly completed exemption certificate or, if the church holds an Idaho seller's permit number, it may provide the vendor with a properly completed resale certificate. See Rule 128 of these rules.
b. If the meal is open to persons other than members of the church, this exemption does not apply. See Subsection 086.03 of this rule.
c. Food purchased to prepare meals which are not sold by the church, such as meals for resident pastors or for nuns living in a convent or associated with a hospital, is taxable.
03.
Incidental Sales by Religious Corporations or Societies. Incidental sales by religious organizations are exempt from sales taxes by Section 63-3622KK, Idaho Code. The exemption applies to sales of tangible personal property and other sales defined as subject to sales tax by the Idaho Code, including taxes imposed on providing hotel/motel and campground accommodations. For the exemption to apply, the following conditions need to be met:
a. If selling tangible personal property, the goods sold either have been taxed when purchased by the organization or received as a gift.
b. The proceeds from the sales made by the organization are used exclusively in the programs of the organization which may include any combination of religious worship, education, and recreation.
c. The sale may not be made to the general public in the open market in regular business competition.
d. Example 1: A church has a used clothing store. The items sold are not exempt from the sales tax because the store makes sales to the general public in regular competition with similar enterprises.
e. Example 2: A church holds an annual pancake breakfast in its basement. The meal is advertised and open to the public. If the church pays tax on the breakfast ingredients, it is not required to collect sales tax on the sale of the meals. Although the meal is open to the general public, the church is not in regular competition with other food-serving enterprises.
f. Example 3: A school owned by a religious corporation sells school supplies and meals only to its students. If the school pays tax when it purchases these items, it is not required to collect sales tax on the sales to its students. If, however, the school has a bookstore or cafeteria which is open to the general public, it does collect sales tax.
g. Example 4: A school owned by a religious corporation sells admissions to its students to attend athletic events through the sale of activity cards, and also sells admissions to the general public. The school will collect sales tax on all admission sales. The sale is open to the general public and is in regular competition with other recreational events to which admissions are charged.
04.
Sales of Literature by a Nonprofit Corporation. Literature which is both published and sold by qualifying nonprofit corporations is exempt from sales tax. Refer to Rule 085 of these rules.
Effective March 31, 2022
