Sales Tax Articles
Sales Tax State Activity Update - January 2008
Information Draught for Idaho Hybrid Retailers?
What level of trade is appropriate for this taxpayer's business transactions? Audit findings indicated that the taxpayer was primarily a retailer, but also installed some of its fabricated items into real property for certain customers. A Use Tax assessment was applied to those items installed into real estate based on its full fabricated cost.
Responding to a taxpayer's complaint about the lack of tax information for its "hybrid business" type, the Idaho State Tax Commission suggested three alternatives for obtaining information to make the right taxing decisions. They indicated that help is just a phone call or email away. Also, a periodic newsletter called Tax Update is issued and sales tax educational brochures address particular tax topics.
While there was no breakdown in the overall audit assessment, sales taxes were applied to the full fabrication labor for retail sales, use taxes were applied to real property contracts and offsets were applied to purchases of tangible personal property that were temporarily stored in resale inventory.
The full text may be accessed on the Idaho State Tax commission Website.
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