New Exemption for Certain Hand Tools in Idaho

Feb 29, 2016 | Gail Cole

Soon to be exempt in Idaho, if purchased for the right reason.

A new sales and use tax exemption is on the books in Idaho due to the enactment of House Bill 347, signed by Governor Butch Otter (R) on February 18, 2016.

Effective July 1, 2016, hand tools costing $100 or less are exempt from sales and use tax when used directly in the production of:

Agricultural irrigation
Logging
The production of certain newspapers
Radio and television broadcasting

According to the statement of purpose and fiscal note, the bill amends several sales tax exemptions “to be consistent with a change made to the production exemption last year with the enactment of HB 39.” It is expected to reduce sales tax receipts by $100,000, “$81,125 of which affects the General Fund in Fiscal Year 2017.”

Changes in product taxability happen regularly in all states with sales tax, creating compliance hassles for businesses. Simplify sales and use tax compliance with sales tax software (SaaS). Learn how it works.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.