Effective July 1, 2025, Idaho House Bill 144 amends existing sales tax law to exempt certain small sellers from collecting and remitting sales and use tax. A small seller is defined as an Idaho resident whose total gross receipts do not exceed $5,000 in the current or previous calendar year.
To qualify for this exemption, small sellers in Idaho cannot have a permanent store, office, or warehouse if they expect to exceed the sales threshold. Those generating over $3,000 in annual sales must retain sales records for at least four years to comply with state tax regulations.
The exemption does not apply to partnerships, corporations, or limited liability companies (LLCs). Certain sales are also excluded, including motor vehicles, alcohol, tobacco, and items purchased for resale. If a small seller surpasses the $5,000 limit, they must apply for a temporary seller’s permit within 30 days and begin collecting sales and use tax.
(Idaho Department of Revenue, H.B.144, Laws 2025, effective July 1, 2025)