Idaho Sales Tax Demystified
Actually, Idaho Sales Tax is quite simple. The State rate is currently 6%. And depending on local municipalities, the total tax rate can be as high as 9% (Idaho has a typical 3 tier tax rate system – State Rate + County Rate + City Rate = Total Tax Rate).
Bullet points are:
- Labor is NOT taxable.
- Any F&I backend products that are POLICY based (ie: Extended Service Contract, GAP Coverage, Pre-Paid Maintenance, Theft Coverage, Tire & Wheel/Roadside Hazard) are NOT taxable.
- Any F&I backend products that involve something being physically attached to the unit (ie: LoJack/GPS, Chemicals) ARE taxable.
- If a customer is trading in more units than he/she is purchasing they get Trade-In Credit for ALL trade in units.
- Freight, Pickup/Delivery charges ARE taxable.
- PDI is considered a “service” and therefore IS taxable.
- In the Service Department, EPA Charge and Shop Materials are NOT taxable.
- There is a Waste Tire Disposal Fee of $1 per tire (currently)
- There is a Battery Disposal Fee of $10 per battery (currently)
So, as you can see, Idaho Sales Tax is pretty straight forward.
Eric Rogers
erogers@nizex.com