TITLE 63

REVENUE AND TAXATION

CHAPTER 36

SALES TAX

63-3611.  Retailer engaged in business in this state. "Retailer engaged in business in this state" as used in this chapter means any retailer who:

(1)  Engages in recurring solicitation of purchases from residents of this state or otherwise purposefully directs its business activities at residents of this state; and

(2)  Has sufficient contact with this state, in accordance with the constitution of the United States, to allow the state to require the seller to collect and remit sales or use tax on sales of tangible personal property or services made to customers in this state.

(3)  The term "retailer engaged in business in this state" includes any of the following:

(a)  Any retailer maintaining, occupying or using, permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business or maintaining a stock of goods.

(b)  Any retailer having any representative, agent, salesman, canvasser or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, installing or the taking of orders for any tangible personal property.

(c)  Any retailer, with respect to a lease or rental, deriving rentals from a lease or rental of tangible personal property situated in this state.

(d)  Any retailer engaging in any activity in connection with servicing or installing tangible personal property in this state.

(e)  Any retailer with substantial nexus in this state within the meaning of section 63-3615A, Idaho Code.

(f)  Any retailer having a franchisee or licensee operating under its trade name if the franchisee or licensee is required to collect the tax under the provisions of this section.

(g) (i)   Any retailer that has an agreement, directly or indirectly, with one (1) or more persons engaged in business in this state pursuant to this section under which, for a commission or other consideration, the persons refer potential purchasers to the retailer directly, whether by a link on an internet website, written or oral presentation, or otherwise; and

(ii)  The cumulative gross receipts from sales by the retailer to purchasers who are referred by all retailers engaged in business in this state pursuant to this section with such an agreement are greater than ten thousand dollars ($10,000) during the immediately preceding twelve (12) months. For purposes of this paragraph, gross receipts means receipts from sales to customers located in this state who were referred to the retailer by persons in this state with such an agreement with the retailer.

(iii)  For purposes of this paragraph, a retailer may rebut the presumption that it is soliciting sales in Idaho through persons in this state with whom it has an agreement as described in subparagraph (i) of this paragraph. For purposes of administering such rebuttal, the state tax commission will deem the presumption rebutted if the retailer is able to establish that no persons as described in subparagraph (i) of this paragraph engaged in any solicitation in this state on behalf of the retailer that would satisfy the nexus requirement of the United States constitution during the twelve (12) month period in question. The state tax commission may promulgate rules to administer the provisions of this subsection.

(h)  On and after June 1, 2019, any retailer without a physical presence in Idaho that has, in the previous calendar year or the current calendar year, cumulative gross receipts from sales delivered into Idaho in excess of one hundred thousand dollars ($100,000). Provided, however, a retailer described under this paragraph (h) shall not collect or remit any local sales tax or any other tax or assessment that is not imposed by this chapter.

History:

[63-3611, added 1989, ch. 311, sec. 2, p. 806; am. 1995, ch. 54, sec. 2, p. 123; am. 1998, ch. 49, sec. 1, p. 199; am. 2008, ch. 49, sec. 1, p. 120; am. 2018, ch. 220, sec. 1, p. 493; am. 2019, ch. 320, sec. 2, p. 949.]