TITLE 63

REVENUE AND TAXATION

CHAPTER 36

SALES TAX

63-3622X.  Pollution control equipment. (1) There is hereby exempted from the taxes imposed by this chapter the sale, use or purchase of tangible personal property acquired and primarily used for the purpose of meeting air or water quality standards, rules or regulations of a state or federal agency having authority to regulate and set air or water quality emission standards.

(2)  The exemption provided in subsection (1) of this section applies to and includes:

(a)  The purchase of dry cleaning equipment that is designed to protect employees from exposure to perchloroethylene as well as retaining the fluid in the machine in order to protect sewer systems and air quality standards. Dry cleaning machines meeting these standards are referred to as "dry to dry transfer systems";

(b)  The purchase of a liner or reagent required to meet water quality standards, rules or regulations of a state or federal agency having authority to regulate and set water quality standards regardless of whether the liner or reagent later becomes or is intended to become a component of any real property or improvement or fixture thereto;

(c)  The sale, use or purchase of tangible personal property that becomes a component, fixture or improvement to realty acquired and primarily used for the purpose of meeting air or water quality emission standards, rules or regulations when purchased by:

(i)   Manufacturing, mining or farming businesses that qualify for the exemption provided by section 63-3622D, Idaho Code, but not including property used to treat drinking water or to treat air or water that is not required for a production process;

(ii)  Contractors working for manufacturing, mining or farming businesses that qualify for the exemption provided by section 63-3622D, Idaho Code, who purchase, use or install qualifying material at the direction of a project owner, but not including property used to treat drinking water or to treat air or water that is not required for a production process; or

(iii) Businesses principally devoted to treating and storing hazardous or toxic waste; and

(d)  Tangible personal property that is necessary for the operation of property that qualifies for the exemption available in paragraph (c) of this subsection.

(3)  The exemption provided in subsection (1) of this section does not apply to or include:

(a)  Motor vehicles or aircraft, without regard to the use to which such motor vehicles or aircraft are put;

(b)  The sale, use or purchase of fixtures, plumbing fixtures, pipe, pumps or other items used to treat or transport wastewater to a wastewater treatment plant that is owned by a wastewater operator as defined in section 54-2403, Idaho Code;

(c)  The sale, use or purchase of fixtures or tangible personal property that is used to treat or transport drinking water by a drinking water operator as defined in section 54-2403, Idaho Code;

(d)  The sale, use or purchase of property used to prevent soil erosion;

(e)  The sale, use or purchase of property that is affixed to realty and that is used in road construction or the construction of residential or commercial buildings or other improvements to realty owned by persons other than the businesses described in subsection (2)(c) of this section;

(f)  The sale, use or purchase of property used to construct buildings or structures that merely house pollution control equipment or a pollution control facility, including both building materials and construction equipment and including equipment used for excavation;

(g)  The sale, use or purchase of tangible personal property used to install pollution control equipment or facilities; or

(h)  The sale, use or purchase of tangible personal property that will become part of a septic tank or septic system.

History:

[63-3622X, added 1984, ch. 239, sec. 25, p. 584; am. 1987, ch. 326, sec. 6, p. 685; am. 1997, ch. 273, sec. 1, p. 798; am. 1999, ch. 42, sec. 12, p. 98; am. 2006, ch. 326, sec. 1, p. 1029; am. 2007, ch. 290, sec. 1, p. 825.]