Idaho State Tax Updates

April 19, 2024

Authored by: Bonnie Susmano, JD, MBA and Ryan Schupp

On April 8, 2024, Idaho Gov. Little signed House Bill 751, expanding the state’s sales tax exemption on farming equipment. Effective retroactively to January 1, 2024, grain bin structures, augers, dryers, fans, sweep augers, and any other equipment directly and primarily used to perform quality control functions are exempt from sales tax. This exemption applies regardless of whether the equipment becomes part of the real property and whether a farmer, contractor, or subcontractor installed the equipment.

Taxpayers who purchased eligible equipment prior to the enactment of HB 751 may need to file refund claims.

If you have questions about state sales tax exemptions, please reach out to a member of the Withum SALT Team.

April 1, 2022

Effective July 1, 2022, the state of Idaho has determined that purchases or use of construction and building materials used directly to construct, expand, or modernize a facility for the fabrication, assembly, testing, advanced packaging, or research and development of semiconductors are exempt from sales and use tax. Per House Bill No. 678, the addition of Section 63-3622WW, Idaho Code is contingent upon a federal law providing a new federal semiconductor incentive by December 31, 2026.

January 31, 2022

Idaho released information on January 20, 2022 detailing the grocery tax credit to offset the sales tax on groceries. The credit is only available to Idaho residents and the state estimates most residents will receive $100 per household member (e.g., a married couple may receive $200). Resident taxpayers who are required to file Idaho income tax returns should claim the credit for grocery taxes paid on their return. For resident individuals not required to file an income tax return, there is a worksheet on the state website summarizing how to claim the credit and receive a refund.

March 30, 2021

Idaho Governor Brad Little announced that Idaho will extend the state individual income tax filing deadline to May 17, 2021 for the 2020 tax year returns in order to conform to the federal extension. The legislature is expected to pass a bill to incorporate this change when they return to work. (Press Release: Idaho tax filing deadline to be extended to May 17, Idaho Office of the Governor, 03/24/2021.)

On March 25, following the Governor’s March 24 announcement, the Idaho State Tax Commission voted to extend the 2020 tax year deadline to May 17, 2021 for both filing and payment requirements for personal income taxpayers (i.e., individuals, trusts, and estates) as well as the property tax relief programs (i.e., Property Tax Reduction, Property Tax Deferral, and 100% Service-Connected Disabled Veterans Benefit). Interest and penalties are waived provided that taxes owed are paid by May 17, 2021. (Press Release: Idaho’s income tax, property tax relief applications deadlines extended to May 17, Idaho State Tax Comm’n., 03/25/2021; Resolution 21-01, Idaho State Tax Comm’n., 03/25/2021.)

March 23, 2021

The Idaho State Tax Commission has announced that the state’s individual income tax filing deadline for 2020 tax year returns remains April 15, 2021. The legislature will consider a possible extension when it reconvenes on April 6, 2021. (Press Release: Idaho’s income tax deadline remains April 15, Idaho State Tax Comm’n., 03/19/2021.)

April 1, 2020

The tax filing and payment deadlines for all taxpayers have been extended to June 15, 2020. The deadlines for property tax relief programs (Property Tax Reduction, Property Tax Deferral, etc.) have also been extended to June 15.

More on Taxes and the Coronavirus Pandemic.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.