Mixed Transactions

Sections 63-3609, 63-3612, 63-3613, Idaho Code 01. Retail Sales of Tangible Personal Property Together with Services. The sales tax applies to retail sales of tangible personal property. When a retail sale of tangible personal property includes services, the total amount charged is taxed, except those services excluded by statute. To determine whether a transaction is a retail sale of tangible personal property or a sale of services, the following tests are applied. (7-1-26) a. The taxability of a mixed transaction is determined by analyzing the object of the transaction and whether the buyer is seeking the service itself or the property produced by the service. If the tangible personal property is the object of the transaction, then the entire transaction is taxable. If the service is the object of the transaction, then it will depend on whether the transfer of the tangible personal property is an incidental part of the transaction. If so, then no part of the transaction is taxable. (7-1-26) i. To determine whether a mixed transaction qualifies as a sale of services, the object of the transaction will be determined; that is, whether the buyer is seeking the service itself, or the property produced by the service. (7-1-26) ii. When a retail sale involves the transfer of tangible personal property and the performance of a service, both of which are independent elements whose charges are separately stated, then the taxability of each charge is analyzed on its own. (7-1-26) 02. Examples. Available at Sales and Use Tax Examples. (7-1-26)