Retailer Defined (Rule 018)

Sections 63-3610, 63-3611, 63-3614, 63-3620, 63-3620F, 63-1804, Idaho Code 01. Retailer. The term retailer is defined in Section 63-3610, Idaho Code. A retailer includes a seller a s defined in Section 63-3614, Idaho Code as every person making retail sales to a buyer or consumer, whether as agent , broker, or principal. (3-31-22) 02. Retailer Engaged in Business in this State. A retailer engaged in business in this state is anyon e required to collect and remit Idaho sales and use tax pursuant to Section 63-3611, Idaho Code. (3-31-22) 03. Retailers Selling Incidental Tangible Personal Property. A person may be a retailer within the meaning of the act although the sale of tangible personal property is incidental to their general business. For example , a plumbing contractor may sell some plumbing supplies as a sideline and thereby become a retailer within th e meaning of this act. (3-31-22) 04. Farmers. Farmers who ordinarily sell their grain, livestock and other horticultural products fo r resale or processing are not taxable. However, when they sell to ultimate consumers or users, they must obtain a seller’s permit and report sales tax on their taxable sales. (3-31-22) 05. An Agent as a Retailer. Where there is a written agreement between a principal and their agent , dealer or other third party, and such agreement stipulates that the agent, dealer or other third party will be responsibl e for collection, reporting and payment of sales tax generated by sales, the Tax Commission will treat the position of the agent, dealer or third party as that of a retailer and impose on them the burden of collecting, accounting for, an d paying the sales tax to the State Tax Commission. (3-31-22) a. However, if for example, a milk route salesman, without such an agreement, makes regula r deliveries, collects for the products, and sales tax is included in the total proceeds collected and remitted to th e principal for proper crediting, accounting, discounts, etc., then it is the responsibility of the principal to relay the sale s tax with proper reporting forms as prescribed by law. (3-31-22) b. In some instances, such as the above, and the example of a newspaper delivery boy, the sales ar e actually made on behalf of the dairy and the newspaper company respectively. In the absence of any such writte n agreement, the Tax Commission will look to the principal as being responsible for the reporting and payment of th e sales tax. (3-31-22)