Signs

Sections 63-3609, 63-3612, 63-3613, 63-3622, Idaho Code IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 037 Page 17 01. Lease or Rental of Signs. The lease or rental of signs that are tangible personal property is taxable. (7-1-26) 02. Material That Becomes Part of a Sign. The sale of advertising signs may consist of a mixed transaction including both a sale of tangible personal property and a sale of real property. (3-31-22) a. The materials and labor necessary to fabricate a sign are taxable unless an exemption applies. (7-1-26) b. Signs may be attached to real property in such a way that they become a real property improvement. The person installing materials into real property is a contractor and is the consumer of the materials installed. See Section 012. (7-1-26) 03. Road Signs. Road signs include traffic signs such as speed limit, stop; street, recreational area, mileage, exit, and other informational signs. (7-1-26) a. In general, road signs become real property upon installation. A contractor installing road signs is improving real property when performing the installation work. The contractor is the consumer of all materials used in the installation of the road sign. The contractor owes sales or use tax on its use of all sign materials regardless of whether the contractor purchased the materials or had the sign materials provided by the sign owner. However, if the sign owner has already paid sales or use tax on its purchase of the sign materials, the contractor won’t owe any additional use tax. (7-1-26) b. If a road sign is intended to be temporary, the road sign doesn’t become real property regardless of how the road sign is affixed to real property. (7-1-26) 04. Displays, Graphics, or Signs Applied to Real Property. Custom displays, graphics, or signs applied to walls or windows of a building isn’t a retail sale of tangible personal property and isn’t taxable. The applicator pays sales or use tax on the purchases of materials used. (7-1-26) 05. Billboards. Billboards are not in the same category as signs. The rental of a billboard isn’t a rental of tangible personal property. Materials used in the construction, erection, and maintenance of a billboard are taxable. (7-1-26)