Sales Price Or Purchase Price Defined

Sections 63-3612 and 63-3613, Idaho Code 01. Sales Price and Purchase Price. The terms sales price and purchase price may be used interchangeably. Both mean the price paid by the customer to the seller. (7-1-26) 02. Services Agreed to Be Rendered as a Part of the Sale. The taxable sales price includes services agreed to be rendered as a part of the sale. The following isn’t an exclusive list: (7-1-26) a. Any charges for any services to bring the subject of a sale to its finished state ready for delivery and in the condition specified by the buyer, including charges for assembly, fabrication, alteration, lubrication, engraving, monogramming, cleaning, or any other servicing, customizing or dealer preparation except those exempted in Section 63-3622OO, Idaho Code. (3-31-22) b. Any charges for warranties, service agreements, insurance coverage, or other services mandated by the vendor to be taken as a condition of the sale. If the sale could be completed without the payment of these charges, the charges are not part of the taxable sales price if separately stated. See Section 049. (7-1-26) 03. Costs of Business. Costs passed along by the seller to their customer don’t reduce the taxable sales price. The following isn’t an exclusive list: (7-1-26) a. Any commission or other form of compensation for the services of an agent, auctioneer, consultant, broker, or similar person. (7-1-26) b. Any fuel surcharges except those charges which the vendor can document are related only to delivery of the property to the end customer. (7-1-26) c. Any convenience, surcharge, processing, or other fee imposed by a seller on a buyer paying with a financial transaction card such as a credit card, debit card, check card, or other banking instrument or device. (7-1-26) 04. Added Charges. Charges added by the seller to the sales price are taxable unless excluded by statute. The following isn’t an exclusive list of taxable charges: (7-1-26) a. Any charge based on the amount or frequency of a purchase, such as a small order charge or the nature of the item sold, such as a slow-moving charge for an item not frequently sold. (7-1-26) b. Any amounts designated as service charges, including those added to the price of meals, drinks, delivery charges, or admission charges. (7-1-26) c. Charges added to the price due to a surge in demand or during a particular time frame. (7-1-26)