Contractor's Use Of Tangible Personal Property (Rule 066)

Sections 63-3609(a), 63-3620, 63-3621, Idaho Code 01. Use. The term use includes the exercise of any right or power over tangible personal property in the performance of a contract, regardless of whether title to the tangible personal property is vested in the contractor o r the tangible personal property is leased. (3-31-22) 02. Contractors Use of Tangible Personal Property. If title to the tangible personal property is veste d in an entity not entitled to the production exemption, use tax will apply to the contractor. For contractors improvin g real property, see Rule 012 of these rules. (3-31-22) 03. Exception. The Sales Tax Act provides only one (1) exception. If title to the tangible persona l property is vested in a person entitled to the production exemption (see Rule 079 of these rules), the contractor’s us e of the property will also be exempt. (3-31-22)