Exemptions

Sections 63-3612(g), 63-3622A, 63-3624, 63-3622O, 67-4718, 67-4917B, 67-4917C, 63-1804, Idaho Code 01. Exemptions. All charges for accommodations which are exempt from Idaho sales tax are also exempt from the room sales tax. (7-1-26) 02. Exempt Entities. Rooms or campground spaces furnished to exempt entities, as defined in Section 63-3622O, Idaho Code, are exempt from the taxes if and only if the charge for the accommodation is billed directly to and paid directly by those entities. (7-1-26) a. “Billed directly to” means a contractual agreement between the facility operator and the exempt entity whereby the charge for the accommodation is directed, and is the responsibility of, and paid by the. (7-1-26) b. “Paid directly by” means a remittance tendered directly by the exempt entity to the facility operator. It does not include payment by the exempt entity or institution to an employee or agent for reimbursement of expenses incurred during business travel. However, “paid directly by” does include payments made by an exempt entity to a financial institution for credit card charges made on a charge account in the name of the exempt entity with a credit card issued to the entity itself and not to any individual or employee. (7-1-26) c. Credit cards issued to employees of governmental agencies aren’t considered to be billed directly to and paid directly by the governmental entity when the employee is responsible for making payment to the credit card company. (7-1-26) 03. Continuous Occupancy Exemptions. All accommodations are presumed to be short-term unless evidence can be provided documenting continuous occupancy. Continuous occupancy means maintaining residency under the terms of a lease or similar agreement for a continuous period of thirty one (31) days or greater by the same individual or individuals. The continuous occupancy exemption does not apply when the accommodation is furnished to a business enterprise that rotates numerous employees as occupants of the room or space with no one (1) employee remaining continuously for the minimum number of days required to meet the continuous stay requirements.(7-1-26) 04. Rooms Rented for Purposes Other Than Sleeping. Travel and Convention tax applies only to rooms rented to an individual as a place to sleep. The tax does not apply to rooms rented for other purposes, such as for meetings. However, both the state sales tax and the Auditorium or Community Center District tax apply to rooms rented by a hotel or motel for purposes other than sleeping. Rooms supplied with beds are presumed to be rented for the purpose of sleeping unless the contrary is established by the operator. Rooms, other than dormitory rooms, rented by an educational institution for purposes other than sleeping, are not taxable as a sale of lodging; however, it is possible that renting such a room may be taxable as a fee for the privilege of using a facility for a recreational IDAHO ADMINISTRATIVE CODE IDAPA 35.01.06 – Hotel/Motel Room & Campground State Tax Commission Sales Tax Administrative Rules Section 015 Page 4 purpose. (3-31-22) 05. Campgrounds Exempted. The Auditorium or Community Center District tax doesn’t apply to campground charges. The state sales tax and the Travel and Convention tax apply to the charge for campground spaces. Sales of spaces in campgrounds owned or operated by the state of Idaho, its agencies or political subdivisions are subject to the state sales tax but not the Travel and Convention tax. (7-1-26) 06. Foreign Diplomats. The United States Government grants immunity from state taxes to diplomats from certain foreign countries. The diplomat is issued a federal tax exemption card by the U.S. Department of State. The card bears a photograph of the holder, a federal tax exemption number, and specific instructions as to the extent of the exemption granted to the diplomat. Vendors document an exempt charge to a foreign diplomat by: (3-31-22) a. Retaining a photocopy of the front and back of the federal tax exemption card; or (3-31-22) b. Recording for their permanent record the name of the bearer, the mission represented, the federal tax exemption number displayed on the card, the date of expiration, and the nature of the exemption granted to the diplomat. (3-31-22) 07. Direct Pay Authority. A taxpayer granted direct pay authority, as provided by IDAPA 35.01.02.112, may not use this authority as an exemption from accommodation taxes. (7-1-26)