One of the states that charges a sales tax on the majority of retail purchases is Idaho. The cost of tangible personal property and some services is subject to a 6% sales tax levied by the state. However, the issue of whether Idaho has an internet sales tax comes up when it comes to purchases made online. Is there an internet sales tax in Idaho?
The short answer is “yes” Online merchants must obtain and remit sales tax in Idaho on all purchases made by residents of the state. Due to a Supreme Court decision from 2018, states are now able to demand that out-of-state online sellers pay sales tax on transactions involving their citizens. With this decision, the old rule that said a shop had to be physically present in the state to be charged sales tax was reversed.
Yes, digital products such as downloadable software, music, movies, and e-books are subject to sales tax in Idaho. Digital items are regarded as tangible personal property in Idaho and are consequently liable to sales tax.
If the shipping fee is shown as a distinct line item on the invoice or receipt, Idaho levies sales tax on the shipping price. Sales tax is not applicable, however, if the item’s price includes the cost of shipping.
Oregon residents are exempt from paying sales tax on purchases purchased in Idaho because Oregon does not have a sales tax. However, if an Oregon citizen buys anything in Idaho and has it sent to their state, they might have to pay use tax, which is equal to the county’s sales tax rate, in Oregon.
The sales tax in Coeur d’Alene is 6%, the same as in the rest of Idaho. This covers sales tax on physical goods, digital products, and shipping costs (where they are specified separately). There may be a local option sales tax in some parts of Idaho, but there isn’t one in Coeur d’Alene right now.
Last but not least, Idaho mandates that online merchants collect and remit sales tax on all purchases made to residents of Idaho, including digital goods and shipping costs if they are separately mentioned. Oregon residents may be compelled to pay use tax in Oregon even though they are not required to pay sales tax on purchases made in Idaho. In Coeur d’Alene, Idaho, there is a 6% sales tax.