If a new bill filed in the Idaho Legislature is passed, Idahoans who sell less than $5,000 worth of goods annually in a nonbusiness environment would not be required to obtain a sellers permit to charge sales tax.
The new law, sponsored by House Majority Leader Jason Monks, R-Meridian, was not yet available on the Idaho Legislature’s website as of Tuesday afternoon.
Monks informed lawmakers on Tuesday that the state awarded 10,701 seller’s permits for Idaho residents who sold goods for less than $5,000 in 2023, bringing in almost $1 million for the state.
According to Monks, every individual with a seller’s permission is currently required to keep track of sales and submit documentation and reports, which state staff must then process.
Monks stated on Tuesday that dealing with individuals who run tiny fruit stands, egg sales, garage sales, and other similar businesses that don’t bring in a lot of money for the state might not be the best use of Idaho’s time and resources.
According to the Idaho State Tax Commission, practically all sellers in Idaho are currently required to obtain a seller’s permit. This includes garage sales and anyone who makes more than two transactions in a 12-month period.
According to Monks, the bill does not apply to dealers who have a commercial storefront, offer alcohol, or sell cars.
Monks informed the House Revenue and Taxation Committee during the bill’s introductory hearing on Tuesday that his wife does, in fact, have a seller’s permission from the state and sells fruit and chicken eggs from their fruit trees outside their house.
The new small seller sales tax exemption measure has been introduced, paving the path for a full public hearing when it returns to the House Revenue and Taxation Committee. After the new law is read across the desk on the House floor, which is expected to happen on Wednesday morning, it will be given a bill number and made available to the public on the Idaho Legislature’s website.
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