Small Seller Tax Exemption

Bill H 144 Sales Tax, Small Seller Tax Exemption

This legislation has passed both the House & the Senate and awaits the Governor's signature. 

This permits individuals to engage in side businesses like selling surplus eggs from their backyard chickens, additional vegetables from their garden, Christmas crafts at flea markets, hosting more than two yard sales annually, homemade art, and similar activities without the obligation to pay sales tax in Idaho.

Currently individuals are required to get a sales tax permit, collect sales taxes and submit said taxes to the Idaho Tax Commission regardless of the volume of sales. This legislation eliminates the requirement to get a permit for sellers that have sales less than $5,000 per year.

During 2023, the Tax Commission issued 10,701 permits for individuals who had sales less than $5,000 which collected just over a million dollars. Although this legislation will decrease the General Fund by about one million dollars, it will save the Tax Commission employees significant time and resources. They will not have to issue, collect, process and manage more than 10,000 sales tax permits that produce very little return on investment. 

This bill passes the common sense test! 

https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2025/legislation/H0144.pdf