Idaho watching affects of Supreme Court retail ruling

The Idaho State Tax Commission is analyzing how a recent U.S. Supreme Court ruling will affect out-of-state retailers making sales to Idaho citizens. The commission is also watching developing legal issues related to the so-called “Wayfair” decision.

That ruling upheld a South Dakota statute requiring out-of-state retailers to collect and pay taxes to South Dakota if the retailer has an economic connection, as opposed to a physical presence, in the state.

Meanwhile, a new Idaho law that took effect July 1, 2018 requires some out-of-state retailers to collect Idaho sales tax on their sales to Idaho customers. They must collect the tax if the seller has an agreement with an Idaho retailer to refer buyers to the out-of-state seller for a commission on that sale and/or total sales to Idaho buyers through agreements that exceed $10,000 in the preceding 12 months.

500 out-of-state retailers have been contacted by the Tax Commission about compliance with the Idaho law.

More information on the new law is available here.