Idaho
State Tax Commission
The
Idaho State Tax Commission administers and collects the taxes listed below.
Also refer to page 7 of the most current Idaho State Tax Commission
Annual Report found at
http://tax.idaho.gov/.
Idaho
state Income Tax (business and personal):
http://tax.idaho.gov/i-1044.cfm
http://tax.idaho.gov/i-1039.cfm
Income Tax Withholding:
http://tax.idaho.gov/i-1026.cfm
Sales
and Use Tax (reseller's permit):
http://tax.idaho.gov/i-1049.cfm
Temporary Sales Tax Permit: for sales at a special event - the permit
can be printed at
http://tax.idaho.gov/i-1033.cfm
Sales tax for contractors who improve real property:
http://tax.idaho.gov/i-1013.cfm
Sales tax for non-profits and churches:
http://tax.idaho.gov/pubs/EBR00050_09-29-2006.pdf
Event Promoters: If you promote an event involving two
or more vendors, you have tax reporting responsibilities. See
http://tax.idaho.gov/i-1037.cfm
for information.
Gasoline
and Fuels Taxes:
http://tax.idaho.gov/p-motorfuels.cfm
Beer
and Wine Tax:
http://tax.idaho.gov/i-1021.cfm
http://tax.idaho.gov/i-1025.cfm
Cigarette
and Tobacco Taxes:
http://tax.idaho.gov/i-1047.cfm
http://tax.idaho.gov/i-1048.cfm
Coin
Operated Amusement Device Annual Decals:
http://tax.idaho.gov/
Estimated Taxes - Individuals:
Individuals are not required to make state estimated tax payments,
though they may do so voluntarily to reduce their state tax
liability. To pay state estimated taxes, complete Form 51, Estimate
of Idaho Individual Income Tax. For information and to obtain the
form, visit
http://tax.idaho.gov/forms/EFO00092_06-29-2007.pdf.
Estimated Taxes
- Corporations:
Corporations may be required to pay quarterly estimated taxes. For
information, refer to Idaho tax Form
41ES.
Greater
Boise Auditorium District Tax:
http://tax.idaho.gov/forms/EIN00011_11-05-2009.pdf
Illegal
Drug Stamp Tax:
http://tax.idaho.gov/i-1109.cfm
License
Tax on Electricity (Kilowatt Hour Tax):
http://tax.idaho.gov/forms/EFO00159_10-26-2000.pdf
Local Option City Taxes: The
following communities charge a local option sales tax in addition to
state sales tax:
Donnelly
Driggs
Ketchum
Lava Hot Springs
MCall
Riggins
Sandpoint
Stanley
Sun Valley
For information see,
http://tax.idaho.gov/s-results-quest.cfm?faqson=tax@rates
Local
Option Nez Perce County Sales Tax:
http://tax.idaho.gov/forms/EIN00018_11-16-2009.pdf
Mine License Tax (Form 47):
http://tax.idaho.gov/forms/EFO00048_10-07-2010.pdf
Multijurisdiction Sales and Use
Tax Exemption Certificate:
http://www.mtc.gov/Resources.aspx?id=1594
Non-profits:
http://www.tax.idaho.gov/pubs/EBR00050_09-29-2006.pdf
Severance
Taxes: Tax on market value of oil and gas produced or sold in Idaho
- http://tax.idaho.gov/i-1109.cfm
Travel
and Convention Hotel/Motel Tax:
http://tax.idaho.gov/pubs/EBR00016_09-29-2006.pdf
Property
Taxes on both real estate and business equipment are administered and
collected by individual counties and taxing districts to fund local services. See
Property Taxes below.
Internal Revenue Service
The IRS collects taxes owed to the Federal government, including:
Personal income taxes
Corporate and business income taxes
Self-employment taxes
Estimated taxes - individuals and corporations
Federal unemployment taxes
Social
Security and Medicare taxes
To learn more about
the taxes your small business may be required to withhold and/or pay and to locate
forms and publications, visit the small business section of the IRS Web
site at http://www.irs.gov/businesses/small/index.html.
Information is also available on this site at irs_one.htm.
To reach the Business and Specialty Tax Help Line, call 1-800-829-4933. On-line video and audio presentations on small business tax issues can
be found at http://www.irs.gov/businesses/small/article/0,,id=97726,00.html.
Estimated Taxes: Federal Income tax is a pay-as-you-earn tax.
You must make payments throughout the year as you receive income. Federal
law requires individuals who expect to owe
$1,000 or more in taxes to have at least 90 percent of their expected
tax liability withheld from their wages or make quarterly estimated tax
payments. Self-employed individuals, partners, and members of
S-corporations who don't have adequate tax withholdings may need to make estimated tax payments. Individuals receiving taxable income
from interest, dividends, rental property, or other sources also need
to pay estimated taxes. For information, visit http://www.irs.gov/businesses/small/article/0,,id=110413,00.html.
Corporations that expect to owe $500 or more in taxes must make
federal estimated income tax payments. For information, see
http://www.irs.gov/publications/p542/index.html and
http://www.irs.gov/businesses/small/article/0,,id=110413,00.html
Excise Tax: Excise taxes are paid at the time of purchase on
certain products, such as gasoline, and may be included in the purchase
price. Excise tax is also charged on certain activities, such as
wagering, indoor tanning services, or highway usage by trucks. For information, visit http://www.irs.gov/businesses/small/article/0,,id=99517,00.html.Also
see the Glossary for more information.
FICA:
The Federal Insurance Contributions Act
(FICA) tax is a tax imposed by the federal government on both
employees and employers to fund Social
Security and Medicare.
A portion of the tax is withheld from employee earnings and remitted to
the IRS. Employers also contribute a portion of the tax. For information,
see
http://www.irs.gov/businesses/small/international/article/0,,id=104936,00.html.
Self-employed individuals pay FICA in the form of
self-employment tax on earnings.
Federal Unemployment Taxes: An employer must make Federal
Unemployment Tax (FUTA) payments on employee earnings. The payments
are reported to the IRS using Form 940 or 940EZ, Employer's Annual
Federal Unemployment Tax Return. For information, visit
http://www.irs.gov/businesses/small/international/article/0,,id=104985,00.html.
Payments are made quarterly to the IRS along with deducted
Federal income tax payments, Social Security tax deductions and Medicare
payments, using Form 8109, Federal Tax Deposit Coupon Book. Your
business will automatically receive a Coupon Book when you apply for an
Employer Identification Number (EIN). (For information on EINs and how to
secure one, visit the
Glossary or the
Hot
Topics sections of this
Web site.)
Luxury Tax: Tax paid on the purchase of certain
non-essential goods, such as luxury cars and boats and expensive
jewelry. The tax is paid by the purchaser to the selling business at the
time of purchase. The seller then remits the tax to the IRS.
Non-profits/Charities:
These organizations have
special reporting requirements -
http://www.irs.gov/charities/article/0,,id=206582,00.html
Self-employment Taxes:
Business owners and partners must pay
self-employment taxes on their share of the net profits of a business. The
tax is a form of Social Security.
You must pay this
tax if you earn any income from self-employment activities, including part-time
activities, even if you pay Social Security taxes through another employer or
are currently receiving Social Security payments. Self-employment tax is reported
annually at the time you file your personal income taxes (usually April 15)
by using IRS Form
1040-SE. For information, visit
http://www.irs.gov/businesses/small/article/0,,id=115043,00.html
and
http://www.irs.gov/businesses/small/article/0,,id=115045,00.html
Tax Payer Identification Number or Employer Identification Number (EIN)
- For information on obtaining an EIN visit the
Hot
Topics section of this Web site or
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html.
Idaho does not issue a state tax payer identification number.
Tax Credits and Incentives:
The IRS offers several tax credits,
including credits for disability access modifications to a business, a
research tax credit, and credit for hiring Native American employees. Information
on each is available on the IRS Web site at
http://www.irs.gov.
Section 179 Depreciation Deduction
Section 179 of the Internal Revenue Code allows small and medium-sized
businesses to deduct the full purchase price, up to $500,000, of qualifying
equipment purchased or financed during the 2011 tax year. The code caps
total purchases per business at $2 million.
Normal depreciation can be taken on the difference between $500,000 and
$2 million. For information,
visit
http://www.section179.org/
and check with your accountant.
Property Taxes
Property taxes are established and collected by
individual counties and taxing districts. The funds collected are used to
fund local services,
such as roads and schools. Two types of property tax are collected.
Personal property tax is collected on the value
of depreciable assets owned by a business, including machinery, equipment,
and office equipment (including computers, software, fax machines, desks,
chairs, and more). The tax is paid annually or semi-annually in December
and June to your local county assessor.
Real estate property tax is collected on the assessed value of real
estate owned by a business or an individual. Real estate taxes are paid annually or
semi-annually in December and June to your local county assessor.
Note: Personal property taxes are not
in any way related to income taxes. The tax must be paid regardless of
whether the business is making a profit. Failure to pay personal
property tax can result in a lien being filed against your business and
your business equipment.
