Got a small side hustle to earn money, Idahoans? You may have just won a break
A new state law could make life easier for Idahoans with a side hustle.
Starting this month, thousands of small-scale sellers who qualify won’t have to get a permit or charge sales tax on sales they make in Idaho, according to the Idaho State Tax Commission.
The law, which took effect July 1, defines small sellers as Idaho residents operating as individuals or sole proprietors whose cumulative gross sales are $5,000 or less in either the current or previous calendar year. That includes all sales made in-state, out-of-state or through online marketplaces.
The exemption most commonly applies to artists, crafters, bakers or people selling homegrown fruits and vegetables, according to Renee Eymann, a spokesperson for the commission. Certain items are excluded from the exemption, including sales of vehicles, lodging, alcohol and admissions.
Eymann said the law is different from the occasional sales exemption, which exempts up to two sales a year for sellers who are not actually in the business of selling — that is, people who don’t make it publicly known that they are selling a product or service. Nearly every other seller in Idaho needs a permit to collect sales tax.
But small sellers aren’t totally off the hook. They still have to pay sales on everything they buy, track their sales if they make over $3,000 a year, register with the commission when they participate in a promoted or sponsored event, and report income on their tax returns.
If sellers exceed $5,000 in gross sales for the current or previous calendar year, or no longer meet other requirements, they must get a permit within 30 days and immediately begin collecting sales tax, according to a news release.
The legislation was sponsored by Idaho House Majority Leader Rep. Jason Monks of Meridian. The bill passed both chambers of the Legislature unanimously and was signed by Gov. Brad Little on March 17.
The bill’s statement of purpose said the commission would save significant time and resources by not having to process sales tax permits for small sellers. In 2023, the commission issued 10,701 permits to people whose sales were less than $5,000. The state collected $1.2 million from those sellers.
