Bill Description: House Bill 792 would clarify that holding more than two garage sales within a calendar year does not require collecting sales tax unless the seller exceeds $5,000 in total sales. 

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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

Many Idahoans might be surprised to know that the current law says no more than two home yard sales per calendar year are exempt from the requirement to collect sales tax.

House Bill 792 would amend sections 63-3622K and 63-3622XX, Idaho Code, to clarify that “if a homeowner has more than two (2) home yard sales and the total sales are less than five thousand dollars ($5,000) in a calendar year, such homeowner may qualify as a small seller as defined in section 63-3622YY, Idaho Code.”

[Note that the current section number, 63-3622XX, is being updated to 63-3622YY, due to unrelated changes in a prior legislative session.]

This section exempts most small sellers (excluding vehicles and a few other things) from collecting and remitting sales tax on total annual sales under $5,000. The bill would also add some clarifying language to this section. One such change clarifies that having sales exceeding $5,000 in one year does not obligate the seller to apply for a seller’s permit the following year unless the seller “reasonably anticipates” exceeding the $5,000 threshold the following year.

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