Idaho HB 29 - Sales and Use Tax on Services

• Extends sales and use tax to services (including construction, repair, and improvement services) effective July 1, 2011, with exceptions for medical professionals and employee services.

• Reduces both sales and use tax rates from 6% to 5% on all taxable transactions.

• Defines "computer software" and "digital goods" as tangible personal property subject to tax regardless of delivery method.

• Establishes sourcing rules determining where sales occur based on purchaser location, delivery address, and business records.

• Provides transitional exemptions: services to improve real property exempt through June 30, 2013 if contracted before July 1, 2011; other service purchasers may claim refunds for qualifying continuous services started before the effective date.