House Bill 354 - Idaho Sales Tax Restructuring

• Reduces sales and use tax rate from 6% to 5% effective July 1, 2013

• Expands sales and use tax to include services, with limited exemptions for medical professionals (doctors, dentists, physical therapists, etc.)

• Classifies computer software and digital goods as taxable tangible personal property regardless of delivery method

• Establishes sourcing rules determining where sales occur based on delivery location, business records, or shipment origin

• Provides two-year transition period (July 1, 2013 - June 30, 2015) allowing refunds for pre-July 1, 2013 service contracts and exempting real property improvement services with pre-existing written agreements