A common approach to get rid of clutter and earn additional cash is to hold a yard sale or garage sale. Find out if collecting and paying Idaho sales tax is required before you start selling your old items.
Sales Tax Exemption
In Idaho, almost all vendors are required to have a seller’s permit, collect taxes, and turn them in. If, however, you are eligible for the occasional sales exemption, you are exempt from doing it.
If you hold no more than two yard sales per year and are not engaged in the retail trade, that is, if you do any of the following: 1. run the sale for more than a few days; 2. sell somewhere other than your own home; 3. buy items to resell; 4. sell items on consignment; 5. sell items at the sale that you also sell at a business you own. A report from localnews8.
In a traditional yard sale, you sell your own stuff at your own home over the course of one weekend. If you are hosting a yard sale alongside another person, such as a relative, neighbor, or friend, it counts as one sale for each of you.
Occasional Sales Exception
If you are not in the business of breeding, rearing, or selling animals, selling or rehoming a pet would also count as one transaction under the occasional sales exception. A small fee should be included in the sale price to reimburse your expenses. Pet rehoming or selling for a high price probably wouldn’t qualify as an occasional sale.
In an article from comptroller.texas.gov, you might need to apply for a Texas Sales and Use Tax Permit and start collecting sales tax if you sell personal items at a garage sale, online, or through an advertisement. Sales tax exemption is not applicable to organized sales that charge entry or have two or more vendors that pay to sell there. These events are sponsored by the promoter.
If you qualify for the occasional sales exemption, there is no paperwork for you to fill out or send to the Tax Commission.