For Your Information (FYI bulletins are sent both electronically and by regular mail. For more information on the FYI contact either IOGA executive director Grant Simonds at gsimonds@cableone.net (208.343.9548) or IOGA office manager Jane Bruesch at idoutfitt@cableone.net (208.342.1438).
- The new study regarding the 2005 Economic Value of Fishing and Boating to Visitors and Communities Along the Upper Snake River is now available on our Data Center site, courtesy of Vicki Kellerman. FULL STORY
- Rep. Mike Simpson's new Boulder-White Clouds wilderness bill includes more wilderness, more money and lands for local governments, and a new motorized recreation park near Boise.
- The Idaho Republican introduced his new bill Thursday with continuing opposition from motorized recreation groups and some environmental groups.
- Other groups including The Wilderness Society, the Sawtooth Society and the Idaho Conservation League expressed support for Simpson's efforts to craft a compromise that would preserve 300,011 acres in central Idaho as wilderness, where motorized use is banned.
Questions and Answers regarding recent Idaho Sales Tax Commission Memo of April 27, 2005 that says that outfitters operating on navigable waters no longer have to collect sales tax. For a copy of the April 27 memo, contact Grant Simonds at gsimonds@cableone.net.
"Questions from Al Bukowsky, Vice President River Section, Idaho Outfitters and Guides Association
"Answers from Saul Cohen, Tax Policy Specialist, Idaho State Sales Tax Commission
1. Outfitters have several, if not, many questions. Chief among them....Is this really true? What does "effective immediately" mean regarding outfitters paying April sales tax to State? Do they pay for a portion of April, all of April or.....?
It is true for the Idaho State Tax Commission. Our legal and policy staff have concluded that the federal statute referred to as the Maritime Transportation Security Act of 2002 prevents the state from taxing river and lake trips or excursions. As you know, outfitter fees to their customers often consist of many parts, but separately stated fees identified as a cost to customers for fishing, floating, river running or otherwise being transported on a lake or river is not subject to tax. We believe November 25, 2002 to be the first date when such a service is not taxable in Idaho.
2. We offer a trip in the summer which is a combination 3-day pack trip and 2-day River fishing trip. In this case is the land based portion taxable and the fishing/floating portion non-taxable income?
The federal preemption only applies to the river and/or lake portion of the trip. Land-based trips for the purpose of recreation (e.g., hunting, fishing, sightseeing, hiking) are taxable and that portion should be separately stated on customer invoices.
3. If I collected sales tax on April trips, it would normally be paid by May 20th. Do I pay it to the state for April services which I collected the tax or refund it to my clients?
Taxes collected by outfitters and other sellers from their customers are the property of the state. You should remit the tax to the state or return it to your customers if you have not remitted it. It is advisable to keep records of refunds because of your responsibility for taxes you collect.
4. How do we report mixed income? For example, we have some land based trips and some river based fishing trips....will the river trip gross revenue be listed as "non-taxable income"?
Perhaps you are referring to Total Sales, Non-Taxable Sales, and Net Taxable Sales, which are the first few lines of the state's sales tax, return. There are no precise rules for reporting. You may find it easier to list total revenue as Total Sales and deter