The Holidays are Taxable

In keeping with the holiday season, HBK brings you tax guidance related to your holiday decorations (if you live in or are visiting Idaho). The Idaho State Tax Commission is obviously in the Christmas spirit as it recently released a tax notice addressing the tax treatment of holiday lights and decorations. For the curious, sales and rentals of lights and other decorations are subject to tax while separately stated installation and repair labor charges are not taxable in Idaho.

While Idaho provided specific guidance on holiday lights and decorations, most states tax tangible personal property so you likely paid sales tax on the purchase of your decorations this year. Idaho’s guidance on the tax treatment of separately stated labor illustrates the potential complexity of state and local tax issues. If your business needs assistance in any area of SALT this holiday season or any time of the year, call or text us at 724-934-5300, or email me at mdodge@hbkcpa.com to learn more about our services.

HBK’s state and local tax (SALT) group wishes everyone a safe and joyous holiday season and a happy new year.

About the Author(s)
Matt Dodge is a member of the HBK State and Local Tax (SALT) practice with a focus on sales/use tax. Matt has vast experience in the construction, oil & gas, manufacturing, retail, service provider and transportation industries. He can be reached at 724-934-5300, or by email at mdodge@hbkcpa.com.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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