Roadside raspberry stand and local fundraiser targets of Idaho Tax Commission
About two weeksago, George Prentice of the Boise Weekly posted an article discussing a couplesituations where the Idaho Tax Commission has strictly enforced the state’ssix percent sales tax. The article explained the commission demanded that atwelve year old boy pay the six percent sales tax on his earnings from theroadside stand he set up to sell raspberries grown on his father’s farm. Thecommission also stopped by a local fundraiser event to make sure that thepeople who made purchases at the charity auction were paying Idaho’s sixpercent sale tax.
The little boywas saving for a small pit bike and the fundraiser was for a woman who wasinjured in attack at a local Boise mall.
What are thesimilarities, if any, between the Idaho Tax Commission methods of enforcing thestate’s sales tax in these situations and the IRS’ treatment ofnonprofits? What are the differences? Is there something troublesome aboutstrictly enforcing a sales tax in either or both of thesesituations? Could the IRS adopt a similar approach to regulate nonprofit tax-exemption?
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