Idaho enacts use tax exemption for free employee food and beverages

On April 2, 2015, Idaho enacted a law that creates a use tax exemption for prepared food and beverages provided by a retailer to its employees at no charge if the retailer sells prepared food or beverages in its normal course of business. Because this act included an emergency declaration provision, this exemption was effective immediately upon passage. Accordingly, retailers that sell prepared food or beverages in the normal course of business, such as restaurants and businesses with on-site cafeterias, and provide employees with meals at no charge should (1) review their use tax remittance policies, (2) consider whether this new exemption applies, and (3) implement necessary system changes to prevent use tax overpayment.