Idaho & Wyoming and Sales Tax – SaaS, Software & Other - Multi State Tax Solutions

This month, we continue our blog series with a contrast of a couple of Western states – Idaho and Wyoming – specifically their treatment of technology items for sales tax purposes.

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Software as a Service (SaaS) in Idaho vs. SaaS in Wyoming

Software as a Service (SaaS) is subject to sales tax in several jurisdictions across the country. Approximately half of states do tax the SaaS revenue stream. As you’ll see below, both states are similar regarding their treatment of sales tax.

Cloud Computing Services are exempt in Idaho

This is not a taxable service. Exemptions are allowed for (1) remotely accessed (cloud) computer software and (2) the purchase of computer time to access or receive services from a computer owned and operated by another person. As long as no tangible medium (such as a disk) is transferred and the software is only accessed remotely, Idaho does not treat the transaction as taxable.

SaaS is not taxable in Wyoming

This is not a taxable service in Wyoming. This is not a transfer of tangible personal property because the purchaser does not take possession of tangible personal property. Wyoming’s sales tax is generally on tangible personal property and enumerated services. SaaS does not fall into either of those taxable categories in Wyoming.

Software in Idaho vs. Software in Wyoming

Idaho does not impose sales and use tax on electronically downloaded prewritten computer software

Electronically delivered, remotely accessed (cloud), and “load and leave” software is exempt if the purchaser does not receive tangible personal property.

Prewritten computer software delivered electronically is subject to tax in Wyoming

The sale of custom computer software delivered electronically is not subject to tax in Idaho

This is not a taxable service. Custom software developed for a specific customer and delivered electronically is not taxable, as it is treated as a service rather than tangible personal property.

The sale of custom computer software delivered electronically is also not subject to tax in Wyoming

Software delivered for a single client, electronically or by “load and leave”, is also not taxable.

Digital Goods

States vary in their treatment of electronically delivered goods including e-books, music, and streaming video. Some states consider all of these types of products to be taxable or not, while others call out specific taxability depending upon the product, the type of access or the purchaser’s rights.

In Idaho, digital products are taxable

Digital music, digital books, digital videos, and digital games are taxable when the purchaser has a permanent right to use such software and regardless of the method of delivery or access. If the right to use is conditioned upon continued payment from the purchaser (e.g., a paid subscription), it is not a permanent right of use and therefore not taxable.

In Wyoming, digital products are taxable

These items are taxable when sold to end users with rights for permanent use. Similar to Idaho, the distinction depends on whether the purchaser receives ownership or indefinite use of the digital content.

Sales Tax Holidays

States often offer sales tax holidays during specific times of the year, during which certain items are sold tax free. These holidays vary greatly by state. Here’s how Idaho and Wyoming shake out.

Idaho does not have any sales tax holidays in 2025.

Wyoming also does not have any sales tax holidays in 2025.

For more information on sales tax holidays, click here. (https://taxadmin.org/sales-tax-holidays/)

Economy

Idaho is an important agricultural state, producing nearly one-third of the potatoes in the United States. Additionally, all three varieties of wheat, dark northern spring, hard red, and soft white are grown in the state.

Idaho’s industrial economy is growing, with high-tech products leading the way. Since the late 1970s, Boise has emerged as a center for semiconductor manufacturing. It is the home of Micron Technology, the only U.S. manufacturer of dynamic random-access memory (DRAM) chips. Hewlett-Packard has operated a large plant in Boise since the 1970s, which is devoted primarily to Laserjet printers production.

A number of fortune 500 companies started in or trace their roots to Idaho, including Safeway in American Falls, Albertsons in Boise, JR Simplot across southern Idaho, and Potlatch Corp. in Lewiston. Zimmerly Air Transport in Lewiston-Clarkston was one of the five companies in the merger centered around Varney Air Lines of Pasco, WA, which became United Airlines and subsequently Varney Air Group which became Continental Airlines.

Wyoming’s economy has some unique differences when compared to that of other US states. The state’s mining, tourism and agriculture industries serve as an important economic and cultural aspect of the economy. The majority of the residents in Wyoming still make their living from farming and ranching, which makes agriculture an important source of income for the locals. Some important agricultural commodities include livestock, hay, barley, wheat, sugar beets and wool.

Wyoming has been recognized as the top coal-producing state with the largest coal resources in the country. Extracting minerals like coal, oil, gas, crude oil and trona is one of the major economic drivers in the state. The state provides about 40% of the nation’s coal through the top producing mines located in the Powder River Basin. The extracted coal is considered clean and contributes to the betterment of the environment.

One of the vital engines of the state’s economy is tourism. The state is home to beautiful scenery and the country’s first national monument, Devils Tower, along with 25 historic landmarks and national parks, known worldwide. Small businesses like car rental, taxi services, hotels, restaurants greatly benefit from tourism.

Idaho Fun Facts:

Idaho is sometimes referred to as the Gem State, for its abundance of natural resources. One can find nearly 72 types of precious stones in the state. Some of them include jasper, opal, jade, topaz, zircon and tourmaline.
Idaho is home to the “Niagara of the West”. Those who want to experience something like Niagara Falls could check out Shoshone Falls with its 65 meter (212 feet) drop, which is 14 meters (45 feet) higher than Niagara Falls.
Idaho may be known for its potatoes, but it should be known for its trout too. It is estimated that 85% of all of the commercial trout sold in the United States comes from the Hagerman Valley in Idaho.
Boise, Idaho is home to the Treefort Music Fest, which is one of the most successful modern country music festivals in America.
The waters of the Snake River rush through Hells Canyon, the deepest gorge in the United States at 2,436 meters (7,993 feet).
Lake Coeur d’Alene a is natural lake in northern Idaho. Its northern end is in the city of Coeur d’Alene. It spans 40 kilometers (25 miles) in length and ranges from 1.5 to 5 kilometers (1 to 3 miles) wide with over 175 kilometers (109 miles) of shoreline. The lake was named after the Coeur d’Alene people.
Thousands of miners rushed into Idaho when word of a major gold strike came in September 1860.
The state seal of Idaho is the only state seal in the United States designed by a woman in 1891 by Emma Edwards Green.

Wyoming Fun Facts:

Wyoming became the first state in the country to grant women the right to vote in 1869.
Wyoming was also the first state to have a county public library.
Bison are the official state mammal of Wyoming.
Wyoming is considered as a very sparely populated state, similar to There are an average of 5 people for every square mile.
Since the mid-1800s, Wyoming has been an important destination for fossil hunters. Dinosaur bones were so plentiful in one area of southeast Wyoming that in the late 19th century, an enterprising local used bone fragments to construct a cabin (it still stands today).
In 1872, Yellowstone was designated as the first National Park in the country. It is also the first in the world.
Devils Tower was designated as the first National Monument in 1906.
In Cheyenne, people are not allowed to take showers on Wednesdays.
Bigfoot has been allegedly sighted several times in Wyoming in the Wind River Mountains and Yellowstone.
In Wyoming, it is illegal to wear a hat that blocks people’s view in a public theatre or any amusement place.

We invite you to further explore Idaho and Wyoming in these earlier blogs we crafted over the years. https://milesconsultinggroup.com/blog/author/monikamilesconsultinggroup-com. Our team at Miles Consulting Group is always available to discuss the specifics of your situation, whether in Idaho, Wyoming, or other U.S. States, and help you navigate the complex tax structures arising from multistate operations. Call us to help you achieve the best tax efficiencies.