Idaho State Tax Commission v. Haener Bros.

ON REHEARING

BOYLE, Justice.

In this case we are called upon to apply the production exemption provision of the Idaho Sales Tax Act, Chapter 36, Title 63, Idaho Code. The appellants, Haener Bros, Inc., and Albert J. Haener Equipment Rentals (hereafter jointly referred to as “Haener”), are in the business of renting heavy equipment to contractors and other companies. The State Tax Commission assessed sales tax on the amounts Haener charged for the rental of its equipment to Potlatch Corporation and five independent contractors who were under contract to Potlatch. Haener contends that these…