Stand-up paddleboards , or SUP’s, are certainly among the latest ways to have lots of fun on the water. So it’s not surprising that the latest revision to the state’s sales tax law that distinguishes between big motorboats and smaller, non-motorized craft – out-of-state buyers who will take the big motorboats home to their states are exempt from Idaho sales tax on their purchases – is being updated to recognize paddleboards among the smaller, non-motorized craft.

Part of the reason for the change, which the House Rev & Tax Committee introduced this morning at the request of the state Tax Commission, is that the current law identifies a “vessel” – on which the out-of-state buyer can be exempted from the Idaho tax – in part as something that’s 11 feet long or more. But some paddleboards are that long.

The current law also says the “vessel” definition doesn’t include “canoes, kayaks, or inflatable boats” – unless they’re “sold together with a motor.” The new bill just adds paddleboards to that list. The only oddity is that there’s an anticipated fiscal impact of $25,000 next year, $20,300 of that on the state general fund.

Mike Chakarun, tax policy manager for the state Tax Commission, said paddleboards can retail for $1,500 or more. “We’re just trying to make it so that a non-resident is put on the same footing as a resident," he said – meaning they all pay sales tax when they buy paddleboards. So, at $1,500 per, the bill is estimating that 278 out-of-state buyers will purchase paddleboards in Idaho next year. That’s just an estimate. “We don’t have access to a lot of data on it,” Chakarun said. “It’s not that sophisticated.”

State Tax Commissioner Elliot Werk, who oversees sales taxes, said, “We get put in the position of saying ‘we estimate.’” So, he said, they’ll “be a little conservative and tell you what the fiscal impact is, so nobody gets caught blind-sided by a run on paddleboards.”