Motor Fuels

Sections 63-2421, 63-2431, 63-3621, 63-3622C, 63-3622D, 63-3622G, Idaho Code 01. Exemptions. (3-31-22) a. Motor fuels taxed under Title 63, Chapter 24, Idaho Code, are exempt from sales and use taxes. If such purchases are later included in credits or refunds for motor fuels taxes paid and not subject to taxes imposed by Title 63, Chapter 24, Idaho Code, and no other exemption applies, sales and use taxes are applicable. (7-1-26) b. The sale or use of fuel for subsequent use outside this state and fuel brought into this state in the fuel tanks of vehicles in interstate commerce may be exempt. It is mandatory for carriers engaging in interstate commerce to maintain sufficient verifiable statistical data to substantiate any exemption claimed for fuel purchased in Idaho for use outside this state. In the case of a substantial change in the mode of operation of the carrier or other circumstances that would cause the statistical data to be invalid, the carrier needs to review and adjust the exemption claimed accordingly. (7-1-26) 02. Exclusion from Exemption. Purchase or use of any fuels may be subject to sales and use taxes if no other exemption applies.The following, without limitation, are taxable: (7-1-26) IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 079 Page 45 a. Fuel used by a road contractor in the operation of construction equipment or operation of stationary engines to generate electricity, unless all the electricity generated is used primarily and directly in the processing, manufacturing, or fabricating of tangible personal property to be sold at retail. (7-1-26) b. Fuel used by private contractors in off-road vehicles in the performance of contracts with any governmental instrumentality. (3-31-22)