Motor Vehicles And Trailers Used In Interstate Commerce

Sections 49-123, 63-3612, 63-3613, 63-3622, 63-3622R, Idaho Code 01. In General. An exemption from the sales and use tax is provided for the sale or lease of motor vehicles and trailers to commercial or private carriers to be substantially used in interstate commerce. This exemption is commonly called the International Registration Plan (IRP) Exemption. Commercial or private carriers are in the business of transporting persons or commodities owned by the carrier or another. Farm vehicles or noncommercial vehicles as defined by Section 49-123, Idaho Code, don’t meet the requirements of this exemption. (7-1-26) 02. Documentation. Buyers claiming this exemption provide the seller or lessor with a properly completed Exemption Certificate. When a vehicle qualifying for this exemption is purchased from a retailer who isn’t registered to collect Idaho sales tax, the buyer and provides a properly completed exemption certificate to the county assessor or Department of Transportation when titling or registering the vehicle in Idaho. See Section 128. (7-1-26) 03. Repair Parts and Supplies. The exemption doesn’t apply to parts, supplies, or other tangible personal property purchased by persons engaged in interstate commerce. Purchases of glider kits as defined by Section 49-123, Idaho Code, will qualify if they are assembled into glider kit vehicles that will be immediately registered under the International Registration Plan (IRP). (7-1-26)