Refund Claims – General And Bulk Documentation

Sections 63-2410, 63-2421, 63-2423, Idaho Code 01. Refunds to Consumers. Fuels tax refunds claims will be on Tax Commission prescribed forms. (7-1-25) 02. Records Retention. All claimants will keep records for the greater of either: (7-1-25) a. Three (3) years from the due date, including extensions, of the income tax return; (3-31-22) b. The time during which the taxpayer’s income tax return is subject to adjustment by either the Tax Commission or voluntary action by the taxpayer if the refund claim is filed with the taxpayer’s Idaho income tax return; or (7-1-25) c. Four (4) years, if an IFTA licensee. (3-31-22) 03. Mandatory Records – General. A claimant will maintain fuel purchase records and records showing fuel was placed into the supply tank of vehicles or equipment for use in a nontaxable manner. Fuel purchase records have to contain the information stipulated by Section 150 of these rules. Fuel purchase records need to be reissued if altered or corrected. (7-1-25) 04. Mandatory Records – Retail Fuel Purchases. When claiming a refund of tax for fuel purchased IDAHO ADMINISTRATIVE CODE IDAPA 35.01.05 State Tax Commission Idaho Motor Fuels Tax Administrative Rules Section 290 Page 10 from a retail outlet, a receipt is mandatory. The vehicle, piece of equipment, or commercial motorboat using the fuel has to be recorded on the receipt. For fuel placed into containers, identify the vehicle, piece of equipment, or commercial motorboat the fuel was used in on the receipt. (7-1-25) 05. Mandatory Records – Bulk Fuel Purchases. When claiming a fuel tax refund on fuel delivered in bulk, the claimant will maintain the following documentation: (7-1-25) a. Seller Invoices. (3-31-22) b. Withdrawal Logs. (3-31-22) i. It is mandatory that withdrawal logs identify the date, the vehicle or piece of equipment, and the amount of fuel withdrawn. (7-1-25) ii. Withdrawal logs aren’t necessary when separate, identified, and dedicated bulk storage tanks are used for taxable and nontaxable uses at the same location. The seller has to mark the invoices at the time of delivery and identify the storage tanks to which the fuel was delivered. (7-1-25) c. Bulk fuel inventory reconciliations include beginning inventory, purchases, withdrawals, calculated ending inventory, and actual ending inventory determined by a physical reading. (7-1-25) 06. Alternate Method for Bulk Tanks – Authorized Percentage. If the claimant is using Idaho tax- paid fuel from a single bulk tank in both a taxable and nontaxable manner, the claimant may submit a request to use an authorized percentage on a Tax Commission prescribed form. A claimant needs approval from the Tax Commission before using an authorized percentage. Itemization of all taxable and nontaxable uses by vehicle and piece of equipment based on previous experience or anticipated use will be included on the request form. Requests will be denied if the claimant: (7-1-25) a. Fails to fully complete the authorized percentage request form; (7-1-25) b. Fails to provide equipment lists supported equipment purchase records, sales or rent receipts, and depreciation schedules; (7-1-25) c. Fails to keep and provide records to support an authorized percentage upon request of the Tax Commission; (7-1-25) d. Is an IFTA licensee; or (7-1-25) e. Is an owner of multiple bulk storage tanks containing tax-paid and tax-exempt fuels of the same type at the same location. (7-1-25) 07. Untaxed Motor Fuel Audits. All fuel tax refund claims are subject to audit by the Tax Commission and no part of these rules may be construed to imply that an audit cannot be performed. (7-1-25) 08. Tribal-Owned Retail Outlet. Motor fuels purchased from a tribal-owned retail outlet do not include the Idaho motor fuels tax and do not qualify as an Idaho tax-paid purchase, unless otherwise provided in an agreement between the state and appropriate tribe under the authority of Sections 63-2444 or 67-4002. (7-1-25) 271. -- 289. (RESERVED)