Idaho Admin. Code r. 35.01.02.078 - MOTOR FUELS

Sections 63-3621, 63-3622C, 63-3622D, 63-3622G, Idaho Code

01. Exemptions. (3-31-22)

a. Motor fuels, including gasoline, diesel and gaseous fuels, upon which the taxes are imposed by Title 63, Chapter 24, Idaho Code, are exempt from sales and use taxes. IDAPA 35.01.05, "Idaho Motor Fuels Tax Administrative Rules," explains in detail which petroleum and gaseous products are taxable as motor fuel. Also exempt are purchases upon which motor fuels taxes have been paid. 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 will be applicable. (3-31-22)

b. Fuel may be exempt under Section 63-3622(D), Idaho Code. (3-31-22)

c. Fuel used as heating fuel may be exempt if it qualifies under the exemption for space heating materials. See Rule 088 of this rule. (3-31-22)

d. 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. Carriers engaging in interstate commerce are required 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 is required to review and adjust the exemption claimed accordingly. (3-31-22)

02. Exclusion from Exemption. Purchase or use of any fuels may be subject to sales and use taxes if no other exemption applies. Examples include, without limitation: (3-31-22)

a. Fuel used by a road contractor in the operation of construction equipment or operation of stationary engines to generate electricity, unless all of the electricity generated is used primarily and directly in the processing, manufacturing or fabricating of tangible personal property to be sold at retail. (3-31-22)

b. Fuel used by private contractors in off-road vehicles in the performance of contracts with any governmental instrumentality. (3-31-22)

Notes

Idaho Admin. Code r. 35.01.02.078