Idaho Admin. Code r. 35.01.02.101 - 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 is
provided from the sales and use tax 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 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
49123, Idaho Code, do not meet
the requirements of the IRP exemption. (3-31-22)
02.
Motor Vehicles. To qualify
for the exemption, a buyer will: (3-31-22)
a.
Immediately register the vehicle with a maximum gross weight of over twenty-six
thousand (26,000) pounds; (3-31-22)
b. Register the vehicle under the
International Registration Plan (IRP); and (3-31-22)
c. Operate the vehicle in a fleet of one (1)
or more vehicles registered under the International Registration Plan (IRP) or
a similar proportional registration system with a minimum of ten percent (10%)
of the fleet miles operated outside the state of Idaho.
(3-31-22)
03.
Trailers. An exemption is provided from the sales or use tax for
trailers when the buyer will: (3-31-22)
a.
Immediately place the trailer in a fleet of vehicles registered under the
International Registration Plan (IRP); and (3-31-22)
b. The trailer will be part of a fleet of
vehicles with a minimum of ten percent (10%) of the fleet miles operated
outside the state of Idaho under the International Registration Plan (IRP).
(3-31-22)
04.
Title
or Base Plate. The exemption applies whether the motor vehicles and
trailers are titled or base plated in Idaho or another state or nation.
(3-31-22)
05.
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 is not
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 Rule
128 of these rules.
(3-31-22)
06.
Repair Parts
and Supplies. The exemption does not 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). (3-31-22)
07.
Failure To Meet Interstate Mileage
Requirement. The use of a fleet of trucks and trailers, purchased exempt
under the IRP exemption provided by Section
63-3622R, Idaho Code, will become
taxable as of June 30 of any year in which the fleet's out-of-state mileage is
less than ten percent (10%) of the total fleet mileage during the previous four
(4) quarters. (3-31-22)
Notes
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