IDAPA 35.01.02.078 — MOTOR FUELS (RULE 078)

Sections 63-3621, 63-3622C, 63-3622D, 63-3622G, Idaho Code
01.
Exemptions.
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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.
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b.
Fuel may be exempt under Section 63-3622(D), Idaho Code.
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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.
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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.
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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:
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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.
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b.
Fuel used by private contractors in off-road vehicles in the performance of contracts with any
governmental instrumentality.
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