IDAPA 35.01.05.510 — APPLICATION AND REPORTING OF THE TRANSFER FEE

Sections 41-4902, 41-4903, 41-4909, 63-2401, 63-2403, 63-2406, Idaho Code
01.
Application. The legal incidence of the fee is on the first distributor which receives any petroleum
or petroleum product. This distributor is mandated to report and pay the transfer fee to the Tax Commission. Only
licensed Idaho fuel distributors may receive refunds or credits of the transfer fee. The refunds or credits have to be
claimed in the distributor report.
(7-1-25)
02.
Receipt of Petroleum Products. Receipt of petroleum or petroleum products is determined by the
movement from a permanent storage facility (terminal) or crossing the Idaho border. Storage of petroleum or
petroleum products is incidental to its movement.
(7-1-25)
03.
Exemption to Application of the Transfer Fee. Exemptions are according to Sections 41-4909
and 41-4943, Idaho Code.
(7-1-25)
04.
Casualty Loss and Two Percent (2%) Allowance Not Deductible. All petroleum and petroleum
products received in this state that are not within an exemption or exclusion provided by law are subject to the fee,
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.05
State Tax Commission
Motor Fuels Tax Administrative Rules
Section 510
Page 19
without further deductions or discounts despite the product's use. Deductions allowed to motor fuel distributors in
Section 63-2407, Idaho Code, for casualty loss and the two percent (2%) allowance are not deductions applicable to
the transfer fee.
(7-1-25)
05.
Petroleum and Petroleum Products. Products refined from crude oil include, but are not limited
to:
(7-1-25)
a.
Motor gasoline;
(7-1-25)
b.
Alcohol blended fuels, such as E-10 and E-85, including the alcohol content of blended fuel;
(7-1-25)
c.
Diesel fuel (#1 - #6);
(7-1-25)
d.
Biodiesel blended fuels, such as B-20, including the biodiesel content of the blended fuel; (7-1-25)
e.
Heating oil;
(7-1-25)
f.
Aviation fuel;
(7-1-25)
g.
Naphtha;
(7-1-25)
h.
Naphtha-type jet fuel;
(7-1-25)
i.
Kerosene-type jet fuel (JP#1 - #8);
(7-1-25)
j.
Motor oil;
(7-1-25)
k.
Brake fluid;
(7-1-25)
l.
Tractor fuel;
(7-1-25)
m.
Distillate fuel oil;
(7-1-25)
n.
Stove fuel;
(7-1-25)
o.
Unfinished oils;
(7-1-25)
p.
Turpentine substitutes:
(7-1-25)
q.
Lamp fuel;
(7-1-25)
r.
Diesel oils (#1 - #6);
(7-1-25)
s.
Engine oils;
(7-1-25)
t.
Railroad oils;
(7-1-25)
u.
Kerosene;
(7-1-25)
v.
Commercial solvents;
(7-1-25)
w.
Lubricating oils;
(7-1-25)
x.
Fuel oil;
(7-1-25)
y.
Boiler fuel;
(7-1-25)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.05
State Tax Commission
Motor Fuels Tax Administrative Rules
Section 510
Page 20
z.
Refinery fuel;
(7-1-25)
aa.
Industrial fuel;
(7-1-25)
bb.
Bunker fuel;
(7-1-25)
cc.
Residual fuel oil;
(7-1-25)
dd.
Road oils; and
(7-1-25)
ee.
Transmission fluids.
(7-1-25)
ff.
The following are treated as petroleum or petroleum products that are subject to the transfer fee:
(7-1-25)
i.
Ethanol (E00);
(7-1-25)
ii.
Natural gasoline; and
(7-1-25)
iii.
Biodiesel (B00).
(7-1-25)
06.
Exclusion of Petroleum and Petroleum Products on Which the Fee Has Previously Been Paid.
Used oil is presumed to be comprised of petroleum or petroleum products on which the transfer fee has previously
been paid when generated in Idaho. The distributor will not report used oil generated in Idaho on the distributor report
nor pay or receive a credit of the transfer fee on used oil generated in Idaho. When used oil is not generated in Idaho
it is presumed to be subject to the transfer fee. The distributor has to report and pay the transfer fee unless an
exemption or exclusion applies.
(7-1-25)
07.
Motor Fuel Distributor License and Limited Distributor License. Any person holding a motor
fuel distributor license issued by the Tax Commission under Title 63, Chapter 24, Idaho Code, is also licensed for the
transfer fee. No additional license is necessary. Any person who receives any petroleum or petroleum products in
Idaho, and who is not a licensed distributor or obligated to obtain a motor fuel distributor license, needs to apply for a
limited distributor license with the Tax Commission. The limited distributor license is only for reporting the transfer
fee.
(7-1-25)
08.
Mandatory Reporting.
(7-1-25)
a.
A motor fuel distributor will report and pay the transfer fee with the distributor report in accordance
with Section 63-2406, Idaho Code. For fuel subject to the taxes imposed by Sections 63-2402 and 63-2408, Idaho
Code, the transfer fee is included in the distributor report for the same fuel.
(7-1-25)
b.
Persons holding a limited distributor license will file a monthly report using Tax Commission
prescribed forms on or before the last day of the month following the month to which the report relates.
(7-1-25)
c.
The transfer fee has to be reported according to Section130 of these rules.
(7-1-25)
09.
Payment.
(3-31-22)
a.
Payment of the fee is due on the due date of the report. For method of payment, including required
use of electronic funds transfer, see Section 67-2026, Idaho Code.
(7-1-25)
b.
Any partial payment or collection of amounts shown due or obligated to be shown due on a
distributor's report, plus any additional amount of penalty or interest due, is allocated between the motor fuels tax and
the transfer fee in the same proportion that the liability for the tax and the fee bear to the total liability.
(7-1-25)