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Idaho imposes a sales and use tax. The sales tax applies to every retail sale within the state, and the use tax applies to goods used or stored within Idaho. The two taxes are complementary and cannot be applied together. The sales and use tax is computed on the sales price of a transaction. If property is subject to Idaho use tax but a sales or use tax has already been paid in another state at a rate equal to or exceeding the Idaho tax rate, the Idaho tax will not be assessed.
Multiple exemptions from the Idaho sales and use tax exist, located within Idaho Sales & Use Tax Administrative Rules. Any motor fuel purchase — including gasoline, diesel, and gaseous fuels — subject to the Idaho motor fuels tax is exempt from the sales and use tax. Any motor fuel purchase in which sales tax has already been paid in another jurisdiction is exempt as well. Sales of motor vehicles, trailers, vessels, all-terrain vehicles, utility type vehicles, specialty off-highway vehicles, off-highway motorcycles, and snowmobiles to nonresidents for us out of state are also exempt, even though delivery is made within Idaho.
The IRP Exemption exempts commercial and private carriers from the sales and use tax for the sale or lease of motor vehicles and trailers to be substantially used in interstate commerce. For a motor vehicle to qualify for the exemption, a buyer must immediately register the vehicle with a maximum gross weight exceeding 26,000 pounds, register the vehicle under the IRP, and operate the vehicle in a fleet of one or more vehicles registered under the IRP with a minimum of 10 percent of the fleet miles operated outside the state of Idaho. For a trailer to qualify for the exemption, a buyer must immediately place the trailer in a fleet of vehicles registered under the IRP and operate the trailer in a fleet a vehicles with a minimum of 10 percent of the fleet miles operated outside of Idaho. The motor vehicle or trailer buyer must complete and sign Form ST-104IC, Sales Tax Exemption Certification — Interstate Commerce Vehicles and provide it to the seller.
The IRP Exemption doesn't apply to parts, supplies, or other tangible personal property purchased by people 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 IRP.