In Idaho, only licensed distributors pay the Idaho motor fuels tax and a transfer fee to the state of Idaho. (Once the tax is paid, any resale of the fuel includes the motor fuels tax and transfer fee in the price that licensed distributors, unlicensed distributors, and consumers pay, whether the fuel is delivered or purchased at the pump.) For more information on the way Idaho taxes motor fuel, see our publication FT-2, Retail or Bulk Sales of Gasoline & Diesel Fuel.
Idaho licensed motor fuel distributors must pay the Idaho tax on most common taxable motor fuels when they "receive" motor fuels in Idaho. Motor fuels are considered "received" in Idaho when the Idaho licensed motor fuel distributor who owns the fuel removes it from an Idaho terminal or when the distributor imports motor fuel into Idaho. The ownership of the fuel is established at the point of origin and can't change as it crosses the border when imported into Idaho.
Gaseous motor fuels like propane and natural gas aren't "received" until they're placed into the main supply tank of a licensed or required-to-be-licensed motor vehicle.
Although dyed diesel isn't subject to the motor fuels tax under normal conditions, it's subject to the transfer fee because it's a qualifying petroleum product. Government entities may operate vehicles they own or lease with dyed diesel on Idaho highways, but they aren't exempt from the transfer fee.
There are some cases when the fuels tax may be refundable, but the transfer fee is only refundable when fuel is exported or repackaged in containers of 55 gallons or less (typically motor oils). For more information on gasoline and diesel refunds, see our publication FT-3, Idaho Fuels Tax Refunds for Gasoline & Diesel.
Read our Transfer Fee facts page »
- IBR-3, Idaho Fuel Distributor License Application and Instructions
- Fuel Tax Bonding Options
- Bond of Licensed Fuel Distributor, Idaho bonding form
- Legislation Amends "Motor Fuels" Definition (04-2010), publication explains ethanol tax law of 2010
- Instructions for Form 1450 Distributor's Fuel Tax Report
- SAMPLE Idaho Distributor's Fuel Tax Report and Schedules
- FT-2, Retail or Bulk Sales of Gasoline & Diesel Fuel
- FT-3, Idaho Fuels Tax Refunds for Gasoline & Diesel
The Idaho motor fuel distributor owes the tax on each gallon of motor fuel the distributor receives during a month. Licensed fuel distributors are required to file a monthly report with the Idaho State Tax Commission. The Form 1450, Distributor's Fuel Tax Report, is due on the last day of the month following the tax period. (For example, October's return is due the last day of November.) Personalized copies of Form 1450 are mailed to account owners and aren't available on our website. If you've misplaced your paper returns, you can request reprints by calling (208) 334-7660 in the Boise area or toll free at (800) 972-7660. Instructions for Form 1450 Distributor's Fuel Tax Report are available on this website. Distributors that report 25 or more transactions on a monthly distributor report are required to file the report electronically. For more information on filing electronically, please contact us.
Taxpayer Access Point (TAP) allows fuel distributors to validate suppliers' and customers' identities. You must register with TAP and be logged in to access this confidential information.
This section of our contact page has emails for:
- Electronic filing of fuels forms
- Fuel distributor licensing requirements
- Fuel distributor reporting and recordkeeping questions
- Software questions
- Noncompliance reporting
- Fuels Tax Law: Chapter 24
- Insurance Law: Chapter 49, Petroleum Clean Water Trust Fund Act - Transfer Fees
- Motor Fuel Tax Administrative Rules [PDF]
- Any proposed or temporary rules can be seen through this page.