Idaho State Tax Commission

Fuel Consumers

Consumers usually pay Idaho fuels tax when they buy fuel from a retail dealer in Idaho. There are different types of fuel. The price paid usually includes the cost of the fuels tax. There are three exceptions: gaseous fuels, dyed diesel, and fuel sold by Idaho Indian tribes or their members. (Read more about when these exceptions apply.)

Fuels tax funds roads, airports, waterway improvements, and more.

When you can get a fuels tax refund

You can claim a refund if you buy fuel with Idaho fuels tax included in the price and use the fuel in a nontaxable way. You must use the fuel and have receipts that show you paid the tax. Bulk purchases require withdrawal records. You must have mileage records if you claim nontaxable miles.

Dyed diesel is never eligible for a refund. Read more about dyed diesel.

Sales and use taxes on refunds

Sometimes you need to pay use tax if you receive a fuels tax refund. Use this chart to see when.

Fuel Fuels tax included in price? You owe sales tax on sale? You owe sales tax on a refund?
Gasoline Yes No Yes*
Undyed diesel Yes No Yes*
Dyed diesel No Yes* No**

*unless another sales or use tax exemption applies

**Since you didn't pay fuels tax you can't apply for a refund and you won't owe sales tax afterwards.

Read more at You might owe use tax.

Gasoline

"Gasoline" includes ethanol and related blends (E1 to E99).

Gasoline uses eligible for a fuels tax refund

To get a refund, you must buy and use at least 50 gallons of gasoline in a year in any of the following ways:

  • Stationary engines (e.g., pumps, generators)
  • Unlicensed off-road vehicles or equipment (snowmobiles and motorcycles don't qualify.)
  • Motor vehicles that aren't required to be licensed
  • Motor vehicle auxiliary engines (power take-off equipment doesn't qualify)
  • Commercial motorboats (personal pleasure boats don't qualify)
  • Unregistered all-terrain vehicles (ATVs) as defined in Idaho Code section 67-7101
Gasoline uses not eligible for a fuels tax refund

Some uses of gasoline that don't qualify for a fuels tax refund include:

  • Motor vehicles that are licensed or required to be licensed
  • Motor vehicles exempt from registration due to ownership or residence
  • Licensed motor vehicle power take-off equipment
  • Recreational vehicles
  • Motorcycles, motor scooters, motorized bicycles, registered ATVs and snowmobiles
  • Noncommercial motorboats
  • Boats a government agency operates

Special fuels

Special fuels include dyed and undyed diesel, biodiesel and biodiesel blends (e.g., B1 to B99).

Special fuels also include propane and natural gas. The fuels tax doesn't apply on propane and natural gas purchases unless the fuel is put directly into the supply tank of a licensed motor vehicle. If you buy propane or natural gas in bulk for vehicles, you can agree to let your seller charge you Idaho fuels tax. [See Idaho Code section 63-2401(7)(b).]

You can claim a fuels tax refund only if you paid the fuel tax on the special fuels you bought.

Dyed diesel is never eligible for a refund. Read more about dyed diesel.

Tax-paid special fuels eligible for a fuels tax refund

You could get a refund if you buy tax-paid undyed diesel or other tax-paid special fuels and use them in:

  • Licensed motor vehicles operated off-road
  • Motor vehicles that a government agency owns or leases and operates
  • Heating units
  • Power take-off equipment, auxiliary engines, stationary engines
  • Unlicensed equipment
  • Commercial motorboats (personal pleasure boats don't qualify)
Tax-paid special fuels not eligible for a fuels tax refund

Some uses of tax-paid special fuels that don't qualify for a fuels tax refund include:

  • Licensed motor vehicles operated on Idaho roads open to the public
  • Recreational vehicles
  • Noncommercial motorboats
  • Boats a government agency operates

Claiming a fuels tax refund

Read more about how to claim a fuels tax refund.

Page last updated June 10, 2019. Last full review of page: June 10, 2019.

This information is for general guidance only. Tax laws are complex and change regularly. We can't cover every circumstance in our guides. This guidance may not apply to your situation. Please contact us with any questions. We work to provide current and accurate information. But some information could have technical inaccuracies or typographical errors. If there's a conflict between current tax law and this information, current tax law will govern.