Idaho State Tax Commission

Idaho State Tax Commission

Distributors and the Transfer Fee

Idaho's Petroleum Clean Water Trust Fund Act requires a 1¢ per-gallon transfer fee. The fee is on the delivery or storage of petroleum or petroleum products in Idaho. The fund provides liability insurance for eligible applicants. This can pay for the cleanup of accidental petroleum product releases or spills.

Licensed fuel distributors who are the first receivers of fuel in Idaho must pay the 1¢ fee. It's due on each gallon of petroleum product they receive.

Products that require the fee

Petroleum and petroleum products defined in Section 41-4903, Idaho Code, that are liquid at 60° F and 14.7 psi at sea level.

Examples:

  • Gasoline, ethanol (E00) and ethanol blends, aviation gasoline, jet fuel, racing fuel, naphthas
  • Diesel, biodiesel, biodiesel blends, dyed diesel
  • Heating oil, stove oil, lamp fuel, kerosene, kerosene-type jet fuel
  • Brake fluid, commercial solvents, transmission fluids, turpentine substitutes
  • Engine/motor oils, lubricating oils, road oils, liquid asphalts
Delivered or stored petroleum products not on this list

Send a request for a written determination to the Tax Commission. We'll let you know if the product is subject to the fee.

Exemptions to the transfer fee

Petroleum products are exempt from the fee if:

  • First delivered or stored in Idaho in containers of 55 gallons or less. The distributor must intend to sell the product to the final consumer in the same container.
  • Received in bulk and repackaged into containers of 55 gallons or less. The distributor then must sell the product and the package to the final consumer.
  • Returned to a licensed distributor's refinery or pipeline terminal storage.
  • Exported from Idaho, and the export is properly documented.
  • First received by a railroad company.

In some cases, a distributor must pay only part of the fee on received or stored products.

Example:

Acme Distributing imports 25,000 gallons of bulk motor oil into Idaho. They repackage 10,000 gallons into five-gallon containers to sell to low-volume customers.

  • The 1¢ fee applies to the 15,000 gallons not repackaged ($150).
  • No fee applies to the 10,000 gallons repackaged into the five-gallon containers.

Repackaged petroleum products

Distributors might repackage motor oil, lubricating oils, and similar products. Report the transfer fee on form 1450, Distributor's Fuel Tax Report – Idaho as follows:

  1. Use the form 1450 "Distributor's Schedule of Disbursements – Idaho" page.
  2. In the "Schedule Type" box in the upper right, enter 10U.
  3. For column 1, Carrier Name, enter repackaging.
  4. For column 2, Carrier EIN, enter 999999999 (that's nine '9's).
  5. For column 3, Mode, enter J.
  6. For column 4, enter ID (for 'Idaho') in both the Origin and Dest. spaces.
  7. For column 6, Sold To, enter your DBA ('doing business as') name.
  8. For column 7, Purchaser's EIN, enter your EIN.
  9. For column 8, Date Shipped, enter the last day of the reporting period (e.g., 07-31-2017).
  10. For column 9, Document Number, enter repackaging.
  11. For column 11, Gross Gallons, enter the net total of the gallons repackaged.
  12. On form 1450, page 2, line E, enter the total from all Schedules 10U you're submitting.
    NOTE: If you're e-filing, the software will compute the Transfer Fee worksheet automatically from the schedules.

Suspension of the transfer fee

If the fund reaches $35 million, the fee is suspended. The fee is reinstated when the fund reaches $25 million. In either case, we'll contact all licensed distributors.

The fee was last suspended on Oct. 1, 1999 and reinstated Sept. 1, 2007.

Contact

If you have questions or need help, call (208) 334-7668 in the Boise area or toll-free at (800) 972-7660, ext. 7668 or email ftra@tax.idaho.gov.

Page last updated March 7, 2018. Last full review of page: Feb. 26, 2018.

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