Motor Fuels Tax Refund Information
Motor fuels tax is paid by licensed distributors. The motor fuels tax is included in the price paid for undyed (clear) diesel fuel and gasoline for both delivered fuel and fuel purchased at the pump.
When you claim a motor fuels tax refund for the nontaxable use of Idaho tax-paid diesel or gasoline withdrawn from a single bulk storage tank, you must determine your refund claim using withdrawal records or a preapproved authorized percentage.
Use your withdrawal records that show the taxable and nontaxable use of the fuel to calculate your refund. The records must list:
- The date of each withdrawal.
- The number of gallons withdrawn from the single bulk storage tank and placed into a main supply tank.
- The equipment or vehicle the withdrawn fuel was placed into.
You must keep these records and make them available to the Idaho State Tax Commission on request. You must also keep invoices showing the total gallons of tax-paid fuel purchased to support each refund claim.
The authorized percentage method allows you to use a predetermined percentage of the tax-paid gallons purchased to calculate the nontaxable gallons of fuel for the refund claim, instead of keeping detailed records. The authorized percentage must be:
- Preapproved by the Tax Commission.
- Based on past fuel consumption rates for each type of equipment you use.
To apply for an authorized percentage, complete a Request for Authorized Exempt Fuel Percentage form and return the form to the Tax Commission.
Once approved, you can use the percentage when completing Form 75 to claim a refund. The percentage is valid for three years, as long as there's no change in your operations.
You must keep fuel purchase invoices and equipment lists to support your refund claim.
You can't use the authorized percentage if you:
- Are licensed under IFTA (International Fuels Tax Agreement).
- Have non-IFTA motor vehicles and claim fuels tax refunds for nontaxable uses of motor fuels in those motor vehicles on a Form 75-IMV.
- Have separate storage tanks for undyed (clear) diesel and dyed diesel.
If you use undyed diesel fuel for home heating fuel, for any nontaxable off-road purpose, or in certain government vehicles, you can get a refund of the fuels tax from the Tax Commission within 30 days of filing your claim on a Form 75 (separate from your income tax return).
When fuel isn't subject to motor fuels tax, it's subject to sales/use tax, unless a sales tax exemption applies.
Contact us if you have questions about your fuels tax refund claim.