Idaho State Tax Commission

Idaho State Tax Commission

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Change for Requesting Motor Fuels Tax Refunds for a Single Bulk Storage Tank

Due to a recent motor fuels rule change, the standard percentage method is no longer available to determine a fuels tax refund for the nontaxable use of diesel or gasoline withdrawn from a single storage tank.  (See Rule 270.06.a.)  This standard percentage method allowed taxpayers to use 60% of all Idaho tax-paid diesel fuel purchased and 25% of all Idaho tax-paid gasoline purchased to calculate the refund.  

As of July 1, 2014, you can use the following methods to determine your fuels tax refund:

Authorized Percentage:

Get authorization from the Idaho State Tax Commission for a predetermined refund percentage of the tax-paid gallons purchased to calculate the nontaxable gallons of fuel.  The percentage is based on your past fuel consumption rates for each type of equipment that used the tax-paid fuels in a nontaxable manner.

  • To apply for an authorized percentage, complete a Request for Authorized Exempt Fuel Percentage form, available at, and return the form to the Tax Commission.  The percentage is valid for three years, as long as there’s no change in your operations.
  • If you already have an approved alternate percentage, you don’t need to reapply unless your percentage expires in 2014.  

Withdrawal Records:

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  • The number of gallons withdrawn from the single bulk storage tank and placed into a main supply tank.
  • The equipment or vehicle the withdrawn fuel was placed into.

For more information about the rule change, please call Kevin Davis at (208) 334-7601 or Jill Young at (208) 334-7666.  To learn more about refunds, see our Motor Fuels Tax Refund Information Web page (


Posted 06-24-2014

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