International Fuel Tax Agreement (IFTA) License Bond

The Division of Aeronautics uses the aircraft engine fuel tax to support Idaho airports and aviation programs. This tax is included in the price of aviation gasoline and jet fuel.

Some airplane owners have their planes certified to use motor vehicle gasoline (“mo-gas”). This tax goes to support Idaho roads. These airplane owners can choose to support Idaho runways instead.

The Idaho Division of Aeronautics previously published two articles in the Rudder Flutter newsletter on how to claim refunds of the road tax and pay the aircraft engine fuel tax.

Different tax rates could mean a refund

Motor vehicle gasoline and undyed diesel are taxed at higher rates than aviation fuel. If you used taxed gasoline or undyed diesel in an aircraft you can file to claim a refund for the amount you overpaid.

Claim a refund and pay the aircraft fuels tax

You must meet both these requirements:

You bought at least 50 gallons of motor vehicle gasoline.
You used this motor vehicle gasoline in your aircraft.

Follow these instructions to complete Form 75 so you can claim a refund of the motor fuels tax and then pay the aircraft engine fuel tax.

Complete page 1 through Section III. (In Section III, select box 15, Aircraft.)
Complete Section V to compute the motor fuel tax refund.
Complete Section VI to compute the aircraft engine fuels tax due.
Leave Section VII blank.
File this completed form with your annual income tax return.

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:

Use the form 1450 “Distributor’s Schedule of Disbursements – Idaho” page.
In the “Schedule Type” box in the upper right, enter 10U.
For column 1, Carrier Name, enter repackaging.
For column 2, Carrier EIN, enter 999999999 (that’s nine ‘9’s).
For column 3, Mode, enter J.
For column 4, enter ID (for ‘Idaho’) in both the Origin and Dest. spaces.
For column 6, Sold To, enter your DBA (‘doing business as’) name.
For column 7, Purchaser’s EIN, enter your EIN.
For column 8, Date Shipped, enter the last day of the reporting period (e.g., 07-31-2017).
For column 9, Document Number, enter repackaging.
For column 11, Gross Gallons, enter the net total of the gallons repackaged.
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.

Fuel Tax Bonding Options

This page explains bonding requirements for Idaho fuels distributors. The Tax Commission reviews all bonds annually.

Estimate your first year’s bond

Use this formula to estimate your first year’s bond:

For each fuel type, look up the tax rate.
Multiply your average number of gallons per month by the tax rate.
Total the estimated tax you would owe for all tax types.
Multiply the result of that calculation by 2.

Five choices for bonding

Surety Bond

To set up a surety bond, call your insurance company. You must make sure the following information is included on the bond:

Bond number
Principal
Payable to the Idaho State Tax Commission
Minimum of $1,000
For the purpose of a “Fuel Distributor Tax Permit”
Cancellation procedure
Notarized

Fuels Tax Bond

Cash Bond

A cash bond is a cashier’s check, money order, or other certified funds made out to the Idaho State Tax Commission. It won’t accrue interest. We’ll hold the money as long as you have your fuel distributor license.

The bond must be in the name of the Idaho State Tax Commission and the original documents must come to our office.

Certificate of Deposit (CD)

The interest accrued on the CD will go to you. If your bank holds the actual CD or doesn’t issue a certificate, call (208) 334-7781 for a copy of the Certificate of Deposit for Fuel Bond form.

Joint Savings Account

The interest accrued on a joint savings account will go to you. Call (208) 334-7781 for a copy of the Joint Savings Account for Fuel Bond form.

Irrevocable (Standby) Letter of Credit (ILC)

This is issued by a bank doing business in Idaho. It must include the following items:

Issuing institution
Licensee’s name
Effective date
Expiration time and place
Payable to the Idaho State Tax Commission
Dollar amount covered
Terms of the letter
Letter number
Authorized signatures

If you have questions

If you have questions, please call (208) 334-7781.

Fuel Distributors Online Guide Terminal Operators

Idaho fuel is either:

Imported into Idaho by pipeline, truck, train, or
Produced at biodiesel and ethanol plants

Imported fuel is stored in fuel terminals recognized by the Internal Revenue Service (IRS).

Idaho producers can have their production facility recognized as an Idaho terminal.
Read more in the Idaho Production Plants guide

Filing reports

Terminal operators must file a monthly report with the Tax Commission. Form 1452, Idaho Terminal Operator Report, is due the last day of the month following the tax period.

Example The October 2018 tax return is due November 30, 2018.

The Form 1452 isn’t available on this website. We mail it with personalized information for each terminal operator.

Complying with other state and federal laws

Transportation of raw or finished product

You must follow all rules and regulations of the Idaho Transportation Department.

Federal requirements

Please contact these agencies to learn more about federal regulations for biodiesel:

US Department of Transportation
Environmental Protection Agency
Internal Revenue Service

Idaho Production Plants – Biodiesel and Ethanol

If you produce and distribute biodiesel, ethanol, or ethanol blends, you have certain reporting requirements.

Idaho terminal designation

You can request an Idaho terminal designation for your production plant.

This is for Idaho fuels tax reporting only. It’s not an IRS terminal designation.
You’ll act as a terminal operator.
Read more in our Fuels Terminal Operators guide.
The fuel in your plant becomes subject to Idaho motor fuels tax when you place it into vehicles for transport at your terminal rack.
You must report this on Form 1452, Idaho Terminal Operator Report.
Only licensed distributors can
- Move untaxed product out of the terminal
- Move taxed product into the terminal

The Form 1452 isn’t available on this website We mail it with personalized information for each terminal operator. Contact us if you misplace your form.

Biodiesel and Other Biofuels

Biodiesel is fuel made completely or partially from agricultural products, animal fats, or the waste from those products. A biodiesel blend is fuel made from blending biodiesel with petroleum-based diesel to make a product you can use in diesel engines.

Taxing and licensing requirements

In Idaho, biodiesel and biodiesel-blend fuels are subject to the same fuels tax laws as petroleum diesel.

Distributors

Licensing and bonding is required. Report using Form 1450.

Produced for personal use (not for sale)

If you produce biodiesel or biodiesel-blend fuel and use it on public highways, you must file Form 75 – Fuels Use Report and Instructions, and pay the current fuels tax rate.

Your fuel can’t be for sale to the public.
You must produce no more than 5,000 gallons per calendar year.
If you produce 5,000 or more gallons per calendar year you must get a fuels distributor’s license.

Ethanol and Ethanol blends

Ethanol is an alcohol made from starch, generally corn. It’s “denatured” by adding natural gasoline so that it can be used in motor vehicles.

Ethanol in Idaho generally is imported. Terminal operators can blend ethanol intended for use as a motor fuel with gasoline. Currently, most gasoline includes ethanol.

Taxing and licensing requirements

In Idaho, ethanol and ethanol-blends are subject to the same fuels tax laws as gasoline.

Distributors

Licensing and bonding is required. Report using Form 1450.

Fuels Tax and IFTA

Contact information for questions or help with our Fuels Tax or the International Fuel Tax Agreement (IFTA).

Fuels Tax

Department	Contact Information
Fuel distributor reporting and record keeping	FTRA@tax.idaho.gov
Electronic filing, including the required XML specifications	Submit a question (208) 332‑6632 [Boise] (800) 972‑7660, ext. 6632 [Toll‑free]
Idaho fuel distributor licensing requirements	permitprocessing@tax.idaho.gov
Report noncompliance	FTRA@tax.idaho.gov
Motor fuels tax refund	208-488-2089 for Bille Pierson
Form 75 fuels tax questions	permitprocessing@tax.idaho.gov (208) 334‑7773 [Boise] (800) 972‑7660, ext. 7773 [toll‑free] (208) 334‑7830 [Boise] (800) 972‑7660, ext. 7830 [toll‑free]
Fuels Tax Policy	taxpolicy@tax.idaho.gov (208) 334‑7855 [Boise] (800) 972‑7660, ext. 7855 [toll‑free]

IFTA

Department	Contact Information
Help with IFTA licenses, decals, returns	Submit a question (208) 334‑7806 [Boise] (800) 972‑7660, ext. 7806 [toll‑free]
Form 75 questions (if filed with an IFTA return)	(208) 334‑7806 [Boise] (800) 972‑7660, ext. 7806 [toll‑free]
IFTA Compliance Unit	(208) 639‑3219 [Boise] (800) 972‑7660, ext. 3219 [toll‑free] (208) 334‑7678 [fax]
IFTA Audit Unit	(208) 488-2089 [Boise] (208) 332‑4081 [Boise] (800) 972‑7660, ext. 4081 [toll‑free] (208) 332‑6619 [fax]
Fuels Tax Policy	taxpolicy@tax.idaho.gov (208) 334‑7855 [Boise] (800) 972‑7660, ext. 7855 [toll‑free] (208) 334‑7844 [fax]
Fuel purchased from an Idaho Indian reservation	(208) 334‑7855 [Boise] (800) 972‑7660, ext. 7855 [toll‑free] (208) 332‑4081 [Boise] (800) 972‑7660, ext. 4081 [toll‑free]

Mailing Addresses

IFTA forms & publications
Idaho State Tax Commission
PO Box 36
Boise ID 83722-0410

Commercial Vehicle Services
Idaho Transportation Department
PO Box 7129
Boise ID 83707-7129

Other State Agencies

Idaho Transportation Department
Call: (208) 334-8000 Boise

trucking.idaho.gov
Call: (208) 334-8611 Boise
Fax: (208) 334-2006

Vehicle Titles
Call: (208) 334-8663 Boise
Fax: (208) 334-8658

Idaho Ports of Entry
Call: (208) 334-8688 Boise
Fax: (208) 334-8696

Commercial Vehicle Section, Idaho State Police
Call: (208) 884-7220 Boise
Fax: (208) 884-7192

Federal Agencies

Federal Highway Administration
Call: (208) 334-1843 Boise
Fax: (208) 334-1691

Federal Motor Carrier Safety Administration
Call: (208) 334-1842 Boise
Fax: (208) 334-1691

Fuels Tax Exceptions Buying from an Idaho Indian Tribe or Member

When you buy fuel on an Idaho Indian reservation, you might not be paying Idaho fuels tax.

Agreements between the Idaho governor’s office and the tribes usually means that no Idaho motor fuels tax is charged if the tribe or a tribal member wholly owns and operates the retail outlet.

If you buy the fuel with tax included, you can claim the fuel as tax-paid on your IFTA return. Read more about IFTA reporting.
You can only claim an Idaho fuels tax refund if you buy the fuel with Idaho fuel tax paid and use it for a nontaxable purpose.

Tribal retailers

The federal government determines tribal reservation boundaries. These tribes’ reservations fall within Idaho’s borders: Coeur d’Alene tribe, Kootenai tribe, Nez Perce tribe, Shoshone-Bannock tribe, Shoshone-Paiute tribe.

Coeur d’Alene Tribe

No Idaho fuels tax in pump price.

Benewah Automotive Center (Plummer, ID)
BNS Smokeshop (Worley, ID)
Coeur d’Alene Casino Convenient Store (Worley, ID)
Fightin Creek (Worley, ID – S Hwy 95 location and W. Elder Rd. location)
Mahoney Petroleum (Plummer, ID)

Kootenai Tribe

No Idaho fuels tax in pump price of gasoline. Idaho fuels tax is included in pump price of diesel.

Sturgeon Station (Bonners Ferry, ID)

Nez Perce Tribe

No Idaho fuels tax in pump price.

Camas Express (W. of Winchester, E. of Craigmont; Hwy 95, ID)
Express II – Casino Station (East of Lewiston, ID)

Shoshone — Bannock Tribes

No Idaho fuels tax in pump price of gasoline. Idaho fuels tax is included in pump price of diesel.

Bannock Peak Truck Stop (Arbon Valley – West of Pocatello, ID)
Jet Stop (Pocatello, ID)
Sage Hill Station (Blackfoot, ID)
T.P. Gas Station (Ft. Hall, ID)

Tax-included chart

The chart below lists retail outlets that tribes or enrolled tribe members own. (We try to keep the page updated, but we can’t guarantee it’s accurate.)

Gasoline

	Coeur d' Alene	Kootenai	Nez Perce	Shoshone-Bannock
Does the purchase price for gasoline include Idaho motor fuels tax?	No, effective 3/1/2005	No, effective 3/1/2005	No, effective 3/1/2005	No, effective 3/1/2005
Are consumer refunds allowed for gasoline?	No, effective 3/1/2005	No, effective 3/1/2005	No, effective 3/1/2005	No, effective 3/1/2005

Diesel

	Coeur d' Alene	Kootenai	Nez Perce	Shoshone-Bannock
Does the purchase price for diesel include Idaho motor fuels tax?	No, effective 3/1/2005	Yes, effective 11/30/2007	No, effective 3/1/2005	Yes, effective 11/1/2007
Are consumer refunds allowed for diesel?	No, effective 3/1/2005	Yes, effective 11/30/2007	No, effective 3/1/2005	Yes, effective 11/1/2007
Are IFTA tax-paid gallons allowed for diesel?	No, effective 3/1/2005	Yes, effective 11/30/2007	No, effective 3/1/2005	Yes, effective 11/1/2007