Search Category: Fuels Tax
Fuel Consumers Refunds
If you buy fuel that includes tax, but use it in a nontaxable way, you might qualify for a fuels tax refund.
Filing for a refund
- Check your receipts to confirm you paid fuels tax. You must keep complete records to support your refund requests.
- Check that you used the fuel in a nontaxable way. (See Nontaxable uses of gasoline.)
- File the Form 75 that applies (see below). Your refund claim must cover at least one month, but no longer than 12 months.
- Check to see if you should pay use tax. (See You might owe use tax, below.)
Bulk storage tank
You can choose one of two ways to calculate your refund claim:
Withdrawal records
Calculate Idaho tax-paid and nontaxable gallons from your withdrawal records. You can use them for fuel you withdraw from a bulk storage tank or buy from a retail station, cardlock, or bulk plant. Use 
Form 75-BST – Fuels Tax Refund Worksheet, Idaho Consumers with Single or Multiple Bulk Storage Tanks.
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- The number of gallons withdrawn from the single bulk storage tank and placed into a main supply tank
- The equipment or vehicle the withdrawn fuel was put into
Authorized percentage
Use a predetermined percentage to calculate the nontaxable gallons for your refund claim.
- Apply by filling out and sending in the Request For Authorized Exempt Fuel Percentage form.
- Wait for approval from the Tax Commission.
- Use the percentage when completing Form 75 – Fuels Use Report for 2020.
The percentage is valid for three years, as long as there’s no change to your operations.
NOT ELIGIBLE FOR AUTHORIZED PERCENTAGE
You can’t use an authorized percentage if:
- You’re licensed under IFTA (International Fuels Tax Agreement), or
- You have non-IFTA motor vehicles and use Form 75-NM to claim tax refunds for nontaxable use of those vehicles, or
- You have separate storage tanks for undyed and dyed diesel.
Vehicles driven only in Idaho
Use Form 75-NM, Fuels Tax Refund Worksheet – Nontaxable Miles (Special Fuels Only, if:
- You drove your vehicles only in Idaho, and
- Your vehicle used special fuels only in nontaxable ways, or
- You used special fuels from the vehicle’s supply tank to operate the vehicle’s power take-off equipment, or
- You used gasoline or special fuels from the vehicle’s supply tank to run an auxiliary engine.
IFTA licensees
Use Form 75-PTO, Fuels Tax Refund Worksheet – Power Take-off and Auxiliary Engine, if:
- You have an International Fuels Tax Agreement (IFTA) license, and
- You used special fuels from the motor vehicle’s supply tank to run the vehicle’s power take-off equipment or
- You used gasoline or special fuels from the vehicle’s supply tank to run an auxiliary engine.
All other requests for refund
Use Form 75 – Fuels Use Report and Instructions for any other motor fuel refund requests.
You might owe use tax
When fuel isn’t subject to motor fuels tax, it’s subject to sales/use tax – unless a sales tax exemption applies. Use tax is a tax on the use or storage of goods in Idaho, including fuels. The use tax rate is the same as the sales tax rate. You can calculate any required use tax on the Form 75 – Fuels Use Report and Instructions. You can also report use tax on your sales/use tax return if you have a sales permit or on your individual income tax return.
You could owe sales tax if no sales tax exemption applies, and:
- You buy fuel that’s sold without fuels tax or
- You buy fuel with fuels tax included and claim a fuels tax refund
To calculate the use tax due:
- Take the total purchase price for fuel times the use tax rate* (*same as the sales tax rate).
- Subtract the Idaho fuels tax rate.
- Subtract the federal fuels tax rate if you’re eligible to receive a refund of the federal fuels tax.
- Using fuel in unregistered equipment on golf courses, for construction, in landscaping, for well-drilling
- Using leaded high-octane racing fuel
- Receiving a refund on fuel used for power take-off equipment or refrigeration unit
- Receiving a refund on fuel used in a commercial motor boat
- Receiving a refund for diesel used in registered vehicles off-road
When a sales tax exemption might apply
You must supply your fuels supplier with a completed Form ST-101 – Sales Tax Resale or Exemption Certificate. Read more in our Production Exemption guide.
If valid, you don’t have to pay use tax for:
Logging
- Fuel used in unregistered equipment while working in exempt logging activities
- Fuel used off-highway in a registered logging truck (if fuel is undyed diesel)
Farming
- Fuel used in unregistered equipment while working in exempt farming activities
Note: Fuel used in a vehicle requiring registration — even if used off-road — doesn’t qualify for this exemption.
Manufacturing
- Fuel used in tax-exempt equipment
- Fuel used in the production process
Heating and cooking
- Fuel used to heat a home, building, or recreational vehicle (no ST-101 required)
- Fuel used for cooking (no ST-101 required)
Propane
- If you buy 15 gallons or less at a time (no ST-101 required)
Before I fill out the refund form, is it worth it?
Fuel with the fuels tax included in the price is exempt from sales/use tax. If you claim a refund of the fuels tax, that exemption no longer exists: Use tax is due unless another exemption applies.
You might want to file to claim a refund because this moves the money from fuels tax (funding roads) to sales tax (the general fund, funding schools, etc.).
But you might not want to take the time to file for a refund unless a refund is actually due to you. The chart below shows the net break-even point. That’s when the fuels tax refund equals the sales/use tax due.
If no other exemption applies, you’ll get a refund if the average price/gallon is less than $5.90 when the fuels tax is $0.32/gallon and the sales tax is 6%.
| Form 75, Section VI | Gasoline | Diesel |
|---|---|---|
| 1) Number of gallons | 1 | 1 |
| Fuels tax/gallon | $0.32 | $0.32 |
| Fuels refund | $0.32 | $0.32 |
| 2) Ave. price/gallon | $5.90 | $5.90 |
| 3) State tax | $0.32 | $0.32 |
| 4) Fed tax | $0.184 | $0.244 |
| 5) Base cost/gallon | $5.40 | $5.34 |
| 6) Total subject to use tax | $5.40 | $5.34 |
| 7) Use tax due | $0.32 | $0.32 |
| Difference between fuels tax refund and use tax due | $0.00 | $0.00 |
Do you use motor vehicle gasoline in your airplane? Learn more about a potential refund in our Applying Tax to Runways Instead of Roads guide.
Fuel Consumers Basics Guide
Consumers usually pay Idaho fuels tax when they buy fuel from a retail dealer in Idaho. There are different types of fuel and tax rates. The price paid usually includes the cost of the fuels tax.
There are four exceptions:
- Dyed diesel. This diesel fuel is meant for off-road use only. It’s dyed red to distinguish it from diesel for road use.
- Gaseous fuels. Tax applies only if the fuel goes directly into the supply tank of a licensed motor vehicle.
- Racing fuels. High-octane, leaded gasoline used in motor vehicles designed for racing isn’t taxed as a motor fuel.
- Buying from an Idaho Indian tribe or member. The fuel that these retailers sell won’t include Idaho fuels tax, but will include a tribal fuel tax.
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. Read more about gaseous special fuels .
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
Fuels Distributors
Fuels Taxes and Fees
Consumers
Any individual, business, or government entity that uses fuel
Distributors
Provide fuel to retailers who sell it to consumers
IFTA Licensees
Report fuels tax with multiple states or jurisdictions
Guides
For fuels taxes and fees
Forms
For fuels taxes and fees
Laws and Rules
What fuels fees support
The State of Idaho uses fuels taxes and fees to:
- Build and maintain Idaho highways
- Support infrastructure for Idaho aircraft
- Support infrastructure for Idaho boats
The transfer fee funds the Idaho Petroleum Clean Water Trust Fund.
How fuels tax is paid
Licensed fuels distributors pay fuels tax to Idaho.
The cost of the fuels tax is included in the price paid for delivered fuel or fuels that consumers bought at the retail pump.
Refunds
If you buy fuel that includes tax, but use it in a nontaxable way, you can get a refund.
Fuel Consumers
IFTA Licensees
Report fuels tax with multiple states or jurisdictions.
Other Guides
For fuels taxes and fees
Forms
For fuels taxes and fees