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Recordkeeping for IRP Registrants
As an IRP registrant, you and the retailers or dealers you work with must keep records from the sale or lease of motor vehicles, trailers and glider kits you buy without paying tax under the IRP exemption.
Sellers
Dealers and retailers that sell or lease motor vehicles, trailers or glider kits under the IRP exemption must have the buyer complete a 
Form ST-104IC – Sales Tax Exemption Certificate – Interstate Commerce Vehicles. Dealers and retailers must keep a copy of the completed Form ST-104IC for at least four years.
Buyers
- When you buy a motor vehicle, trailer or glider kit exempt, you must keep records to verify that at least 10 percent of the IRP fleet mileage is outside Idaho for each reporting period.
- Keep records that show you paid tax on repair parts you bought in Idaho for qualifying motor vehicles, trailers and glider kits.
- Maintain normal books of account.
- Keep documents that support entries in the books of account.
Examples:- Bills
- Receipts
- Invoices
- Job or work orders
- Lease contracts
- All schedules or working papers used to prepare your tax returns
Your records must include:
- The total purchase price of anything you bought, leased or used in your business
- The amount of sales tax you paid to a vendor or use tax you paid on your tax return
- All sales and use tax returns
Keep all sales and use tax records for at least four years. If you don’t file returns, you should keep your records for seven years.
Taxing an IRP Fleet
The reporting period for each year is July 1 through June 30. You must report your IRP fleet’s total state-by-state mileage during the reporting period. Use Idaho Transportation Department’s IRP Idaho Schedule B.
If an IRP fleet’s total mileage outside of Idaho drops below 10 percent for any reporting period, you owe use tax. You must pay use tax on the fair market value of any motor vehicle, trailer or glider kit that you bought exempt for that fleet. Calculate the fair market value of those vehicles as of the last day of the reporting period (June 30). You must pay the use tax to the Tax Commission.
Taxing items you use in business
If you’re an IRP registrant, you must pay tax on repair parts, supplies and other business items you buy.
- Oil
- Recordkeeping equipment (e.g., computers, log books)
- Engine and truck body repair parts
- After-market accessories
If you’re an IRP registrant that’s also a common carrier, you can buy items exempt in Idaho if all of the following apply:
- You use your own vehicles to ship the goods outside Idaho.
- You use the goods outside Idaho in your business as a common carrier.
Examples:- Shipping materials you use to move household goods
- Shipping materials you use to ship packages
- You have a bill of lading showing that you shipped the goods out of state.
Buying Exempt for an IRP Fleet
You might be able to buy or lease motor vehicles, trailers, and glider-kit vehicles for your IRP fleet tax free if all the following apply:
- You’re a commercial or private carrier in the business of transporting one or more of the following:
- People
- Commodities you or someone else owns
- You’ll operate the motor vehicle, glider-kit vehicle or trailer in an IRP fleet substantially used in interstate commerce.
“Substantially used in interstate commerce” means a fleet that has at least 10 percent of its accrued mileage outside of Idaho in any reporting period. The IRP’s reporting period begins July 1 and ends June 30. - You complete Form ST-104IC – Sales Tax Exemption Certificate – Interstate Commerce Vehicles, and give it to the dealer, retailer or county assessor (or DMV).
Buying motor vehicles exempt
- The motor vehicle must be over 26,000 maximum gross weight, and you must immediately register it in an IRP fleet.
- You can title or base plate the vehicle in any state.
- You must register a leased vehicle in your business’ name.
Farm vehicles or noncommercial vehicles as defined by Idaho Code section 49-123 don’t qualify for the exemption.
Buying trailers exempt
- You must register a rented or leased trailer in your business’ name.
- You must place the trailer in an IRP fleet.
Buying glider kits exempt
- You must have someone use the glider kit to assemble a glider-kit vehicle*.
- You must immediately register the glider-kit vehicle in an IRP fleet.
* A “glider-kit vehicle” means every large truck created from a kit that a manufacturer of large trucks makes. The glider-kit vehicle is a new truck chassis, special-ordered from the factory, without engine or transmission. You have someone install a remanufactured engine and transmission into the chassis.
You might qualify for an International Fuel Tax Agreement (IFTA) license if you’re an IRP registrant. The license allows you to reduce paperwork and standardize fuels use tax reporting. See IFTA Licensees.
IRP Basics Guide
This guide explains Idaho’s sales and use tax laws for IRP registrants. The guide describes motor vehicles, trailers, and glider kits that you can buy tax free under the IRP exemption. It also covers what you must pay tax on, and the requirements for keeping sales and use tax records and for filing returns.
Defining an IRP fleet
A fleet is one or more vehicles registered under the International Registration Plan (IRP).
- The fleet must have at least one qualifying motor vehicle. The motor vehicle must have a maximum gross weight of at least 26,000 pounds.
- The rest of the fleet can consist of a mixture of motor vehicles, trailers and glider-kit vehicles.
An individual or company can have more than one fleet.
Laws and Rules for IRP
Learn more about IRP:
- Motor Vehicles and Trailers Used in Interstate Commerce — Sales Tax Rule 101
- Motor Vehicles, Used Manufactured Homes, Vessels, All Terrain Vehicles, Trailers, Utility Type Vehicles, Specialty Off-Highway Vehicles, Off-Road Motorcycles, Snowmobiles and Glider Kits — Idaho Code section 63-3622R
- Purchases Shipped Out-of-State by a Common Carrier — Idaho Code section 63-3622P
Donating or Giving Away an Off-Highway Vehicle
Giving an off-highway vehicle to a person
Transferring ownership of an off-highway vehicle to another person or entity is generally subject to tax, but certain gifts are exempt. An off-highway vehicle qualifies as an exempt gift if all of the following apply:
- You, as the giver, don’t receive services or anything of value for the off-highway vehicle.
- Your relationship with the recipient supports the basis for a gift.
- The recipient doesn’t assume any of your debts or liabilities.
- Neither you nor the recipient owes money on the off-highway vehicle.
Notes
- If you transfer an off-highway vehicle to someone else and allow them to “take over payments,” the recipient has assumed a debt. The transfer isn’t a gift, and the buyer owes tax on the value of the remaining payments.
- You might be required to provide more information if you have a business relationship with the recipient.
When you give away an off-highway vehicle that qualifies as an exempt gift, give the recipient a completed Form ST-133GT – Use Tax Exemption Certificate – Gift Transfer Affidavit, with your signature. The recipient also must sign the form.
Donating an off-highway vehicle
You must pay sales or use tax on the purchase of any off-highway vehicle, even if you intend to give it away.
- You must pay sales or use tax if you buy an off-highway vehicle specifically to donate.
- You don’t owe use tax if you donate an off-highway vehicle you already own and have paid tax on.
- You buy a UTV from a dealer to donate for a school raffle. You must pay tax when you buy the UTV.
- You buy an off-highway motorbike from your neighbor to donate to a church youth group. Before donating it to the church, you must title the off-highway motorbike in your name and pay use tax on the amount you paid your neighbor.
- You donate a snowmobile you already own to a nonprofit group that does wilderness activities. You paid tax when you bought the snowmobile, so you don’t owe use tax when you donate it.
Donations like those in the examples above might be a gift if all of the following apply.
- The recipient isn’t performing any services to get the donation.
- The recipient isn’t giving you anything of value for the donation.
- The recipient isn’t assuming any of your debts.
Note: You might be required to provide more information if you have a business relationship with the recipient.
When you give away an off-highway vehicle that qualifies as an exempt gift:
- Give the recipient a completed Form ST-133GT – Use Tax Exemption Certificate – Gift Transfer Affidavit, with your signature.
- The recipient also must sign the form and present it when he or she registers or titles the off-highway vehicle.
Receiving an off-highway vehicle as a gift or prize
You don’t owe use tax when you receive an off-highway vehicle that qualifies as a gift or is a prize.
- Your uncle gives you an off-highway motorbike for your high school graduation.
- You win a UTV in a raffle.
You and the donor must complete and sign a Form ST-133GT – Use Tax Exemption Certificate – Gift Transfer Affidavit.
- Present the completed Form ST-133GT when you register the off-highway vehicle.
- If the donor can’t sign the affidavit, you can do one of the following.
- Provide a signed letter from the donor stating that the off-highway vehicle is a gift.
- The donor can sign and mark the title as a gift.
Laws and Rules for Off-Highway Vehicles
Learn more about off-highway vehicles:
- Sales Price — Idaho Code section 63-3613, Sales Tax Rules 043 and 044
- Retail Sale – Sale at Retail — Idaho Code section 63-3609, Sales Tax Rule 011
- Certificates for Resale and Other Exemption Claims — Sales Tax Rule 128
- [Recreational Activities] Definitions — Idaho Code section 67-7101 (1), (3), (9), (10), and (17)
- [Highways and Bridges] Definitions — Idaho Code section 49-109
- Motor Vehicles, Used Manufactured Homes, Vessels, All-Terrain Vehicles, Trailers, Utility Type Vehicles, Specialty Off-Highway Vehicles, Off-Road Motorcycles, Snowmobiles and Glider Kits — Idaho Code section 63-3622R, Sales Tax Rules 106 and 107
- Occasional Sales — Idaho Code section 63-3622K, Sales Tax Rule 099
- Exempt Private and Public Organizations — Idaho Code section 63-3622, Sales Tax Rule 085
- Production Exemption Shall Not Apply to Recreation-Related Vehicles — Idaho Code section 63-3622HH
- Production Exemption — Idaho Code section 63-3622D, Sales Tax Rule 079
- Farming and Ranching — Sales Tax Rule 083
- Underground Mining — Sales Tax Rule 081
- Above Ground and Open Pit Mining — Sales Tax Rule 082
- Lumber Manufacturing — Sales Tax Rule 080
Recordkeeping for Off-Highway Vehicles
Dealers and retailers that sell or lease off-highway vehicles
Your records for selling or leasing off-highway vehicles must be the same as any retailer.
Businesses that sell or transfer an off-highway vehicle to a related party
Document the sale or transfer. Your records should include all of the following:
- Date of sale or transfer.
- Sales price of the off-highway vehicle.
- Identifying information about the off-highway vehicle (e.g., vehicle identification number).
- Document that tax due was collected and forwarded to the Tax Commission on all sales of off-highway vehicles.
- How the parties are related.
- Registration and title documents showing whether you paid tax when you bought the off-highway vehicle.
- If the sale or transfer is exempt, complete Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions. See requirements for exempt related-party sales and transfers in the Sales of Off-Highway Vehicles by Private Parties page.
Individuals that sell an off-highway vehicle
Document the sale. Your records should include all the following:
- Date of sale
- Identifying information about the off-highway vehicle (e.g., vehicle identification number)
- Sales price of the off-highway vehicle
- Copies of sale documents
Notes:
- If you hold yourself out as a seller and make one or more sales of off-highway vehicles or anything else in a year, you’re a retailer. See Retailers.
- If, in a calendar year, you sell five or more vehicles or vessels that require registration, you must apply for a dealer’s license. See Idaho Transportation Department “Vehicle Dealers.“
Individuals that give away an off-highway vehicle
Document the gift. Your records should include all the following:
- Date of gift
- Identifying information about the off-highway vehicle (e.g., identification number)
- Copies of transfer documents
You and the recipient must complete and sign a Form ST-133GT – Use Tax Exemption Certificate – Gift Transfer Affidavit. The recipient needs the completed form when he or she registers or titles the off-highway vehicle.
Leasing Out or Renting Out Your Own Off-Highway Vehicle
Leasing or renting an off-highway vehicle is a taxable sale in Idaho. You’re renting out or leasing out your off-highway vehicle if you allow someone to use it and you receive payment (cash, property, or other financial gain). Whether you’re a business owner or an individual, you’re a retailer if you make one or more sales (including off-highway vehicles) or hold yourself out as being in business.
- You list and lease out or rent out your snowmobile through an internet marketplace.
- You advertise and lease out or rent out your off-highway motorbike through word-of-mouth.
- You make one or more sales (including off-highway vehicles) or hold yourself out as being in business.
Retailers must:
- Get a seller’s permit.
See the Idaho Business Registration guide learn more. - Collect tax on the full amount you charge for the lease or rent.
- Forward the tax with the sales tax return that you file with the Tax Commission.
See the Retailers guide.
Responsibilities
You don’t need to collect tax when you list your off-highway vehicle with a marketplace facilitator and it collects and forwards the tax to the Tax Commission. This table shows tax responsibility in different vehicle leasing scenarios.
| Scenarios: Leasing or renting an individual’s vehicle in Idaho | Who’s responsible for collecting and forwarding tax due? |
|---|---|
The vehicle is in Idaho and both of these apply:
| The owner must register as a retailer to collect, report and forward taxes on the lease or rental price of the vehicle. |
| The vehicle is in Idaho and the owner uses a marketplace facilitator to arrange all leases or rentals of the vehicle. | The marketplace facilitator must register as a retailer, collect, report and forward taxes on the sales price of the vehicle leases or rentals. |
The vehicle is in Idaho and is:
| The owner and the marketplace facilitator are responsible for taxes as follows:
|
You’re responsible for the collection and forwarding of all taxes due on your vehicle. If you rent out your vehicle through a marketplace facilitator, check to see which, if any, taxes it collects and forwards for you.
When you collect tax
The type of lease or rent determines when you collect tax. Off-highway vehicle leases and rents fall into three general categories:
| Type of lease/rental | How the lease/rental works | When to collect sales tax |
|---|---|---|
| Basic lease or rental | The customer returns the motor vehicle to the lessor at the end of the lease or rental term. | Collect sales tax on each lease or rental payment. |
| Lease or rent with option to buy | The customer has the option of buying the motor vehicle during the lease or rental term or at the end of the term at fair market value. | Collect sales tax on each lease or rental payment and on the price the customer pays when buying the motor vehicle. |
| Lease/rent and purchase | The customer makes regular payments during the lease or rental term. At the end of the term, title to the motor vehicle passes to the customer for $0 or an amount that’s less than fair market value. | The customer will own the motor vehicle at the end of the lease or rental term, so this is a sale and a financing arrangement. Collect sales tax on the sales price of the vehicle at the beginning of the term, when the sale is made (the contract is completed). |
Sales of Off-Highway Vehicles by Private Parties
This section applies to sales, transfers, exempt sales, rentals and leases of off-highway vehicles between private parties. Private parties are individuals or businesses who aren’t dealers or retailers.
Sales price
- A sale between private parties must have a bill of sale because it establishes the sale price, and it’s proof of how much the buyer paid.
- Both the buyer and seller should sign the bill of sale.
- If the bill of the sale is far below the expected fair market value, the buyer must have evidence to show why the price was so low.
- Buyers must pay tax on the off-highway vehicle when they register or title it.
- The county assessor or the Idaho Transportation Department (ITD) will collect sales tax when the buyer registers or titles the off-highway vehicle.
Note: Trade-in allowances don’t apply to private party sales.
Exempt sales or transfers of off-highway vehicles by private parties
Certain sales and transfers of off-highway vehicles between a business and its owners or related parties are exempt.
Change in the form of a business
Transfer of off-highway vehicles is exempt if a business changes its entity type and the ultimate ownership of the property is substantially the same.
- A sole proprietor forms a new limited liability corporation (LLC) that the sole proprietor wholly owns. The transfer of off-highway vehicles to the new LLC is exempt.
- A partnership incorporates, and the ownership of the business doesn’t change. The transfer of off-highway vehicles to the new corporation is exempt.
The buyer must provide a completed Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the off-highway vehicle.
Sale of an ongoing business (bulk sale)
Off-highway vehicles included in the sale are exempt if a business or its separate segment is sold and all of the following apply:
- Substantially all the operating assets are included in the sale of the business or its separate segment.
- The new owner will continue to operate the business in the same manner.
- The existing business has the off-highway vehicles registered or titled in its name at the time of sale and then registered or titled in the new business’ name.
Note: The seller must have separate accounting records if it’s a sale of a separate segment.
The buyer must provide a completed Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the off-highway vehicle.
Transfer of capital assets between related parties
Sometimes owners, partners, shareholders and stockholders in related-party businesses transfer title and ownership of off-highway vehicles.
A transfer of an off-highway vehicle between corporations that are related parties is exempt if both of the following are true:
- The corporation transferring the off-highway vehicle has proof that tax was paid when the off-highway vehicle was acquired.
- The two corporations exchange nothing of value other than an increase or decrease in equity (e.g., stock or securities).
For this exemption, “related-party” corporation means the transfer is between one of the following:
- A corporation and its subsidiary, and the parent owns at least 80 percent of the subsidiary.
- Two subsidiaries that share a common parent, and the parent owns at least 80 percent of both subsidiaries.
A transfer of an off-highway vehicle to a related-party business that isn’t a corporation is exempt from Idaho tax if both of the following are true:
- The business transferring the off-highway vehicle has proof that tax was paid when the off-higway vehicle was acquired.
- The parties exchange nothing of value other than an increase or decrease in equity (e.g., stock or securities).
Note: A sale or lease of an off-highway vehicle between related parties is taxable.
The business that owns the off-highway vehicle after the transfer must provide a completed Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the off-highway vehicle.