Official Government Website
Form ST-101 - Sales Tax Resale or Exemption Certificate
The sales price for a rental or lease of an off-highway vehicle is the same as for the sale of an off-highway vehicle. See the Sales Price section.
| 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). |
You calculate the taxable sales price for a lease or rental of an off-highway vehicle the same as the sale of an off-highway vehicle. See the Sales Price section.
Note: Out-of-state companies that lease out off-highway vehicles in Idaho must follow all these requirements:
Most people must pay sales tax when they buy off-highway vehicles in Idaho. Only a few can buy these vehicles exempt from Idaho dealers and retailers, under certain conditions.
You could be held responsible for paying the sales tax yourself if you don’t collect it when you should.
Individual buyers likely don’t qualify for the exemption if they provide an Idaho driver’s license, Idaho address or Idaho contact information.
A military member who buys an off-highway vehicle to use in Idaho must pay tax even if Idaho isn’t the member’s state of residence.
A nonresident can be an individual, a company or organization. A business or organization is a nonresident if it’s not formed under Idaho laws, isn’t required to register with the Idaho Secretary of State to do business in the state, doesn’t have significant contacts with Idaho, and doesn’t have consistent operations in Idaho.
A nonresident that buys an off-highway vehicle for use outside Idaho might qualify for an exemption if all of the following apply:
The exemption can apply to:
The exemption doesn’t apply to accessories that aren’t part of the off-highway vehicle bought in Idaho (e.g., clothing, tow ropes).
A nonresident that buys an off-highway vehicle to take out of state doesn’t qualify for the exemption if an Idaho resident is included as one of the following:
Each nonresident buyer must give you a completed Form ST-104NR – Sales Tax Exemption Certificate – Nonresident Vehicle/Vessel. Keep the form for your records, and forward a copy to the Tax Commission in one of these ways:
Buyers listed below are exempt from sales tax on everything they buy, including off-highway vehicles.
These agencies and organizations must give you a completed Form ST-101 – Sales Tax Resale or Exemption Certificate. Keep the exemption certificate for your records. The exemption doesn’t apply to buyers who are employees purchasing an item for personal use and not on behalf of the exempt agency. You could be held liable for the sales tax on taxable purchases if you don’t collect it.
Note: For a complete list of exempt agencies and organizations, see our Exemptions guide.
The laws for buying an off-highway vehicle tax free are different for individual members of American Indian tribes than for the tribes themselves. Tribal members must take delivery of the off-highway vehicle on a reservation for the sale to be exempt from sales tax.
The buyer must give you, the dealer or retailer, a completed Form ST-133 – Sales Tax Exemption Certificate – Family or American Indian Sales. Keep the form for your records. Your records must clearly show that you delivered the off-highway vehicle to the reservation. Otherwise, you could be held liable for the sales tax.
UTVs and SOHVs might be eligible for the production (including farming and ranching) exemption.
The UTV or SOHV must meet all these requirements to be exempt:
The producer, farmer or rancher must give you a completed Form ST-101 – Sales Tax Resale or Exemption Certificate.
This chart lists all available vehicle and vessel sales/use tax exemptions including off-highway vehicles: Vehicles & Vessels: Exemption Certificates.
Repair work for off-highway vehicles takes many forms.
This chart explains how to buy, bill and charge tax on parts used in different types of off-highway vehicle repairs in Idaho, including repairs under warranty: Vehicles and Vessels: Repairs.
Note: You owe tax on the tools and shop supplies you buy for making repairs.
Dealers and retailers must collect sales tax on the sales price of off-highway vehicles at the time of sale unless an exemption applies. Items that are nontaxable aren’t part of the sales price. The final amount you charge your customer can include both taxable and nontaxable items.
Sales price includes the following items, even if you don’t separately state them on the invoice:
The sales price doesn’t include the following items if you separately state them on the invoice:
Note: A customer down payment doesn’t reduce the taxable sales price.
Effective July 1, 2019, dealers’ labor or service charges to install accessories on certain new factory-delivered vehicles are exempt.
The exemption includes the following off-highway vehicles:
Examples of accessories on new factory-delivered vehicles that qualify for the exemption are:
Note: “Accessories” doesn’t include service or maintenance contracts.
Reference: Idaho Code section 63-3622OO, effective July 1, 2019.
You can accept merchandise as full or partial payment of an off-highway vehicle you sell. The amount allowed on the traded-in merchandise reduces the taxable sales price, which is the amount you charge tax on.
A leased off-highway vehicle you accept as a trade-in for a new purchase reduces the sales price only if both these criteria are met:
Read this chart to see what is and isn’t included in the calculation of taxable sales price.
Sales or use tax is due on the sale, lease, rental, transfer, donation or use of off-highway vehicles in Idaho unless a valid exemption applies. This guide explains sales and use tax requirements for buyers and sellers of off-highway vehicles that are used on public roads or off road. This guide applies to the following transactions:
There are many types of off-highway vehicles, including:
Off-highway vehicles used on the water are included in the Boats and Trailers guide.
| Vehicle Type | Idaho Code Section of Definition | Controlling Idaho Code Section for Nonresident Buyer and Production Exemptions |
|---|---|---|
| All-terrain vehicle (ATV) | 67‑7101(1) | Nonresident buyer: 63‑3622R; Production: 63‑3622HH |
| Utility-type vehicle (UTV) | 67‑7101(17) | Nonresident buyer: 63‑3622R; Production: 63‑3622HH |
| Specialty off-highway vehicle (SOHV) | 67‑7101(16) | Nonresident buyer: 63‑3622R |
| Motorbike, AKA: trailbike, enduro bike, trials bike, motorcross bike, dual purpose motorcycle | 67‑7101(9) | Nonresident buyer: 63‑3622R |
| Off-highway motorbike, AKA: trailbike, enduro bike, trail bike, motorcross bike, dual purpose motorcyle | 63‑3622HH(3) | Nonresident buyer: 63‑3622R |
| Snowmobile | 63‑3622HH(2) | Production: 63‑3622HH |
| Snowmobile | 67‑7101(15) | Nonresident buyer: 63‑3622R |
Motorcycles are often grouped with these off-highway vehicles, but Idaho law defines them as motor vehicles. See the guides for Motor Vehicles – Dealers and Motor Vehicles – Private Parties and Nondealer Retailers.
You must pay sales or use tax on the sales price of the motor vehicle unless you have an exemption.
The sales price is the amount you paid for the motor vehicle. You must provide a bill of sale or receipt as proof of the sales price when titling your motor vehicle in Idaho. A canceled check won’t be accepted as proof of the sales price.
The sales price includes services the seller performs before the sale even if they’re separately stated on the invoice:
Note: Delivery fees to the buyer aren’t part of the sales price if they’re separately stated.
Sales or use tax is due on the sale, lease, rental, transfer, donation or use of a motor vehicle in Idaho unless a valid exemption applies.
This guide is for individuals, leasing companies, nonprofit organizations, or any other type of business that isn’t a motor vehicle dealer registered in Idaho.
It explains sales and use tax requirements for those who buy or receive a motor vehicle from a private party or retailer that isn’t a dealer (e.g., a furniture store or pizza delivery restaurant). This guide also covers bringing a motor vehicle into Idaho for use here. It explains how sellers and donors must document a motor vehicle sale or gift. And it outlines how a buyer or seller must pay or collect and forward tax if it’s due.
Motor vehicle dealers are individuals or businesses that sell five or more motor vehicles in a 12-month period. See the separate Motor Vehicles – Dealers guide if you’re buying, leasing or renting a motor vehicle from a dealer, or if you’re a motor vehicle dealer.
This guide covers the following transactions in which an Idaho motor vehicle dealer isn’t involved in any way:
A motor vehicle is a vehicle registered or required to be registered for use on public roads. See Idaho Code section 63-3605L.
Your records for selling or leasing motor vehicles must be the same as any retailer.
Document the sale or transfer. Your records should include all of the following:
Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions.Document the sale. Your records should include all of the following:
Document the sale. Your records should include all of the following:
Sign the “Seller’s” section of Form ST-133 – Sales Tax Exemption Certificate – Family or American Indian Sales, and give it to your relative. Your relative needs a completed copy of the form when he or she registers the motor vehicle.
Document the gift. Your records should include all of the following:
You and the recipient must complete and sign a Form ST-133GT – Use Tax Exemption Certificate Gift Transfer Affidavite. The recipient needs the completed form when he or she registers the motor vehicle.
Learn more about taxation of motor vehicles by nondealers:
Leasing or renting a motor vehicle is a taxable sale in Idaho. You’re renting or leasing your motor vehicle if you allow someone to use it and you receive payment (cash, property, or other financial gain). You’re a retailer, whether you’re a business owner or an individual if you make one or more sales (including motor vehicles) or hold yourself out as being in business.
Note: You don’t need to collect tax when you list your motor vehicle on an internet marketplace and it collects and forwards the tax.
Motor 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). |
Some sales, transfers, and leases between a business and its owners or related parties are exempt.
Transfer of motor vehicles is exempt if a business changes its entity type and the ultimate ownership of the property is substantially the same.
Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering the motor vehicle. Motor vehicles included in the sale are exempt if a business or its separate segment is sold and all of the following apply:
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 the motor vehicle.
Sometimes owners, partners, shareholders and stockholders in related-party businesses transfer title and ownership of motor vehicles.
A transfer of a motor vehicle to a related-party business that isn’t a corporation is exempt from Idaho tax if both of the following are true:
A transfer of a motor vehicle between corporations that are related parties is exempt if both of the following are true:
For this exemption, “related-party” corporation means the transfer is between one of the following:
The business that owns the motor vehicle after the transfer must provide a completed Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering the motor vehicle.
Sometimes owners, partners, shareholders and stockholders of businesses sell or lease motor vehicles to a business that a related party owns.
Sale of a motor vehicle that’s a capital asset to a related party might be exempt if one of these is true:
For this exemption, “related party” means one of the following:
The buyer must provide a completed Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering the motor vehicle.
A lease or rental of motor vehicles to related parties is exempt if the lease or rental is between related parties.
For this exemption, “related party” means one of the following:
Otherwise, the lease or rental is taxable.
The type of lease or rental determines when the lessor collects tax
Motor vehicle leases and rentals 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). |
Motor vehicle dealers sell or lease five or more motor vehicles in a calendar year. See Motor Vehicles – Dealers if you’re buying from a dealer.
Some Idaho retailers occasionally sell motor vehicles even if they’re not a dealer. Retailers include businesses or individuals that meet one of the following criteria:
You must do all of the following when you buy a new or used motor vehicle from a retailer that’s not also a dealer.
* A “detailed bill of sale” must include date of sale, name and address of the seller, complete vehicle description (i.e., color, year, make, model), vehicle identification number (VIN), buyer’s name, sale amount, and amount of tax charged.
Idaho retailers must have a seller’s permit and must collect sales tax. To find out if you’re a retailer, read more about retailers.
Note: There are no trade-in allowances in private party sales.
You can buy a motor vehicle from a family member without paying sales tax only if that family member is your:
and
You must provide a completed Form ST-133 – Sales Tax Exemption Certificate – Family or American Indian Sales, when you register the motor vehicle.
Financial institutions permitted in Idaho must collect sales tax on the sales price of a motor vehicle you buy or finance, if the seller didn’t collect the tax. See Sales Price. The financial institution must forward the tax to the Tax Commission under its permit number. If you lease a motor vehicle from a financial institution, see the vehicle leasing section that explains when tax is due on a lease.
The recipient of a motor vehicle in a barter transaction owes sales or use tax on the full value of the motor vehicle.
You might need to pay use tax on a motor vehicle that you bought outside of Idaho but intend to use inside the state.
You must provide a completed Use Tax Exemption Certificate – New Resident or Nonresident Military, when you register the motor vehicle in Idaho.
As a business owner, you owe tax on motor vehicles you move into Idaho if you didn’t pay sales tax on them in another state at a rate equal to Idaho’s or greater. This is true even if you owned the motor vehicles longer than three months. You owe tax on the fair market value of the motor vehicle when you first use it in Idaho. Note: Tax you properly paid to another state can offset the tax you owe in Idaho. Special rules apply to transient equipment (see Rule 073).
Transferring ownership of a motor vehicle to another person or entity is generally subject to tax, but certain gifts are exempt. A motor vehicle qualifies as an exempt gift if all of the following apply:
Note:
When you give away a motor 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 must also sign the form.
You must pay sales or use tax on the purchase of any motor vehicle, even if you intend to give it as an exempt gift.
Donations like those in the examples above might be a gift if all of the following apply.
Note: You might be required to provide more information if you have a business relationship with the recipient.
When you give away a motor vehicle that qualifies as an exempt gift:
Form ST-133GT – Use Tax Exemption Certificate – Gift Transfer Affidavit, with your signature.You don’t owe use tax when you receive a motor vehicle that qualifies as a gift or is a prize.
You and the donor must complete and sign a Form ST-133GT – Use Tax Exemption Certificate – Gift Transfer Affidavit.
Prize winnings are subject to income tax even if they qualify for a use tax exemption.