Fuels Tax Exceptions Racing Fuels

Racing fuel is high-octane gasoline (over 100 octane) used in motor vehicles designed for racing.

When tax is charged

If leaded

Leaded gasoline can’t legally be used in any vehicle that requires licensing and is driven on roads. Since Idaho doesn’t recognize leaded racing gasoline as a motor fuel, it isn’t taxed as a motor fuel.

Leaded racing fuel and sales and use taxes

Motor fuel is exempt from Idaho sales tax when sold with the fuels tax included in the price of the fuel. Leaded racing fuel doesn’t include fuels tax in its price, so the retail sale of racing gasoline is subject to sales tax. See the Fuels Tax Refunds guide for more information.

If unleaded

Unleaded gasoline can legally be used in any vehicle that requires licensing and is driven on roads. The first licensed distributor to receive the unleaded racing gasoline in Idaho must report and pay the Idaho motor fuels tax. See the Fuel Distributor guide for more information.

Transfer fee

All racing fuel is subject to the transfer fee. See the Distributors and the Transfer Fee guide for more information.