Fuel Distributors Guide

In Idaho, licensed distributors pay the Idaho motor fuels tax and a transfer fee to the state of Idaho. They must pay Idaho fuels tax on most taxable motor fuels. The tax is included in the price of the fuel when sold to the consumer.

Distributor types

Idaho has four types of fuels distributors.

  • Licensed motor fuels distributors
    These distributors can buy any type of product at an Idaho terminal before the motor fuel tax, aircraft engine fuel tax, or transfer fee is included in the price.
  • Licensed gaseous fuels distributors
    These distributors can sell gaseous special fuels and pay the tax on gaseous special fuels when sold for a taxable use. (See Gaseous Special Fuels.) All other products they buy must include the motor fuels tax, aircraft engine fuels tax, and transfer fee in the price.
  • Licensed limited distributors
    These distributors can buy product at an Idaho terminal that’s only subject to the transfer fee, without the transfer fee included in the price. All other products they buy must include the motor fuels tax, aircraft engine fuels tax, and transfer fee in the price.
  • Unlicensed distributors
    All products these distributors buy must include the motor fuels tax, aircraft engine fuels tax, and transfer fee in the price.

Applying for a license

Complete and send in pdf Form IBR-3, Idaho Fuel Distributor License Application and Instructions, to apply for an Idaho motor fuels distributor license.

You’ll need to be bonded. Read more in our Fuel Tax Bonding Options guide.

Receiving motor fuels

Distributors must pay tax when they receive motor fuels in Idaho. The fuels tax then becomes part of the purchase price paid by each subsequent purchaser until the final purchaser pays at the pump or upon delivery.

Motor fuels are received in Idaho when the distributor who owns the fuel does one of the following:

  • Removes it from an Idaho terminal or production plant
  • Imports the fuel into Idaho

The ownership of the fuel is established at the point of origin. Ownership doesn’t change when it crosses the Idaho border.

Gaseous special fuels

Propane and natural gas aren’t received until they’re put in the main supply tank of a licensed or required to be licensed motor vehicle. See the Gaseous Special Fuels guide.