Ground Transportation

Ground transportation companies include common carriers such as limousines, bus companies, trucking companies and ride-sharing services that transport people, freight, and other items using roads and highways.

Nontaxable charges

The amount that a ground transportation company charges to move people or property isn’t taxable. These charges include:

  • A trucking company’s freight charges to its customers

    Examples:

    • Moving residential or commercial furnishings
    • Moving packages or commodities
  • A company’s charges to transport people (e.g., bus, taxi, limousine)
  • Ride-sharing services (e.g., Uber, Lyft)

This guide explains sales and use tax that ground transportation companies charge their customers on their purchases. Shipping fees are explained in Retailers – Sales price.

Taxable purchases

Items a ground transportation company buys to operate the business are generally taxable. Taxable items include:

  • Trucks, buses and other motor vehicles except motor vehicles in an International Registration Plan (IRP); see Interstate Commerce Vehicles
  • Vehicle parts and supplies
  • Warehouse tools and supplies
  • Office furniture and supplies
  • Packing and shipping materials
  • Food to give away to passengers; see Complimentary items for more information
  • Logo merchandise and promotional items given away

Exemption for purchases common carriers ship out of state

Goods a customer buys must be shipped directly to a location outside of Idaho to be exempt. For example, when customers buy goods that a common carrier ships directly out of state, those goods aren’t taxable in Idaho. But, when a common carrier buys goods and uses itself as the shipper, the goods are exempt in Idaho only if all of these apply:

  • It uses its own vehicles to ship the goods outside Idaho.
  • It uses the goods outside Idaho in their business as a common carrier.
    Examples:
    • Shipping materials used by common carriers that move household goods
    • Shipping materials used by common carriers that ship packages
  • They have a bill of lading showing delivery outside of Idaho.