Motor vehicles used in operating your business
- Motor vehicles you buy that aren’t for sale or lease (e.g., service trucks you buy specifically for use in operating the business) are taxable.
- If federal income tax rules require you to give a compensation form (e.g., Form 1099) to someone who uses a demonstrator vehicle, you must pay use tax on the amount shown on the form.
- You must pay use tax if you take a motor vehicle from resale inventory and use it for any activity that isn’t authorized for a dealer plate. You can pay tax in one of two ways:
- On the full purchase price of the motor vehicle
- On the fair market rental value for the time the motor vehicle is used in the activity
Buying business supplies
You must pay tax on items you buy that aren’t for resale to your customers.
Examples
- Office equipment and supplies
- Documentation forms
- Advertising brochures, inserts, mailers, and flyers
- Merchandise or advertising racks
- Repair parts used in optional warranties (see chart above)
- Promotional giveaway items
- Shop supplies (cleaners, rags, solvents, etc.); if you bill your customers a fee for shop supplies, you can’t charge them sales tax.
Buying, billing, and taxing repairs parts
Repair work for vehicles takes many forms.
This chart explains how to buy, bill and charge tax on parts used in different types of 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.