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:
- Get an Idaho sales tax permit before leasing out off-highway vehicles that they or the buyer can register, use, license or store in Idaho.
- Collect and forward sales tax to Idaho for the off-highway vehicle they lease out.
- Report income from Idaho leases on their Idaho income tax return.
Exempt sales of off-highway vehicles by dealers and retailers
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.
Idaho buyers
Individual buyers likely don’t qualify for the exemption if they provide an Idaho driver’s license, Idaho address or Idaho contact information.
Military buyers
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.
Nonresident buyers
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 off-highway vehicle is intended for use outside Idaho and won’t require titling in Idaho.
- The nonresident will take it out of Idaho and immediately register and title it (if required) in another state or foreign country.
- It won’t be used in Idaho for more than 90 days in any consecutive 12-month period. (A day of use in Idaho is 16 hours during any 24-hour period.)
The exemption can apply to:
- ATVs
- UTVs
- SOHVs
- Motorbikes
- Snowmobiles
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:
- Co-buyer on the sales invoice or retail purchase agreement
- Co-borrower on loan applications
- Co-applicant for title or registration
- Party on any other sales documents
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:
- Scan and email to: vehicles@tax.idaho.gov.
- Mail to: Idaho State Tax Commission – Tax Discovery Bureau, PO Box 36, Boise ID 83722-0410.
Government agencies, schools, some nonprofit organizations and American Indian tribes
Buyers listed below are exempt from sales tax on everything they buy, including off-highway vehicles.
- U.S. federal government agencies
- Idaho state and political subdivisions (such as cities and counties)
- Public schools
- Some nonprofit schools
- Certain nonprofit and health organizations specifically exempted by Idaho law (e.g., nonprofit hospitals, qualified health organizations)
- American Indian tribes
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.
Members of American Indian tribes
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.
Production businesses
UTVs, ATVs and SOHVs might be eligible for the production (including farming and ranching) exemption.
The UTV, ATV or SOHV must meet all these requirements to be exempt:
- The production business can’t register it.
- The production business can’t use it on public roads and highways.
- The production business must use it primarily in qualifying production activities.
- SOHVs used primarily to feed cattle in a pasture
- UTVs used primarily to gather cattle
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.
Servicing off-highway vehicles by dealers and retailers
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.