This section applies to sales, transfers, exempt sales, rentals and leases of off-highway vehicles between private parties. Private parties are individuals or businesses who aren’t dealers or retailers.
Sales price
- A sale between private parties must have a bill of sale because it establishes the sale price, and it’s proof of how much the buyer paid.
- Both the buyer and seller should sign the bill of sale.
- If the bill of the sale is far below the expected fair market value, the buyer must have evidence to show why the price was so low.
- Buyers must pay tax on the off-highway vehicle when they register or title it.
- The county assessor or the Idaho Transportation Department (ITD) will collect sales tax when the buyer registers or titles the off-highway vehicle.
Note: Trade-in allowances don’t apply to private party sales.
Exempt sales or transfers of off-highway vehicles by private parties
Certain sales and transfers of off-highway vehicles between a business and its owners or related parties are exempt.
Change in the form of a business
Transfer of off-highway vehicles is exempt if a business changes its entity type and the ultimate ownership of the property is substantially the same.
- A sole proprietor forms a new limited liability corporation (LLC) that the sole proprietor wholly owns. The transfer of off-highway vehicles to the new LLC is exempt.
- A partnership incorporates, and the ownership of the business doesn’t change. The transfer of off-highway vehicles to the new corporation is exempt.
The buyer must provide a completed 
Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the off-highway vehicle.
Sale of an ongoing business (bulk sale)
Off-highway vehicles included in the sale are exempt if a business or its separate segment is sold and all of the following apply:
- Substantially all the operating assets are included in the sale of the business or its separate segment.
- The new owner will continue to operate the business in the same manner.
- The existing business has the off-highway vehicles registered or titled in its name at the time of sale and then registered or titled in the new business’ name.
Note: The seller must have separate accounting records if it’s a sale of a separate segment.
The buyer must provide a completed Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the off-highway vehicle.
Transfer of capital assets between related parties
Sometimes owners, partners, shareholders and stockholders in related-party businesses transfer title and ownership of off-highway vehicles.
A transfer of an off-highway vehicle between corporations that are related parties is exempt if both of the following are true:
- The corporation transferring the off-highway vehicle has proof that tax was paid when the off-highway vehicle was acquired.
- The two corporations exchange nothing of value other than an increase or decrease in equity (e.g., stock or securities).
For this exemption, “related-party” corporation means the transfer is between one of the following:
- A corporation and its subsidiary, and the parent owns at least 80 percent of the subsidiary.
- Two subsidiaries that share a common parent, and the parent owns at least 80 percent of both subsidiaries.
A transfer of an off-highway vehicle to a related-party business that isn’t a corporation is exempt from Idaho tax if both of the following are true:
- The business transferring the off-highway vehicle has proof that tax was paid when the off-higway vehicle was acquired.
- The parties exchange nothing of value other than an increase or decrease in equity (e.g., stock or securities).
Note: A sale or lease of an off-highway vehicle between related parties is taxable.
The business that owns the off-highway vehicle after the transfer must provide a completed Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the off-highway vehicle.