Leasing or renting a boat or trailer vehicle is considered a taxable sale in Idaho.
A dealer or retailer that buys a boat or trailer to lease out can buy it for resale: 
Form ST-101 - Sales Tax Resale or Exemption Certificate
Form ST-101 - Sales Tax Resale or Exemption Certificate
The sales price for a rental or lease of a boat or trailer is the same as for the sale of a boat or trailer. See the Sales Price section.
| Type of lease | How the lease works | When to collect sales tax |
|---|---|---|
| Basic lease or rental | The customer returns the boat or trailer to the dealer or retailer 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 to buy the boat or trailer 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 boat or trailer (if they exercise the buy-out option). |
| Lease-purchase agreement | The customer makes regular payments during the lease or rental term. At the end of the term, title to the boat or trailer passes to the customer for $0 or an amount that’s less than fair market value. | The customer will own the boat or trailer at the end of the lease or rental term, so this is a sale and a financing arrangement. Collect sales tax at the beginning of the lease or rental on all the payments the customer will make during the lease or rental term. (The interest portion of the total lease payments isn’t taxable if it’s separately stated.) At the end of the rental or lease term, collect sales tax on any amount you charge then for the purchase of the boat or trailer. |
You calculate the taxable sales price for a lease or rental of a boat or trailer the same as the sale of a boat or trailer. 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 boats or trailers registered, used, licensed or stored in Idaho.
- Collect and forward sales tax to Idaho for the boats or trailers they lease out.
- Report income from Idaho leases on their Idaho income tax return.