Sales of Boats and Trailers by Private Parties

This section applies to sales, transfers, exempt sales, rentals and leases of boats and trailers 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 sale is far below the expected fair market value, the buyer must have evidence to show why the price was so low.
  • The county assessor will collect sales tax when the buyer title or registers the boat or trailer.

Note: Trade-in allowances don’t apply to private party sales.

Occasional sales

Utility or transport trailers weighing less than 2,000 pounds might be eligible for the occasional sale exemption. See “Occasional sale of trailers” at the bottom of this page.

Types of Sales

Buying from individuals

You as a buyer owe sales tax on the total sales price of a boat or trailer you buy from an individual unless an exemption applies.

  • The boat or trailer first must be titled or registered in the seller’s name for the sale to take place.
  • The seller must enter the total sales price on the bill of sale and sign the title.
  • The bill of sale establishes the sales price, and it’s proof of how much you paid for the boat or trailer.
  • Both you and the seller must sign the bill of sale. You’ll need to show an original bill of sale as proof of sales price.
  • The county assessor or the Idaho Transportation Department (ITD) will collect sales tax when you as the buyer apply for an Idaho title.

Bartering goods or services

The recipient of a boat or trailer in a barter transaction owes sales or use tax on the full value of the boat or trailer.

  • You must have a bill of sale that states the value of goods and services bartered to get the boat or trailer. You need this to register or title the boat or trailer.
  • When people barter two or more boats or trailers, each boat or trailer must have its own bill of sale that states the value of goods or services bartered to get the boat or trailer.

Exempt sales or transfers of boats and trailers by private parties

Certain sales and transfers of boats and trailers between a business and its owners or related parties are exempt.

Change in the form of a business

Transfer of boats and trailers is exempt if a business changes its entity type and the ultimate ownership of the property is substantially the same.

The buyer must provide a completed pdf Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the boat or trailer.

Sale of an ongoing business (bulk sale)

Boats and trailers 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 boats or trailers registered or titled in its name at the time of sale and then the new owner registers or titles them in the new business’ name at the time of purchase.

Note: The seller must have separate accounting records if it’s a sale of a separate segment.

The buyer must provide a completed pdf Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the boats or trailers.

Transfer of capital assets between related parties

Sometimes owners, partners, shareholders and stockholders in related-party businesses transfer title and ownership of boats and trailers.

A transfer of a boat or trailer between corporations that are related parties is exempt if both of the following are true:

  • The corporation transferring the boat or trailer has proof that tax was paid when the boat or trailer 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 a boat or trailer 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 boat or trailer has proof that tax was paid when the boat or trailer 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 a boat or trailer between related parties is taxable.

The business that owns the boat or trailer after the transfer must provide a completed pdf Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the boat or trailer.

Sale of trailers as capital assets between related parties

Sometimes owners, partners, shareholders and stockholders of businesses sell or lease trailers to a business that a related party owns.

A sale of a trailer that’s a capital asset to a related party might be exempt. To be tax exempt, the buyer must have bought the trailer from a related party, and the related party has proof that sales or use tax was paid when the trailer was acquired.

For this exemption, “related party” means one of the following:

  • The selling business has identical ownership as the buying business.
  • At least one owner of the business that sells the trailer has one of the following relationships with the owner of the buying business:
    • Parent and child
    • Grandparent and grandchild
    • Brother or sister

The buyer must provide a completed pdf Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions, when registering or titling the trailer.

Occasional sale of trailers

A sale of a trailer is exempt from sales and use tax if all of these apply:

  • The seller doesn’t make more than two sales of tangible personal property in a 12-month period.
  • The seller isn’t required to have a seller’s permit in Idaho.
  • The seller hasn’t obtained a temporary or regular seller’s permit.
  • The price of the trailer is separately stated on the invoice (if bought with a boat).

Note: The seller must give the buyer a pdf Form ST-108TR – Occasional Sale Exemption Certificate – Office Trailer and Transport Trailer or a note stating they aren’t a retailer and haven’t made more than two sales in a 12-month period. The statement must include the seller’s name, address, date of sale and signature.