Idaho Admin. Code r. 35.01.02.101

Current through September 2, 2024

Section 35.01.02.101 - MOTOR VEHICLES AND TRAILERS USED IN INTERSTATE COMMERCE

Sections 49-123, 63-3612, 63-3613, 63-3622, 63-3622R, Idaho Code

01.In General. An exemption is provided from the sales and use tax for the sale or lease of motor vehicles and trailers to commercial or private carriers to be substantially used in interstate commerce. This exemption is commonly called the IRP Exemption. Commercial or private carriers are in the business of transporting persons or commodities owned by the carrier or another. Farm vehicles or noncommercial vehicles as defined by Section 49- 123, Idaho Code, do not meet the requirements of the IRP exemption.

02.Motor Vehicles. To qualify for the exemption, a buyer will:

a. Immediately register the vehicle with a maximum gross weight of over twenty-six thousand (26,000) pounds;

b. Register the vehicle under the International Registration Plan (IRP); and

c. Operate the vehicle in a fleet of one (1) or more vehicles registered under the International Registration Plan (IRP) or a similar proportional registration system with a minimum of ten percent (10%) of the fleet miles operated outside the state of Idaho.

03.Trailers. An exemption is provided from the sales or use tax for trailers when the buyer will:

a. Immediately place the trailer in a fleet of vehicles registered under the International Registration Plan (IRP); and

b. The trailer will be part of a fleet of vehicles with a minimum of ten percent (10%) of the fleet miles operated outside the state of Idaho under the International Registration Plan (IRP).

04.Title or Base Plate. The exemption applies whether the motor vehicles and trailers are titled or base plated in Idaho or another state or nation.

05.Documentation. Buyers claiming this exemption provide the seller or lessor with a properly completed Exemption Certificate. When a vehicle qualifying for this exemption is purchased from a retailer who is not registered to collect Idaho sales tax, the buyer and provides a properly completed exemption certificate to the county assessor or Department of Transportation when titling or registering the vehicle in Idaho. See Rule 128 of these rules.

06.Repair Parts and Supplies. The exemption does not apply to parts, supplies, or other tangible personal property purchased by persons engaged in interstate commerce. Purchases of glider kits as defined by Section 49-123, Idaho Code, will qualify if they are assembled into glider kit vehicles that will be immediately registered under the International Registration Plan (IRP).

07.Failure To Meet Interstate Mileage Requirement. The use of a fleet of trucks and trailers, purchased exempt under the IRP exemption provided by Section 63-3622R, Idaho Code, will become taxable as of June 30 of any year in which the fleet's out-of-state mileage is less than ten percent (10%) of the total fleet mileage during the previous four (4) quarters.

Idaho Admin. Code r. 35.01.02.101

Effective March 31, 2022