Idaho Admin. Code r. 35.01.05.270

Current through September 2, 2024

Section 35.01.05.270 - REFUND CLAIMS - GENERAL AND BULK DOCUMENTATION

Sections 63-2410, 63-2421, 63-2423, Idaho Code

01.Refunds to Consumers. Tax-paid fuel used in a nontaxable manner according to Sections 63-2410 and 63-2423, Idaho Code, qualifies for a fuel tax refund. Refund claims and required worksheets must be made on forms provided or approved by the Tax Commission.

02.Records Retention Requirements. All claimants must keep records for the greater of either:

a. Three (3) years from the due date, including extensions, of the income tax return;

b. The time during which the taxpayer's income tax return is subject to adjustment by either the Tax Commission or voluntary action by the taxpayer if the refund claim is filed with the taxpayer's Idaho income tax return;

c. Four (4) years, if an IFTA licensee.

03.Records Required - Generally. A claimant must have fuel purchase records and records showing fuel was placed into the supply tank of vehicles or equipment using the fuel in a nontaxable manner. Fuel purchase records must contain the information required by Rule 150 of these rules. Fuel purchase records must be reissued if altered or corrected.

04.Records Required - Retail Fuel Purchases. When claiming a refund of tax for fuel purchased from a retail outlet, a receipt is required. The vehicles or piece of equipment using the fuel must be recorded on the receipt. If claiming refunds for fuel used in more than one vehicle or piece of equipment, make sure all the vehicles and equipment are identified on each receipt. When placing fuel into containers for use in vehicles, pieces of equipment, or commercial motorboats, identify into which the fuel is placed on the receipt. No other records are required if the fuel from the container isn't used in licensed or required to be licensed motor vehicles.

05.Records Required - Bulk Fuel Purchases. When claiming a fuel tax refund on fuel delivered in bulk, the claimant must provide the following documentation:

a. Seller Invoices.

b. Withdrawal Logs.

i. Complete withdrawal logs must give the date, the vehicle or piece of equipment, and the amount of fuel withdrawn.

ii. Withdrawal logs aren't required for claimants with two (2) or more bulk storage tanks at the same location with Idaho tax-paid fuel of the same type for taxable and nontaxable uses. Claimants must identify each storage tank for taxable or nontaxable use. The seller must mark the invoices at the time of delivery and identify the storage tanks into which the fuel was delivered.

c. Bulk Fuel Inventory Reconciliations. Reconciliations must include beginning inventory, purchases, withdrawals, calculated ending inventory, and actual ending inventory determined by a physical reading.

06.Alternate Method for Bulk Tanks - Authorized Percentage. A claimant can request an authorized percentage if using Idaho tax-paid fuel from one (1) bulk tank in both a taxable and nontaxable manner. IFTA licensees and owners of multiple bulk storage tanks containing tax-paid and tax-exempt fuels of the same type at the same location can't use an authorized percentage. The claimant must submit a completed authorized percentage request form before using any percentage to claim a refund. The request must itemize all taxable and nontaxable uses by vehicle and piece of equipment based on previous experience or anticipated use. Records to support an authorized percentage must be kept and presented upon request. Equipment lists must be provided and supported by:

a. Equipment purchase records;

b. Sales or rental receipts; and

c. Depreciation schedules.

07.Untaxed Motor Fuel. Untaxed motor fuel cannot be used in licensed or required to be licensed motor vehicles unless authorized in the Fuels Tax Act or these rules. Under the audit and enforcement provisions of Sections 63-2410 and 63-2434, Idaho Code, all fuel tax refund claims are subject to audit by the Tax Commission and no part of these rules may be construed to imply that an audit may not be performed. Tax-paid motor fuel is not exempt from taxes imposed by the Idaho Sales Tax Act when the motor fuel tax is refunded.

08.Indian-Owned Retail Outlet. Motor fuels purchased after December 1, 2007, from an Indian- owned retail outlet do not include the Idaho motor fuels tax and do not qualify as an Idaho tax-paid purchase, unless otherwise provided in an agreement between the state and appropriate tribe under the authority of Sections 63-2444 or 67-4002, Idaho Code. See definition of Indian-owned retail outlet in Rule 010 of these rules.

Idaho Admin. Code r. 35.01.05.270

Effective March 31, 2022