§ 63-2402 — IMPOSITION OF TAX UPON MOTOR FUEL

(1) A tax is hereby imposed upon the distributor who receives motor fuel in this state. The legal incidence of the tax imposed under this section is borne by the distributor. The tax becomes due and payable upon receipt of the motor fuel in this state by the distributor unless such tax liability has previously accrued to another distributor pursuant to this section. The tax shall be imposed without regard to whether use is on a governmental basis or otherwise, unless exempted by this chapter.
(2) The tax imposed in this section shall be at the rate of thirty-two cents (32¢) per gallon of motor fuel received. This tax shall be subject to the exemptions, deductions and refunds set forth in this chapter.
(3) Nothing in this chapter shall prohibit the distributor who is liable for payment of the tax imposed under subsection (1) of this section from including as part of the selling price an amount equal to such tax on motor fuels sold or delivered by such distributor; provided however, that nothing in this chapter shall be deemed to impose tax liability on any person to whom such fuel is sold or delivered except as provided in subsection (6) of this section.
(4) Any person coming into this state in a motor vehicle may transport in the manufacturer’s original tank of that vehicle, for his own use only, not more than thirty (30) gallons of motor fuel for the purpose of operating that motor vehicle, without complying with the provisions of this chapter.
(5) The tax imposed in this section does not apply to:
(a) Special fuels that have been dyed at a refinery or terminal under the provisions of 26 U.S.C. section 4082 and regulations adopted thereunder, or under the clean air act and regulations adopted thereunder; or
(b) Special fuels that are gaseous special fuels, as defined in section 63-2424, Idaho Code, except that part thereof that is delivered into the fuel supply tank or tanks of a motor vehicle or certain gaseous special fuels bulk tanks. Upon agreement with the customer, the licensed distributor may charge tax when placing gaseous special fuels into the customer’s bulk tanks; or
(c) Aircraft engine fuel subject to tax under section 63-2408, Idaho Code.
(6) Should the distributor of first receipt be exempt from imposition of the tax as a matter of federal law, by virtue of its status as a federally recognized Indian tribe or member of such tribe, such distributor shall not bear the tax’s legal incidence and must pass the tax through as part of the selling price of the fuel. Such distributor shall retain the administrative obligation to remit the tax, and such obligation shall accrue upon receipt in accordance with subsection (1) of this section. Should a retailer otherwise subject to the tax be exempt from imposition of the tax as a matter of federal law, by virtue of its status as a federally recognized Indian tribe or member of such tribe, the retailer shall not bear the tax’s legal incidence and must pass the tax through as part of the selling price of the fuel to the consumer, unless such consumer is exempt from imposition of the tax as a matter of federal law, by virtue of its status as a federally recognized Indian tribe or membership in such tribe, and the retailer shall be entitled to claim a credit against taxes otherwise due and owing under this chapter or a tax refund, together with interest, attributable to the fuel purchased by such consumer.

Legislative History

[63-2402, added 1983, ch. 158, sec. 4, p. 443; am. 2002, ch. 174, sec. 2, p. 509; am. 2007, ch. 288, sec. 1, p. 817; am. 2015, ch. 38, sec. 2, p. 81; am. 2015, ch. 175, sec. 1, p. 573; am. 2015, ch. 341, sec. 4, p. 1282; am. 2018, ch. 80, sec. 2, p. 181.]