Sales or use tax is due on the sale, lease, rental, transfer, donation or use of boats and trailers in Idaho unless a valid exemption applies. This guide explains sales and use tax requirements for buyers and sellers of boats and trailers. This guide applies to the following transactions:
- Sales and leases by Idaho dealers and retailers
- Sales between private parties, including family members
- Sales by financial institutions
- Bartering goods or services for a boat or trailer
- Bringing a boat or trailer that you bought in another state into Idaho
- Giving or receiving a boat or trailer as a gift or prize
- Selling or transferring ownership between businesses or related parties in a business
- Renting out or leasing out boats or trailers as nondealer individuals or businesses that aren’t dealers
Definitions
A vessel is any type of watercraft that can be used for transportation on water. This includes:
- Boats
- Seaplanes used on the water
- Kayaks
- Jet Ski®
- Paddleboards
Unless a specific meaning is necessary, this guide to refers to vessels and other watercraft as “boats.”
The following aren’t vessels:
- Float houses
- Diver’s aids designed primarily to propel a diver below the water
- Nonmotorized devices such as inflatable air mattresses, single inner tubes and water toys
A documented vessel is a ship that is at least 26 feet long, weighs 5 net tons or more and is registered through the United States Coast Guard. Vessel documentation is a national form of registration.
Documented vessels are exempt from Idaho titling and registration requirements but are subject to Idaho sales or use tax.
A boat trailer is a vehicle designed to carry a boat while being pulled by a motor vehicle.