Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES
Section 35.01.02.104 - RAILROAD ROLLING STOCK, PARTS, MATERIALS AND EQUIPMENT
Universal Citation: ID Admin Code 35.01.02.104
Current through September 2, 2024
Sections 63-3622, 63-3622CC, 63-3622DD, Idaho Code
01. In General. Sections 63-3622CC and 63-3622DD, Idaho Code, provide exemptions from sales or use tax for rebuilt or remanufactured railroad rolling stock which was previously used in interstate commerce more than three (3) consecutive months, and for parts, materials, and equipment primarily used to rebuild or remanufacture such railroad rolling stock.
02. Definitions. As used in this rule, the following terms have the following meanings.
a. Railroad rolling stock. Flanged-wheel locomotives, railroad cars, maintenance of way equipment and other flanged-wheel vehicles designed and manufactured specifically for use on railroad tracks and railroad systems, including component parts thereof.
b. Remanufacture/rebuild. To reconstruct, remake, reassemble or reprocess railroad rolling stock to materially extend the life of the equipment. This process requires extended removal of the railroad rolling stock from the transportation stream.
c. Equipment. All equipment, other than railroad rolling stock, which is used in the actual remanufacturing/rebuilding process.
d. Parts. Tangible personal property which becomes part of the remanufactured/rebuilt railroad rolling stock or which becomes part of the equipment described in Subsection 104.02.c. above.
e. Materials. Tangible personal property which is used or consumed in the actual process of remanufacturing/rebuilding railroad rolling stock.
f. Used in interstate commerce. Railroad rolling stock is used in interstate commerce when it performs a function which is necessary to the operation of a business which transports goods or people between two (2) or more states.
g. Repair. To mend or restore to good usable condition railroad rolling stock which has not been damaged to an extent requiring extended removal from the transportation stream.
h. Maintenance. Routine, periodic activities, such as lubrication and filter and oil changes, which are necessary to the continued use and operation of railroad rolling stock.
i. Primary or primarily. Used more than fifty percent (50%) of the time to remanufacture/rebuild railroad rolling stock.
03. Generally, Included Within the Exemption:
a. Equipment necessary to, and primarily used in the process of, remanufacturing/rebuilding railroad rolling stock.
b. Tangible personal property which become part of the remanufacture/rebuilt railroad rolling stock or which becomes part of the equipment identified in Subsection 104.03.a., above.
c. Tangible personal property which is consumed or primarily used in the remanufacturing/rebuilding process.
d. Fuel used in testing remanufactured/rebuilt engines which are railroad rolling stock, and fuel used in equipment which is necessary to, and primarily used in, the remanufacturing/rebuilding process.
04. Generally, Excluded from This Exemption:
a. Motor vehicles and trailers which are licensed or required to be licensed even though they may have flanged-wheel attachments which enable travel on railroad tracks.
b. Tangible personal property which is used in such a way that it becomes a fixture to, or an improvement to, real property.
c. Tangible personal property, equipment, parts, materials, used or consumed in an activity which is primarily repair or maintenance of railroad rolling stock.
d. Fuel used in activities other than those stated in Subsection 104.03.d. of this rule and which is not exempt under other provisions of the Sales Tax Act.
e. Tangible personal property used in related activities which are not primarily remanufacturing/rebuilding activities, including: office equipment and supplies; safety equipment and supplies; equipment, other than railroad rolling stock, which is primarily used to construct, improve, alter or repair real property; and chemicals, solvents, and other cleaning agents used primarily for maintenance of the remanufacturing/rebuilding processing area.
Effective March 31, 2022
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