Do you have to tell the state you sold it?
Yes. Within 5 days of delivering it
Within five days after delivering the vehicle to its new owner you must file a Notice of Release of Liability. What it protects you from is specific: liability for death or injury, property damage, motor vehicle infractions, towing, storage, repair or service charges after you deliver the vehicle. File it online and it is processed immediately; the paper form carries a $3.50 fee. There is no reason to use the paper one.
Source: Idaho ITD, Release of Liability; form 3858