Revenue and Taxation

This bill amends Idaho law to revise the Parental Choice Tax Credit, which provides financial assistance to parents for private school and related educational expenses. It establishes eligibility for Idaho residents with children aged 5 to 18, or children with disabilities up to age 21, to claim a refundable tax credit of up to $5,000 per eligible student for qualified expenses including tuition, tutoring, assessments, and transportation. The bill creates a priority application system that favors lower-income families and allows eligible parents to request an advance payment of the credit before filing their tax return. It also repeals the previous advance payment fund and sets specific application deadlines and documentation requirements for claiming the credit.

This bill eliminates the proration of Idaho's homestead property tax exemption, allowing homeowners to receive the full exemption amount for the entire tax year if they qualify. It applies to owners who use their primary residence as their main dwelling and meet specific eligibility requirements, including uniform property appraisal certification by the state tax commission. Under the new rules, the exemption is calculated based on the full market value reduction rather than being divided by the number of days the property is occupied, and applications must be submitted by the end of the county's business year to receive the full benefit. The law also clarifies that if a homeowner's eligibility status changes during the year, taxes will be prorated only for the period after the status change occurs.

This bill (H 670) creates a new process for fire protection and ambulance service districts to withdraw from urban renewal revenue-sharing plans. It allows these districts to opt out if the urban renewal plan has no outstanding debts (bonds or obligations) funded by their allocated revenue. To withdraw, districts must request a revenue accounting by May 1 and adopt a withdrawal resolution by June 1, submitting it to the urban renewal agency. The bill amends Idaho law to formalize this withdrawal procedure, affecting districts that previously could not easily exit such financing arrangements.

This bill updates how money collected from Idaho's liquor sales is distributed among state agencies, counties, and cities. It adjusts the percentage of funds allocated to various programs over time, including substance abuse treatment, education, and law enforcement, while also modifying how remaining balances are shared between counties and cities. The legislation establishes specific formulas for distributing funds to local governments based on liquor sales volume and population, with some allocations decreasing gradually until 2023. Additionally, it corrects a reference to an existing code section and sets an emergency provision for the changes to take effect immediately.

H 722 revises Idaho's tax rules for rate-regulated electric and gas utility companies. It updates how property taxes are calculated and distributed to counties, requiring the state tax commission to verify utility investments every five years and establish a dedicated "rate-regulated tax fund." The bill changes the method for apportioning tax revenue based on 2025 property tax data and adjusts distributions when local taxing districts dissolve. These changes directly affect electric/gas utilities and local governments that receive tax revenue from these companies.