Budget & Taxes (Sales Tax)

in committee · Idaho · House Mar 16, 2026

H 891: TAXATION – Amends existing law to provide certain procedures for the credit and refund of certain sales taxes paid erroneously.

This bill amends Idaho's sales tax laws to establish clearer procedures for obtaining refunds when sales taxes are mistakenly paid. It directly affects sellers, buyers, and the state tax commission by creating specific rules for handling situations where sales tax was collected incorrectly. The key provision requires sellers to refund sales taxes to buyers when no tax was actually due, while allowing sellers to claim a credit from the state for the amount refunded, minus any use tax owed on that transaction. The bill also clarifies that sellers cannot claim additional credits for subsequent transactions after they are aware that use tax should have been applied instead of sales tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes clearer refund procedures for erroneously collected sales taxes, promoting fiscal responsibility and correcting tax collection errors.85% confidence

Sub-Topics Sales Tax

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in committee · Idaho · House Mar 12, 2026

H 886: TAXATION – Amends, repeals, and adds to existing law to establish a state property tax and to provide certain exemptions to such tax.

This bill establishes a new state property tax in Idaho targeting non-primary residential properties, such as vacation homes and short-term rentals, to help fund emergency services and law enforcement. The tax applies a 2.5 mill levy on taxable property value but exempts primary homesteads, commercial properties, agricultural land, and long-term residential leases of at least seven months. Revenue collected from the tax is distributed to counties and local jurisdictions, with 50% specifically designated for law enforcement, fire protection, and emergency medical services. The legislation also repeals an existing restriction that prevented a state property tax when a sales tax is in force, allowing this new levy to operate alongside sales taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes new property tax on non-primary residences to fund emergency services and law enforcement, increasing revenue for public services.90% confidence ✓ Criminal JusticeSupports Criminal JusticeBill allocates tax revenue specifically to fund emergency services and law enforcement, directly supporting criminal justice infrastructure.75% confidence ✗ HousingOpposes HousingBill imposes new tax on non-primary residential properties including vacation homes and short-term rentals, potentially reducing affordable housing options and increasing costs for secondary housing markets.65% confidence

Sub-Topics Property Tax Sales Tax Law Enforcement Property Taxes

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in committee · Idaho · House Mar 27, 2026

H 961: TAXATION – Amends and adds to existing law to expand the homestead property tax exemption, to increase the sales tax rate, and to direct sales tax revenue to taxing districts to replace property tax revenue lost from the homestead exemption expansion.

This bill expands Idaho's homestead property tax exemption to cover up to $125,000 of a home's market value or 50% of its value, whichever is less, for owner-occupied primary residences. To fund this expansion, the bill increases the state sales tax rate and directs the additional revenue to local taxing districts to offset property tax losses from the exemption. The legislation also establishes a new Homestead Property Tax Replacement Fund to manage the revenue shift and simplifies the application process by allowing homeowners to apply for the exemption only once if they continue to occupy the same property.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands homestead property tax exemption providing tax relief to homeowners, while funding mechanism through sales tax increase maintains fiscal balance.85% confidence ✓ HousingSupports HousingBill expands homestead property tax exemption for owner-occupied primary residences, reducing property tax burden for homeowners and supporting housing affordability.90% confidence

Sub-Topics Property Tax Revenue Sales Tax Homeownership Property Taxes

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passed both · Idaho · House Apr 2, 2026

H 897: TAXATION – Amends existing law to revise a sales tax exemption for data center equipment and to revise a certain property tax exemption for certain capital investments.

This bill modifies Idaho's tax exemptions for data center operations, extending a sales tax exemption for data center equipment and revising property tax rules for capital investments. It requires businesses to invest at least $250 million in data center facilities and create 30 new full-time jobs within specific timeframes to qualify for the exemptions. The legislation also introduces new requirements for companies starting construction on or after April 1, 2026, including electricity rate agreements and water consumption planning with local providers. Businesses that fail to meet these investment and job creation requirements must pay the taxes that would have otherwise been owed.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for data center investments, promoting economic development and job creation through fiscal incentives.75% confidence ✓ EnergySupports EnergyBill incentivizes data center development through tax exemptions, requiring significant capital investment and job creation, which supports energy infrastructure and electricity demand.85% confidence ✓ TechnologySupports TechnologyBill provides tax incentives for data center investments, promoting technology infrastructure development and economic growth in the tech sector.85% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives

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in committee · Idaho · Senate Mar 27, 2026

S 1440: TAXATION – Adds to existing law to establish an excise tax on international money transmissions and to establish provisions to provide certain credits or refunds of the tax.

This bill creates a new excise tax on international money transfers originating in Idaho, charging a $5 fee plus 4% on amounts over $500 for each transaction. The tax applies to individuals sending money to recipients outside the United States through various methods like wire transfers or electronic payments, but exempts transactions where the sender uses their own bank account or can prove U.S. legal residence with valid identification. Money transmission companies must collect and remit the tax quarterly to the state, while senders receive receipts that explain how they can claim a refund or tax credit. The state tax commission will distribute the collected revenue, with amounts used for refunds going to the state refund account and the remainder funding the general fund.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill imposes new excise tax on international money transfers, increasing tax burden on individuals and restricting fiscal management flexibility95% confidence

Sub-Topics Sales Tax State Budget Tax Credits

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in committee · Idaho · House Mar 5, 2026

H 820: TAXATION – Amends existing law to revise a sales tax exemption for data center equipment and to revise a certain property tax exemption for certain capital investments.

This bill updates Idaho's tax exemptions for data center equipment and property to encourage new data center development in the state. It allows qualifying businesses that invest at least $250 million in data center facilities and create at least 30 new full-time jobs to receive a 20-year sales tax exemption on eligible server equipment and new data center facilities. The law also includes technical corrections to existing property tax exemption rules and adds new requirements for businesses receiving exemptions after April 1, 2026, including electricity rate agreements and water conservation plans. Businesses that fail to meet their investment and job creation commitments within specified timeframes must pay the sales taxes they were initially exempted from.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions to encourage data center development and job creation, promoting economic growth and investment in the state.85% confidence ✓ TechnologySupports TechnologyBill provides tax incentives for data center development, encouraging technology infrastructure investment and job creation in the state.85% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives

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in committee · Idaho · House Feb 20, 2026

H 671: SALES AND USE TAX – Amends existing law to revise provisions regarding a sales and use tax rebate for certain developers of certain retail complexes.

This Idaho bill (H 671) creates a 60% rebate on sales taxes collected by qualifying retailers in new retail complexes. Developers must spend at least $4 million on the complex and fund approved highway improvements costing over $5 million (like interchange upgrades) to qualify. The rebate, capped at $35 million per project, is paid from a new state fund and requires developers to submit documentation to the tax commission within two years of completing eligible transportation work. It directly affects retail developers and participating retailers in qualifying projects.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax rebate for developers, matching 'creates tax breaks primarily for wealthy' indicator per topic guidelines.85% confidence ✓ TransportationSupports TransportationRequires highway improvements ($5M+) as condition for tax rebate, directly funding transportation infrastructure through developer commitments.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives Roads & Highways

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in committee · Idaho · House Feb 10, 2026

H 609: TAXATION – Amends existing law to revise a sales tax exemption for data center equipment and to revise a property tax exemption for certain capital investments.

This bill revises Idaho's tax exemptions for data center equipment and capital investments. It extends a sales tax exemption for eligible server equipment, chillers, and new data center facilities (like buildings and cooling systems) but requires qualifying businesses to commit to investing at least $250 million in Idaho data centers within five years and creating 30+ new, full-time jobs. The exemption also mandates water conservation practices for data centers (e.g., recycling cooling water, using reclaimed water) and requires businesses to notify local water providers about anticipated water needs. If businesses fail to meet investment or job targets within the specified timeframes, they must pay retroactive sales or use taxes. The changes apply only to new data center projects meeting these criteria, not existing tax exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends tax exemptions for data centers with investment/job requirements, providing targeted tax relief to businesses under Budget & Taxes policy framework.95% confidence ✓ EnvironmentSupports EnvironmentBill mandates water conservation practices (e.g., cooling water recycling) for data centers, directly advancing environmental protection through regulatory requirements.85% confidence ✓ TechnologySupports TechnologyExtends tax exemptions for data center infrastructure, incentivizing investment and job creation in tech facilities, aligning with tech growth support.90% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives Conservation Recycling

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signed · Idaho · House Mar 30, 2026

H 793: BEER – Amends existing law to revise a provision regarding distribution of revenue.

H 793 revises Idaho's beer excise tax revenue distribution, affecting state funds and the beer industry. It increases the portion of low-alcohol beer tax revenue (≤5% ABV) going to the substance abuse treatment fund from 12% to 20%, while allocating 33% to the Idaho law enforcement fund (with 60% dedicated to the Project Choice program) and the remainder to the general fund. For high-alcohol beer (>5% ABV), it temporarily adjusts funding to hop growers and wine producers (1.5%/3.5% in 2022-2023, rising to 5%/1.5% permanently from 2024), with the rest going to the general fund. The bill removes obsolete language and takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases funding to substance abuse treatment (20%) and law enforcement (33% via Project Choice), strengthening state program budgets through tax revenue reallocation.95% confidence ✓ HealthcareSupports HealthcareIncreases substance abuse treatment fund allocation from 12% to 20% of low-alcohol beer tax revenue, directly funding public health programs.95% confidence

Sub-Topics Revenue Sales Tax State Budget Substance Abuse

in committee · Idaho · House Feb 25, 2026

H 755: TAXATION – Adds to existing law to provide for the review and expiration of sales tax exemptions.

Idaho's H 755 requires the annual review of all state sales tax exemptions by the Legislative Services Office. The review analyzes factors like annual revenue impact, public purpose, affected taxpayers, and benefits/detriment of repeal, with a report due to tax committees by February 1 each year. All sales tax exemptions enacted on or after January 1, 2026, will automatically expire 10 years after their effective date (or July 1, 2027, whichever is later), unless renewed by the legislature. Existing exemptions expire 10 years after enactment or July 1, 2031, unless extended. This bill directly affects businesses and individuals benefiting from current exemptions by subjecting them to mandatory review and automatic expiration.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires annual review and automatic expiration of sales tax exemptions, promoting fiscal responsibility by closing loopholes and ensuring exemptions are justified.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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