Budget & Taxes (Property Tax)

signed · Idaho · House Mar 26, 2026

H 871: APPROPRIATIONS – STATE TAX COMMISSION – Relates to the appropriation to the State Tax Commission for fiscal years 2026 and 2027.

This bill provides funding to Idaho's State Tax Commission for fiscal years 2026 and 2027, allocating money for personnel, operating expenses, and capital costs across various departments. The legislation specifies exact dollar amounts from different state funds, including the General Fund and specialized tax funds, to support general services, compliance activities, and property tax operations. A portion of the 2026 funding is restricted to payments for a specific tax collection vendor, with unused funds returning to the General Fund. The bill includes an emergency declaration to allow immediate implementation of the 2026 funding provisions upon signing.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly provides funding to the State Tax Commission for operations, personnel, and compliance activities, directly advancing budget appropriations for tax administration.95% confidence

Sub-Topics Appropriations Property Tax State Budget

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 18, 2026

H 885: TAXATION – Amends existing law to revise provisions regarding the homestead property tax exemption.

This bill amends Idaho's homestead property tax exemption rules to increase the tax-free amount for primary residences. It raises the exemption threshold so that homeowners can exclude either $125,000 or 50% of their home's market value from property taxes, whichever is lower. The legislation also simplifies the application process by allowing owners to apply only once per year if they continue living in the same home, and it clarifies how to handle changes in eligibility during a tax year through prorated calculations. Additionally, the bill updates requirements for proof of residency, including options for military personnel and those without standard identification, while maintaining rules that prevent claiming exemptions on multiple properties simultaneously.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by increasing homestead property tax exemption, reducing tax burden on homeowners and promoting fiscal relief for residents.90% confidence ✓ HousingSupports HousingBill increases homestead property tax exemption for primary residences, reducing tax burden on homeowners and supporting affordable housing access.75% confidence

Sub-Topics Property Tax Tax Incentives 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 · 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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signed · Idaho · House Apr 2, 2026

H 959: TAXATION – Amends and adds to existing law to provide for an initiative petition to raise or lower the property tax budgets for fire protection districts and ambulance service districts and to revise provisions regarding certain property tax budget limits.

This bill allows fire protection and ambulance service districts in Idaho to use citizen initiative petitions to raise or lower their property tax budgets, giving residents a direct vote on these financial decisions. It establishes specific procedures for these initiatives, including requiring signatures from at least 20% of qualified voters in the district and setting deadlines for petition submission and verification. The bill also updates existing budget limit rules for these districts, allowing them to calculate budget requests differently than other taxing entities, particularly regarding growth factors and annexed property values.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enables citizen initiative petitions for property tax budget adjustments, increasing public accountability and allowing residents to directly influence tax decisions for fire and ambulance districts.85% confidence

Sub-Topics Property Tax

signed · Idaho · House Apr 1, 2026

H 843: TAXATION – Amends existing law to eliminate proration of the homestead property tax exemption.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill eliminates proration of homestead property tax exemption, providing tax relief to homeowners and reducing their tax burden.90% confidence ✓ HousingSupports HousingBill strengthens homeowner tax benefits by eliminating proration, making housing more affordable for qualifying homeowners.85% confidence

Sub-Topics Property Tax Tax Incentives Homeownership Property Taxes

signed · Idaho · House Apr 2, 2026

H 765: TAXING DISTRICTS – Amends existing law to allow fire protection districts to enter into certain agreements to transfer territory and to allow certain taxing districts to be exempt from certain budget limitations.

H 765 amends Idaho law to simplify how fire protection districts can transfer territory between districts and exempts certain fire and library districts from specific budget limitations. It revises annexation rules (Section 31-1411) to allow territory moves via owner petitions (with service improvement proof) or mutual board consent, and updates budget rules (Section 63-802) to remove spending caps for eligible districts. These changes directly affect fire and library districts, their taxpayers, and property owners in areas seeking to join or leave districts. The bill makes procedural updates to property tax assessments (Section 63-301A) but focuses on enabling district flexibility in territory management and budgeting.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves budget limitations for fire/library districts, enabling flexible spending management per Section 63-802.90% confidence

Sub-Topics Property Tax

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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