Transportation (Roads & Highways)

H 665 revises Idaho's Appaloosa license plate program by adjusting fees and directing funds. It requires a $35 initial fee and $25 annual renewal fee for these special plates, with $10 from each fee going to the state highway account and $25 (initial) or $15 (renewal) transferred to the Appaloosa horse club foundation. The funds must exclusively support youth horse programs and horse-related education in Idaho. This bill affects vehicle owners who choose Appaloosa plates, which are available for most registered vehicles (excluding heavy trucks over 26,000 pounds). The changes take effect July 1, 2026.

This bill revises Idaho's sales tax rebate program for developers of retail complexes. It allows developers to receive a 60% rebate on sales taxes collected by qualified retailers within their complex, provided the developer spent at least $4 million on approved transportation improvements (like highway projects costing over $5 million). The rebate is paid from a new "demonstration pilot project fund" and capped at $35 million per transportation project. This directly affects developers building retail complexes who make qualifying transportation investments, not the retailers or general consumers.

Idaho's S 1340 amends traffic laws to require drivers on multilane highways to use the right-hand lane unless passing, preparing for a left turn, or overtaking slower vehicles. It specifically prohibits driving in the left lane when not passing, and mandates that vehicles moving slower than normal traffic must stay in the right lane to avoid impeding faster vehicles. Violations - including driving slowly in the left lane - carry a $75 fine under amended sections 49-630 and 49-655 of the Idaho Code. The law takes effect July 1, 2026, and includes signage requirements to inform drivers.

This bill revises how Idaho distributes transportation funding from the Highway Distribution Account. It gradually increases the share going to local governments (from 38% to 40% by 2025) while increasing the state highway account share (from 57% to 60%), and eliminates the law enforcement account's allocation. Crucially, it removes a restriction preventing fuel tax revenues (including fees from electric/hybrid vehicles) from being used for highway funding. These changes adjust existing fund distribution formulas without creating new taxes or programs.

H 535 revises Idaho's transportation funding formulas to adjust how highway account revenues are distributed. It increases the percentage of funds going to local governments from 38% (2021) to 40% (2025+) while decreasing the state highway account share from 57% to 60%, and eliminates a restriction on using fuel tax revenues. The bill also updates allocations for local bridge inspections and special fuel taxes. These changes directly affect local governments receiving highway funds and the state highway program. The bill makes technical adjustments to existing law without creating new programs or altering tax rates.