Amends existing law to revise provisions regarding the taxation of property of a qualifying business entity receiving the Idaho information technology equipment sales tax exemption in a revenue allocation area.

ThisisanamendmenttoIdahoCode63-3622VVenactedbythe2020IdahoLegislatureasHouseBill521which providesasalestaxexemptionfornewequipmentpurchasedbyqualifyingdatacenters. Itisalsoanamendment to the definition of “base assessment roll” found in Idaho Code 50-2903. These amendments provide that data centersthattakeadvantageofthesalestaxexemptionandarelocatedinanurbanrenewaldistrict,willhavetheir incremental property tax value included in the base assessment roll. If a data center does not take advantage of the sales tax exemption and is located in an urban renewal district, then the property data incremental value will be included in the urban renewal district. The bill provides for a mandatory communication of the exemption status to the county clerk by the fourth Monday in July so that the levy rate and property tax allocation can be timely set. It allows the Tax Commission to disclose this information. Enactment of this legislation fulfills the purpose of House Bill 521 which stated in its Statement of Purpose that “data centers significantly add to the property tax base wherever they are built…”