Amends existing law to revise provisions regarding the allocation of certain tax revenue.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 734 BY REVENUE AND TAXATION COMMITTEE AN ACT1 RELATING TO TAXATION; AMENDING SECTION 63-3503B, IDAHO CODE, TO REVISE2 PROVISIONS REGARDING THE ALLOTMENT AND APPORTIONMENT OF TAX DUE FROM3 PRODUCERS OF ELECTRICITY BY MEANS OF WIND ENERGY, SOLAR ENERGY, OR4 GEOTHERMAL ENERGY BY THE STATE TAX COMMISSION AND TO MAKE TECHNICAL5 CORRECTIONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICA-6 TION.7

Be It Enacted by the Legislature of the State of Idaho:8

SECTION 1. That Section 63-3503B, Idaho Code, be, and the same is hereby9 amended to read as follows:10 63-3503B. FILING OPERATORS' STATEMENTS -- ALLOTMENT AND APPORTION-11 MENT OF TAX DUE FROM PRODUCERS OF ELECTRICITY BY MEANS OF WIND ENERGY, SOLAR12 ENERGY, OR GEOTHERMAL ENERGY BY STATE TAX COMMISSION. (1) Every producer of13 electricity by means of wind energy, by means of solar energy, or by means14 of geothermal energy in this state shall file with the state tax commission15 of the state of Idaho an operator's statement in the manner as provided for16 in section 63-404, Idaho Code, and shall include thereon a statement of the17 prior calendar year's gross wind energy earnings, gross solar energy earn-18 ings, or gross geothermal energy earnings.19 (2) Upon examining and verifying said statement, the state tax commis-20 sion shall compute the amount of the wind energy tax, solar energy tax, or the21 geothermal energy tax based on the gross wind energy earnings, gross solar22 energy earnings, or the gross geothermal energy earnings and shall allot to23 each county in which the property of such producer is situated, and otherwise24 exempted from taxation by section 63-602JJ, Idaho Code, either: that pro-25 portion of the total wind energy tax, that proportion of the total solar en-26 ergy tax, or that proportion of the total geothermal energy tax of such pro-27 ducer shown to be due as the same proportion that the total original cost of28 property situated in such county, and otherwise exempted from taxation by29 section 63-602JJ, Idaho Code, bears to the total original cost of such prop-30 erty of such producer for the wind energy project, of such producer for the31 solar energy project, or of such producer for the geothermal energy project.32 (3) The state tax commission shall then, for each county, apportion the33 wind energy tax, solar energy tax, or geothermal energy tax so allotted to34 such county among the several taxing units thereof within which any property35 of such producer is situated, and otherwise exempted from taxation by sec-36 tion 63-602JJ, Idaho Code, by apportioning to each such taxing unit that pro-37 portion of the wind energy tax, solar energy tax, or geothermal energy tax so38 allotted to such county. For such apportionment, the state tax commission39 shall calculate:40 (a) Calculate the weighted original cost which shall be the product of41 the original cost of such property within such taxing unit times such42

2 taxing unit's property tax levy rate for the prior year and; provided1 that if a taxing unit that is a school district did not impose a supple-2 mental levy pursuant to section 33-802, Idaho Code, in the prior year,3 the state tax commission shall calculate the weighted original cost for4 such school district using the greater of such school district's prop-5 erty tax levy rate for the prior year or the property tax levy rate of the6 county in which such property is situated for the prior year;7 (b) Calculate the weighted apportionment rate which shall be the ratio8 of the wind energy tax, of the solar energy tax, or of the geothermal en-9 ergy tax, as the case may be, allotted to such county, to the aggregate10 weighted original cost for all such taxing units within which the prop-11 erty is located and then shall calculate; and12 (c) Calculate the apportionment of the wind energy tax, solar energy13 tax, or geothermal energy tax for each such taxing unit to be equal to14 the product of the weighted original cost times the weighted apportion-15 ment rate.16 (4) The state tax commission shall, on or before the third Monday in17 May, notify the state superintendent of public instruction, the county au-18 ditor, and the county treasurer of such allotment and apportionment and the19 amounts thereof.20 (5) On or before the first Monday in August, the county auditor shall21 notify the appropriate taxing units of the amount of wind energy tax, the22 amount of solar energy tax, or the amount of the geothermal energy tax be-23 ing apportioned and the amount of the solar energy tax distributed to each of24 these taxing units during the twelve (12) months immediately preceding July25 1 of the current tax year.26

SECTION 2. An emergency existing therefor, which emergency is hereby27 declared to exist, this act shall be in full force and effect on and after its28 passage and approval, and retroactively to January 1, 2026.29