Idaho Bills

Amends existing law to provide for a certain exemption from school levies for certain properties.

This legislation will modify sections 63-602 to provide an exemption to education-related property tax levies fortheprimaryresidenceoffamilieswithaschool-agedchildwhodonotacceptanyeducationalfundsfromthe state. This allows families who bear the financial burden of their children’s education a property tax reduction to help offset their educational costs.

Amends existing law to revise provisions regarding the Child Tax Credit to apply to preborn children.

The Preborn Child Tax Credit extends the existing Child Tax Credit in Idaho to pregnant mothers. This upholds the sanctity of human life, as well as honoring courageous mothers who hold the next generation within them. Idaho recognizes the costs involved in pregnancy alongside those of raising children who are born.

Amends and adds to existing law to exempt food from sales tax and to revise sales tax distributions.

This legislation repeals the sales tax on food sold for human consumption, using the definition of food products provided under the Federal Supplemental Nutrition Assistance Program (SNAP), excluding prepared food. To offset the reduction in sales tax revenue sharing amount to local units of government, the bill increases the revenue sharing percentage to those government units by the amount to keep them whole.

Amends existing law to allow the income tax deduction of legal fees and medical expenses related to the acquisition of a donated embryo.

This legislation expands the existing Idaho Adoption Tax Credit to allow legal fees, medical costs, and costs related to the acquisition and transfer into the human body of a donated embryo that results in a live birth. The deduction shall be taken in the year that results in a live birth.

Adds to existing law to establish the Idaho Parental Choice Tax Credit.

The Idaho Parental Choice Tax Credit legislation provides for a refundable tax credit up to $9,500 for a parent or guardian that incurs qualified education expenses for an eligible student. "Qualified expenses" include but are not limited to kindergarten through twelfth grade tuition and fees related to attending a non-public school, tutoring, taking assessments used to determine college admission, costs for textbooks, curriculum, and transportation costs for the purposes of receiving academic instruction. It also means a micro school or learning pod that provides academic instruction. The Idaho State Tax Commission has the ability to audit records, receipts and documents similar to all tax filings to ensure accountability.

Amends existing law to revise provisions regarding the extension of time for certain filing deadlines.

This legislation updates the process for filing income tax extensions. The income tax process is complicated and many taxpayers, particularly those with complicated returns, routinely need to file extensions. This legislation simplifies the Idaho extension process and accomplishes the following: Gives every Idaho taxpayer an automatic extension to file a return, but not an extension for the payment of taxes due. Eliminates the failure-to-file penalty for returns not filed when originally due. Reduces the failure-to-pay penalty from 2% per month to 1% per month. The Idaho extended due date is the 15th day of the seventh month following the close of the taxable year.

Adds to existing law to establish the Idaho parental choice tax credit and Idaho Parental Choice Tax Credit Advance Payment Fund.

The Idaho Parental Choice Tax Credit legislation provides for a refundable tax credit up to $5,000 for a parent, guardian or foster parent that incurs qualified education expenses for an eligible student. “Qualified expenses” include kindergarten through twelfth grade tuition and fees related to attending a nonpublic school, tutoring, taking assessments used to determine college admission, costs for textbooks, curriculum, and transportation costs for the purpose of receiving academic instruction. The refundable tax credit is increased up to $7,500 for special needs students that require ancillary personnel to assist in academic instruction. All families may apply for the refundable tax credit during the application timeframe, but families whose income is less than 300% of the federal poverty level receive the highest priority and can also elect to have a one-time advance tax credit payment in their first year of participation in the program. The Idaho State Tax Commission will administer the program and has the ability to audit records, receipts and documents similar to all tax filings to ensure accountability. The Idaho State Tax Commission may refer suspected cases of fraud to the Attorney Generalforinvestigationandprosecution. TheTaxCommissionwillberequiredtoreportannuallytotheIdaho Legislature on the number of tax credits applied for and the average tax credit issued, the types and amounts of qualified education expenses, the income of households applying for the credit, and the geographic area of the parents applying for the tax credit.

Proposes an amendment to the state constitution to provide that the legislature may authorize cities and counties to adopt certain sales and use taxes.

Thisjointresolutionproposesaconstitutionalamendmentthatcreatestheoptionforcountiesandmunicipalities to levy a local sales and use tax. Any proposed levy must include a detailed description of the products or servicessubjecttothetax,theintendedpurpose,andaterminationdateofnolongerthan4years. Themaximum levy rate is 2%.

Amends and adds to existing law to provide for certain local sales and use taxes.

This legislation outlines the process for levying a local sales and use tax by counties and municipalities. Any proposed levy must include a detailed description of the products or services subject to the tax, the intended purpose, and a termination date of no longer than 4 years. The maximum levy rate is 2%.

Amends and adds to existing law to provide a tax on the sale and distribution of electronic smoking devices.

The purpose of this legislation is to amend Chapter 25, Title 63, of the Idaho Code to require sellers of electronic smoking devices to obtain a permit from the State Tax Commission. It also imposes a tax on the sale, use, consumption, handling or distribution of electronic smoking devices at the rate of three cents ($0.03) per milliliter of a solution that contains nicotine and a proportionate tax at the like rate on all fractional parts of a milliliter thereof. The legislation extends existing record keeping and invoice requirement applicable to distributors, retailers, and shippers of tobacco product to distributors, retailers, and shippers of electronic smoking devices. The legislation also declares and emergency and provides an effective date.

Adds to existing law to establish an excise tax on commercial wind turbines.

This legislation proposes an excise tax on any new commercial windmills. A preference election will be held at the county level to approve or disapprove of a proposed windmill project. If the tax is enacted, the proceeds will go to property tax relief for the county the project is located in as well as for property tax relief via the school district facilities fund.

Amends and adds to existing law to provide an income tax credit for certain nonprofit pregnancy centers, to increase the limit on the percentage of income taxpayers can claim on certain credits, and to establish the Choose Life Idaho Fund.

The Investing in Mothers and Families Act contains several provisions that would help expectant mothers and their families choose life. The legislation: 1) creates a "Choose Life Idaho" fund (administered by the Idaho Treasurer) so that taxpayers have the opportunity to designate a portion of their tax refund for the purpose of donating to Choose Life Idaho, Inc.; 2) adds pregnancy resource centers and maternity homes to the list of nonprofit organizations eligible for a special charitable tax credit equal to 50% of the charitable contribution; and 3) Increases the amount of charitable contributions that qualify for the special charitable tax credit to 25% of total income tax liability for corporations, and 35% of total income tax liability for individuals.

Amends and adds to existing law to establish provisions regarding the County Property Tax Relief Act to provide that a county may establish a sales tax on certain lodging to provide property tax relief to homeowners in the county and to revise a provision regarding certain duties of owners of short-term rental properties.

This legislation establishes a county property tax relief fund and authorizes the board of county commissioners to seek voter approval to establish a county option transient room sales tax. If approved by county voters, a local sales tax of up to 3% on hotel, motel, vacation rental, and private campground rentals would be assessed. At least 50% of tax revenues will be directed to provide property tax relief, with no more than 50% of tax revenues dedicated to public safety services.

Adds to existing law to provide for the Idaho Middle Income Property Development Tax Credit and the Middle Income Land Trust Tax Credit.

The proposed legislation aims to address Idaho’s housing affordability crisis by incentivizing the development and availability of homes for middle-income households, defined as those earning up to 120% of the Area Median Income (AMI). By offering targeted state tax credits, the initiative seeks to promote sustainable home ownership opportunities and increase the supply of deed-restricted homes and community land trust properties, ensuring long-term affordability and equitable housing solutions for Idaho’s working families. This legislation represents a proactive and balanced approach to addressing Idaho’s housing affordability challenges while supporting local working families and strengthening communities.

Amends House Bill 40, House Bill 304, and existing law to revise provisions regarding certain tax deductions, certain corporate income tax rates, certain protections for taxpayers, and certain sales tax distributions and to revise an effective date.

This legislation is a trailer bill to H40 and H304, along with other changes to tax code.