Revenue Taxation

MINUTES
HOUSE REVENUE & TAXATION COMMITTEE
DATE: Thursday, February 19, 2026
TIME: 9:00 A.M.
PLACE: Room EW42
MEMBERS: Chairman Cannon, Vice Chairman Weber, Representatives Shepherd, Cheatum,
Cornilles, Ehlers, Monks, Raymond, Hill, Raybould, Shirts, Barbieri, Rasor,
Gannon, Berch
ABSENT/
EXCUSED:
Representative(s) Weber
GUESTS: The sign-in sheet will be retained in the committee secretary's office; following the
end of session the sign-in sheet will be filed with the minutes in the Legislative
Library.
Chairman Cannon called the meeting to order at 9:00 AM.
MOTION: Rep. Shirts made a motion to approve the minutes of February 13, 2026. Motion
carried by voice vote.
RS 33462: Rep. Pickett presented RS 33462, concerns Idaho's intent to participate in the
Federal Education Freedom Tax Credit by establishing the appropriate accounting
mechanism and designating scholarship-granting organizations. It proposes a
dollar-for-dollar tax credit of up to $1700 per year for donors. During the discussion,
committee members expressed concerns about the potential impact of the bill on
the state's General Fund and requested clarification on how the program would
avoid creating a financial burden for Idaho. The sponsor clarified that the measure
pertains solely to a federal tax credit and merely declares Idaho's readiness to
participate, without any direct effect on the General Fund.
MOTION: Rep. Monks made a motion to introduce RS 33462 and recommend it be sent
directly to the Second Reading Calendar.
SUBSTITUTE
MOTION:
Rep. Berch made a substitute motion to introduce RS 33462.
ROLL CALL
VOTE ON
SUBSTITUTE
MOTION:
Chairman Cannon called for a roll call vote on the substitute motion. Substitute
motion failed by a vote of 3 AYE, 10 NAY and 2 Absent/Exused. Voting in
favor of the motion: Reps. Shepherd, Barbieri, Berch. Voting in opposition to
the motion: Chairman Cannon, Reps. Cheatum, Cornilles, Ehlers, Monks,
Raymond, Hill, Raybould, Shirts, Rasor. Rep. Weber and Gannon was
absent/exused.
VOTE ON
ORIGINAL
MOTION:
Chairman Cannon called for a vote on the original motion to introduce RS 33462
and recommend it be sent directly to the Second Reading Calendar. Motion
carried by voice vote. Reps. Shepherd, Barbieri and Berch requested to be
recorded as voting NAY. Rep. Pickett will sponsor the bill on the floor.
RS 33002: Rep. Cornilles presented RS 33002, concerns a potential adjustment to
The Salvation Army's tax status to ensure the proper application of sales tax
deductions/exemptions. Consideration was deferred to allow for revisions to the
fiscal note and alignment of exemption criteria, in order to avoid impacts on the
General Funds and the creation precedents.
MOTION: Rep. Raymond made a motion to introduce RS 33002. Motion carried by voice
vote.

-- 1 of 2 --

RS 33398: Rep. Ehlers presented RS 33398, concerns implementing in Idaho a
partnership-level audit procedure, aligned with the federal IRS model, to improve
audit efficiency. The bill establishes a mandatory framework for partnerships with
100 or more partners and provides an optional election for smaller partnerships.
MOTION: Rep. Cheatum made a motion to introduce RS 33398. Motion carried by voice
vote.
RS 33417C1: Rep. Fuhriman presented RS 33417C1, which provides a technical adjustment
to the method of distributing tax revenues derived from geothermal and wind
energy facilities among taxing districts. The changes are intended to ensure that
school districts without an active supplemental levy rate can still participate in the
allocation of these revenues. It proposes using the county levy rate by default if a
school district has not adopted a supplemental levy.
MOTION: Rep. Raybould made a motion to introduce RS 33417C1. Motion carried by
voice vote.
ADJOURN: There being no further business to come before the committee, the meeting was
adjourn at 9:23 AM.
___________________________ ___________________________
Representative Cannon Iryna Moskvina
Chair Secretary
HOUSE REVENUE & TAXATION COMMITTEE
Thursday, February 19, 2026—Minutes—Page 2

-- 2 of 2 --

MINUTES
HOUSE REVENUE & TAXATION COMMITTEE
DATE: Friday, February 13, 2026
TIME: 9:00 A.M.
PLACE: Room EW42
MEMBERS: Chairman Cannon, Vice Chairman Weber, Representatives Shepherd, Cheatum,
Cornilles, Ehlers, Monks, Raymond, Hill, Raybould, Shirts, Barbieri, Rasor,
Gannon, Berch
ABSENT/
EXCUSED:
Representative(s) Hill
GUESTS: The sign-in sheet will be retained in the committee secretary's office; following the
end of session the sign-in sheet will be filed with the minutes in the Legislative
Library.
Chairman Cannon called the meeting to order at 9:00 AM.
MOTION: Rep. Cheatum made a motion to approve the minutes of February 2, 2026,
February 3, 2026, February 5, 2026, and February 9, 2026. Motion carried by
voice vote.
RS 33317: Rep. Monks presented RS 33317, which clarifies the rules governing urban renewal
district: an agency may not deny a fire district or an ambulance district's request to
withdraw if there are no outstanding bonds or written contractual obligations, or if
sufficient alternative revenues exist to cover the debts. In essence, this is not a
policy change but technical clarification following last year's amendments.
MOTION: Rep. Cheatum made a motion to introduce RS 33317. Motion carried by voice
vote.
H 506: Rep. Monks presented H 506, which addresses the STARS program, and
explained that developers are reimbursed only from new sales tax revenues and
are limited to actual infrastructure costs. He also clarified the changes in financial
thresholds in H 506 and RS 33329. The main difference between them is the lower
limit: the bill raises it to $10 million, while RS 33329 lowers it to $5 million with
an upper limit of $100 million.
MOTION: Rep. Raybould made a motion to HOLD H 506 in committee. Motion carried
by voice vote.
RS 33329: Rep. Monks presented RS 33329, which relates to the STARS program and
changes in the financial thresholds for participation in it. Rep. Monks explained the
program's logic in detail: developers advance the funding for the necessary road
and related infrastructure, after which they can receive partial reimbursement from
the new sales tax revenues generated by the respective project. It was emphasized
that this concerns new revenue specifically, not a redistribution of existing tax
revenues, so there is no impact on current budget flows.
MOTION: Rep. Raybould made a motion to introduce RS 33329 and recommend it be sent
directly to the Second Reading Calendar. Motion carried by voice vote. Rep.
Monks will sponsor the bill on the floor.

-- 1 of 2 --

H 610: Rep. Pickett presented H 610, which clarifies the tax code to allow individuals
temporarily absent from their primary residence due to religious service or a
mission to retain the homeowner's property tax exemption. It aligns their treatment
with that of military service members, including the ability to rent out the home
during their absence.
MOTION: Rep. Raybould made a motion to send H 610 to the floor with DO PASS
recommendation. Motion carried by voice vote. Rep. Pickett will sponsor the bill
on the floor.
H 594: Rep. Cheatum presented H 594, which codifies a Supreme Court decision
regarding the distribution of fees and interest on delinquent property tax collections.
The bill established that these funds must be returned to the jurisdictions that
assess the respective property fees, in order to eliminate legal uncertainty in the
future. The bill was supported by Annette Dygert representative of the Idaho
Association of County Treasures and Leon Duce, City Administrator of Rathdrum.
MOTION: Rep. Raybould made a motion to send H 594 to the floor with DO PASS
recommendation. Motion carried by voice vote. Rep. Cheatum will sponsor
the bill on the floor.
ADJOURN: There being no further business to come before the committee, the meeting was
adjourn at 9:44 AM.
___________________________ ___________________________
Representative Cannon Iryna Moskvina
Chair Secretary
HOUSE REVENUE & TAXATION COMMITTEE
Friday, February 13, 2026—Minutes—Page 2

-- 2 of 2 --