This bill amends Idaho's sales and use tax laws by introducing a new section, 63-3622H, which establishes a sales and use tax exemption for food sold for human consumption, aligning the definition of "food" with the federal definition as of January 1, 2025. The exemption specifically applies to food products eligible for purchase with federal supplemental nutrition assistance program benefits, while explicitly excluding restaurant sales, heated food, mixed food ingredients sold together, and food sold with eating utensils provided by the seller. Additionally, the bill revises Section 63-3638 to increase the percentage of sales tax revenue allocated to the revenue-sharing account from 11.5% to 13.2%, ensuring local governments receive a fairer share of the sales tax revenue.

Furthermore, the bill outlines new financial allocations for various funds in Idaho starting from fiscal year 2024. It mandates that 2.25% of revenues collected under the specified chapter be continuously appropriated to the homeowner property tax relief account, and allocates 4.5% of revenues (with a minimum of $80 million and a maximum of $140 million) to the transportation expansion and congestion mitigation fund, as well as local highway projects. Additional allocations include $330 million to the public school income fund, $80 million to the in-demand careers fund, 3.25% of revenues to the school district facilities fund, and $125 million to the school modernization facilities fund. The bill requires the state tax commission to make these financial distributions in quarterly installments and declares an emergency, making certain sections effective on specified dates in 2025.

Statutes affected:
Bill Text: 63-3638