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 standard 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%, aiming to enhance funding for local governments.

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. The bill also specifies annual distributions of $330 million to the public school income fund and $80 million to the in-demand careers fund, along with allocations to the school district facilities fund and the school modernization facilities fund. The bill declares an emergency, making certain sections effective on specified dates in 2025.

Statutes affected:
Bill Text: 63-3638