The bill amends Section 63-3622VV of the Idaho Code to revise the provisions regarding the Idaho Information Technology Equipment Sales Tax Exemption. The key changes include the establishment of a temporary exemption period for eligible server equipment and new data center facilities, which will be available from July 1, 2020, until March 1, 2025. After this date, the exemption will only apply under specific conditions and will be subject to additional provisions. Notably, any qualifying business entity that received the exemption before March 1, 2025, will not face expiration of the exemption after seven years, while those receiving it afterward will have a seven-year limit from the date their provisional exemption becomes final.

Additionally, the bill introduces a requirement for qualifying business entities that receive the exemption after March 1, 2025, to remit sales tax on items that would otherwise be exempt once the exemption expires. The state tax commission is granted the authority to create rules for administering these provisions, including the certification of qualifying business entities and facilitating tax remittance. The bill declares an emergency, allowing it to take effect immediately upon passage and approval.

Statutes affected:
Bill Text: 63-3622VV
Engrossment 1: 63-3622VV