This 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 time frame for the exemption, which will be available from July 1, 2020, until March 1, 2025. After this date, the exemption will only be available under specific conditions outlined in the bill, including a requirement for qualifying business entities to maintain certain capital investments and job creation metrics. Additionally, businesses that received the exemption prior to March 1, 2025, will not face expiration after seven years, while those receiving it afterward will have a seven-year limit from when their provisional exemption becomes final.

The bill also introduces new legal language that clarifies the responsibilities of qualifying business entities regarding tax remittance after the expiration of the exemption. Specifically, it mandates that these entities remit sales tax on items that would otherwise be exempt if they were still claiming the exemption. Furthermore, the state tax commission is granted the authority to create rules for administering these provisions, ensuring compliance and facilitating tax remittance. An emergency clause is included, allowing the act to take effect immediately upon passage and approval.

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