This bill introduces significant amendments to the taxation framework for rate-regulated electric utility companies and affiliated gas companies in Idaho. It repeals several sections of the Idaho Code, including Section 63-205B, which deals with the assessment of operating property for these utilities, and Section 63-602O, which pertains to property exemptions from taxation. The bill amends Section 63-405 to clarify that the state tax commission will only assess "taxable" operating property and establishes a new section, 63-3502C, that exempts electricity used for irrigation from the kilowatt-hour tax. Additionally, it revises Section 63-602JJ to include provisions for property exemptions specific to these utility companies and updates Section 63-3502B to impose a kilowatt-hour tax on electric utilities and a thermal energy tax on gas companies.

Moreover, the bill mandates that by January 1, 2027, rate-regulated electric and gas utility companies must include the kilowatt-hour and thermal energy taxes on customer billings, treating these taxes as property tax revenue for budget limitation purposes. It introduces a specific exemption for kilowatt-hour taxes related to irrigation, allowing a reduction of $0.000923 per kilowatt-hour for eligible users. The bill outlines the procedures for tax calculation, collection, and distribution, requiring annual statements from utility companies to the state tax commission, which will compute taxes due and notify county treasurers. It also establishes penalties for late payments and ensures that taxes owed will be a lien on the properties of the utility companies, with the act set to take effect on January 1, 2026.

Statutes affected:
Bill Text: 63-205B, 63-405, 63-602O, 63-602JJ, 63-603, 63-3502B, 63-3506