This bill introduces significant changes to the taxation framework for rate-regulated electric utility companies and gas companies in Idaho. It repeals several sections of the Idaho Code, including Section 63-205B, which addresses 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 new provisions for the apportionment of taxes among counties based on property tax levied by eligible taxing districts. Additionally, it introduces exemptions for electricity used in irrigation and outlines the calculation of taxes due from these utility companies.

Moreover, the bill amends Section 63-602JJ to specify the properties exempt from taxation for rate-regulated electric utility companies and affiliated gas companies, ensuring these properties are not assessed by county assessors. It introduces a kilowatt-hour tax for electric utility companies and a thermal energy tax for gas companies, detailing the rates for these taxes. Starting January 1, 2027, these taxes must be included in customer billings, with a specific exemption for irrigation-related electricity usage. The bill also mandates annual statements from utility companies to the state tax commission for tax calculation and collection, with penalties for late payments and provisions for tax liens on utility properties. The act is 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