The bill proposes comprehensive changes to the taxation framework for rate-regulated electric utility companies, affiliated gas 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 certain property exemptions from taxation. The bill amends Section 63-405 to clarify that the state tax commission will only assess "taxable" operating property and outlines the procedures for determining system value and apportionment. New provisions are introduced to exempt electricity used for irrigation and to clarify the taxation process for rate-regulated companies.

Additionally, the bill amends Section 63-602JJ to specify exemptions for property owned by rate-regulated electric utility companies and affiliated gas companies, while detailing the taxation of renewable energy producers. It introduces a kilowatt-hour tax for electric utility companies and a thermal energy tax for gas companies, with specified rates. The bill mandates that these taxes be treated as property tax revenue for budget limitations and requires utility companies to include these taxes in customer billings starting January 1, 2027. It also establishes a framework for the calculation, collection, and distribution of these taxes, including penalties for late payments and provisions for new taxing districts formed after January 1, 2025. 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