This bill introduces comprehensive changes 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 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 introduces new provisions for the apportionment of taxes among counties based on property tax levied by eligible taxing districts. Additionally, it establishes new sections that provide exemptions for electricity used in irrigation and outlines the calculation of taxes owed by these utility companies.

Moreover, the bill amends Section 63-602JJ to include specific provisions for property exemptions related to rate-regulated electric utility companies and affiliated gas companies. It introduces a kilowatt-hour tax on electricity sold by these utilities and a thermal energy tax on natural gas, both of which will be treated as property tax revenue for budget limitation purposes. By January 1, 2027, these companies must include the kilowatt-hour and thermal energy tax on customer billings. The bill also allows for a reduction in kilowatt-hour taxes for irrigation purposes, requiring consumers to apply for this exemption annually. It outlines the processes for tax calculation, collection, and distribution, mandates annual statements from utility companies, and specifies penalties for late payments, with taxes owed becoming a lien on the properties of the utility companies. 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