This bill establishes a new framework for local option sales and use taxes in Idaho by adding Chapter 46 to Title 63 of the Idaho Code. It allows cities and counties to levy a local option sales and use tax, contingent upon approval from the qualified electors through a majority vote in an election held during even-numbered years. The tax rate can be set at a maximum of two percent of the sales price of taxable products or services, and the generated revenue must be used for specific services identified in the ballot question. Additionally, the bill outlines procedures for public hearings, election processes, and the collection and distribution of tax revenues, which will be managed by the state tax commission.

The bill also repeals existing provisions related to local nonproperty taxes for resort cities and hotel and motel room sales taxes, replacing them with new sections that provide updated authority and limitations for these taxes. Specifically, it introduces a new section for resort cities, allowing them to adopt local option nonproperty taxes until January 1, 2027, and establishes a new hotel and motel room sales tax with specific conditions. The act will take effect only after the approval of a constitutional amendment in the 2026 general election, which would grant the legislature the authority to authorize local sales and use taxes under specified conditions.

Statutes affected:
Bill Text: 50-1044, 67-4917B