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 revenues generated 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/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, with any existing taxes expiring by January 1, 2031. Furthermore, it establishes a new section for hotel and motel room sales taxes, permitting a maximum tax rate of five percent on room receipts, with similar expiration provisions. The act will take effect only after the approval of a constitutional amendment in the 2026 general election that allows local governments to levy such taxes.

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