The proposed 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. This chapter 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 includes provisions for resort cities, allowing them to adopt local option nonproperty taxes, with specific limitations on the timing and duration of such taxes. It repeals existing sections related to resort city taxes and hotel/motel room sales taxes, replacing them with new provisions that set clear guidelines for tax implementation and expiration. Notably, the bill stipulates that no new taxes can be adopted after January 1, 2027, and any existing taxes must expire by January 1, 2031. The act will take effect only if a constitutional amendment is approved by voters 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