This bill amends Section 63-208 of the Idaho Code, which pertains to the rules for determining market value for property tax assessments. The amendments require the state tax commission to ensure that assessors find the market value of all taxable property using recognized appraisal methods, emphasizing that actual and functional use must be a major consideration. Notably, the bill replaces the term "median ratio" with "market value" and introduces a requirement that the level of assessment for each category of property tested must not differ by more than five percentage points from other categories. Additionally, it mandates that the assessment reflect a median ratio of assessed value to market value within a range of 90% to 110%, using statistical methods to ensure compliance.

The bill also emphasizes the need for uniformity and equity in property assessments by encouraging the use of reproduction or replacement cost less depreciation over historic cost when determining market value. It stipulates that assessors must adhere to the rules set forth by the state tax commission and provides property owners the right to request the calculations used to determine the market value of their income-producing properties. The act is set to take effect on January 1, 2026.