This bill amends Section 63-208 of the Idaho Code, which pertains to the rules for determining market value for property assessment purposes. The key changes include the requirement for assessors to find market value using recognized appraisal methods, with a focus on actual and functional use. The bill specifies that the assessment must reflect a median ratio of assessed value to market value within a range of 90% to 110% of market value, utilizing statistical methods such as confidence intervals for compliance. Additionally, it mandates that the level of assessment for each category of property tested must not differ by more than five percentage points from one another.

Furthermore, the bill emphasizes the use of reproduction or replacement cost less depreciation over historic cost when determining market value for depreciable property. It also outlines the responsibilities of the state tax commission in preparing and distributing rules and amendments necessary for the assessment process. The bill will take effect on January 1, 2026.