This bill amends Idaho's sales and use tax laws by introducing a new section, 63-3622H, which establishes a sales and use tax exemption for food sold for human consumption, aligning the definition of "food" with the federal standard as of January 1, 2026. The exemption specifically excludes restaurant sales, heated food, and food sold with eating utensils. Additionally, the bill revises the distribution of sales tax revenue by increasing the percentage allocated to the revenue-sharing account from 11.5% to 13.2%. It also repeals several sections related to food tax credits and refunds, as well as agreements for information exchange with the Idaho Department of Correction and the Idaho Department of Health and Welfare, and removes a code reference in Section 32-706.

Furthermore, the bill outlines financial appropriations and distributions from state revenues for fiscal years 2024 and beyond, mandating allocations to various funds, including 2.25% for homeowner property tax relief, 4.5% for transportation projects, and $330 million annually for educational support. It allows local governments to pool funds for highway projects and sets a structured distribution of funds over the coming years. The legislation also repeals certain sections related to tax credits and modifies child support provisions, emphasizing the inclusion of tax benefits in child support orders and encouraging the Idaho Supreme Court to adopt guidelines for child support calculations. The bill is set to take effect in phases, with some sections effective on June 1, 2026, and others on July 1, 2026.

Statutes affected:
Bill Text: 63-3638, 63-3024A, 63-3077G, 63-3077H, 32-706