This bill amends Chapter 36, Title 63 of the Idaho Code by adding a new section, 63-3643, which establishes an annual review process for sales tax exemptions. The legislative services office is tasked with conducting this review and preparing a report for the legislature that evaluates the necessity and effectiveness of existing exemptions. The review will consider various criteria, including the public purpose of the exemption, potential revenue loss if repealed, and any public benefits or detriments associated with the exemption. The report must be submitted to relevant legislative committees by February 1 each year.

Additionally, the bill stipulates that sales tax exemptions enacted on or after January 1, 2026, will automatically expire ten years after their effective date or on July 1, 2027, whichever is later, unless the legislature extends them. For exemptions enacted before January 1, 2026, the expiration date is set for ten years after their effective date or July 1, 2031, also subject to legislative extension. The bill declares an emergency, making it effective on July 1, 2026.