This bill amends Sections 63-3612 and 63-3613 of the Idaho Code, revising definitions related to sales and sales price for taxation purposes. In Section 63-3612, the definition of "sale" is expanded to include various transactions such as the production and processing of tangible personal property, the provision of food and accommodations, and the use of tangible personal property for recreation. Notably, it introduces new provisions regarding accommodations provided through loyalty or rewards programs, specifying that sales tax applies to monetary consideration paid by a loyalty program when redeeming points for accommodations. Additionally, it clarifies that certain accommodations are exempt from being classified as a sale if specific conditions are met.

In Section 63-3613, the definition of "sales price" is updated to include a broader range of transactions and deductions, including the treatment of manufacturer rebates and the sales price of manufactured homes and modular buildings. The bill specifies that the sales price for these items will be limited to 55% of the defined sales price. Furthermore, it establishes that the provisions of this act will apply to all appeals pending on or after January 1, 2026, and declares an emergency for the act to take effect immediately upon passage, with retroactive application to January 1, 2026.

Statutes affected:
Bill Text: 63-3612, 63-3613