This bill aims to address the financial strain on Idaho's public safety infrastructure caused by the rise of non-primary residential properties and high-occupancy short-term rentals. It repeals Section 63-216 of the Idaho Code, which previously restricted state property tax when sales tax was in effect. The bill introduces a new section, 63-602PP, which outlines exemptions from state property tax, including personal property, operating property, and certain residential properties, while also establishing penalties for providing false information regarding property status. Additionally, it amends Section 63-801 to implement an annual state property tax levy on non-exempt real and personal property, with a rate of 2.5 mills per dollar of taxable value.

The revenue generated from this state property tax will be allocated to various public safety and infrastructure needs. Specifically, 50% of the funds will support law enforcement, fire protection, and emergency medical services, while 30% will provide direct property tax credits for homeowners with homestead exemptions. The remaining 20% will be used for infrastructure and maintenance costs related to essential services such as roads and water systems. The bill emphasizes the need for secondary residential investments to contribute to the community infrastructure that supports their property values, ensuring a fair distribution of the financial burden associated with rapid growth in Idaho. The act is set to take effect on January 1, 2027.

Statutes affected:
Bill Text: 63-216, 63-801