Bill > H0260

This bill amends Idaho sales tax law to exempt food from sales tax and revise how sales tax revenues are distributed. Specifically, the bill creates a new sales tax exemption for food sold for human consumption, using the federal supplemental nutrition assistance program (SNAP) definition of food. The exemption applies to groceries and similar food items but excludes restaurant meals, heated food, prepared food combinations, and food sold with eating utensils. Additionally, the bill adjusts the percentage of sales tax revenue distributed to the revenue-sharing account from 11.5% to 13.2%, which impacts how funds are allocated to cities, counties, and special purpose taxing districts. The food sales tax exemption will take effect on June 1, 2025, and the revenue distribution changes will take effect on July 1, 2025. The bill aims to provide tax relief for consumers by eliminating sales tax on grocery items while maintaining funding for local governments through a slight increase in revenue-sharing distributions.

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0260/