Bill > H0388

This bill establishes the County Property Tax Relief Act, which allows counties in Idaho to implement a local transient room tax (up to 3%) on lodging such as hotels, motels, campgrounds, and short-term rentals, with the primary goal of providing property tax relief to homeowners. The tax can only be imposed after a voter-approved election, and at least 50% of the collected revenue must be placed in a county property tax relief fund that directly reduces property tax bills for local homeowners. Additionally, up to 50% of the tax revenue can be used to fund public safety services like law enforcement, emergency medical services, fire protection, and ambulance districts. The bill also amends existing law to clarify that short-term rental owners and marketplaces must register with the state tax commission and collect applicable taxes, with a new provision requiring individual property owners who list rentals directly to comply with the same tax collection requirements as rental marketplaces. The tax is designed to shift some financial burden from local property owners to visitors using county services, with strict guidelines on how the funds can be collected and used, and will go into effect on July 1, 2025.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0388/