Bill > H0755

This bill establishes a process for the regular review and eventual expiration of sales tax exemptions in Idaho, which are reductions or eliminations of the sales tax that would otherwise apply to certain goods or services. The legislative services office will conduct an annual review of these exemptions, examining criteria such as their original public purpose, the revenue lost by granting them, the impact on taxpayers and the public if they were removed, and whether they benefit out-of-state entities. This review will prioritize exemptions scheduled to expire soon, and all exemptions must be reviewed within a five-year period. The findings and recommendations will be reported to specific legislative committees by February 1st each year, with state agencies like the Tax Commission and the Department of Commerce required to provide necessary information. Importantly, most 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 specifically votes to extend or renew them. Similarly, exemptions enacted before January 1, 2026, will expire ten years after their effective date or on July 1, 2031, unless extended. The bill also declares an emergency and sets an effective date of July 1, 2026.

Budget and Finance

Revenue and Taxation Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0755/