Bill
Bill > H0961
ID H0961
ID H0961Amends and adds to existing law to expand the homestead property tax exemption, to increase the sales tax rate, and to direct sales tax revenue to taxing districts to replace property tax revenue lost from the homestead exemption expansion.
summary
Introduced
03/27/2026
03/27/2026
In Committee
03/27/2026
03/27/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
RELATING TO TAXATION; AMENDING SECTION 63-602G, IDAHO CODE, TO REVISE PRO- VISIONS REGARDING THE HOMESTEAD PROPERTY TAX EXEMPTION; AMENDING SEC- TION 63-701, IDAHO CODE, TO REVISE A DEFINITION AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-724, IDAHO CODE, TO REVISE A PROVI- SION REGARDING HOMEOWNER PROPERTY TAX RELIEF; AMENDING CHAPTER 7, TI- TLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-725, IDAHO CODE, TO ESTABLISH PROVISIONS REGARDING THE HOMESTEAD PROPERTY TAX REPLACE- MENT FUND; AMENDING SECTION 63-3619, IDAHO CODE, TO REVISE A PROVISION REGARDING THE IMPOSITION AND RATE OF THE SALES TAX AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-3621, IDAHO CODE, TO REVISE A PROVI- SION REGARDING THE IMPOSITION AND RATE OF THE USE TAX; AMENDING SECTION 63-3638, IDAHO CODE, TO REVISE A PROVISION REGARDING SALES TAX DISTRI- BUTION; AND DECLARING AN EMERGENCY, PROVIDING RETROACTIVE APPLICATION, AND PROVIDING AN EFFECTIVE DATE.
AI Summary
This bill expands the homestead property tax exemption, meaning homeowners will receive a larger reduction in their property taxes for their primary residence. To offset the lost property tax revenue for local governments, the bill increases the state's sales tax and use tax rates from six percent to eight percent. The additional revenue generated from this sales tax increase will be directed to a new "homestead property tax replacement fund" which will then be distributed to taxing districts (like cities and counties) to make up for the property tax revenue they lose due to the expanded homestead exemption. The bill also makes technical corrections and adjustments to various tax-related definitions and distribution mechanisms.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means Committee (House)
Last Action
Reported Printed and Referred to Ways & Means (on 03/27/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.idaho.gov/sessioninfo/2026/legislation/H0961/ |
| BillText | https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2026/legislation/H0961.pdf |
| Fiscal Note/Analysis - Statement of Purpose / Fiscal Note | https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2026/legislation/H0961SOP.pdf |
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