All Roll Calls
Yes: 100 • No: 0
IdahoH 04792025 regular legislative sessionHouseWALLET
TAXATION – Amends House Bill 40, House Bill 304, and existing law to revise provisions regarding certain tax deductions, certain corporate income tax rates, certain protections for taxpayers, and certain sales tax distributions and to revise an effective date.
Sponsored By: REVENUE AND TAXATION COMMITTEE
Signed by Governor
TAXATION
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Yearly funding for schools and buildings
Idaho directs $330 million annually to the General Fund for public school support, paid in quarterly installments. That allocation began in fiscal year 2024; the revised provision takes effect July 1, 2025. Beginning July 1, 2025, Idaho also requires a $50 million yearly school facilities transfer by August 31. That money comes from the Tax Relief Fund. A separate year-end facilities transfer of 20% of annual distributions to that fund continues, without its former extra $50 million.
Less interest and shorter tax deadlines
Idaho pauses interest on unpaid tax from when it flags a return for possible audit until it issues a deficiency notice. Beginning July 1, 2025, a three-year deadline protects some people who missed an income tax return. They must have reasonably believed no return was required. Idaho must begin deficiency, assessment, or collection proceedings within three years after that return was due. Other cases covered by this rule remain open without a time limit.
Shorter sales tax deadline for businesses
Idaho has three years to assess sales tax when someone misses a required return but reasonably believed no tax was due. The deadline runs from the return's due date. Other missed sales tax returns still have a seven-year assessment period.
Earlier funding for homeowner tax relief
Beginning July 1, 2025, Idaho requires a $50 million yearly transfer for homeowner property tax relief by August 31. The money moves from the Tax Relief Fund to the Homeowner Property Tax Relief Account. Previously, the transfer occurred at fiscal year-end. This timing change does not set an individual homeowner's savings or eligibility.
Lower income tax rate for corporations
Corporations pay a 5.3% Idaho income tax rate for tax years beginning January 1, 2025, or later. The rate also covers Idaho's share of S corporations' net recognized built-in gains and excess net passive income. It does not apply to all income passed through to S corporation owners.
Sponsors & Cosponsors
Sponsor
REVENUE AND TAXATION COMMITTEE
Affiliation unavailable
Cosponsors
Jeff Ehlers
Republican • House
Doug Ricks
Republican • Senate
Roll Call Votes
Senate vote • 4/3/2025
Senate Floor Vote
Yes: 34 • No: 0
House vote • 4/2/2025
House Floor Vote
Yes: 66 • No: 0
Actions Timeline
Reported Signed by Governor on April 4, 2025 Session Law Chapter 302 Effective: Retroactive to 01/01/2025 SECTION 1 & 2; 04/04/2025 SECTION 8; 07/01/2025 SECTION 3-7
4/4/2025Delivered to Governor at 10:36 a.m. on April 4, 2025
4/4/2025Returned Signed by the President; Ordered Transmitted to Governor
4/4/2025SenateSigned by President; returned to House
4/3/2025SenateReceived from the House enrolled/signed by Speaker
4/3/2025SenateReported Enrolled; Signed by Speaker; Transmitted to Senate
4/3/2025HouseReturned from Senate Passed; to JRA for Enrolling
4/3/2025HouseRules Suspended (2/3 Vote - Read in full as required) – PASSED - 34-0-1
4/3/2025SenateReported out of Committee with Do Pass Recommendation; Filed for second reading
4/3/2025SenateIntroduced, read first time; referred to: Local Government & Taxation
4/3/2025SenateReceived from the House passed; filed for first reading
4/3/2025SenateRules Suspended: Ayes 65 Nays 0 Abs/Excd 5, read in full as required – PASSED - 66-0-4
4/2/2025HouseRead second time; Filed for Third Reading
4/2/2025HouseReported Printed; Filed for Second Reading
4/1/2025HouseIntroduced, read first time, referred to JRA for Printing
4/1/2025House
Bill Text
Bill Text
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