IdahoH 05512026 regular legislative sessionHouseWALLET

TAXATION – Amends existing law to revise a provision regarding the assessment of certain property.

Sponsored By: REVENUE AND TAXATION COMMITTEE

Signed by Governor

TAXATION

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 2 costs, 2 mixed.

Urban renewal value added back

Beginning January 1, 2026, some urban renewal values move to the new construction roll. When an area ends, older areas add only the amount above the December 31, 2006 baseline; areas formed after 2006 add 80% of the increment. If the base value rises because of a plan change or a de‑annexation, older areas add 80% of the amount above the 2006 baseline, while areas formed after 2006 add the full prior‑year increment. Fire or ambulance districts that withdraw may add 80% of the increment in the withdrawal year; in each year after, 90% of otherwise qualifying new construction is included. New construction inside an active urban renewal area is generally excluded unless these rules apply.

How new building value is counted

Beginning January 1, 2026, assessors include 90% of added taxable value from finished new buildings, certain additions to nonresidential buildings, manufactured homes first placed in the county, property that loses listed exemptions (section 63-602W(3) or (4)), and some electricity‑generation improvements. Replacement equipment is not counted, and some utility or state‑allocated power assets are excluded. “New construction” means the change in value caused by the work or by losing those exemptions. Increases from market forces like inflation or neighborhood price jumps do not count, except for specific urban renewal rules.

Deductions for past value fixes

Beginning January 1, 2026, the new construction roll must deduct prior reductions. If a tax appeals board or a court lowered the property's taxable value in any one of the last five tax years, that amount is backed out. The roll must also remove value that was double or wrongly assessed on a past roll, value reduced by the exemption in section 63-602W(4) in any one of the last five years, and any voluntary reduction tied to a homestead exemption under section 63-602G(10).

Exempt projects stay off the roll

Starting January 1, 2026, new construction with a provisional property tax exemption (section 63-1305C) is not placed on the new construction roll. If an application is required, owners may apply when seeking building permits, when construction starts, or later. New construction that received the sales and use tax exemption in section 63-3622VV is also excluded. These rules keep that added value from raising the new‑construction taxable amount now.

Missed builds and campus projects taxed

Starting January 1, 2026, allowable new construction that was missed in any one of the last five tax years can be added now. The value added matches what should have been shown in the first year it belonged on the roll. Certain student dining, housing, and other education‑related improvements on state college or university land may also be included if never included before and approved by the State Board of Education or Board of Regents.

New roll deadlines and start date

Assessors must certify the new construction roll by the first Monday in June. A listing by taxing district goes to the State Tax Commission by the fourth Monday in July. The Commission reports values by the third Monday in July and may correct them until the first Monday in September; county auditors must notify districts of any changes. The law is in force now and applies retroactively to January 1, 2026.

Sponsors & Cosponsors

Sponsor

REVENUE AND TAXATION COMMITTEE
Affiliation unavailable

Cosponsors

Treg A. Bernt
Republican • Senate
CheatumTitle apvd - to Senate
Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 99 • No: 0

House vote • 3/6/2026

House Floor Vote

Yes: 31 • No: 0

House vote • 2/10/2026