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IdahoH 07222026 regular legislative sessionHouseWALLET

TAXATION – Amends existing law to revise provisions regarding certain rate-regulated electric companies and gas companies.

Sponsored By: REVENUE AND TAXATION COMMITTEE

Signed by Governor

TAXATION

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

How utility tax money flows locally

Beginning January 1, 2026, the state places these taxes in a new Rate‑Regulated Tax Fund and sends money to county treasurers. The State Tax Commission divides funds among counties by each county’s share of 2025 property‑tax levies and urban‑renewal allocations; county auditors certified those by January 12, 2026. Each year by the first Monday of July, the commission estimates amounts and notifies counties; by the first Monday of August, county auditors notify local districts and distribute estimates like property‑tax revenue. If a district dissolves or a bond ends, the next year the money is re‑shared to eligible overlapping districts; merged districts get the sum of their prior shares. New districts or revenue‑allocation areas formed after January 1, 2025 do not receive these distributions. Estimated amounts count as property‑tax revenue for budget‑limit and certification rules.

New utility tax filing and penalties

Starting in 2026, rate‑regulated utilities file two sales statements each year: January–June by September 15, and July–December by April 15 of the next year. The Tax Commission bills by the first Monday of November (fall filing) and by the first Monday of June (spring filing); payments are due December 20 and June 20. If a company does not file, the commission determines sales with the best available information. Late payments owe a 5% penalty plus 1% interest per month, and the unpaid tax becomes a lien on all company property until paid. An added reporting cycle begins January 1, 2026: every five years the commission reviews each company’s county‑level investments; after a January 31 notice, companies must provide data by April 15 (and report prior‑year totals by April 15, 2026, including irrigation pumping for electric utilities).

New utility taxes itemized on bills

Beginning January 1, 2027, rate‑regulated electric and gas utilities list the kilowatt‑hour and thermal energy tax on Idaho customer bills. The Public Utilities Commission adjusts base tariff rates if they already included recovery of these taxes, to avoid double charging.

Sponsors & Cosponsors

Sponsor

  • REVENUE AND TAXATION COMMITTEE

    Affiliation unavailable

Cosponsors

  • Jeff Ehlers

    Republican • House

  • Doug Ricks

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 99 • No: 0

Senate vote • 3/24/2026

Senate Floor Vote

Yes: 34 • No: 0

House vote • 3/12/2026

House Floor Vote

Yes: 65 • No: 0

Actions Timeline

  1. Reported Signed by Governor on March 26, 2026 Session Law Chapter 187 Effective: Retroactive to 01/01/2026

    3/30/2026

  2. Delivered to Governor at 12:58 p.m. on March 26, 2026

    3/26/2026

  3. Returned Signed by the President; Ordered Transmitted to Governor

    3/26/2026Senate

  4. Signed by President; returned to House

    3/25/2026Senate

  5. Received from the House enrolled/signed by Speaker

    3/25/2026Senate

  6. Reported Enrolled; Signed by Speaker; Transmitted to Senate

    3/25/2026House

  7. Returned from Senate Passed; to JRA for Enrolling

    3/24/2026House

  8. Read third time in full – PASSED - 34-0-1

    3/24/2026Senate

  9. Read second time; filed for Third Reading

    3/18/2026Senate

  10. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    3/17/2026Senate

  11. Introduced, read first time; referred to: Local Government & Taxation

    3/13/2026Senate

  12. Received from the House passed; filed for first reading

    3/13/2026Senate

  13. Rules Suspended: Ayes 62 Nays 0 Abs/Excd 8, read in full as required – PASSED - 65-0-5

    3/12/2026House

  14. Read second time; Filed for Third Reading

    3/12/2026House

  15. Reported out of Committee with Do Pass Recommendation, Filed for Second Reading

    3/11/2026House

  16. Reported Printed and Referred to Revenue & Taxation

    2/18/2026House

  17. Introduced, read first time, referred to JRA for Printing

    2/17/2026House

Bill Text

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