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IdahoH 07512026 regular legislative sessionHouse

SALES AND USE TAX – Amends existing law to revise provisions regarding a sales and use tax rebate for certain developers of certain retail complexes.

Sponsored By: WAYS AND MEANS COMMITTEE

Signed by Governor

SALES AND USE TAX

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Bill Overview

Analyzed Economic Effects

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

Higher tax rebate cap per project

The law raises the total rebate cap for one approved transportation improvement to $100,000,000. After $100,000,000 is paid for that improvement, no more rebates are paid. This change applies beginning January 1, 2026.

Rules apply back to Jan 2026

The act is in force on passage and approval. It applies retroactively to January 1, 2026. The new eligibility and rebate rules apply to actions on or after January 1, 2026.

Which retail complexes can qualify

A retail complex must be one or more buildings at a single site that you built, and it must relate to an approved transportation improvement. You must have spent at least $4,000,000 on the complex. These qualification rules apply beginning January 1, 2026.

New rules for qualifying highway work

The minimum cost for an approved highway improvement is $5,000,000. Developers must sign an agreement with the Idaho Transportation Board or a city, county, or highway district that receives state highway funds. Only costs inside the public highway right-of-way and listed in the agreement can be reimbursed. You cannot amend the agreement later to expand the approved work. These rules take effect January 1, 2026.

Who counts as a qualified retailer

A retailer is not a qualified retailer if it or a related party ran a store at that spot before the complex was built. The retailer must have a separate seller’s permit for that location and must have collected and paid sales tax there. This rule applies starting January 1, 2026.

Sponsors & Cosponsors

Sponsor

  • WAYS AND MEANS COMMITTEE

    Affiliation unavailable

Cosponsors

  • Codi Galloway

    Republican • Senate

  • Jason A. Monks

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 104 • No: 0

Senate vote • 3/16/2026

Senate Floor Vote

Yes: 34 • No: 0

House vote • 2/25/2026

House Floor Vote

Yes: 70 • No: 0

Actions Timeline

  1. Reported Signed by Governor on March 23, 2026 Session Law Chapter 107 Effective: Retroactive to 01/01/2026

    3/24/2026

  2. Delivered to Governor at 4:22 p.m. on March 18, 2026

    3/19/2026

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

    3/18/2026Senate

  4. Signed by President; returned to House

    3/18/2026Senate

  5. Received from the House enrolled/signed by Speaker

    3/18/2026Senate

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

    3/17/2026House

  7. Returned from Senate Passed; to JRA for Enrolling

    3/17/2026House

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

    3/16/2026Senate

  9. Read second time; filed for Third Reading

    3/12/2026Senate

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

    3/11/2026Senate

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

    2/26/2026Senate

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

    2/26/2026Senate

  13. Read Third Time in Full – PASSED - 70-0-0

    2/25/2026House

  14. Read second time; Filed for Third Reading

    2/24/2026House

  15. Reported Printed; Filed for Second Reading

    2/23/2026House

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

    2/20/2026House

Bill Text

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