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IdahoH 07652026 regular legislative sessionHouseWALLET

TAXING DISTRICTS – Amends existing law to allow fire protection districts to enter into certain agreements to transfer territory and to allow certain taxing districts to be exempt from certain budget limitations.

Sponsored By: WAYS AND MEANS COMMITTEE

Signed by Governor

TAXING DISTRICTS

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Property taxes when fire districts shift

Beginning January 1, 2026, when land leaves a fire district, the old district must deduct that land’s full taxable market value from its new construction roll the next year. When a district annexes land under these transfer rules, extra property tax revenue from the annexed area does not count toward the state’s 8% budget cap. This lets districts raise budgets above 8% to serve new areas, which can raise property tax bills. The deduction can limit budget growth in the district that lost the land.

Homeowners can move fire districts

Beginning January 1, 2026, you can ask to leave your fire district and join another. You must show you are likely to get better or faster response and include written approval from your current district’s board. The receiving district holds a public hearing 10 to 30 days after it gets your petition, or within 180 days if you agree. If approved, the district files the order with the county commissioners and the State Tax Commission, and the county records it for the tax roll. Districts can also move territory by mutual board vote through an ordinance or resolution, with the same filings.

Sponsors & Cosponsors

Sponsor

  • WAYS AND MEANS COMMITTEE

    Affiliation unavailable

Cosponsors

  • Doug Okuniewicz

    Republican • Senate

  • Mark Sauter

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 93 • No: 9

House vote • 3/24/2026

House Floor Vote

Yes: 34 • No: 0

House vote • 3/9/2026

House Floor Vote

Yes: 59 • No: 9

Actions Timeline

  1. Reported Signed by Governor on March 27, 2026 Session Law Chapter 197 Effective: Retroactive to 01/01/2026

    4/2/2026

  2. Delivered to Governor at 4:40 p.m. on March 26, 2026

    3/27/2026

  3. Received from the House enrolled/signed by Speaker

    3/26/2026Senate

  4. Returned from Senate Passed; to JRA for Enrolling

    3/25/2026House

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

    3/24/2026House

  6. Read second time; filed for Third Reading

    3/20/2026House

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

    3/19/2026House

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

    3/10/2026Senate

  9. Read Third Time in Full – PASSED - 59-9-2

    3/9/2026House

  10. Read second time; Filed for Third Reading

    3/6/2026House

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

    3/5/2026House

  12. Reported Printed and Referred to Local Government

    2/26/2026House

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

    2/25/2026House

Bill Text

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