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IdahoH 09592026 regular legislative sessionHouseWALLET

TAXATION – Amends and adds to existing law to provide for an initiative petition to raise or lower the property tax budgets for fire protection districts and ambulance service districts and to revise provisions regarding certain property tax budget limits.

Sponsored By: WAYS AND MEANS COMMITTEE

Signed by Governor

TAXATION

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Bill Overview

Analyzed Economic Effects

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

Emergency districts can recover skipped increases

Retroactive to January 1, 2026, eligible fire and ambulance districts can recover property-tax budget increases they previously skipped. A district must have set a lower-than-allowed increase in a year before property tax year 2026. Before recovery, it must notify the public, hold a hearing, and pass a resolution stating the amount and specific purpose. Recovery for maintenance and operations can add no more than 1% to the budget per year. Recovery for a capital project cannot exceed 3% of the budget for the year it is included. Recovery can raise property taxes, but the law does not set any household's bill.

Higher tax caps for emergency districts

The law applies retroactively to January 1, 2026, raising the applicable fire and ambulance district budget-growth cap from 8% to 15%. Districts gain room for larger increases, but the total increase covered by this rule cannot exceed 15%. Certain revenue added when property leaves an urban renewal revenue allocation area remains outside this cap. The higher ceiling allows greater property-tax revenue, but does not automatically increase a household's tax bill.

Voters can change emergency district taxes

Beginning July 1, 2026, district voters can petition to raise or lower fire or ambulance district property-tax budgets. This process does not apply to bond elections. Petitions need signatures equal to at least 20% of voters in the latest district general election actually held in odd-year November. Signers must be eligible district voters when signing; petition gatherers must be Idaho residents age 18 or older. Signature collection ends 180 days after the official ballot title arrives or April 30 of the election year, whichever comes first. Petitions must reach officials for verification by May 1 or within that 180-day period, whichever comes first. County clerks have 60 days to verify signatures. For a qualifying budget-cut petition, the board can adopt the cut within 30 days after notification. It must first hold a public hearing, with legal notice published at least seven days beforehand. Otherwise, the initiative goes to voters on the Tuesday after the first Monday in November of an odd-numbered year. Passage requires the same 66 2/3% approval required for district budget-increase ballots.

New growth formula for emergency districts

The law changes fire and ambulance district budget calculations retroactively to January 1, 2026. For growth from new construction and annexation, districts use the prior year's tax rate. They multiply that rate by new-construction roll values and by 90% of property value annexed during the prior calendar year. This replaces a preliminary rate based on the district's chosen share of the allowed 3% increase. State tax officials certify annexed public-utility operating property values; county assessors certify other annexation values. The existing exception remains for fire districts that annexed property before July 1, 2021, under Idaho Code section 31-1429.

Sponsors & Cosponsors

Sponsor

  • WAYS AND MEANS COMMITTEE

    Affiliation unavailable

Cosponsors

  • Mike Moyle

    Republican • House

  • Doug Okuniewicz

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 100 • No: 0

Senate vote • 4/2/2026

Senate Floor Vote

Yes: 33 • No: 0

House vote • 3/30/2026

House Floor Vote

Yes: 67 • No: 0

Actions Timeline

  1. Reported Signed by Governor on April 10, 2026 Session Law Chapter 316 Effective: Retroactive to 01/01/2026 SECTION 2; 07/01/2026 SECTION 1 & 3

    4/2/2026

  2. Delivered to Governor at 6:25 p.m. on April 2, 2026

    4/2/2026

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

    4/2/2026Senate

  4. Signed by President; returned to House

    4/2/2026Senate

  5. Received from the House enrolled/signed by Speaker

    4/2/2026Senate

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

    4/2/2026House

  7. Returned from Senate Passed; to JRA for Enrolling

    4/2/2026House

  8. Rules Suspended (2/3 Vote - Read in full as required) – Read third time in full – PASSED - 33-0-2

    4/2/2026Senate

  9. Read second time; filed for Third Reading

    4/2/2026Senate

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

    4/1/2026Senate

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

    3/30/2026Senate

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

    3/30/2026Senate

  13. Rules Suspended: Ayes 68 Nays 0 Abs/Excd 2, read in full as required – PASSED - 67-0-3

    3/30/2026House

  14. Read second time; Filed for Third Reading

    3/30/2026House

  15. Reported Printed; Filed for Second Reading

    3/27/2026House

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

    3/27/2026House

Bill Text

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