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title-63•Title 63 — Revenue and Taxation
Idaho Code, published by the Idaho Legislative Services Office. Idaho Statutes are updated to the website July 1 following the legislative session.
(1) There is hereby created the department of revenue and taxation, which shall consist of a state tax commission and a board of tax appeals. The department of revenue and taxation shall, for the purposes of section 20, article IV, of the constitution of the state of Idaho, be an executive department of state government.
(2) The state tax commission shall be the constitutional tax commission prescribed in section 12, article VII, of the constitution of the state of Idaho.
(3) The board of tax appeals shall be as provided in chapter 38, title 63, Idaho Code.
(4) The state tax commission may organize itself, or may organize such administrative units under the direction and control of the state tax commission, as deemed necessary for proper and efficient operation in order to exercise the constitutional and statutory authority and functions assigned to the state tax commission by the provisions of this title, or by other laws.
(5) The state tax commission shall consist of four (4) members, not more than two (2) of whom shall belong to the same political party. The members of the state tax commission shall be appointed by the governor, by and with the consent of the senate; and shall be subject to removal by impeachment as provided in chapter 40, title 19, Idaho Code.
(6) Appointments, except appointments to fill vacancies, shall be for a term of six (6) years. Appointments to fill a vacancy shall be made by the governor, and the name of the appointee shall be submitted to the senate for confirmation at the next regular or extraordinary session, and upon confirmation of the appointment, the appointee shall hold office for the unexpired term.
(7) Each member of the state tax commission shall take, subscribe and file with the secretary of state an oath of office in the form, time and manner prescribed in chapter 4, title 59, Idaho Code. Each state tax commissioner shall be bonded to the state of Idaho in the form, time and manner prescribed in chapter 8, title 59, Idaho Code.
(8) The state tax commission shall have an office in Ada county and may establish temporary offices at any place within the state whenever necessary for the discharge of the state tax commission’s duties.
(9) The state tax commission shall have an official seal, of which an impression and description shall be filed with the secretary of state. Judicial notice shall be taken of the seal of the state tax commission. Copies of papers, records, proceedings and documents in the possession of the state tax commission may be authenticated by affixation of the seal of the commission and the attestation of the chairman of the commission, and when so sealed and attested shall be received in evidence in all courts with the same effect as the originals.
[63-101 added 1996, ch. 98, sec. 2, p. 309; am. 2001, ch. 183, sec. 28, p. 637.]
(1) A member of the state tax commission shall be appointed by the governor, to serve at his pleasure, as chairman. Each member of the state tax commission shall devote full time to the performance of duties. Commencing on July 1, 2025, the annual salary for members of the state tax commission shall be one hundred twenty thousand six hundred twenty dollars ($120,620).
(2) A majority of the state tax commission shall constitute a quorum for the transaction of business. The state tax commission may delegate to any member of the commission or to its employees the power to make investigations and hold hearings at any place it may deem proper and such other matters as will facilitate the operations of the commission.
(3) The chairman of the state tax commission shall delegate to each commissioner the responsibility for policy management and oversight of one (1) or more of the taxes collected and activities supervised or administered by the commission. The state tax commission shall perform the duties imposed upon it by law and shall adopt all rules by majority decision. In any case in which the state tax commission sits as an appellate body upon an appeal from a tax decision from one (1) of the various administrative units subject to its supervision, the state tax commissioner charged with responsibility for policy management and oversight of the tax in controversy shall not vote upon the appeal but may advise the remaining members of the commission on the technical aspects of the problems before them.
(4) The chairman shall be the chief executive officer and administrative head of the state tax commission and shall be responsible for and, with the advice and consent of the state tax commission, may assign responsibility for all personnel, budgetary and/or fiscal matters of the state tax commission. Delegations of authority involving personnel, budgetary and/or fiscal matters shall be reviewed by request, and sustained by an affirmative vote, of the majority of the state tax commission.
[63-102, added 1996, ch. 98, sec. 2, p. 310; am. 1997, ch. 169, sec. 1, p. 483; am. 1998, ch. 358, sec. 3, p. 1122; am. 2000, ch. 359, sec. 2, p. 1196; am. 2001, ch. 279, sec. 1, p. 1009; am. 2004, ch. 281, sec. 2, p. 775; am. 2006, ch. 368, sec. 2, p. 1106; am. 2007, ch. 121, sec. 2, p. 371; am. 2008, ch. 285, sec. 2, p. 807; am. 2012, ch. 224, sec. 2, p. 610; am. 2014, ch. 316, sec. 2, p. 781; am. 2015, ch. 120, sec. 2, p. 306; am. 2016, ch. 247, sec. 2, p. 660; am. 2017, ch. 316, sec. 2, p. 831; am. 2018, ch. 336, sec. 3, p. 767; am. 2019, ch. 309, sec. 3, p. 931; am. 2020, ch. 339, sec. 3, p. 994; am. 2021, ch. 279, sec. 3, p. 834; am. 2022, ch. 224, sec. 1, p. 738; am. 2022, ch. 243, sec. 2, p. 778; am. 2023, ch. 270, sec. 2, p. 812; am. 2024, ch. 245, sec. 2, p. 870; am. 2025, ch. 244, sec. 2, p. 1095.]
(1) The state tax commission may employ an officer who shall serve as secretary of the commission and shall also employ such other persons as may be necessary for the performance of its duties. Certain of its employees may be designated as deputies who shall perform such duties as prescribed by the state tax commission. The state tax commission may delegate to any of its employees the duty of assisting in the collection, audit, inspection and enforcement of any tax or license and may authorize any of its employees to act in its place and stead. The state tax commission may delegate any other function, responsibility or duty imposed upon the commission to one (1) or more commissioners or deputy commissioners; provided however, where the amount in issue relating to the tax liability of any taxpayer is equal to or exceeds fifty thousand dollars ($50,000), and the commission has delegated the authority to compromise such liability to an individual commissioner, the settlement or closing agreement procedure shall be governed by the provisions of section 63-3048, Idaho Code.
(2) The compensation of all state tax commission employees shall be paid upon the same basis and in the same manner as the compensation of other state employees is paid.
(3) The traveling expenses of the members of the state tax commission and its employees when traveling in performance of official duty, and other necessary expenses incurred in performance of its duties, shall be paid upon the same basis and in the same manner as the expenses of other state employees are paid.
[63-103, added 1996, ch. 98, sec. 2, p. 311; am. 1997, ch. 173, sec. 1, p. 491; am. 2009, ch. 120, sec. 1, p. 384.]
(1) To determine the suitability of prospective employees and contractors for the Idaho state tax commission, the human resources office of the commission shall require an applicant to provide information and fingerprints necessary to obtain criminal conviction history information from the Idaho state police and the federal bureau of investigation. Pursuant to section 67-3008, Idaho Code, and Public Law 92-544, the commission’s human resources officer shall submit a set of fingerprints obtained from the employee, prospective contractor, subcontractor or applicant for employment who will have access to federal tax information as defined in internal revenue service publication 1075 (2016) and the required fees to the Idaho state police, bureau of criminal identification, for a criminal records check of state and national databases. The submission of fingerprints and information required by this section shall be on forms prescribed by the Idaho state police.
(2) The human resources office of the Idaho state tax commission is authorized to receive criminal history information from the Idaho state police and from the federal bureau of investigation for the purpose of evaluating the fitness of applicants to the Idaho state tax commission. As provided by state and federal law, further dissemination or other use of the criminal history information is prohibited. Criminal background reports received from the Idaho state police and the federal bureau of investigation shall be handled and disposed of in a manner consistent with requirements imposed by the Idaho state police and the federal bureau of investigation.
(3) The human resources office of the Idaho state tax commission shall review the information received from the criminal history and background check and determine whether the applicant or employee has a criminal or other relevant record that would disqualify the individual from employment. The applicant or employee shall be provided an opportunity for a formal review of a denial. In the case of a contractor or subcontractor, the human resources officer shall communicate clearance or denial to the applicant and the applicant’s employer.
(4) Clearance through the criminal history and background check process is not the only determination of suitability for employment.
(5) The Idaho state tax commission shall promulgate such rules as are necessary to carry out the provisions of this section.
[63-103A, added 2018, ch. 68, sec. 1, p. 163.]
The members and employees of the state tax commission shall hold no other office under the laws of this state, the United States, or any other state, except as provided in this section, so long as they shall remain members or employees of the commission. Any member or employee of the tax commission may serve in the national guard or armed forces of the United States. Further, any member or employee of the tax commission may be appointed or elected to other office, when that office is without compensation beyond reimbursement for actual expenses, so long as service in the office does not conflict with the duties of the tax commission.
[63-104 added 1996, ch. 98, sec. 2, p. 311.]
In addition to all other powers and duties vested in it, the state tax commission shall have the power and duty:
(1) To assess and collect all taxes and administer all programs relating to taxes which are the responsibility of the state tax commission.
(2) To make, adopt and publish such rules as it may deem necessary and desirable to carry out the powers and duties imposed upon it by law, provided however, that all rules adopted by the state tax commission prior to the effective date of this 1996 amendatory act shall remain in full force and effect until such time as they may be rescinded or revised by the commission.
(3) To maintain a tax research section to observe and investigate the effectiveness and adequacy of the revenue laws of this state and to assist the executive and legislative departments in estimation of revenue, analysis of tax measures and determination of the administrative feasibility of proposed tax legislation.
(4) To prescribe forms and to specify and require information with relation to any duty or power of the state tax commission except as provided in section 63-219, Idaho Code.
(5) To ensure that statutory penalties are enforced, and proper complaint is made against persons derelict in duty under any law relating to assessment or equalization of taxes.
(6) To sue and be sued in the name of the state tax commission.
(7) To summon witnesses to appear before it or its agents to testify and/or produce for examination such books, papers, records or other data relating to any matter within its jurisdiction. However, no person shall be required to testify outside the county wherein he resides or the principal place of his business is located. Such summons to testify shall be issued and served in like manner as a subpoena to witnesses issued from the district court and shall be served without fee or mileage charge by the sheriff of the county, and return of service shall be made by the sheriff to the commission. Persons appearing before the commission or its agents in obedience to such a summons, shall, in the discretion of the commission, receive the same compensation as witnesses in the district court, to be paid upon claims presented against the state from any appropriation made for the administration of the provisions of this title, in the same manner as other claims against the state are presented and paid.
(8) To administer oaths and take affirmations of witnesses appearing before it. The power to administer oaths and take affirmations is vested in each member of the state tax commission, and its duly constituted agents. In case any witness shall fail or refuse to appear and testify before the state tax commission or its agents upon being summoned to appear as herein provided, the clerk of the district court of the county shall, upon demand of the state tax commission, any member thereof, or agent, issue a subpoena reciting the demand therefor and summoning the witness to appear and testify at a time and place fixed; and violation of such subpoena or disobedience thereto shall be deemed and punished as a violation of any other subpoena issued from the district court.
(9) To report to the governor from time to time, and to furnish to the governor such assistance and information as may be required.
(10) To recommend to the governor in a report at least sixty (60) days before and to the legislature ten (10) days prior to the meeting of any regular session of the legislature such amendments, changes and modifications of the various tax laws necessary to remedy injustice and irregularities in taxation and to facilitate assessment and collection of taxes in the most economical and efficient manner.
[63-105 added 1996, ch. 98, sec. 2, p. 311.]
The state tax commission shall be the state board of equalization. In addition to other powers and duties vested in it, the state tax commission shall have the power and duty:
(1) To supervise and coordinate the work of the several county boards of equalization.
(2) To secure, tabulate and keep records of valuations of all classes of property throughout the state and, for that purpose, to have access to all records and files of state offices and departments and county and municipal offices, and to require all public officers and employees whose duties make it possible to ascertain valuations, including valuations of public utilities for ratemaking purposes, to file reports with the state tax commission, giving such information as to valuation and the source thereof. The nature and kind of the tabulations, records of valuations and requirements from public officers as stated herein shall be in such form and cover such valuations as the state tax commission may prescribe.
(3) To coordinate and direct a system of property taxation throughout the state.
(4) To require all assessments of property in this state to be made according to law; and for that purpose to correct, when it finds the same to be erroneous, any assessments made in any county and require correction of the county assessment records accordingly.
(5) To prescribe forms and to specify and require information with relation to any duty or power of the state tax commission except as provided in section 63-219, Idaho Code.
(6) To instruct, guide, direct and assist the county assessors and county boards of equalization as to the methods best calculated to secure uniformity in the assessment and equalization of property taxes, to the end that all property shall be assessed and taxed as required by law.
(7) To reconvene, whenever the state tax commission may deem necessary, any county board of equalization, notwithstanding the limitations of chapter 5, title 63, Idaho Code, for equalization purposes and for correction of errors. The county board of equalization, when so reconvened, shall have no power to transact any business except that for which it is specially reconvened, or such as may be brought before it by the state tax commission.
(8) To require prosecuting attorneys to institute and prosecute actions and proceedings in respect to penalties, forfeitures, removals and punishments for violations of law in connection with the assessment and taxation of property. It shall be the duty of such officers to comply promptly with the requirements of the state tax commission in that relation.
(9) To require individuals, partnerships, companies, associations and corporations to furnish such information as the state tax commission may require concerning their capital, funded or other debt, current assets and liabilities, value of property, earnings, operating and other expenses, taxes and all other facts that may be needed to enable the state tax commission to ascertain the value and the relative tax burden borne by all kinds of property in the state, and to require from all state and local officers such information as may be necessary to the proper discharge of the duties of the state tax commission.
(10) To visit, as a state tax commission or by individual members or agents thereof whenever the state tax commission shall deem it necessary, each county of the state, for the investigation and direction of the work and methods of assessment and equalization, and to ascertain whether or not the provisions of law requiring the assessment of all property not exempt from taxation and just equalization of the same have been or are being properly administered and enforced.
(11) To carefully examine all cases where evasion or violation of the laws of assessment and taxation of property is alleged, complained of, or discovered, and to ascertain wherein existing laws are defective or are improperly or negligently administered.
(12) To correct its own errors in property assessment at any time before the third Monday in October and report such correction to the county auditor and county tax collector, who shall thereupon enter the correction upon the operating property roll.
(13) To apportion annually to the state and the respective counties any moneys received by the state from the United States or any agency thereof, as payments in lieu of property taxes; provided, that said moneys shall be apportioned in the same amounts, and to the same governmental divisions as the property taxes, in lieu of which payments are made, would be apportioned, if they were levied. The state treasurer and the state controller shall be bound, in making distribution of moneys so received, by the apportionment ordered by the state tax commission.
(14) To make administrative construction of property tax law whenever necessary or requested by any officer acting under such laws, and until judicially overruled, such administrative construction shall be binding upon the inquiring officer and all others acting under such laws.
(15) To require the attendance of any assessor in the state at such time and place as may be designated by the commission, and the actual and necessary expenses of any assessor in attending any such meeting shall be a legal claim against his county.
(16) To analyze the work of county assessors at any time and to have and possess all rights and powers of such assessors for the examination of persons and property, and for the discovery of property subject to taxation; and if it shall ascertain that any taxable property is omitted from the property rolls or is not assessed or valued according to law, it shall bring the same to the attention of the assessor of the proper county in writing, and if such assessor shall neglect or refuse to comply with the request of the state tax commission to place such property on the property rolls, or correct such incorrect assessment or valuation, the state tax commission shall have the power to prepare a supplemental roll, which supplemental roll shall include all property required by the state tax commission to be placed on the property roll and all corrections to be made. Such supplement shall be filed with the assessor’s property roll, and shall thereafter constitute an integral part thereof to the exclusion of all portions of the original property rolls inconsistent therewith, and shall be submitted therewith to the county board of equalization.
(17) To provide a program of education and an annual appraisal school for its employees, for county commissioners and for the assessors of the various counties of this state. Additionally, the state tax commission shall provide for the establishment of a property tax appraiser and cadastral certification program. Such program shall include, at a minimum, a written examination prepared, administered and graded under the supervision and control of an examination committee; such committee is to be composed as the state tax commission may provide by rule. The state tax commission’s rules shall include, but need not be limited to, the following:
(a) The composition of the examination committee, provided however, that the committee shall include a representative of the counties, an agent of the state tax commission and a representative of a professional appraisal association within this state. The representative of the counties together with the representatives of such professional appraisal association shall constitute a majority of the committee.
(b) The frequency with which the examination shall be given.
(c) A reasonable review procedure by which examinees having complaints may seek review of the examination committee.
(d) The establishment of a reasonable period of time within which a county appraiser must meet the certification requirements as a condition to continued employment by the county as a certified property tax appraiser.
(18) To report at least quarterly to the revenue and taxation committee of the house of representatives and to the joint senate finance-house appropriations committee on its program to assist the counties with the property tax assessments.
(19) To transmit to the governor and to the legislature an annual report, with the state tax commission’s recommendations as to such legislation as will correct or eliminate defects in the operations of the property tax laws and will equalize taxation within the state. Said annual report shall include a comprehensive study of the property tax laws and detailed statistical information concerning the operation of the property tax laws of this state. Said report shall be submitted prior to the meeting of any regular session of the legislature.
(20) To maintain a forest land and forest product tax section to perform the functions and duties of the state tax commission under the provisions of chapter 17, title 63, Idaho Code.
[63-105A, added 1996, ch. 98, sec. 2, p. 313; am. 1998, ch. 200, sec. 1, p. 714; am. 2008, ch. 52, sec. 1, p. 128; am. 2018, ch. 30, sec. 1, p. 54.]
The state tax commission is authorized to accept, receipt, disburse and expend federal moneys, made available to accomplish in whole or in part any of the purposes of the laws enforced by the state tax commission. All moneys accepted under the provisions of this section shall be accepted and expended by the state tax commission upon such terms and conditions as prescribed by the United States. All moneys received by the state tax commission pursuant to this section shall be deposited in the state treasury and, unless otherwise prescribed by the authority in which said moneys were received, shall be kept in separate funds designated according to the purpose for which the moneys were made available, and held by the state in trust for such purposes. All such moneys are hereby appropriated for the purpose for which the same were made available, and the state tax commission is empowered to disburse or expend said moneys in accordance with the terms and conditions upon which they were made available.
[63-106 added 1996, ch. 98, sec. 2, p. 315.]
Process and procedure before the state tax commission shall be as summary and simple as reasonably may be, and, as far as possible, in accordance with the rules of equity. Process and procedures before the state tax commission as the state board of equalization under title 63, Idaho Code, and before the state tax commission for redetermination of taxes under section 63-3045 or 63-3631, Idaho Code, are not contested cases within the meaning of chapter 52, title 67, Idaho Code.
[63-107 added 1996, ch. 98, sec. 2, p. 316.]
(1) The state tax commission shall meet on the second Monday in August in each year, and, if all the abstracts of assessments in the several counties in the state have then been received, such abstracts shall be laid before the commission, which shall proceed to equalize the assessments throughout the state.
(2) In case all the abstracts of assessments in the several counties of the state have not been received by the state tax commission on or before the second Monday of August, then the commission shall adjourn from day to day until all of the abstracts have been received. The state tax commission may issue subpoenas for any county auditor who has failed to transmit his abstract of assessments, or whose abstract of assessments has not been received, requiring such county auditor to forthwith appear before the commission and produce said abstract. The sheriff of the county where the officer to be served resides is hereby designated as the officer by whom such subpoena shall be served and all actual and necessary expenses incurred by the sheriff in making such service shall be a legal claim against his county, and the officer served shall be liable on his official bond for said expenses in addition to any other liability imposed upon him for failure to transmit his abstract of assessments within the time prescribed in this chapter.
[63-108 added 1996, ch. 98, sec. 2, p. 316.]
(1) The state tax commission shall publish rules establishing and defining categories in which various properties will be placed for assessment purposes. If the state tax commission has reason to believe that a county assessor has improperly assessed a category of property, it shall provide notice to the county assessor and board of county commissioners of the alleged improper assessment no later than the first Monday of April. The notice shall include the grounds upon which the state tax commission believes the county assessor has improperly assessed a category of property, as well as any findings, reports, or other documentation supporting the position of the state tax commission. No equalization shall occur unless notice of an improper assessment pursuant to this subsection has been provided to the county assessor and board of county commissioners.
(2) The state tax commission shall equalize the assessments of property throughout the state, by categories, as shown by the abstracts transmitted by the several county auditors, county by county. In such equalization, the state tax commission shall have power to increase or decrease the total value of any category of property in any county as shown by the abstract from that county when, in the opinion of the commission, the value of that category appearing in such abstract is not just and equal as compared with the value of other categories of property in that county, or the value of similar categories of property in other counties, because of its being greater than or less than the market value. Upon receiving information from any source that any property in any county of the state has been omitted from the property roll, or has been improperly assessed, the state tax commission shall have the power to compel the assessor of such county to assess such property and place it upon the property roll forthwith, and to compel the reassessment of all property improperly assessed. The state tax commission is also empowered to identify or order and compel a proper identification of property by categories for assessment purposes in any county, and to create new categories for any taxable property, and to order and compel reassessment by the county assessor of any category or categories of property within the county.
(3) Notwithstanding the provisions of subsection (1) of this section, the state tax commission may equalize the assessment of a category of property in a county if the state tax commission becomes aware that either a county assessor has changed the assessed value of a category of property after the deadline has passed for notice provided for in subsection (1) of this section or that a county board of equalization improperly categorized a category of property. The state tax commission shall immediately provide written notice to the county assessor and board of county commissioners as soon as it becomes aware of the improper assessment or equalization. In no event shall the notice be made later than the Monday following the adjournment of the county board of equalization in July.
(4) The state tax commission shall provide a copy of any equalization order to the county assessor, board of county commissioners, and board of tax appeals within two (2) weeks of the issuance of the equalization order. The board of county commissioners shall notify any property owner affected by the equalization order within two (2) weeks of receiving the equalization order from the state tax commission. The notice shall include a new assessment notice consistent with the state tax commission order.
[63-109 added 1996, ch. 98, sec. 2, p. 316; am. 2019, ch. 200, sec. 1, p. 618.]
The state tax commission must complete the equalization of assessments throughout the state during its meeting as the state board of equalization, after receipt of each county auditor’s abstract of the property roll, no later than the fourth Monday of August in the year in which such assessments are made, and, if there is to be a state property tax, shall on that day determine the amount of state property tax which each county must collect and remit to the state, by apportioning the total state property tax among the several counties in the state in the exact proportion that the total equalized valuation of each county, as shown by the property roll for the current year, and the subsequent and missed property rolls for the preceding year, bears to the total equalized valuation of the state from such rolls of all the counties in the state. The state tax commission shall also determine the amount of special state taxes, if any, which each county must collect and remit to the state, and the total amount of such state property and special state taxes found to be due from each county shall be certified to the county auditor of such county by the chairman of the state tax commission, and the county auditor shall, upon receipt of such certificate, file the same in his office; provided, that the total amount of all special state taxes levied for the current year upon property entered upon the subsequent and missed property rolls of each county for such year shall be certified to the county auditor of such county by the chairman of the state tax commission upon receipt of the county auditor’s abstract of the subsequent and missed property rolls.
[63-110, added 1996, ch. 98, sec. 2, p. 317; am. 2014, ch. 77, sec. 1, p. 202.]
(1) On or before the first Monday of September in each year, the chairman of the state tax commission must transmit by certified mail, by other commercial delivery service providing proof of delivery, or by secure electronic communication, whichever is the most cost-efficient, to the county auditor of each county in the state, a certified statement showing all the changes in the assessment of any class or all classes of property, or in the aggregate value of all property in said county, and the total increase or decrease as a result of all changes made by the state tax commission in the assessment of property in said county, and the county auditor shall, upon receipt of such certified statement, file the same in his office.
(2) In transmitting the certified statement, as prescribed in subsection (1) of this section, the chairman shall also transmit therewith the certificate showing the total amount of state property and special state taxes, if any, found to be due from the county, and shall also transmit therewith a certified statement showing the assessment of any railroad, telegraph, telephone or electric current transmission or distribution line and all other operating property under the jurisdiction of the state tax commission situated wholly or partly within the county, specifying the number of miles, the equalized value per mile, and the total equalized value of each line in the county, and in any taxing district into or through which such line extends, and the name of such line, if any, and the name and post office address of the taxpayer or owner of such line, and the county auditor shall, upon receipt of such certified statement, file the same in his office.
[63-111 added 1996, ch. 98, sec. 2, p. 317; am. 2026, ch. 153, sec. 1, p. 694.]
The state tax commission is hereby authorized to charge counties for assistance provided for property tax assessment if requested in writing by the county assessor. Any payments received by the state tax commission for such assistance shall be deposited in the property tax assistance account.
[63-112 added 1996, ch. 98, sec. 2, p. 318.]
The state tax commission may require rounding to the nearest whole dollar any amount shown or required to be shown on any return, form, statement or other document submitted to the state tax commission. Any record or other document prepared or maintained by the state tax commission may express any dollar amount rounded to the nearest whole dollar.
[63-113, added 1997, ch. 20, sec. 1, p. 30.]
(1) The state tax commission may grant an extension of time for any filing, or any payment, which is required under any tax law administered or enforced by the state tax commission, to those persons whose ability to timely comply with their filing or payment requirement was adversely affected by a disaster declared by the President of the United States or by the governor of a state or territory of the United States. The state tax commission may grant any person entitled to an extension under section 7508A of the Internal Revenue Code, or regulations promulgated thereunder, an automatic extension for similar returns and payments due to this state.
(2) The state tax commission shall provide a procedure for affected taxpayers to justify the extension and provide such other information as the commission may require to support the taxpayer’s application. A notice of denial of an extension application shall be given in the manner provided for notices of deficiencies in section 63-3629, Idaho Code, which shall be subject to review as provided in section 63-3631, Idaho Code.
(3) No extension granted under this section shall be for a period in excess of one (1) year.
(4) In all cases where the state tax commission has granted an extension under this section, payment of the tax shall not be subject to any late filing penalty or interest if payment of the tax is made on or before the extended due date. Failure to file on the extended due date will thereafter cause the imposition of penalty and interest. Section 63-3033, Idaho Code, shall not apply to taxpayers who receive extensions under this section.
(5) Any rule, activity, procedure or form adopted by the commission to facilitate the provisions of this section, are exempt from the provisions of chapter 52, title 67, Idaho Code.
[(63-114) 63-113, added 1997, ch. 64, sec. 1, p. 135; am. & redesig. 2002, ch. 21, sec. 1, p. 25.]
(1) Any return or other document filed with or submitted to the state tax commission may be transmitted electronically to the commission when permitted by rules or procedures established by the commission. Payments of any amounts to the commission by electronic funds transfer shall be in accordance with sections 67-2026 and 67-2026A, Idaho Code, or section 63-117, Idaho Code.
(2) As used in this section, "transmitted electronically" means the use of a telecommunication or computer network to transfer information in an optical, electronic, magnetic or other machine sensible form. The term includes the use of facsimile machines and third party value added networks.
(3) Any return or other document transmitted electronically to the commission and accepted by the commission shall be deemed received on the earlier of:
(a) The date it arrives at the commission or, in the case of returns filed through the Internal Revenue Service, the date the return is received by the Internal Revenue Service; or
(b) The date that a third party, in accordance with procedures approved by the commission, transmits the return to the commission or makes it otherwise available to the commission.
(4) Any payment made electronically shall be deemed paid on the date the funds are available to the state treasurer.
(5) To constitute a properly filed valid tax return or report, a document transmitted electronically or submitted in a physical machine sensible form such as tape or disk must:
(a) Be filed in a format prescribed by the tax commission and be sufficiently free of errors to identify the filer and the tax type and to calculate the amounts due;
(b) Contain the taxpayer’s name, address (if required by the tax commission) and identifying number;
(c) Be signed by the taxpayer or other individual effecting the signature or verification; and
(d) Include sufficient information to permit the mathematical verification of any tax liability.
(6) The tax commission may, by rule, prescribe exclusive methods for electronically signing or verifying a return or other document transmitted electronically to the commission that shall have the same validity and consequences as manual signing by the taxpayer or other individual effecting the signature or verification.
[(63-115) 63-113 added 1997, ch. 117, sec. 10, p. 309; am. & redesig. 2000, ch. 15, sec. 1, p. 31; am. 2001, ch. 54, sec. 1, p. 96; am. 2003, ch. 30, sec. 1, p. 113.]
(1) The state tax commission, in cooperation with the state treasurer, may accept payment by credit card, debit card or other commercially acceptable means, including through an electronic payment processor, from any person making any payment to the state tax commission of taxes or other amounts due under any law administered by the commission. If the payment is made by credit card, debit card, charge card, or similar method, the liability is not finally discharged and the person has not paid the tax until the department receives payment or credit from the institution responsible for making the payment or credit. Upon receipt, the amount shall be deemed paid on the date the charge was made.
(2) The commission may pay, through discount or otherwise, any fee to a financial institution, credit card company or electronic payment processor, for a payment made pursuant to this section from the proceeds of the taxes or other amounts paid prior to any other distribution of the proceeds required by law. The necessary portion of the proceeds collected under this section is hereby appropriated for the purpose of paying the fee.
[63-117, added 1999, ch. 113, sec. 1, p. 341; am. 2012, ch. 5, sec. 1, p. 8.]
(1) The state tax commission may use alternative dispute resolution procedures to arbitrate or mediate any issue within its tax jurisdiction.
(2) The state tax commission may enter into contracts, not subject to the provisions of chapter 52, title 67, Idaho Code, with individuals and organizations including, but not limited to, the multistate tax commission, to conduct alternative dispute resolution. Costs of alternative dispute resolution procedures may be paid from resultant proceeds without regard to budgetary or appropriation restrictions.
(3) The state tax commission shall appoint one (1) of its members as alternative dispute resolution coordinator and from its staff one (1) or more assistant coordinators.
[63-118, added 1998, ch. 105, sec. 1, p. 362.]
(1) If a person owing tax ignores all demands for payment of a tax assessment, the state tax commission is authorized to employ the services of any qualified collection agency or attorney and to pay fees for such services from moneys recovered.
(2) As used in this section, the term "qualified collection agency" means a person issued a permit under chapter 22, title 26, Idaho Code, or under a similar licensing or permitting statute of another state or jurisdiction in which the person conducts business.
[63-119, added 2005, ch. 30, sec. 1, p. 141.]
As used for property tax purposes in chapters 1 through 23, title 63, Idaho Code, the terms defined in this section shall have the following meanings, unless the context clearly indicates another meaning:
(1) "Appraisal" means an estimate of property value for property tax purposes.
(a) For the purpose of estimated property value to place the value on any assessment roll, the value estimation must be made by the assessor or a certified property tax appraiser.
(b) For the purpose of estimating property value to present for an appeal filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the value estimation may be made by the assessor, a certified property tax appraiser, a licensed appraiser, or a certified appraiser or any party as specified by law.
(2) "Bargeline" means those water transportation tugs, boats, barges, lighters and other equipment and property used in conjunction with waterways for bulk transportation of freight or ship assist.
(3) "Cogenerators" means facilities that produce electric energy, and steam or forms of useful energy that are used for industrial, commercial, heating or cooling purposes.
(4) "Collection costs" are amounts authorized by law to be added after the date of delinquency and collected in the same manner as property tax.
(5) "Credit card" means a card or device, whether known as a credit card or by any other name, issued under an arrangement pursuant to which a card issuer gives to a cardholder the privilege of obtaining credit from the card issuer or other person in purchasing or leasing property or services, obtaining loans, or otherwise.
(6) "Debit card" means any instrument or device, whether known as a debit card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds.
(7) "Delinquency" means any property tax, special assessment, fee, collection cost, or charge collected in the same manner as property tax, that has not been paid in the manner and within the time limits provided by law.
(8) "Electronic funds transfer" means any transfer of funds that is initiated by electronic means, such as an electronic terminal, telephone, computer, ATM or magnetic tape.
(9) "Fixtures" means those articles that, although once movable chattels, have become accessory to and a part of improvements to real property by having been physically incorporated therein or annexed or affixed thereto in such a manner that removing them would cause material injury or damage to the real property, the use or purpose of such articles is integral to the use of the real property to which it is affixed, and a person would reasonably be considered to intend to make the articles permanent additions to the real property. "Fixtures" includes systems for the heating, air conditioning, ventilation, sanitation, lighting and plumbing of such building.
(10) "Floating home" means a floating structure that is designed and built to be used, or is modified to be used, as a stationary waterborne residential dwelling.
(11) "Improvements" means all buildings, structures, manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes as defined in section 39-4105(9), Idaho Code, and modular buildings, as defined in section 39-4301(10), Idaho Code, erected upon or affixed to land, fences, water ditches constructed for mining, manufacturing or irrigation purposes, fixtures, and floating homes, whether or not such improvements are owned separately from the ownership of the land upon or to which the same may be erected, affixed or attached. The term "improvements" also includes all fruit, nut-bearing and ornamental trees or vines not of natural growth, growing upon the land, except nursery stock.
(12) "Late charge" means a charge of two percent (2%) of the delinquency.
(13) "Lawful money of the United States" means currency and coin of the United States at par value and checks and drafts that are payable in dollars of the United States at par value, payable upon demand or presentment.
(14) "Legal tender" means lawful money as defined in subsection (13) of this section.
(15) "Market value" means the amount of United States dollars or equivalent for which, in all probability, a property would exchange hands between a willing seller, under no compulsion to sell, and an informed, capable buyer, with a reasonable time allowed to consummate the sale, substantiated by a reasonable down or full cash payment.
(16) "Operating property" means real and personal property operated in connection with any public utility, railroad or private railcar fleet, wholly or partly within this state, and which property is necessary to the maintenance and operation of the public utility, railroad or private railcar fleet, and the roads or lines thereof, and includes all rights-of-way accompanied by title; roadbeds; tracks; pipelines; bargelines; equipment and docks; terminals; rolling stock; equipment; power stations; power sites; lands; reservoirs, generating plants, transmission lines, distribution lines and substations; and all title and interest in such property, as owner, lessee or otherwise. The term includes electrical generation plants under construction, whether or not owned by or operated in connection with any public utility. For the purpose of the appraisal, assessment and taxation of operating property, pursuant to chapter 4, title 63, Idaho Code, the value of intangible personal property shall be excluded from the taxable value of operating property in accordance with the provisions of section 63-602L, Idaho Code, and the value of personal property, other than intangible personal property, shall be excluded from the taxable value of operating property in accordance with the provisions of section 63-602KK, Idaho Code. Operating property shall be included in taxable value for the purpose of making a levy, as required in section 63-803, Idaho Code, except when an exemption is provided or when said levy is to be made against real property only.
(17) "Party in interest" means a person who holds a recorded purchase contract, mortgage, deed of trust, security interest, lien or lease upon the property. For purposes of notice requirements in section 63-1009, Idaho Code, recording includes documents recorded in full or by memorandum providing notice thereof.
(18) "Person" means any entity, individual, corporation, partnership, firm, association, limited liability company, limited liability partnership or other such entities as recognized by the state of Idaho.
(19) "Personal property" means everything that is the subject of ownership and that is not included within the term "real property."
(20) "Private railcar fleet" means railroad cars or locomotives owned by, leased to, occupied by or franchised to any person other than a railroad company operating a line of railroad in Idaho or any company classified as a railroad by the interstate commerce commission and entitled to possess such railroad cars and locomotives except those possessed solely for the purpose of repair, rehabilitation or remanufacturing of such locomotives or railroad cars.
(21) "Public utility" means electrical companies, pipeline companies, natural gas distribution companies, or power producers included within federal law, bargelines, and water companies which are under the jurisdiction of the Idaho public utilities commission. The term also includes telephone corporations, as that term is defined in section 62-603, Idaho Code, except as hereinafter provided, whether or not such telephone corporation has been issued a certificate of convenience and necessity by the Idaho public utilities commission. This term does not include cogenerators, mobile telephone service or companies, nor does it include pager service or companies, except when such services are an integral part of services provided by a certificated utility company, nor does the term "public utility" include companies or persons engaged in the business of providing solely on a resale basis, any telephone or telecommunication service that is purchased from a telephone corporation or company.
(22) "Railroad" means every kind of railway, whether its line of rails or tracks be at, above or below the surface of the earth, and without regard to the kind of power used in moving its rolling stock, and shall be considered to include every kind of street railway, suburban railway or interurban railway excepting facilities established solely for maintenance and rebuilding of railroad cars or locomotives.
(23) "Real property" means land and all rights and privileges thereto belonging or any way appertaining, all quarries and fossils in and under the land, and all other property that the law defines, or the courts may interpret, declare and hold to be real property under the letter, spirit, intent and meaning of the law, improvements and all standing timber thereon, including standing timber owned separately from the ownership of the land upon which the same may stand, except as modified in chapter 17, title 63, Idaho Code. Timber, forest, forest land, and forest products shall be defined as provided in chapter 17, title 63, Idaho Code.
(24) "Record owner" means the person or persons in whose name or names the property stands upon the records of the county recorder’s office. Where the record owners are husband and wife at the time of notice of pending issue of tax deed, notice to one (1) shall be deemed and imputed as notice to the other spouse.
(25) "Secure electronic communication" means a communication transmitted securely by means of an electronic device that includes a secure logged-in user interface process that meets federal information protection requirements for accessing data and information or similar systems of methods that provide documents or other communication to any person by the state tax commission. Such communication is accomplished and is deemed sent when the notice, decision, or other document is made available in the logged-in user interface and is deemed received upon the opening of the communication by the recipient. Secure electronic communication shall be used only if the recipient elects to receive documents and other information through such means.
(26) "Special assessment" means a charge imposed upon property for a specific purpose, collected and enforced in the same manner as property taxes.
(27) "System value" means the market value for assessment purposes of the operating property when considered as a unit.
(28) "Tax code area" means a geographical area made up of one (1) or more taxing districts with one (1) total levy within the geographic area, except as otherwise provided by law.
(29) "Taxing district" means any entity or unit with the statutory authority to levy a property tax.
(30) "Taxable value" means market value for assessment purposes, less applicable exemptions or other statutory provisions. When statutory provisions define taxable value as limited to real property for the purpose of making a levy, operating property shall not be included.
(31) "Transient personal property" is personal property, specifically such construction, logging or mining machinery and equipment which is kept, moved, transported, shipped, hauled into or remaining for periods of not less than thirty (30) days, in more than one (1) county in the state during the same year.
(32) "Warrant of distraint" means a warrant ordering the seizure of personal property to enforce payment of property tax, special assessment, expense, fee, collection cost or charge collected in the same manner as personal property tax.
[63-201, added 1996, ch. 98, sec. 3, p. 318; am. 1997, ch. 117, sec. 11, p. 310; am. 1997, ch. 286, sec. 1, p. 871; am. 1998, ch. 400, sec. 1, p. 1249; am. 2006, ch. 302, sec. 2, p. 932; am. 2008, ch. 53, sec. 1, p. 131; am. 2008, ch. 400, sec. 1, p. 1089; am. 2009, ch. 11, sec. 22, p. 34; am. 2009, ch. 163, sec. 1, p. 488; am. 2014, ch. 357, sec. 2, p. 886; am. 2016, ch. 29, sec. 1, p. 70; am. 2016, ch. 273, sec. 6, p. 755; am. 2016, ch. 342, sec. 14, p. 977; am. 2026, ch. 153, sec. 2, p. 695.]
Official records of the various county offices may be replicated in any storage media which allows archiving and retrieval to meet the requirements provided by law.
[63-202 added 1996, ch. 98, sec. 3, p. 321.]
All property within the jurisdiction of this state, not expressly exempted, is subject to appraisal, assessment and property taxation.
[63-203 added 1996, ch. 98, sec. 3, p. 321.]
For the purpose of assessment and property taxation, all property within the jurisdiction of this state is hereby classified as follows:
Class 1. Real Property,
Class 2. Personal Property, and
Class 3. Operating Property.
[63-204 added 1996, ch. 98, sec. 3, p. 321.]
(1) All real, personal and operating property subject to property taxation must be assessed annually at market value for assessment purposes as of 12:01 a.m. of the first day of January in the year in which such property taxes are levied, except as otherwise provided. Market value for assessment purposes shall be determined according to the requirements of this title or the rules promulgated by the state tax commission.
(2) Personal property coming into the state after January 1 shall be assessed as of the date of entry into the state in accordance with sections 63-311(3) and 63-602Y, Idaho Code.
[63-205 added 1996, ch. 98, sec. 3, p. 321.]
(1) Section 42 of the Internal Revenue Code and related regulations govern the housing tax credit established under the 1986 tax reform act, as amended, and provides an incentive for developers to provide safe and sanitary housing for individuals and families earning no more than sixty percent (60%) of the area median income as determined by the U.S. department of housing and urban development (HUD), which income and rent restrictions remain in place as provided for in the tax credit regulatory agreement between the owner and the Idaho housing and finance association.
(2) The market value for assessment purposes of section 42 low-income properties shall be determined by the county assessor using the following criteria:
(a) The sales comparison approach using similar rent restricted properties, the cost approach, and the income approach, shall be considered in valuing section 42 low-income properties. The cost approach shall include an economic obsolescence factor associated with the income and rent restrictions provided with each development’s tax credit regulatory agreement with the Idaho housing and finance association. The three (3) approaches will be reconciled into a single property value.
(b) Net operating income to be capitalized in the income approach shall not include the amount of housing tax credits. However, the amount of such credits shall be added to the capitalized net operating income using one (1) of the following procedures:
(i) Except as provided in subsection (2)(b)(ii) of this section, for properties for which housing tax credits have been received prior to January 1, 2009, and for properties subject to new regulatory agreements on or after January 1, 2009, the total dollar amount of such credits shall be divided by the total number of years in the regulatory agreement;
(ii) For properties for which housing tax credits originally were received, but which are no longer receiving such credits as of January 1, 2009, no amount shall be added; or
(iii) For properties previously receiving housing tax credits, but subject to a new regulatory agreement on or after January 1, 2009, the total amount of housing tax credits pursuant to the new agreement shall be divided by the number of years in the new regulatory agreement. This amount shall supersede and be substituted for any amount previously calculated.
Net operating income shall be capitalized into value using a market derived capitalization rate. To determine the net operating income, effective gross income shall be reduced by costs customary to section 42 operations, including normalized operating expenses plus all compliance, audit, asset management and other fees, but not general partner fees, as well as those costs set forth in each development’s tax credit regulatory agreement with the Idaho housing and finance association.
(c) The Idaho state tax commission shall gather market data to determine market derived capitalization rates for section 42 low-income properties from section 42 property sales. Determination of the market derived capitalization rates for section 42 low-income property sales shall include both actual net operating income and calculated tax credit income consistent with the formula in subsection (2)(b) of this section. The Idaho state tax commission shall then make the information available to each county assessor. If fewer than three (3) comparable sales of section 42 low-income properties are available, then a capitalization rate derived from properties with no federal project based assistance shall be used. As used in this section, "comparable" shall mean section 42 low-income properties with no federal project based assistance. A sale of a section 42 low-income property shall not be considered as a comparable sale if the buyer of that property receives a new allocation of section 42 tax credits from the Idaho housing and finance association.
(d) Beginning in 2010, the owners of properties described in this section shall provide to the Idaho state tax commission no later than April 1 of each year, such financial statements from the prior year as are customarily prepared in the ownership and operation of any section 42 property. For 2009, said financial statements shall be provided no later than May 1. In addition, no later than May 1 of 2009 or, for new developments with housing tax credits or new allocations, by April 1 of the first year of any tax credit regulatory agreement, the Idaho housing and finance association shall provide to the Idaho state tax commission statements ascertaining the dollar amounts of housing tax credits that have been allocated to each section 42 property, the year such credits were first paid, and the total number of years in the regulatory agreement. The Idaho state tax commission shall then make the financial statements and tax credit information required under this section available to each county assessor. If such information is not made available to the Idaho state tax commission and county assessors, each county shall substitute market rent apartment derived expenses and income for section 42 low-income properties.
(e) The Idaho state tax commission shall have the authority to promulgate rules dealing with the enactment and enforcement of this section.
(f) If the use of the income approach as described in subsection (2)(b) of this section results in an assessed value lower than would be obtained if the income approach in subsection (2)(b) of this section were not used, the difference will be exempt.
[63-205A, added 2009, ch. 140, sec. 2, p. 422; am. 2013, ch. 7, sec. 1, p. 15.]
(1) In the assessment of the operating property of rate-regulated electric utility companies, the market value shall be determined by the state tax commission by applying applicable law, statutes, property tax administrative rules and the following criteria:
(a) Depending on the weighting placed on the income approach, as described in paragraph (d) of this subsection, no more than twenty percent (20%) weight shall be placed on the cost indicator when utilizing the historic cost less depreciation (HCLD) method in the system value correlation.
(b) In the income approach, income to be capitalized will be normalized, utilizing the gross domestic product implicit price deflator from the United States department of commerce, bureau of economic analysis, by using an average of at least the previous four (4) years’ net operating incomes and by adjusting each year’s net operating income for unusual nonrecurring items.
(c) In the income approach, a market discount rate will be determined, and to that rate a flotation cost component of twenty hundredths of one percent (0.20%) will be added.
(d) A weighting between eighty percent (80%) and one hundred percent (100%) will be placed on the income approach in the system value correlation.
(e) Within the market approach, a sales comparison approach may be used if reliable data is available and appropriate comparison adjustments can be made. No weight will be placed on a stock and debt approach in the system value correlation.
(f) For rate-regulated electric utility companies, the weightings prescribed in this section shall control the weightings used in the system correlation or reconciliation.
(2) Subsection (1)(a) of this section shall be construed to mean that the use of no more than twenty percent (20%) weight placed on the cost indicator, when utilizing the HCLD method to calculate the cost approach, accounts for any and all forms of depreciation, including any and all forms of obsolescence, and the appraiser shall not consider any further obsolescence.
(3) The state tax commission is hereby authorized to promulgate rules to implement the provisions of this section.
[63-205B, added 2014, ch. 76, sec. 1, p. 201; am. 2017, ch. 15, sec. 1, p. 26.]
(1) The market value of land actively devoted to agriculture is its actual use value. Actual use value shall be established by capitalization of economic rent or long-term average crop rental at a capitalization rate that shall be either the rate of interest charged by lenders in the local area for agricultural property loans or by the Spokane office of the farm credit system, each averaged over the immediate past five (5) years, whichever is higher, plus the local tax rate.
(2) "Land actively devoted to agriculture" means that property defined by section 63-604, Idaho Code. For purposes of this section, the act of platting land actively devoted to agriculture does not, in and of itself, cause the land to lose its status as land being actively devoted to agriculture if the land otherwise qualifies for the exemption under this section.
(3) Land actively devoted to agriculture shall not be valued at its speculative value as development property until the use has changed and it is no longer actively devoted to agriculture.
(4) Rental rates, interest rates, commodity prices, and input prices or other landlord expenses typical to the county of the property being assessed shall be used.
(5) The state tax commission shall adopt rules implementing the provisions of this section that shall provide the procedure by which economic rent, average crop rental, and capitalization rates shall be established.
[(63-205C) 63-602K added 1996, ch. 98, sec. 7, p. 352; am. 2004, ch. 27, sec. 4, p. 44; am. 2006, ch. 233, sec. 3, p. 693; am. and redesig. 2020, ch. 313, sec. 1, p. 889.]
(1) All property taxes levied upon real property shall be a first and prior lien upon the real property assessed therefor, and shall only be discharged by the payment or cancellation of the property taxes as provided in this title.
(2) In addition, all property taxes levied upon personal property or operating property shall be a first and prior lien upon that property and the personal, operating or real property of the same owner thereof, whether the property is exempt from execution or not, and no personal property or operating property of any kind shall be exempt from such lien, except as otherwise provided by law. Such lien shall attach as of the first day of January in that year, or as of the date of entry into the state, or as of the date the property became subject to property taxation, and shall be discharged only by the payment or cancellation of the property taxes as provided in this title.
(3) Property tax liens shall be perpetual and continuous on all personal, operating and real property.
(4) It shall be unlawful for any person, corporation or other owner of real property to destroy the lien of taxes provided for in this section by removing any improvements therefrom or cutting and removing the standing timber thereon without first securing the payment of all delinquencies upon such real property, and property taxes for the year in which such improvements or timber are removed. The lien upon any such improvements or timber shall continue after such improvements have been removed or the timber cut from such real property. Such taxes shall be due and collectible immediately upon the commencement of the severance and unless paid upon the demand of the tax collector it shall be the duty of the county attorney to commence an action for the collection of such taxes in the district court of the county in which the property is situated. Such improvements or timber may be levied upon and sold in the same manner as is now provided by law for the sale of real property upon execution, and the county or any taxing unit affected may maintain an action in the proper court for injunction to restrain the removal of any improvements or the cutting or removal of standing timber from any real property against which there are any unpaid property taxes.
[63-206 added 1996, ch. 98, sec. 3, p. 321.]
(1) All real and personal property, except as otherwise provided in title 63, Idaho Code, shall be assessed by the assessor of the county in which it is situated.
(2) All operating property shall be assessed by the state tax commission.
[63-207 added 1996, ch. 98, sec. 3, p. 322.]
(1) It shall be the duty of the state tax commission to prepare and distribute to each county assessor and the county commissioners within the state of Idaho rules prescribing and directing the manner in which market value for assessment purposes is to be determined for the purpose of taxation. The rules promulgated by the state tax commission shall require each assessor to find market value for assessment purposes of all property, except that expressly exempt under chapter 6, title 63, Idaho Code, within his county according to recognized appraisal methods and techniques as set forth by the state tax commission; provided, that the actual and functional use shall be a major consideration when determining market value for assessment purposes. The recognized appraisal methods shall, at a minimum, require the assessment of such property to reflect, within reasonable statistical certainty, the median ratio of assessed value to market value for the categories of property being tested within a range of ninety percent (90%) to one hundred ten percent (110%) of market value, using statistical methods such as confidence intervals to determine compliance and requiring corrective actions if the ratio falls outside of this range. Each category of property tested shall also have a level of assessment that is provable with reasonable statistical certainty to be not more than five (5) percentage points different than that of each other category of property tested.
(2) To maximize uniformity and equity in assessment of different categories of property, such rules shall, to the extent practical, require the use of reproduction or replacement cost less depreciation as opposed to historic cost less depreciation whenever cost is considered as a single or one (1) of several factors in establishing the market value of depreciable property. The state tax commission shall also prepare and distribute amendments and changes to the rules as shall be necessary in order to carry out the intent and purposes of this title. The rules shall be in the form as the commission shall direct, and shall be made available upon request to other public officers and the general public in reasonable quantities without charge. In ascertaining the market value for assessment purposes of any item of property, the assessor of each county shall, and is required to, abide by, adhere to and conform with rules promulgated by the state tax commission.
(3) When establishing the real property market value for assessment purposes of income-producing property, the assessor may use one (1) or more market valuation methods, provided that the market value shall not include contract rent related to the real estate only and shall exclude any value of exempt intangible personal property as provided in section 63-602L, Idaho Code. Upon request by the property owner, the assessor shall provide the property owner with the assessor’s calculations used to derive the income-producing property owner’s market value, including any value exempted by statute.
[63-208 added 1996, ch. 98, sec. 3, p. 322; am. 2023, ch. 285, sec. 1, p. 870; am. 2025, ch. 202, sec. 1, p. 916; am. 2025, ch. 313, sec. 1, p. 1316.]
The assessor must have prepared a full, accurate and complete plat record of all parcels of real property within his county. Township, range and section lands shall be platted thereon in such manner as to correspond with the technical description of such lands as described by the government survey thereof. Subdivision, townsite, and metes and bounds lands shall be platted thereon according to the official record thereof. The plats shall be prepared pursuant to rules promulgated by the state tax commission which shall establish scales and other criteria. All parcels of real property shall be numbered pursuant to a uniform numbering system to be established by the state tax commission and such parcel numbers shall be used as one (1) means of identifying such parcels. Such numbers shall be used on all records in county offices and shall appear on valuation assessment and tax notices. All necessary and reasonable expense incurred by the assessor in complying with the provisions of this section shall be a legal claim against the county.
[63-209 added 1996, ch. 98, sec. 3, p. 322.]
(1) The assessor shall give to each tract of land described by metes and bounds a tax number which shall be recorded with the county recorder without fee. This number shall be placed on the property roll to indicate the certain piece of land bearing such number, and entered on the plat record to indicate what tract is designated by such tax number, and no further description of such land shall be necessary upon the property roll. Whenever a tract of land which has been given a tax number is subdivided, the assessor shall give each subdivision a new tax number, which number, with an accurate description of the tract of land designated by such new number, shall be included in his list of tax numbers.
(2) In all cases where the description of any tract of land, or any lot or subdivision of land, or where the description of one (1) or more of the different parts or parcels thereof, cannot, in the judgment of the assessor, be made sufficiently certain and accurate for the purposes of assessment, the assessor shall notify the county recorder thereof, and the county recorder shall thereupon proceed to have such land platted in the same manner as provided for in section 50-1314, Idaho Code.
[63-210 added 1996, ch. 98, sec. 3, p. 323.]
(1) It shall be the duty of the director of the state department of lands to furnish to each assessor of each county in the state without fee a copy of each land sale certificate whenever a sale has been held and a certificate has been issued showing the land description, date of sale, purchase price, amount paid in cash, and schedule of annual payments, and a copy of each timber sale contract whenever a sale of timber has been made and contract issued showing date of sale, description of land involved, purchase price, and estimated volume of timber.
(2) It shall also be the duty of the director of the state department of lands to notify the assessor of each county when a cancellation, assignment or reinstatement of a state land sale certificate or a cancellation or assignment of a state timber sale contract has been made.
(3) It shall be the duty of the county tax collector to notify the director of the state department of lands of any property tax delinquency on a state land sale certificate or on a state timber sale contract within thirty (30) days of the date of such delinquency.
[63-211 added 1996, ch. 98, sec. 3, p. 323.]
(1) When the property assessed is the unpartitioned property of a deceased person, the name of the heirs, guardian, executor or administrator may be inserted on the property roll, and the payment of property taxes on such property by any such person binds the estate for the repayment of the amount of such property taxes to such person, and binds all parties in interest for the repayment of their just proportions of the amount of such property taxes to such person.
(2) Whenever a person claiming property and desiring to pay the property taxes thereon is not named as the owner he may have his name inserted on the property roll with that of the person named, if so documented with a recordable document.
(3) Whenever a person has an agent for the payment of property taxes, the name of such agent may be inserted upon request, and in the taxpayers index.
(4) An undivided interest in real property may be appraised, assessed and taxed as such. The payment of all property taxes on an undivided interest in any real property assessed as such discharges all liens attached to such undivided interest on account of such property taxes.
[63-212 added 1996, ch. 98, sec. 3, p. 323.]
(1) Property which has been assessed for taxation in any county in this state shall not be assessed again for taxation for the same purposes or period of time in any other county in this state for the same year.
(2) In all questions which may arise as to the proper place to assess property for taxation purposes, if between two (2) or more places in the same county, the place for assessing the same shall be determined and fixed by the county commissioners, and if between two (2) or more counties, or different places in two (2) or more counties, the place for assessing the same shall be determined and fixed by the state tax commission, and when fixed shall be binding.
[63-213 added 1996, ch. 98, sec. 3, p. 324.]
In all proceedings relating to the assessment of property for taxation, or the levy and collection of property taxes, it shall be sufficient to designate the amount of property taxes and the amount, value and description of property by tax number, initial letters, abbreviations, figures, fractions and exponents. Such designations must be sufficiently plain to clearly set forth the amount of property taxes and the amount, value and description of the property. All property which has been sold for property taxes and all foreclosure proceedings on property under this title must be fully and accurately described.
[63-214 added 1996, ch. 98, sec. 3, p. 324.]
(1) Any taxing district that shall be formed or organized hereafter, or that shall change any existing boundaries hereafter, shall cause one (1) copy of the legal description and map prepared in a draftsmanlike manner that shall plainly and clearly designate the boundaries of such district or municipality as formed or organized, or as altered, to be recorded with the county recorder and filed with the county assessor in the counties within which the unit is located, any taxing district with taxing authority that will be affected by the formation or change in existing boundaries of such taxing district, and with the state tax commission within thirty (30) days following the effective date of such formation, organization or alteration but no later than the tenth day of January of the year following such formation, organization or alteration. In the case of fire protection districts, the board of county commissioners approving the boundaries shall be responsible for delivering to the assessor, recorder, and any affected fire protection districts the map and legal description of the amended district boundaries. Formation, organization or alteration documents that are filed pursuant to this section shall include contact information that is current at the time of filing and that identifies an individual associated with the taxing district.
(2) Urban renewal agencies shall comply with the requirements of subsection (1) of this section when a revenue allocation area within the jurisdiction of the urban renewal agency is formed or when the boundaries of such an area are altered.
(3) The state tax commission shall review filings required by subsections (1) and (2) of this section and, if the commission finds that the formation of a district or a change in a district’s boundaries fails to provide a proper legal description or fails to correctly identify the boundaries, the state tax commission shall notify the affected taxing authority within twenty-eight (28) days after receiving the original request. The notification shall list any errors or omissions in the submitted map and legal description along with any possible remedies to correct said errors or omissions. The taxing authority shall be provided an additional twenty-eight (28) days after receiving the requested change from the state tax commission to provide a corrected map and legal description. If the corrected map and legal description fail to correctly identify the boundaries or change of boundaries of the taxing district, as was listed in the state tax commission’s notification, then the state tax commission may direct that the formation or change not be recognized for property tax purposes. The state tax commission’s review shall not include matters relating to notice, open meetings law requirements, or compliance with provisions in Idaho law not relating to boundaries.
(4) The county assessor, county auditor and state tax commission shall retain on file in their respective offices all copies of legal descriptions of taxing district boundaries and maps filed by the various taxing jurisdictions authorized to impose a levy on property.
(5) The state tax commission shall be responsible for providing copies of uniform tax code area numbers and maps to the county assessor, county auditor and county treasurer and various companies having operating property subject to assessment in the state of Idaho and under the jurisdiction of the state tax commission for assessment and taxation purposes.
(6) Unless otherwise specifically authorized to form with noncontiguous boundaries, or to annex or deannex properties so as to make noncontiguous boundaries, all taxing districts shall form with and maintain contiguous boundaries.
[63-215, added 1996, ch. 98, sec. 3, p. 324; am. 1997, ch. 117, sec. 12, p. 313; am. 2000, ch. 114, sec. 2, p. 253; am. 2008, ch. 7, sec. 1, p. 8; am. 2013, ch. 21, sec. 1, p. 34; am. 2019, ch. 271, sec. 1, p. 789; am. 2025, ch. 155, sec. 3, p. 764.]
In any period during which a sales tax is in force in this state, there shall be no levy of the general state property tax permitted in section 9, article VII, of the constitution of the state of Idaho.
[63-216 added 1996, ch. 98, sec. 3, p. 325.]
(1) Any report, claim, return, statement or other document or payment dealing in any way or in any manner whatsoever with taxation which is required or authorized to be filed or made to the state of Idaho, or to any political subdivision thereof, which is:
(a) Transmitted through the United States mail, shall be deemed filed or made and received by the state or political subdivision on the date shown by the post office cancellation mark stamped upon the envelope or other appropriate wrapper containing it. For purposes of this title, a postage meter cancellation shall not be deemed a post office cancellation mark.
(b) Mailed but not received by the state or political subdivision or where received and the cancellation mark is illegible, erroneous or omitted, shall be deemed filed or made and received on the date it was mailed if the sender establishes by competent evidence that the report, claim, tax return, statement or other document or payment was deposited in the United States mail on or before the date for filing or paying; and in cases of such nonreceipt of any such report, claim, tax return, statement or other document or payment required by law to be filed or made, the sender files with the state or political subdivision a duplicate within fifteen (15) days after written notification is given to the sender by the state or political subdivision of its nonreceipt of such report, claim, tax return, statement, or other document or payment.
(2) If any such report, claim, tax return, statement or other document or payment is sent by United States mail and either registered or certified, a record authenticated by the United States post office of such registration or certification shall be considered competent evidence that the report, claim, tax return, statement or other document or payment was delivered to the state officer or state agency or officer or agency of the political subdivision to which addressed, and the date of registration or certification shall be deemed the postmarked date.
(3) Any reference in this section to the United States mail shall be treated as including a reference to any delivery service designated by the secretary of the United States department of treasury under section 7502 of the Internal Revenue Code. Any reference in this section to a postmark by the United States postal service shall be treated as including a reference to any date recorded or marked as described in section 7502 of the Internal Revenue Code by any designated delivery service.
(4) If the date for filing any such report, claim, tax return, statement or other document or making any such payment falls upon a Saturday, a Sunday, a legal holiday or, in matters arising under chapter 30, title 63, Idaho Code, a holiday recognized by the internal revenue service, such acts shall be considered timely if performed on the next business day.
[63-217 added 1996, ch. 98, sec. 3, p. 325; am. 2004, ch. 28, sec. 1, p. 45; am. 2012, ch. 227, sec. 1, p. 628.]
(1) The state tax commission or any political subdivision of the state of Idaho may retain any document in a different form or medium from that in which it is received, provided that the form or medium in which the document is retained results in a permanent record which may be accurately reproduced during the period for which the document must be retained under any tax law administered or enforced by the state tax commission. The original document, once reproduced, may be disposed of or destroyed.
(2) A document retained in any form or medium permitted under this section shall be deemed to be an original public record for all purposes. A reproduction or copy of such a document, certified by a state officer, shall be deemed to be a transcript or certified copy of the original, and shall be admissible in any court or administrative hearing.
[63-218 added 1996, ch. 98, sec. 3, p. 326; am. 2008, ch. 5, sec. 1, p. 6.]
(1) The state tax commission shall develop, maintain and enforce statewide systems for the preparation of property rolls and related documents and procedures and for uniform parcel numbering. Said systems shall provide related information specified by the state tax commission.
(2) The state tax commission shall prescribe forms and documents to be used to comply with the requirements of subsection (1) of this section when the information contained in said forms and documents is needed by the tax commission. The appropriate county official may request that the state tax commission consider an alternate, but equivalent, system for the preparation of property rolls and related documents. If the county official demonstrates equivalence to the satisfaction of the state tax commission, the state tax commission may, at its discretion, permit the alternate system to be used. Alternate forms or documents to be provided at county expense may be used if submitted to the state tax commission prior to use and if, in the opinion of the state tax commission, the alternate forms or documents are equivalent to the forms or documents provided by the state tax commission.
(3) Forms or documents required to comply with the provisions of subsection (1) of this section may be prescribed by the appropriate county official, provided that the information on said forms or documents is not needed by the state tax commission. Said forms or documents must be provided at county expense and a copy of each separate form or document must be filed with the state tax commission prior to use.
(4) The state tax commission shall, at its expense, provide aid to the counties on numbering, mapping and software for implementation of this program, and shall, at its expense, provide uniform valuation assessment notices to the county assessor and property tax notices to the county tax collector.
[63-219 added 1996, ch. 98, sec. 3, p. 326.]
(1) The board of county commissioners of any Idaho county declared by the governor of the state of Idaho as a natural disaster area may grant an extension of time for any filings or payments required under section 63-302(1), 63-602G, 63-706 or 63-903, Idaho Code, to those persons whose ability to timely comply with their filing or payment requirement is adversely affected by a natural disaster set forth in the declaration.
(2) Before granting any extension the board of county commissioners shall provide a procedure for affected taxpayers to justify the extension and provide such other information as the board may require to support the taxpayer’s application.
(3) No extension granted under this section shall be for a period in excess of sixty (60) days.
(4) In all cases where the board has granted an extension under this section, payment of the tax shall not be subject to any late filing penalty or interest if payment of the tax is made on or before the extended due date. Failure to make payments on or before the extended due date will thereafter cause the imposition of penalty and interest.
(5) When, as a result of relief granted under this section, a county official or state agency is unable to comply with a provision in this title requiring an action by a specified date, the action may be delayed only for such reasonably necessary time as the state tax commission approves, but not to exceed sixty (60) days.
[63-220, added 1997, ch. 64, sec. 2, p. 136.]
(1) The assessor shall complete an assessment of all real and personal property in his county which is subject to assessment by him on or before the fourth Monday of June. In making such assessment, the assessor shall determine, according to recognized appraisal methods and techniques, the market value for assessment purposes of real and personal property. Said assessments shall be entered on the property roll. After the aforesaid date, any property which has been omitted from the property roll shall be entered on the subsequent property roll and submitted to the county commissioners meeting as a board of equalization, from the fourth Monday of November through the first Monday of December of the current year, or entered on the missed property roll and submitted during the county board of equalization’s monthly meeting in January of the following year.
(2) The market value for assessment purposes of each parcel of property subject to assessment shall be listed on the appropriate roll, as defined in subsection (1) of this section, by category of property established and defined pursuant to section 63-109, Idaho Code.
[63-301 added 1996, ch. 98, sec. 4, p. 327.]
(1) The county assessor shall prepare a new construction roll, which shall be in addition to the property roll, which new construction roll shall show:
(a) The name of the taxpayer;
(b) The description of the new construction, suitably detailed to meet the requirements of the individual county;
(c) The amount of taxable market value added to the property on the current year’s property roll that is directly the result of new construction;
(d) The amount of taxable market value added as provided in subsection (3)(f) of this section as a result of dissolution of any revenue allocation area; and
(e) The amount of taxable market value to be deducted to reflect the adjustments required in this paragraph:
(i) Any board of tax appeals or court-ordered value change, if property has a taxable value lower than that shown on any new construction roll in any one (1) of the immediate five (5) tax years preceding the current tax year;
(ii) Any reduction in value resulting from correction of value improperly included on any previous new construction roll as a result of double or otherwise erroneous assessment;
(iii) Any reduction in value resulting from the exemption provided in section 63-602W(4), Idaho Code, in any one (1) of the immediate five (5) tax years preceding the current tax year;
(iv) Any voluntary reduction in value reflecting a portion of certain homestead exemptions as provided in section 63-602G(10), Idaho Code; and
(v) Any reduction in value resulting from a fire protection district de-annexing territory pursuant to section 31-1411(3), Idaho Code, or library district de-annexing territory pursuant to section 33-2711A, Idaho Code. The full taxable market value for assessment purposes of such de-annexed territory, as certified by the county assessor, shall be deducted from the new construction roll for the de-annexing district in the year following the de-annexation.
(2) As soon as possible, but in any event by no later than the first Monday in June, the new construction roll shall be certified to the county auditor and a listing showing the amount of value on the new construction roll in each taxing district or unit shall be forwarded to the state tax commission on or before the fourth Monday in July. Provided however, the value shown in subsection (3)(e) of this section shall be reported to the appropriate county auditor by the state tax commission by the third Monday in July and the value sent by the county auditor to each taxing district. The value established pursuant to subsection (3)(e) of this section is subject to correction by the state tax commission until the first Monday in September, and any such corrections shall be sent to the appropriate county auditor, who shall notify any affected taxing districts.
(3) Except as otherwise provided in this subsection, the value shown on the new construction roll shall include ninety percent (90%) of the taxable market value increase from:
(a) Construction of any new structure that previously did not exist, once it is completed and taxable;
(b) Additions or alterations to existing nonresidential structures;
(c) Installation of new or used manufactured housing that did not previously exist within the county;
(d) Property newly taxable as a result of loss of the exemption provided by section 63-602W(3) or (4), Idaho Code;
(e) The construction of any improvement or installation of any equipment used for or in conjunction with the generation of electricity and the addition of any improvement or equipment intended to be so used, except property that has a value allocated or apportioned pursuant to section 63-405, Idaho Code, or that is owned by a cooperative or municipality as those terms are defined in section 61-332A, Idaho Code, or that is owned by a public utility as that term is defined in section 61-332A, Idaho Code, owning any other property that is allocated or apportioned. No replacement equipment or improvements may be included;
(f) Provided such increases do not include increases already reported on the new construction roll as permitted in paragraphs (i) and (j) of this subsection, increases in value over the base value of property on the base assessment roll within an urban renewal revenue allocation area that has been terminated pursuant to section 50-2914, Idaho Code, to the extent that this increment exceeds the incremental value as of December 31, 2006, or, for revenue allocation areas formed after December 31, 2006, eighty percent (80%) of the increment value. Notwithstanding other provisions of this section, the new construction roll shall not include new construction located within an urban renewal district’s revenue allocation area, except as provided in this paragraph or paragraph (k) of this subsection;
(g) New construction, in any one (1) of the immediate five (5) tax years preceding the current tax year, allowable but never included on a new construction roll, provided however, that for such property the value on the new construction roll shall reflect the taxable value that would have been included on the new construction roll for the first year in which the property should have been included;
(h) Formerly exempt improvements on state college-owned or state university-owned land for student dining, housing, or other education-related purposes approved by the state board of education and board of regents of the university of Idaho as proper for the operation of such state college or university, provided such improvements were never included on any previous new construction roll;
(i) Increases in base value when due to previously determined increment value added to the base value as required in sections 50-2903 and 50-2903A, Idaho Code, due to a modification of the urban renewal plan. In this case, the amount added to the new construction roll will equal eighty percent (80%) of the amount by which the increment value in the year immediately preceding the year in which the base value adjustment described in this subsection occurs exceeds the incremental value as of December 31, 2006, or, for revenue allocation areas formed after December 31, 2006, the entire increment value; and
(j) Increases in base value when due to previously determined increment value added to the base value as a result of a de-annexation within a revenue allocation area as defined in section 50-2903, Idaho Code. In this case, the amount added to the new construction roll will equal eighty percent (80%) of the amount by which the increment value in the year immediately preceding the year in which the de-annexation described in this subsection occurs exceeds the incremental value as of December 31, 2006, or, for revenue allocation areas formed after December 31, 2006, the entire increment value within the area subject to the de-annexation.
(k) In the case of a fire protection district or ambulance service district that encompasses all or part of any urban renewal revenue allocation area that such district withdrew from pursuant to section 50-2906(5), Idaho Code, eighty percent (80%) of the increment value may be included on the new construction roll for the year in which the district withdrew from such urban renewal revenue allocation area. Each year thereafter, ninety percent (90%) of the taxable value of otherwise qualifying new construction shall be included in the new construction roll for such fire protection district or ambulance service district and for fire protection districts and ambulance service districts that are not subject to the financing provisions of an urban renewal revenue allocation area pursuant to section 50-2906(4), Idaho Code, even if such new construction would not otherwise qualify because it was located within a revenue allocation area.
(4) The amount of taxable market value of new construction shall be the change in net taxable market value that is attributable directly to the new construction or loss of the exemption provided by section 63-602W(3) or (4), Idaho Code. It shall not include any change in value of existing property that is due to external market forces such as general or localized inflation, except as provided in subsection (3)(f) of this section.
(5) The amount of taxable market value of new construction shall not include any new construction of property that has been granted a provisional property tax exemption, pursuant to section 63-1305C, Idaho Code. A property owner may apply to the board of county commissioners, if an application is required pursuant to section 63-602, Idaho Code, for an exemption from property tax at the time the initial building permits are applied for or at the time construction of the property has begun, whichever is earlier, or at any time thereafter.
(6) The amount of taxable market value of new construction shall not include any new construction of property for which an exemption from sales and use tax has been granted pursuant to section 63-3622VV, Idaho Code.
[63-301A, added 1997, ch. 117, sec. 13, p. 313; am. 1998, ch. 95, sec. 2, p. 342; am. 2002, ch. 143, sec. 6, p. 402; am. 2002, ch. 344, sec. 1, p. 962; am. 2003, ch. 8, sec. 1, p. 15; am. 2003, ch. 16, sec. 15, p. 64; am. 2007, ch. 135, sec. 1, p. 395; am. 2010, ch. 254, sec. 1, p. 644; am. 2010, ch. 283, sec. 1, p. 760; am. 2011, ch. 151, sec. 28, p. 433; am. 2011, ch. 175, sec. 1, p. 496; am. 2012, ch. 192, sec. 2, p. 518; am. 2016, ch. 349, sec. 8, p. 1025; am. 2018, ch. 194, sec. 2, p. 432; am. 2020, ch. 335, sec. 2, p. 975; am. 2021, ch. 360, sec. 2, p. 1113; am. 2022, ch. 310, sec. 1, p. 999; am. 2024, ch. 168, sec. 3, p. 647; am. 2025, ch. 300, sec. 9, p. 1268; am. 2026, ch. 19, sec. 1, p. 104; am. 2026, ch. 197, sec. 2, p. 854.]
(1) The assessor shall leave at the office, place of business or residence of each personal property owner, or mail to such personal property owner at his last known post office address, a form with notice requiring such personal property owner to make a correct list of taxable personal property. Every personal property owner so required shall enter a true and correct statement of such personal property and the ownership thereof, which statement shall be signed and verified by the oath of the personal property owner or his agent listing such personal property, and shall be delivered to the assessor, not later than March 15. The assessor shall thereupon determine the market value for assessment purposes of such personal property and enter the same on the property roll. However, if for any reason the assessor shall fail to contact such personal property owner, the failure shall not impair or invalidate any assessment, nor will such failure relieve the personal property owner or his agent of the responsibility to obtain such declaration and to comply with the requirements of this title. Any willful failure to personally contact each personal property owner, shall be deemed malfeasance in office and grounds for the removal of the assessor from office.
(2) If such person fails to make and deliver the list as required, the assessor may list and assess such personal property according to his best judgment and information.
(3) Whenever a taxpayer’s list of taxable personal property discloses personal property having a situs for purposes of taxation in another county in this state, the assessor must immediately make a copy of that portion of such list for each county in which such personal property is situated, and transmit the same by mail to the assessor of the proper county, who must, upon receipt of such copy, enter such personal property upon the property roll therein, unless such personal property has already been entered. The assessor shall strike from the original list all personal property so disclosed as having a situs in another county, and shall assess and enter only the balance of the personal property in his county.
[63-302 added 1996, ch. 98, sec. 4, p. 327.]
Manufactured homes shall be assessed as other residential housing and such assessments shall be entered on the property roll.
[63-303 added 1996, ch. 98, sec. 4, p. 328; am. 2004, ch. 27, sec. 2, p. 44.]
(1) A manufactured home may constitute real property if the running gear is removed and:
(a) If the manufactured home becomes permanently affixed to a foundation:
(i) On land which is owned or being purchased by the owner or purchaser of said manufactured home; or
(ii) On land which is being leased by the owner or purchaser of the manufactured home if such home is being financed in accordance with the guidelines of the federal home loan mortgage corporation, the federal national mortgage association, the United States department of agriculture or any other entity or agency that requires, as part of its financing program, similar restrictions on ownership and actions affecting title and possession, provided that if a county takes a tax deed to the manufactured home the county shall not be liable for any delinquent or ongoing leases, rents or any other liabilities owed due to the placement of such property; and
(b) If the owner or purchaser of a manufactured home records with the county recorder in the county in which the manufactured home will be situated a statement of intent to declare the manufactured home as real property.
(2) The exercise of said option shall require all county assessors to treat those manufactured homes whose owners or purchasers have exercised said option as any other site-built residence and shall permit lending institutions to treat said manufactured homes as real property or as any other residence.
(3) The form of the declaration shall be prescribed by the state tax commission. Any form used shall have attached to it the certificate of origin or the original title to the manufactured home to allow a reversal of the declaration as provided in section 63-305, Idaho Code.
[63-304 added 1996, ch. 98, sec. 4, p. 328; am. 2002, ch. 61, sec. 1, p. 130.]
(1) Once a manufactured home has been converted to real property under the provisions of section 63-304, Idaho Code, it shall be deemed a fixture and an improvement to the real property to which it is affixed. Physical removal shall be prohibited without the consent of all persons or entities who, at the time of removal have an interest in the real property or title to any estate in the real property to which the manufactured home has been affixed. The homeowner shall obtain a title report from a title insurance company which shall establish the identity of those individuals or entities whose consent must be obtained. Consent to removal of the manufactured home shall not be required from the owners of rights-of-way, easements or owners of subsurface rights.
(2) Physical removal shall include, without limitation, the separation of the manufactured home from the foundation system, except for the temporary purposes of repair or improvement thereto.
(3) At least thirty (30) days before the manufactured home is to be removed, the homeowner shall give written notice of the intended removal to the county assessor in the county in which the real property is located. The county assessor shall require written evidence that the necessary consents have been obtained from those persons or entities identified in the title report as required in the provisions of subsection (1) of this section. In addition, removal shall be prohibited until the county tax collector has given written approval for the removal of the manufactured home by certifying that all property taxes, due and payable, have been paid.
(4) The homeowner shall, within five (5) days of removal, make application for the issuance of a certificate of title for the manufactured home. Prior to the issuance of a certificate of title, the declaration of reversal shall be recorded. Immediately upon issuance of a certificate of title, the manufactured home shall again become personal property for the purpose of financing and for the purpose of taxation shall be assessed pursuant to section 63-302, Idaho Code.
(5) The state tax commission shall prescribe the forms to be used by the county assessor to reverse the option exercised under the provisions of section 63-304, Idaho Code, which created the real property designation.
(6) A homeowner who physically removes a manufactured home in violation of the provisions of this section shall be liable for all legal costs and fees, together with actual expenses incurred to restore the real property to its former condition. Any judgment obtained pursuant to this section may be recorded as a lien upon the manufactured home removed from the property.
[63-305 added 1996, ch. 98, sec. 4, p. 328; am. 2002, ch. 61, sec. 2, p. 131.]
(1) All property required to be listed and assessed under the provisions of this title shall be listed by the owner or his agent, except as hereinafter provided:
(a) The property of a minor shall be listed by his guardian, or by the person having such property in charge.
(b) The property of a person determined by a court to be legally incompetent, by the person having charge of such property.
(c) The property of a person for whose benefit it is held in trust, by the trustee.
(d) The property of a deceased person, by the executor or administrator.
(e) The property of a person or corporation whose assets are in the hands of a receiver, by the receiver or his agent.
(f) The property of a corporation, by the president, secretary, treasurer or other proper agent or officer.
(g) The property of a firm, partnership, limited liability company, association or company, or other such entities as recognized by the state of Idaho, by a partner, member or agent.
(h) Property in litigation in possession of a receiver, or of any county officer, or officer of a court, by the custodian thereof.
(2) Whenever property is listed to any person in a representative capacity, his representative designation must be added to his name, and such property must be entered upon the property roll separate and apart from any individual property of such person.
[63-306 added 1996, ch. 98, sec. 4, p. 329.]
(1) The assessor shall ascertain the current ownership of land from documents recorded in the county recorder’s office and/or from evidence of ownership furnished to the assessor that is admissible at trial in a civil action. Evidence of ownership admissible in a civil action includes but is not limited to a policy of title insurance or title commitment issued by a duly qualified title insurance company licensed in the state of Idaho.
(2) Whenever any person is the owner of, or has contracted to purchase, either an undivided or defined portion of any real property assessed as a whole, such owner or purchaser, upon producing his deed, contract or other muniment of title to the assessor at any time before the assessor has completed the assessment for that year, may have such assessment changed and corrected accordingly.
(3) No mistake in the name of the owner or failure to designate such owner shall in any manner affect the validity of the assessment or tax lien.
(4) If the ownership of any property is not known, such property must be assessed in the name of "unknown owner."
[63-307, added 1996, ch. 98, sec. 4, p. 329; am. 1997, ch. 215, sec. 1, p. 635; am. 2022, ch. 75, sec. 2, p. 215.]
(1) At the taxpayer’s request, on a form provided by the assessor, the valuation assessment notice may be transmitted electronically to the taxpayer.
(2) The valuation assessment notice required under the provisions of this chapter shall be delivered or may be transmitted electronically, as that term is defined in section 63-115, Idaho Code, if electronic transmission is requested by the taxpayer, to the taxpayer or to his agent or representative or mailed to the taxpayer or to his agent or representative at his last known post office address no later than the first Monday in June. The original valuation assessment notice so mailed or transmitted electronically must contain notices of all meetings of the board of equalization prescribed by this title for the purposes of equalizing assessments of property and for granting exemptions from taxation. The notice shall, in clear terms, inform the taxpayer of the assessed market value for assessment purposes of his property for the current year and his right to appeal to the county board of equalization. The state tax commission may require that other data or information be shown on the form.
(3) In case any changes or corrections are made by the assessor from the original valuation assessment notice, the assessor shall immediately transmit electronically or mail a corrected valuation assessment notice to the taxpayer or to his agent or representative.
(4) If the taxpayer is one other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the taxpayer shall transmit electronically or mail to the equitable titleholder a true copy of the valuation assessment notice on or before the second Monday in June.
(5) For property entered and assessed on the subsequent property roll pursuant to section 63-311, Idaho Code, the valuation assessment notice shall be transmitted electronically to the taxpayer or to his agent or representative or mailed to the taxpayer or to his agent or representative at his last known post office address as soon as possible after it is prepared, but not later than the third Monday in November.
(6) For property entered and assessed on the missed property roll pursuant to section 63-311, Idaho Code, the valuation assessment notice shall be transmitted electronically to the taxpayer or to his agent or representative or mailed to the taxpayer or to his agent or representative at his last known post office address as soon as possible after it is prepared, but not later than the first Monday of January of the following year.
Valuation assessment notice to be furnished to the taxpayer. [effective january 1, 2024]
(1) The state tax commission shall prepare a standard valuation assessment notice form to be used by all counties in fulfilling the requirements of this section.
(2) The valuation assessment notice required under the provisions of this chapter shall be delivered or may be transmitted electronically, as that term is defined in section 63-115, Idaho Code, if electronic transmission is requested by the taxpayer, to the taxpayer or to his agent or representative or mailed to the taxpayer or to his agent or representative at his last known post office address no later than the first Monday in June.
(3) The original valuation assessment notice so mailed or transmitted electronically must contain notices of all meetings of the board of equalization prescribed by this title for the purposes of equalizing assessments of property and for granting exemptions from taxation. The notice shall, in clear terms, inform the taxpayer of the market value for assessment purposes of the taxpayer’s property for the current year and the right to appeal to the county board of equalization. The notice shall also state:
(a) The market value for assessment purposes of the taxpayer’s property for the previous two (2) years;
(b) The property taxes on the taxpayer’s property by each taxing district and unit for the previous two (2) years;
(c) The percentage of increase or decrease that occurred over the previous two (2) years of the property tax amount on the taxpayer’s property for each taxing district and unit;
(d) The date of each taxing district’s or unit’s budget hearing, if scheduled. If not scheduled as of the time of the notice, then the date by which the budget hearing must be held; and
(e) A telephone number for each taxing district or unit by which a taxpayer may obtain further information.
(4) The state tax commission may require that other data or information be shown on the form.
(5) In case any changes or corrections are made by the assessor from the original valuation assessment notice, the assessor shall immediately transmit electronically or mail a corrected valuation assessment notice to the taxpayer or to his agent or representative.
(6) If the taxpayer is one other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the taxpayer shall transmit electronically or mail to the equitable titleholder a true copy of the valuation assessment notice on or before the second Monday in June.
(7) For property entered and assessed on the subsequent property roll pursuant to section 63-311, Idaho Code, the valuation assessment notice shall be transmitted electronically to the taxpayer or to his agent or representative or mailed to the taxpayer or to his agent or representative at his last known post office address as soon as possible after it is prepared, but not later than the third Monday in November.
(8) For property entered and assessed on the missed property roll pursuant to section 63-311, Idaho Code, the valuation assessment notice shall be transmitted electronically to the taxpayer or to his agent or representative or mailed to the taxpayer or to his agent or representative at his last known post office address as soon as possible after it is prepared, but not later than the first Monday of January of the following year.
[63-308 added 1996, ch. 98, sec. 4, p. 330; am. 2013, ch. 191, sec. 1, p. 472; am. 2021, ch. 26, sec. 2, p. 67; am. 2023, ch. 35, sec. 1, p. 169.]
(1) All taxable improvements on government, Indian, state, county, municipal or other lands exempt from taxation, and all improvements on all railroad rights-of-way owned separately from the ownership of the rights-of-way upon which the same stands, or in which nonexempt persons have possessory interests, shall be assessed and taxed as personal property, provided that such improvements shall not be eligible for the exemption provided in section 63-602KK, Idaho Code.
(2) Property of the state of Idaho or any department, agency or subdivision thereof, or any other property not subject to property taxation to the owner thereof by reason of the legal status of the owner, held under contract of sale or lease with option to purchase, with lease moneys applicable to the purchase price, by any person, corporation or other association for his or its exclusive use, shall be subject to the purchaser or lessee for property taxation. When such property is held under a contract of sale or other agreement whereby on certain payment or payments the legal title is or may be acquired by such person, firm, corporation or association, such property shall be assessed to such person, firm, corporation or association and taxed without deduction on account of the whole or any part of the purchase price or other sum due on such property remaining unpaid. The lien for any such property tax shall neither attach to, impair or be enforced against any interest of the state of Idaho or any department, agency or subdivision thereof.
(3) Refusal to pay the property tax levied upon any equity in state property by the owner upon demand by the tax collector shall operate as forfeiture of such equity.
[63-309 added 1996, ch. 98, sec. 4, p. 330; am. 2014, ch. 357, sec. 3, p. 889.]
The assessor must certify the completion of the property roll on or before the fourth Monday of June in each year, and must, on or before that date, deliver the completed property roll, together with all claims for exemptions from assessment or taxation to the clerk of the board. The property roll and claims for exemptions must remain in the office of the clerk until the second Monday of July for the inspection of all persons interested.
[63-310 added 1996, ch. 98, sec. 4, p. 331.]
(1) The assessor shall assess all personal property and all improvements to real property except as otherwise provided in section 63-317, Idaho Code, which have been completed or discovered between the fourth Monday of June and the fourth Monday of November and which were not included on the property roll delivered on the fourth Monday of June, and shall enter such assessments on the subsequent property roll to be delivered to the clerk of the board on the fourth Monday of November of the current year.
(2) If other real or personal property is discovered and assessed between the fourth Monday of November and December 31st, it shall be assessed and entered on the missed property roll to be delivered to the clerk of the board on the first Monday of January of the following year.
(3) Personal property coming into the state from without the state after the first day of January shall be assessed as of the date of its entry into the state as follows; if before the first day of April, for its full market value for assessment purposes; if on the first day of April and before the first day of July, for three-fourths (3/4) of its full market value for assessment purposes; if on the first day of July and before the first day of October, for one-half (1/2) of its full market value for assessment purposes; and if on the first day of October and on or before the thirty-first day of December, for one-fourth (1/4) of its full market value for assessment purposes, and the taxes so levied thereupon shall be a first and prior lien on such property from the date of its entry into the state so assessed, and upon all other personal or real property, belonging to the same owner, and no personal property of any kind shall be exempt from such lien.
[63-311 added 1996, ch. 98, sec. 4, p. 331.]
(1) The county assessor, at the time of delivery of the property roll, subsequent property roll or missed property roll to the clerk of the board, must subscribe an affidavit that the property roll, subsequent property roll or missed property roll is, to the best of his knowledge and ability, a true and complete statement of market value for assessment purposes of all property subject to appraisal by him and that he has faithfully complied with all the duties imposed upon him under law.
(2) Failure by the assessor to make the affidavit shall not affect the validity of any appraisal entered on the property roll, subsequent property roll or missed property roll. The making of such affidavit, however, is declared to be a duty pertaining to the office of the assessor, and when the same is to be made by the deputy assessor it shall be the duty of the assessor to have the same properly made. In every case where the said affidavit is omitted from any assessment roll as completed as aforesaid, the board of county commissioners must require the assessor to make the same, or have the same made by the deputy assessor, and upon refusal or neglect of such assessor to supply such affidavit forthwith, the chairman of the board of county commissioners must immediately file in the district court in the county any information, in writing, verified by his oath, charging such assessor with refusal or neglect to perform the official duties pertaining to his office, and thereupon he must be proceeded against as in such cases provided by law.
[63-312 added 1996, ch. 98, sec. 4, p. 332.]
Beginning January 1, 2022, all transient personal property is exempt from taxation. No replacement moneys shall be provided as a result of this section.
[63-313 added 1996, ch. 98, sec. 4, p. 332; am. 2008, ch. 400, sec. 7, p. 1101; am. 2021, ch. 360, sec. 8, p. 1121; am. 2022, ch. 225, sec. 1, p. 739.]
(1) It shall be the duty of the county assessor of each county in the state to conduct and carry out a continuing program of valuation of all taxable properties under his jurisdiction pursuant to such rules as the state tax commission may prescribe, to the end that all parcels of property under the assessor’s jurisdiction are assessed at current market value. In order to promote uniform assessment of property in the state of Idaho, taxable property shall be appraised or indexed annually to reflect current market value. In order to achieve this goal, all taxable property in a county shall be appraised at least once every five (5) years, except as provided in subsection (6). Beginning in 2003, or year one (1) of any five (5) year cycle not less than fifteen percent (15%) of the taxable properties in the county shall be appraised during that year; by the end of year two (2) not less than thirty-five percent (35%) of the taxable properties in the county shall have been appraised during that year and the previous year; by the end of year three (3) not less than fifty-five percent (55%) of the taxable properties in the county shall have been appraised during that year and the previous two (2) years; by the end of year four (4) not less than seventy-five percent (75%) of the taxable properties in the county shall have been appraised during that year and the previous three (3) years; and by the end of year five (5) all one hundred percent (100%) of the taxable properties within the county shall have been appraised during that year and the previous four (4) years. Annually, all taxable property, not appraised that year, shall be indexed to reflect current market value for assessment purposes using market value property transactions and results of the annual appraisal of taxable property. The county assessor shall maintain in the respective offices sufficient records to show when each parcel or item of property was last appraised. The appraisal required by this section shall include a plan outlining the continuing valuation program. Said plan shall be submitted to the state tax commission for approval on or before the first Monday in February, 1997, and no less frequently than every fifth year thereafter. The state tax commission shall not approve any plan that fails to provide for adequate appraisal and valuation of all taxable properties in any county.
(2) The state tax commission is hereby authorized, empowered and directed to promulgate rules for the implementation of this program, and to provide any such county assessor with such supervision and technical assistance as may be necessary.
(3) The county commissioners of each county shall furnish the assessor with such additional funds and personnel as may be required to carry out the program hereby provided, and for this purpose may levy annually a property tax of not to exceed four-hundredths percent (.04%) of the market value for assessment purposes on all taxable property in the county to be collected and paid into the county treasury and appropriated to the property valuation fund which is hereby created.
(4) If compliance with the requirements of subsection (1) is not obtained, or if any county fails to meet the goals set in subsection (1), the state tax commission may proceed as required by section 63-316, Idaho Code. If a county fails to meet the timelines in subsection (1), the state tax commission shall require a remediation plan.
(5) As used in this section the term "adequate appraisal and valuation of all taxable properties in any county" means a process which includes a field inspection of not less than the number of taxable properties necessary to meet the requirements of subsection (1). Appraisal also includes collection, verification and analysis of market value sales, applicable income and expense data and building cost information, and application of this information to predict market value.
(6) The board of county commissioners may request that the Idaho state tax commission grant an extension of the five (5) year reappraisal deadline set forth in subsection (1). The request shall be in writing and shall set forth the reason(s) that the county is unable to complete the reappraisal process as required by subsection (1) and shall set forth the measures the county will undertake in order to complete the reappraisal program within the extension of time requested. In no case shall an extension exceed two (2) years. The state tax commission may approve or deny any request for an extension and shall notify the board of county commissioners of its decision in writing. The state tax commission shall not approve any extension absent a showing by the county of extraordinary circumstances. Extraordinary circumstances may include, but are not limited to, natural disasters or unforeseen circumstances that result in extreme financial hardship to the county. Circumstances that will not qualify for an extension may include, but are not limited to, failure to adequately fund the county valuation program as provided by this section, malfeasance, or mismanagement by a current elected official. The state tax commission shall not grant the extension provided in this section if studies conducted by the commission indicate that any category of property affected by such extension is not assessed at market value.
(7) The Idaho state tax commission shall report back to the Idaho house of representatives revenue and taxation committee and the senate local government and taxation committee whenever an extension authorized under subsection (6) is granted.
[63-314, added 1996, ch. 98, sec. 4, p. 333; am. 1997, ch. 117, sec. 14, p. 314; am. 2000, ch. 196, sec. 1, p. 487; am. 2003, ch. 34, sec. 1, p. 152.]
(1) The provisions of this section shall apply only to charter districts levying a maintenance and operation levy in the prior calendar year. For the purpose of this section, adjusted market value for assessment purposes shall be the adjusted market value for assessment purposes of all property assessed for property tax purposes for the year referred to in sections 33-802 and 33-1002, Idaho Code.
(2) The state tax commission shall conduct a ratio study to annually ascertain the ratio between the assessed value and the market value for assessment purposes of all property assessed for property tax purposes. Said ratio study shall be conducted in accordance with nationally accepted procedures. From the ratio so ascertained the state tax commission shall compute the adjusted market value of all property assessed for property tax purposes.
(3) The ratio shall be computed in each school district and applied to the market value for assessment purposes within each school district.
(4) Sales used in determining the ratio required by this section shall be arm’s length, market value property sales occurring in the year beginning on October 1 of the year preceding the year for which the adjusted market value is to be determined. The state tax commission may, at its discretion, modify the sales period when doing so produces provably better representativeness of the actual ratio in any school district. The state tax commission may also add independently conducted appraisals when the state tax commission believes that this procedure will improve the representativeness and reliability of the ratio.
(5) Whenever the state tax commission is unable to determine with reasonable statistical certainty that the assessed value within any school district differs from the market value for assessment purposes, the state tax commission may certify the assessed value to be the adjusted market value of any school district.
(6) The state tax commission shall certify the adjusted market value of each school district to the state department of education and each county auditor no later than the first Monday in April each year. The state tax commission shall prepare a report indicating procedures used in computing the adjusted market value and showing statistical measures computed in the ratio study. The report of the state tax commission shall be made available for public inspection in the office of the county auditor.
(7) The state tax commission shall promulgate rules to implement the ratio study described in this section.
[63-315, added 1996, ch. 98, sec. 4, p. 334; am. 1998, ch. 102, sec. 1, p. 350; am. 2006, 1st Ex. Sess., ch. 1, sec. 15, p. 58; am. 2016, ch. 87, sec. 1, p. 273.]
(1) Whenever the state tax commission, after a hearing, determines that any county assessor or the county commissioners in assessing property in the county subject to taxation have failed to abide by, adhere to and conform with the laws of the state of Idaho and the rules of the state tax commission in determining market value for assessment purposes, the state tax commission shall order the county assessor and county commissioners of such county to make the necessary changes or corrections in such assessments and if the county assessor and the county commissioners refuse or neglect to comply with such order, the state tax commission is authorized to and shall forthwith adjust or change the property roll in such county.
(2) In lieu of the hearings and actions permitted in subsection (1) of this section, the state tax commission shall monitor each county’s implementation of the continuing appraisal required in section 63-314, Idaho Code, and may require each county to file such reports of its progress at implementation of such continuing appraisals as the commission may find necessary. In the event that the commission finds that any county is failing to meet the requirements of section 63-314, Idaho Code, the commission may order that county’s indexing or appraisal or reappraisal programs be conducted under the exclusive and complete control of the state tax commission and the results of such programs shall be binding upon the county officers of the county for which ordered. Payments for the actual costs of such programs shall be made from the sales tax distribution created in section 63-3638, Idaho Code, and the amount of such payments shall be withheld from the payments otherwise made under the provisions of section 63-3638(10)(b) and (10)(c), Idaho Code, to the county for which indexing, appraisal or reappraisal has been ordered, and this subsection shall constitute the necessary appropriation to accomplish such payments, any other provision of law notwithstanding.
[63-316, added 1996, ch. 98, sec. 4, p. 334; am. 2000, ch. 207, sec. 1, p. 521; am. 2001, ch. 130, sec. 2, p. 462; am. 2009, ch. 341, sec. 141, p. 1061; am. 2020, ch. 162, sec. 3, p. 475.]
(1) All real property subject to property taxation shall be valued and taxed based upon its status as of January 1 of each tax year. Improvements, other than additions to existing improvements, constructed upon real property shall not be subject to property taxation during the year of construction other than that portion actually in place as of January 1 of each calendar year. New manufactured housing shall not be subject to property taxation during the first year of occupancy if occupied after January 1. For the purposes of this section, "new manufactured housing" means manufactured housing, whether real or personal, never previously occupied.
(2) There is hereby levied an occupancy tax upon all newly constructed and occupied residential, commercial and industrial structures, including new manufactured housing, except additions to existing improvements or manufactured housing, prorated for the portion of the year for which the structure was occupied. The occupancy tax shall be upon those improvements or new manufactured housing for that portion of the calendar year in which first occupancy occurs. The occupancy tax does not apply to operating property. Improvements that were exempt as of January 1 of the tax year, but that may be subject to occupancy tax during that tax year, shall not be subject to property tax as otherwise provided in section 63-602Y, Idaho Code. For the purposes of this section, the term "occupied" means:
(a) Use of the property by any person as a residence including occupancy of improvements or use in storage of vehicles, boats or household goods, provided such use is not solely related to construction or sale of the property; or
(b) Use of the property for any business or commercial purpose unrelated to the construction and sale of the property; or
(c) Any possessory use of the property for which the owner received any compensation or consideration.
(3) The owner of any newly constructed improvement or new manufactured housing, as described in this section, upon which no occupancy tax has been charged shall report to the county assessor that the improvement or new manufactured housing has been occupied. As soon as practical after receiving such a report, the county assessor shall appraise and determine the market value for assessment purposes.
(a) At the time the county assessor determines the market value for assessment purposes of any improvement, he shall allow as an offset against the market value of the improvement the market value of any portion of that improvement which was existing on January 1 and placed upon the property roll.
(b) Upon completion of the appraisal and entry of the appraised value on the occupancy tax roll, which roll shall be prepared for property subject to the occupancy tax, the county assessor shall:
(i) Notify the owner of the appraised value and the right to appeal the value provided in the appraisal within twenty-eight (28) days of such notification in the manner provided in section 63-501A, Idaho Code, notwithstanding date limitations found in that section, and further shall notify the owner of the right to apply for the exemption provided in sections 63-602G and 63-602X, Idaho Code. If the owner applies for and meets the requirements for such exemption within thirty (30) days of the notification by the county assessor, the exemption shall be extended to the newly constructed and occupied residential structures in compliance with section 63-602G, Idaho Code, notwithstanding limitations requiring occupancy as of April 15 of the tax year; and
(ii) Notify the owner of the right to apply for a reduction of property taxes or occupancy taxes pursuant to chapter 7, title 63, Idaho Code. If the owner applies for and meets the requirements for a tax reduction within thirty (30) days of the notification by the county assessor, the tax reduction roll shall be amended by the county assessor by adding claims submitted pursuant to this section, provided such claims are submitted to the assessor no later than September 1. For claims submitted after that date, the county assessor shall prepare a supplemental tax reduction roll. The supplemental tax reduction roll shall be submitted to the state tax commission along with the claims no later than the first Monday in March of the following tax year. The county assessor and the state tax commission shall calculate a reduction of occupancy taxes and reimbursement to taxing districts in the same manner as if a claim had been submitted on or before April 15 of the tax year.
(c) In the event that the owner fails to report to the county assessor that the property is ready for occupancy, the assessor shall notify the county board of equalization, which may impose as penalty an additional amount equal to five percent (5%) of the tax for each month following the date of first occupancy during which the report is not made, to a maximum of twenty-five percent (25%) of the tax.
(4) Appeals of the market value for assessment purposes shall be resolved in the same manner as all other appeals of valuation by the board of equalization.
(5) The occupancy tax calculated upon the values set by the county assessor and any penalty imposed by the board of equalization shall be collected in the same manner as all other property taxes.
(6) An occupancy tax lien shall be imposed in the manner provided in section 63-206, Idaho Code.
(7) Occupancy taxes shall be billed, collected and distributed in the same manner as all other property taxes.
[63-317, added 1996, ch. 98, sec. 4, p. 335; am. 1997, ch. 117, sec. 15, p. 315; am. 2003, ch. 364, sec. 1, p. 972; am. 2004, ch. 260, sec. 1, p. 735; am. 2006, ch. 302, sec. 1, p. 931; am. 2013, ch. 21, sec. 2, p. 35; am. 2014, ch. 77, sec. 2, p. 202; am. 2019, ch. 31, sec. 1, p. 85.]
A park model recreational vehicle shall constitute personal property if not registered under the provisions of chapter 4, title 49, Idaho Code. Park model recreational vehicles shall not constitute real property. As used in this section, "park model recreational vehicle" has the same meaning as set forth in section 63-3622HH, Idaho Code.
[63-318, added 2017, ch. 134, sec. 13, p. 323.]
Operating property, completed or under construction, shall be assessed by the state tax commission. The state tax commission shall identify property to be included as operating property for assessment purposes. Property assessed by the state tax commission shall not be subject to another assessment by any county assessor. A decision by the state tax commission under this section may only be appealed as provided in sections 63-407 and 63-409, Idaho Code.
[63-401 added 1996, ch. 98, sec. 5, p. 336; am. 1998, ch. 400, sec. 2, p. 1252; am. 2002, ch. 135, sec. 1, p. 370.]
All property belonging to any person owning, operating or constructing any public utility or railroad, wholly or partly within this state, not included within the meaning of the term "operating property" as defined in this title, namely, property not reasonably necessary for the maintenance and operation of such public utility or railroad, including land or buildings rented by a company or corporation as lessee which is used as or in connection with its business, such as business offices, warehouses, service centers, moorage grounds or docks, vacant lots and tracts of land, and lots and tracts of land with the buildings thereon not used or intended to be used in the operation of such public utility or railroad, also tenement and resident property, except section houses, also hotels and eating houses, not situated adjacent to the main track of any such railroad, shall be assessed by the assessor of the county wherein the same is situated.
[63-402 added 1996, ch. 98, sec. 5, p. 336.]
Any person operating a public utility, railroad or private railcar fleet in this state shall be representative of every title and interest in the operating property and franchises of said public utility, railroad or private railcar fleet as owner, lessee or otherwise, and notice to such person, or his agent or representative, shall be notice to all interests in such property for the purpose of taxation. The assessment of such operating property in the name of the owner, lessee or operating company, shall be deemed and held to be an assessment of all title and interest in such property of every kind and nature.
[63-403 added 1996, ch. 98, sec. 5, p. 337.]
(1) Every person owning, operating or constructing, either as owner or lessee, any public utility, railroad or private railcar fleet which is not exempt from taxation under the provisions of this title, shall prepare or cause to be prepared an annual statement showing all property subject to assessment by the state tax commission, together with such pertinent information as may be required on forms supplied by the state tax commission for such purposes, which statement and forms must be signed by the owner or lessee, or the president, secretary, auditor, superintendent or principal accounting officer or agent of such person, and delivered to the state tax commission on or before such time as the state tax commission may determine, and the state tax commission must file such statement and forms in its office.
(2) The statement must contain such information as the state tax commission determines to be necessary for it to properly assess the operating property. This information shall include, unless otherwise specified, such a general description of the property of such owner or lessee situated or operated in the state of Idaho as would be sufficient to identify the same for all purposes of assessment; the entire length of the system, the length of the system within this state, the length of the line owned and the length of the line operated for the whole system and in this state being separately shown; the total number of miles of each line within the state, the number of miles of main line, branch line, second track, siding and spurs being shown and the number of miles within any county, and within any incorporated city, and within any school or other taxing district into or through which said line extends; the total number of shares of capital stock for the whole system; the amount authorized, the amount issued, the amount outstanding and the dividends paid thereon being separately shown; the market and actual value of the shares of capital stock for the whole system; the funded debt for the whole system; and a detailed statement of all series of bonds, debentures and other securities forming part of the funded debt, at par value, with date of issue, date of maturity, rate of interest and interest paid; the market and actual cash values of such series of funded debt for the whole system; a detailed statement of all capital stock and bonds or other securities of such person, or of other persons, owned by or held in trust, the par value and market and actual value of the same; the entire gross receipts and gross expenses for the entire system each year, ending on the thirty-first day of December; and such other matters and things as may be required in the annual statement supplied by the state tax commission.
(3) In addition to the statement required by this section, every person filing such statement shall, at the same time, furnish to the state tax commission unless otherwise specified, certified copies of the annual reports of the board of directors or other officers to the stockholders, and the annual reports made to the surface transportation board, federal communications commission, federal energy regulatory commission and the securities exchange commission or their successor agencies.
(4) If any person or officer refuses or neglects to furnish the annual statement, list, or copies of the reports required to be furnished under the provisions of this chapter, or refuses or neglects to appear before the state tax commission, or to answer under oath all questions propounded to him in relation to matters necessary to be known by the commission in order to discharge its duties in the assessment of his property or the property of the person represented by him, then the commission shall make an arbitrary assessment of such property, except as otherwise provided in section 63-411, Idaho Code, which shall be as fair and equitable as it may be able to make from the best information it possesses, and any such person shall be estopped to question or impeach any such assessment in any hearing or proceeding thereafter.
[63-404, added 1996, ch. 98, sec. 5, p. 337; am. 1997, ch. 117, sec. 16, p. 316.]
(1) The state tax commission must assess taxable operating property at a meeting of the commission convening on the second Monday of August in each year and must complete the assessment of such property on the fourth Monday in August.
(2) The state tax commission shall determine the system value and calculate the allocation and apportionment of the system value for taxable operating property and specifically determine:
(a) The number of miles and the value per mile of each railroad in the state and for each taxing district in which such railroad may exist.
(b) The number of miles and the value per mile of each telephone corporation in the state and for each taxing district in which such telephone corporation may exist.
(c) The number of miles and the value per mile of each pipeline in the state and for each taxing district in which such pipeline may exist.
(d) The number of miles and the value per mile of each water company under the jurisdiction of the public utilities commission in the state and for each taxing district in which such water company may exist. The value per mile of any line included in this subsection, except railroads, shall be determined by dividing the total value of such line within the state by the number of miles of such line within the state. The value per mile of railroad line shall be determined by apportionment of the total value of line within the state. The apportionment shall be based twenty percent (20%) on the ratio of line miles in the state to line miles in the county; forty percent (40%) on the ratio of net ton miles in the state to net ton miles in the county; and forty percent (40%) on the ratio of station revenues in the state to station revenues in the county. All operating property of railroads shall be apportioned to the counties as part of the railroad line in the county. The apportionment for taxing districts shall be the same as the apportionment among counties.
(e) The system value of private railcar fleets entering or standing in Idaho in the year preceding the constituted lien as provided in section 63-411(3), Idaho Code.
(f) The system value and calculate the allocation and apportionment of the system value for all other taxable operating property.
(3) For rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies subject to taxation as provided in section 63-3502B(3) or (4), Idaho Code, the state tax commission shall determine the amount of such tax to be apportioned to each county separately in proportion to the property tax levied by all eligible taxing districts and units and amounts allocated to each urban renewal agency statewide in tax year 2025 on the operating property of rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies. The 2025 property tax amounts levied or allocated shall be certified by each county auditor to the state tax commission no later than January 12, 2026. The state tax commission shall calculate proportions by dividing the total amount so reported for each county by the sum of all such amounts for all eligible taxing districts and units and urban renewal agencies statewide. Taxing districts, units, and urban renewal agencies are eligible for a proportion of this tax and are included in the calculation of these proportions, provided they levied property tax against the operating property of rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies or received an allocation of property tax paid by such companies for tax year 2025. In the event that a taxing district or unit or urban renewal revenue allocation area dissolves or is no longer present in a county, or a voter approved bond expires, the proportions for each taxing district in each affected county shall be changed as follows:
(a) The state tax commission shall reapportion the kilowatt-hour and thermal energy tax revenue that would have accrued to the dissolving district or revenue allocation area or expiring voter approved bond. The reapportioned tax shall be distributed to each otherwise eligible taxing district and revenue allocation area in the county with boundaries that overlapped the dissolved district or revenue allocation area or expired voter approved bond. The proportionate share for each taxing district and revenue allocation area shall be determined by dividing the current distribution to that district and revenue allocation area by the total distribution to all districts and revenue allocation areas that overlap the dissolving district or revenue allocation area.
(b) Such reapportionment shall be made in the year immediately following the year of the dissolution or expiration and the county auditor shall be notified of the changed proportions no later than the first Monday in March of that year.
(c) The proportions used to determine the amount of kilowatt-hour tax and thermal energy tax to be billed to rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies and payable to each county pursuant to section 63-3503C(2), Idaho Code, shall not change.
(4) Once every five (5) years, commencing with the five (5) year period beginning January 1, 2026, the state tax commission shall examine and verify the investment of each rate-regulated electric utility company, rate-regulated affiliated gas company, and rate-regulated gas company in each county and shall submit a report to the legislature that details each county’s investment in relation to the total statewide investment. On or before January 31 of the year in which the state tax commission requires such report for the applicable five (5) year period, the state tax commission shall notify each rate-regulated electric utility company, rate-regulated gas company, and rate-regulated affiliated gas company of the requirement to submit the report by April 15 of that year for the investment in each county as of the end of the preceding calendar year.
(5) If the value of property of any company assessable under this section is of such a nature that it cannot reasonably be apportioned on the basis of rail, wire, and pipeline mileage, such as microwave and radio relay stations, the tax commission may adopt such other method or basis of apportionment to the county and taxing districts in which the property is situate as may be feasible and proper.
(6) Any departure from market value in an assessment of operating property made to ensure compliance with federal law or precedent shall be considered an exemption. The state tax commission shall identify such departures from market value in their appraisals and no application need be made by a taxpayer to receive such exemption.
[63-405, added 1996, ch. 98, sec. 5, p. 338; am. 1997, ch. 117, sec. 17, p. 317; am. 1998, ch. 400, sec. 3, p. 1252; am. 2004, ch. 105, sec. 1, p. 379; am. 2006, ch. 302, sec. 3, p. 935; am. 2025, ch. 188, sec. 2, p. 874; am. 2026, ch. 187, sec. 1, p. 838.]
The state tax commission may, for the purpose of securing evidence, facts or information to enable it to properly assess any operating property, require the attendance of the person, or any officer, manager or agent of such person, whose property is to be assessed, and require him to answer, under oath, all questions propounded which, in the judgment of the commission, would assist it in fixing the value of such property, whether such person, officer, manager or agent resides within or without this state.
[63-406 added 1996, ch. 98, sec. 5, p. 339.]
Every person whose property is to be assessed by the state tax commission shall, upon request therefor in writing, be entitled to a hearing before the commission in relation to the assessment on his property or the assessment of other property in the state, and the commission shall, upon any such request, fix a time for such hearing within the period in which such assessment must be made, and such hearing shall be conducted in such manner as the commission may direct.
[63-407 added 1996, ch. 98, sec. 5, p. 339.]
The state tax commission shall, upon complaint by a county assessor, examine the valuation and allocation of value of property assessable on a statewide basis any part of which is allocable to his county.
[63-408 added 1996, ch. 98, sec. 5, p. 339.]
(1) Any taxpayer or county assessor who is aggrieved by a state tax commission decision assessing a taxpayer’s operating property may file an appeal to the district court of Ada county or, if such operating property is located in only one (1) county, to the district court in and for the county in which such operating property is located. The appeal shall be filed within thirty (30) days after service upon the taxpayer of the decision. The appeal may be based upon any issue presented by the taxpayer to the state tax commission and shall be heard by the district court in a trial de novo without a jury in the same manner as though it were an original proceeding in that court. Nothing in this section shall be construed to suspend the payment of taxes pending appeal. Payment of taxes while an appeal hereunder is pending shall not operate to waive the right to an appeal. Any final order of the district court under this section shall be subject to appeal to the Idaho supreme court in the manner provided by the Idaho appellate rules.
(2) In any appeal taken pursuant to this section, the burden of proof shall fall upon the party seeking affirmative relief to establish that the valuation from which the appeal is taken is erroneous, or that the state tax commission erred in its decision regarding a claim that certain property is exempt from taxation, the value thereof, or any other relief sought before the state tax commission. A preponderance of the evidence shall suffice to sustain the burden of proof. The burden of proof shall fall upon the party seeking affirmative relief and the burden of going forward with the evidence shall shift as in other civil litigation. The district court shall render its decision in writing, including therein a concise statement of the facts found by the court and the conclusions of law reached by the court. The court may affirm, reverse, modify, or remand any order of the state tax commission, and shall grant other relief, invoke such other remedies and issue such orders, in accordance with its decision, as appropriate.
[63-409 added 1996, ch. 98, sec. 5, p. 339; am. 2003, ch. 266, sec. 1, p. 703.]
(1) On or before the first Monday of September in each year the chairman of the state tax commission, or his designee, must prepare and transmit certified statements of the taxable value of operating property by the commission to the county auditors of the several counties of this state. The certified statements shall show each type of operating property separately, shall show the taxable value of the operating property, and shall show the taxable value of operating property to be apportioned to each of the various taxing districts within a county, as provided in section 63-405, Idaho Code. The Idaho taxable value of private railcar fleets shall be apportioned to the several counties as provided in section 63-405, Idaho Code.
(2) Each county auditor, upon receipt of certified statements of the taxable value of operating property apportioned to his county, shall compare the same with the previous year’s taxable values, and if any errors are made by the state tax commission or if in the opinion of the county auditor any property in the county subject to assessment by the state tax commission, has not been assessed by the state commission or that any assessment as certified is erroneous it shall be the duty of the county auditor, as soon as any error or omission in such statement is discovered, to forthwith notify the chairman of the state tax commission of such error or omission, with as full an explanation as can be made by such county auditor. The county auditor shall send a duplicate copy of any such notice and explanation sent to the chairman of the state tax commission, to the office of the owner or nearest managing agent of any property which may be affected by any change in assessment under the provisions of this section.
(3) The governor may call a special meeting of the state tax commission for the purpose of correcting any errors made or to assess, allocate, and apportion any operating property which may have been omitted. Notice of at least ten (10) days of such special meeting shall be mailed by the chairman of the state tax commission to the owner or nearest managing agent of any property which may be affected by any change in assessment as originally certified. The procedure in the special meeting shall be as nearly as possible the same as provided in section 63-406, Idaho Code. Corrected statements shall be certified in the same manner as the original statements.
(4) Any property which has escaped taxation in the previous year shall be assessed by said commission on an equalized value, as with other property assessed in the preceding year, and such value shall be added to the value of the assessment for the current year.
[63-410 added 1996, ch. 98, sec. 5, p. 340.]
(1) In case any such private railcar fleet shall fail or refuse to make the annual statement herein required within the time above specified, or shall make a false annual statement, the state tax commission shall proceed to assess the property of such private railcar fleet so failing, and shall add fifty percent (50%) to the value thereof, as ascertained and determined by the commission.
(2) The president or other officer of every railroad company whose lines run through, in or into this state shall, on or before such time as may be determined by the state tax commission, furnish to said commission a statement, verified by the affidavit of the officer or person making the same, showing the total number of miles made by the cars of every such private railcar fleet on their lines, branches, sidings, spurs and warehouse tracks in this state during the year ending on the thirty-first day of December last past. The state tax commission shall declare the date for the filing of the statement in its rules.
(3) The state tax commission shall determine the system value of private railcar fleets utilizing statements and data furnished by the railroads and private railcar operators, and such other pertinent information deemed necessary by the state tax commission. The state tax commission shall also be responsible for the allocation of the system value of private railcar fleets taxable in this state. In developing the allocation method, the state tax commission may use and consider any of the following factors or criteria:
(a) An actual count of cars in this state;
(b) The ratio between the mileage traveled by taxpayers’ cars in this state as compared with the mileage traveled by taxpayers’ cars everywhere;
(c) Such other factors or criteria as the state tax commission may deem appropriate.
(4) Private railcar fleets having an Idaho taxable value of five hundred thousand dollars ($500,000) or more shall be apportioned to where said cars were present in each county as determined by the state tax commission. The state tax commission shall certify the taxable value to the county auditor of each county showing the amounts of taxable value to be apportioned to the qualified taxing districts. The county auditor shall cause the taxable value to be entered upon the tax roll in the same manner as all other properties. The taxes shall be collected in the same manner as other operating property taxes by the county tax collector as provided by law.
(5) Private railcar fleets having an Idaho taxable value of less than five hundred thousand dollars ($500,000) shall not be apportioned to counties. The state tax commission hereby is empowered to charge, levy and collect the property tax so determined on the private railcar fleets under five hundred thousand dollars ($500,000) having a taxable situs in the state and such property shall be treated as personal property for taxing purposes.
(a) The state tax commission shall determine the property tax to be charged on the property covered by each such assessment by applying to the taxable value thereof the average tax rate in the state for the current year on private railcar fleets having an Idaho taxable value equal to or greater than five hundred thousand dollars ($500,000). In the event no private railcar fleets are assessed for five hundred thousand dollars ($500,000) or more in the current year, then the average property tax rate shall be the average tax rate on all taxable property for the prior year.
(b) Each property tax so charged and levied shall constitute a perpetual lien as of January 1 of the year of assessment on all the operating property of the private railcar fleet within this state and shall be payable in the same manner and at the same due dates provided by law in respect to property taxes on personal property payable in the several counties.
(c) In collecting such property taxes, the state tax commission is hereby authorized to pursue any or all of the rights, remedies or processes provided by law for the collection of a delinquency on personal property.
(d) All moneys collected by the state tax commission as provided under this subsection shall be paid forthwith to the state treasurer for transfer to the public school income fund.
(6) Whenever any person is delinquent in the payment of any obligation imposed by law, the state tax commission may give notice of the amount of the delinquency by registered mail to any railroad company over whose line or lines in this state the cars of said person have been transported, or are being transported, and which said railroad company has in its possession or under its control any credits or other personal property belonging to that person, or owes any debts to the delinquent.
(a) After receiving the notice the railroad company so notified shall neither transfer nor make other disposition of the credits, personal property, or debts until the state tax commission consents to a transfer or disposition, or until thirty (30) days elapse after receipt of the notice.
(b) All railroad companies so notified shall advise the state tax commission within five (5) days after receipt of the notice of all such credits, personal property, or debts in their possession, under their control, or owing by them.
(7) Whenever any railroad company advises the state tax commission that it has within its possession or under its control any credits or personal property belonging to a person with a delinquency, or owes any debt to that person, and the amount thereof, the state tax commission may thereupon issue a warrant of distraint and have the same served upon any such railroad company. Service of said warrant upon an agent of such railroad company within this state shall constitute valid service. Any railroad company so served shall pay over to the state tax commission the sum of any credits belonging to that person, or any debts owing to that person, whenever such credits or debts are less than the delinquency, penalty and costs; or shall pay over to the state tax commission the amount of the delinquency, penalty and costs, whenever such credits or debts are greater, and shall deduct the sum so paid over from the credits or debts due that person.
[63-411 added 1996, ch. 98, sec. 5, p. 341.]
(1) The county commissioners of each county shall convene as a board of equalization at least once in every month of the year up to the fourth Monday of June for the purpose of equalizing the assessments of property on the property roll and shall meet on the aforesaid date in each year:
(a) To complete the equalization of assessments on all property which has not yet been equalized; and
(b) To hear appeals of assessment or exemption of property which are received on or before the end of each county’s normal business hours on the fourth Monday of June.
Upon meeting to complete the equalization of assessments, the board of equalization shall continue in session from day to day until equalization of the assessments of such property has been completed and shall also hear and determine complaints upon allowing or disallowing exemptions under chapter 6, title 63, Idaho Code. The board of equalization must complete such business and adjourn as a board of equalization on the second Monday of July, provided that the board of equalization may adjourn any time prior to the aforesaid date when they have completed all of the business as a board of equalization.
The county assessor or his designee shall attend all meetings of the county commissioners in session as a board of equalization and he may make any statements or introduce testimony and examine witnesses on questions before the board of equalization relating to the assessments.
(2) The county commissioners of each county in this state shall meet as a board of equalization on the fourth Monday of November in each year for the purpose of:
(a) Equalizing the assessments of all property entered upon the subsequent property roll;
(b) Determining complaints and hearing appeals in regard to the assessment of such property;
(c) Allowing or disallowing exemptions and cancellations claimed under the provisions of this title affecting the assessment or taxation of property entered upon the rolls, and having a settlement with the assessor and tax collector.
The board of equalization shall complete its business and adjourn on or before the first Monday of December in each year, but if other personal or real property is discovered and assessed after the subsequent board of equalization has adjourned, and is entered on the missed property roll, the taxpayer may appeal that assessment to the county commissioners meeting as a board of equalization, for the purposes stated in subsection (2)(a), (b) and (c) of this section, during its monthly meeting in January of the following year, provided however, that said meeting must be no sooner than the first Monday in January.
[63-501 added 1996, ch. 98, sec. 6, p. 343; am. 2012, ch. 4, sec. 1, p. 6.]
(1) Taxpayers may file an appeal of an assessment or exemption decision with the county board of equalization. An appeal shall be made in writing on a form provided by the county board of equalization or assessor and must identify the taxpayer, the property which is the subject of the appeal and the reason for the appeal. An appeal of an assessment listed on the property roll must be filed on or before the end of the county’s normal business hours on the fourth Monday of June. An appeal of an assessment listed on the subsequent property roll must be filed on or before the end of the county’s normal business hours on the fourth Monday of November. An appeal of an assessment listed on the missed property roll must be filed on or before the board of equalization adjourns on the day of its January meeting. The board of equalization may consider an appeal only if it is timely filed.
(2) Appeals from the county board of equalization shall be made pursuant to section 63-511, Idaho Code.
[63-501A, added 1996, ch. 98, sec. 6, p. 343; am. 1997, ch. 117, sec. 18, p. 319; am. 2012, ch. 4, sec. 2, p. 7.]
The function of the board of equalization shall be confined strictly to assuring that the market value for assessment purposes of property has been found by the assessor, and to the functions provided for in chapter 6, title 63, Idaho Code, relating to exemptions from taxation. It is hereby made the duty of the board of equalization to enforce and compel a proper classification and assessment of all property required under the provisions of this title to be entered on the property rolls, and in so doing, the board of equalization shall examine the rolls and shall raise or cause to be raised, or lower or cause to be lowered, the assessment of any property which in the judgment of the board has not been properly assessed. The board of equalization must examine and act upon all complaints filed with the board in regard to the assessed value of any property entered on the property rolls and must correct any assessment improperly made. The taxpayer shall have the burden of proof in seeking affirmative relief to establish that the determination of the assessor is erroneous, including any determination of assessed value. A preponderance of the evidence shall suffice to sustain the burden of proof.
[63-502 added 1996, ch. 98, sec. 6, p. 344; am. 2003, ch. 266, sec. 2, p. 704.]
(1) The board of equalization, during its sessions, must direct and require the assessor to assess any property required by this title to be entered upon the property rolls, which is known to have escaped assessment, and in case any assessment of property made by the assessor is deemed by the board of equalization to be so incomplete or inaccurate as to render doubtful the collection of the taxes thereon, the said board must direct the assessor to make a new assessment of such property, in which case the defective assessment shall be cancelled.
(2) All changes in assessments and all new assessments ordered by the board of equalization shall be entered on the property rolls, under the direction of the clerk of the board, and any assessment so changed or entered has the same force and effect as if made and entered by the assessor before the completion of the property rolls.
(3) The county commissioners meeting as a board of equalization shall make no reduction in the assessment of any property when, according to the notation made by the assessor upon the roll, the owner, or his agent or representative, has refused to make the sworn taxpayer’s declaration required of him or has willfully concealed, removed, transferred, misrepresented or failed to list such property for the purpose of evading taxation, unless it is shown to the satisfaction of the board that such notation by the assessor is erroneous or false.
[63-503 added 1996, ch. 98, sec. 6, p. 344.]
Taxes upon personal property, where the owners of such personal property are owners of real property in the county, which have not been paid on or before the second Monday of October, and which the board of county commissioners finds to be a lien upon the real property, may be certified to the county auditor and the tax collector. Such taxes, together with all costs, late charges and interest must be entered by the county tax collector upon the property roll against the real property subject to such lien. The tax collector shall immediately notify the property owner of any such taxes which have been added. Such action shall result in cancellation of the taxes and late charges on the personal property roll for the personal property subject to the delinquency.
[63-504 added 1996, ch. 98, sec. 6, p. 344; am. 1998, ch. 2, sec. 1, p. 99.]
The board of equalization may require the attendance of any county officer or deputy, who must furnish the board with any information which may be had from the records in his office and which the board may deem necessary in equalizing the assessments, and may also subpoena witnesses and hear evidence in all matters relating to the assessment of property, and may arbitrarily assess the property of any person refusing to appear or testify, and any assessment so made shall be conclusive on all questions of assessment in any court or proceeding.
[63-505 added 1996, ch. 98, sec. 6, p. 345.]
The board of equalization must, before taking final action in equalizing the assessed value of the property of any person refusing to appear and testify, or in increasing the assessed value of any property, notify the owner thereof, or his agent or representative, of its intention to do so, and require such person to appear forthwith before the board and make objection, if he has any. The board may direct the notice to be served personally upon the owner, or his agent or representative; or, it may direct the clerk to serve the notice by mail, addressed to such owner, or his agent or representative, at his last known post office address. In the case of service by mail, the board of equalization shall not take final action until ten (10) working days after the mailing of such notice, unless the owner, or his agent, or representative, shall sooner appear. If the owner is one other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the owner shall, within ten (10) days, deliver to the equitable titleholder a true copy of the notice from the board of equalization.
[63-506 added 1996, ch. 98, sec. 6, p. 345; am. 2007, ch. 15, sec. 1, p. 27.]
The clerk of the board must record in the official minutes all proceedings of the county commissioners relating to the equalization of assessments, the allowance of exemptions, and all changes, corrections and orders made by the board of equalization, and the names of all persons who have appeared before the board of equalization and who have been heard upon matters affecting the assessment of property.
[63-507 added 1996, ch. 98, sec. 6, p. 345.]
As soon as the county auditor receives the certified statements prescribed in section 63-111, Idaho Code, he shall cause to be entered all changes and corrections made by the state tax commission in the assessments upon the property tax roll. The county auditor shall enter upon the operating property roll all assessments of operating property under the jurisdiction of the state tax commission in his county, and made by the state tax commission in adjusting the valuations among the taxing districts in accordance with the certified statement of the chairman of the state tax commission. The auditor shall enter the total equalized values and show the amount, and reasons for any exemptions which have been allowed by the county commissioners, and shall thereafter enter the total equalized values for taxation on the property rolls. The auditor shall then add up the total equalized values, amounts of exemption and total equalized values for taxation, and enter the total in the property rolls.
[63-508 added 1996, ch. 98, sec. 6, p. 345.]
(1) On or before the second Monday of July, the board of equalization must deliver the property rolls, with all changes, corrections and additions and exemptions from taxation entered therein, to the county auditor. It shall be the duty of the county auditor to cause to be prepared the roll for delivery to the county tax collector on or before the first Monday of November. It shall be the duty of the county auditor to cause to be prepared a total of the amount and value of each category of property and prepare an abstract of all the property entered upon the roll in the manner and form required by the state tax commission. Such forms must show, but need not be limited to, the market value for assessment purposes of all property by categories and the exemptions from taxation allowed by categories. Any abstracts needed by and prepared for the state tax commission must be delivered to the state tax commission by the fourth Monday of July. The abstracts will show the increment value as defined in section 50-2903, Idaho Code, in any revenue allocation area established pursuant to chapters 20 and 29, title 50, Idaho Code, and the value of exemptions granted pursuant to sections 63-602G, 63-602P, 63-602X, 63-602AA, 63-602BB and 63-602CC, Idaho Code, as well as the net taxable value for each of the categories. The abstracts shall be prepared and duly verified and must show a correct classification of all the property in accordance with the classification of such property upon the property roll, and all matters and things required to be shown upon the abstracts must be entered.
(2) The subsequent property roll shall be delivered to the county auditor as soon as possible after the first Monday in December. The county auditor shall deliver the subsequent property roll to the county tax collector without delay.
(3) The missed property roll shall be delivered to the county auditor as soon as possible, but no later than the first Monday in March of the succeeding year. The county auditor shall deliver the missed property roll to the county tax collector without delay.
(4) The county auditor must cause to be prepared abstracts of the combined subsequent and missed property rolls as prescribed in subsection (1) of this section and submit the abstracts to the state tax commission on or before the first Monday in March of the succeeding year.
[63-509, added 1996, ch. 98, sec. 6, p. 346; am. 1997, ch. 117, sec. 19, p. 319; am. 2013, ch. 21, sec. 3, p. 36; am. 2018, ch. 29, sec. 1, p. 53; am. 2020, ch. 313, sec. 2, p. 890.]
(1) Prior to the first Monday of August the auditor of each county in the state shall notify the state tax commission of the net taxable value of all property situated within each taxing unit or district in the county from the property roll for the current year and shall provide an estimate of the net taxable value for each taxing unit or district from the current year’s estimated subsequent and missed property rolls. Such notification shall also include an estimate of the net taxable value within any area annexed during the immediate prior year to any taxing unit or district.
(2) Prior to the first Monday of March the auditor of each county in the state shall notify the state tax commission of the net taxable value of all property situated within each taxing unit or district in the county from the subsequent and missed property rolls. Such notification shall also include an estimate of the net taxable value within any area annexed during the immediate prior year, and listed on the subsequent or missed property roll, to any taxing unit or district.
(3) The notification required in subsections (1) and (2) of this section shall be on forms prescribed and provided by the state tax commission and shall list separately the value exempt from property taxation in accordance with section 63-602G, Idaho Code, and the value in excess of the equalized assessment valuation as shown on the base assessment roll in any revenue allocation area, pursuant to chapters 20 and 29, title 50, Idaho Code.
(4) For the purposes of this section, "taxing district," as defined in section 63-201, Idaho Code, shall include each incorporated city in each county, regardless of whether said city certifies a property tax budget.
[63-510 added 1996, ch. 98, sec. 6, p. 346; am. 2008, ch. 53, sec. 3, p. 134; am. 2008, ch. 400, sec. 4, p. 1098; am. 2009, ch. 11, sec. 23, p. 37; am. 2026, ch. 153, sec. 3, p. 698.]
(1) Any time within thirty (30) days after mailing of notice of a decision of the board of equalization, or pronouncement of a decision announced at a hearing, an appeal of any act, order or proceeding of the board of equalization, or the failure of the board of equalization to act may be taken to the board of tax appeals. Such appeal may only be filed by the property owner, the assessor, the state tax commission or by a person aggrieved when he deems such action illegal or prejudicial to the public interest. Nothing in this section shall be construed so as to suspend the payment of property taxes pending said appeal.
(2) Notice of such appeal stating the grounds therefor shall be filed with the county auditor, who shall forthwith transmit to the board of tax appeals a copy of said notice, together with a certified copy of the minutes of the proceedings of the board of equalization resulting in such act, order or proceeding, or a certificate to be furnished by the clerk of the board that said board of equalization has failed to act in the time required by law on any complaint, protest, objection, application or petition in regard to assessment of the complainant’s property, or a petition of the state tax commission. The county auditor shall also forthwith transmit all evidence taken in connection with the matter appealed. The county auditor shall submit all such appeals to the board of tax appeals within thirty (30) days of being notified of the appeal. The board of tax appeals may receive further evidence and will hear the appeal as provided in chapter 38, title 63, Idaho Code.
(3) Any appeal that may be taken to the board of tax appeals may, during the same time period, be taken to the district court for the county in which the property is located.
(4) In any appeal taken to the board of tax appeals or the district court pursuant to this section, the burden of proof shall fall upon the party seeking affirmative relief to establish that the valuation from which the appeal is taken is erroneous, or that the board of equalization erred in its decision regarding a claim that certain property is exempt from taxation, the value thereof, or any other relief sought before the board of equalization; provided, however, that the burden of proof shall fall upon the party seeking an increase in taxable value if the increase in value exceeds ten percent (10%) of the value from the previous year, and the increase was due in part to an assessment of the taxable value that resulted from the assessor failing to use the equalization methods required pursuant to section 63-208, Idaho Code. A preponderance of the evidence shall suffice to sustain the burden of proof. The burden of going forward with the evidence shall shift as in other civil litigation. The board of tax appeals or the district court shall render its decision in writing, including therein a concise statement of the facts found by the court and the conclusions of law reached by the court. The board of tax appeals or the court may affirm, reverse, modify or remand any order of the board of equalization, and shall grant other relief, invoke such other remedies, and issue such orders in accordance with its decision, as appropriate.
[63-511 added 1996, ch. 98, sec. 6, p. 347; am. 1999, ch. 107, sec. 1, p. 335; am. 2003, ch. 266, sec. 3, p. 704; am. 2013, ch. 24, sec. 1, p. 45; am. 2025, ch. 202, sec. 2, p. 917.]
All property within the jurisdiction of this state, not expressly exempted, is subject to assessment and taxation.
[63-601 added 1996, ch. 98, sec. 7, p. 348.]
(1) Property shall be exempt from taxation as provided in titles 21, 22, 25, 26, 31, 33, 39, 41, 42, 49, 50, 67 and 70, Idaho Code, and in chapters 6, 24, 30, 35 and 45, title 63, Idaho Code; provided, that no deduction shall be made in assessment of shares of capital stock of any corporation or association for exemptions claimed under this section, and provided further, that the term "full cash value" wherever used in this act shall mean the actual assessed value of the property as to which an exemption is claimed.
(2) The use of the word "exclusive" or "exclusively" in this chapter shall mean used exclusively for any one (1) or more, or any combination, of the exempt purposes provided hereunder and property used for more than one (1) exempt purpose, pursuant to the provisions of sections 63-602A through 63-602OO, Idaho Code, shall be exempt from taxation hereunder as long as the property is used exclusively for one (1) or more or any combination of the exempt purposes provided hereunder.
(3) All exemptions from property taxation claimed shall be approved annually by the board of county commissioners or unless otherwise provided:
(a) Exemptions pursuant to sections 63-602A, 63-602F, 63-602I, 63-602J, 63-602L(1), 63-602M, 63-602N, 63-602R, 63-602S, 63-602U, 63-602V, 63-602W, 63-602Z, 63-602DD(1), 63-602EE, 63-602OO, 63-2431, 63-3502, 63-3502A and 63-3502B, Idaho Code, do not require application or approval by the board of county commissioners. For all other exemptions in title 63, Idaho Code, the process of applying is as specified in the exemption statutes or, if no process is specified and application is necessary to identify the property eligible for the exemption, annual application is required. Exemptions in other titles require no application.
(b) For exemptions that require an application, provided such exemptions are for property otherwise subject to assessment by the county assessor, the application must be made to the county commissioners by April 15 and the taxpayer and county assessor must be notified of any decision by May 15, unless otherwise provided by law. The decision of the county commissioners and any subsequent assessment notices sent to the taxpayer may be appealed to the county board of equalization pursuant to sections 63-501 and 63-501A, Idaho Code.
(c) For exemptions that require an application, provided such exemptions are for property otherwise subject to assessment by the state tax commission, application for exemption shall be included with the annual operator’s statement as required pursuant to section 63-404, Idaho Code. Notice of the decision and its effect on the assessment will be provided in accordance with procedures specified in chapter 4, title 63, Idaho Code. Appeals shall be made to the state tax commission in accordance with section 63-407, Idaho Code.
(4) An owner of property that is intended for a tax-exempt purpose may apply to the board of county commissioners for a provisional property tax exemption, pursuant to section 63-1305C, Idaho Code.
(5) The use of any property receiving an exemption provided in section 63-602B, 63-602C, or 63-602E, Idaho Code, as a polling place pursuant to section 34-302, Idaho Code, or for other election-related purposes authorized by law, shall not be deemed inconsistent with the property’s tax-exempt status and shall not affect, impair, or disqualify the property from receiving or maintaining such exemption.
[63-602 added 1996, ch. 98, sec. 7, p. 348; am. 2010, ch. 133, sec. 1, p. 283; am. 2012, ch. 4, sec. 3, p. 7; am. 2014, ch. 20, sec. 1, p. 26; am. 2018, ch. 194, sec. 3, p. 434; am. 2020, ch. 313, sec. 3, p. 890; am. 2023, ch. 149, sec. 1, p. 403; am. 2026, ch. 288, sec. 2, p. 1206.]
(1) The following property is exempt from taxation: property belonging to the United States, except when taxation thereof is authorized by the congress of the United States; property belonging to the state of Idaho; property belonging to a federally recognized Indian tribe, as defined in section 67-4001, Idaho Code, which property is situated within the boundaries of the reservation of the Indian tribe; and property belonging to any county or municipal corporation or school district within this state.
(2) However, inventory property acquired under agricultural credit programs of the consolidated farm service agency of the United States department of agriculture shall be subject to taxation as other property in the county.
(3) However, unimproved real property of more than ten (10) contiguous acres owned in fee simple by the department of fish and game shall be subject to a fee in lieu of property taxes contingent upon the following conditions and requirements:
(a) The fee in lieu of property taxes shall not exceed the property tax for the property at the time of acquisition by the department of fish and game, unless the property tax rate for the property shall have been increased.
(b) The department shall determine and identify the parcels of property and their current use as qualified under the provisions of this chapter. The department shall consult with the appropriate county treasurer and determine the fee to be paid on the property and credited continuously to the county current expense fund. The fee shall be an amount equal to the property tax the property would generate if assessed as agricultural property.
(c) Any future increase in the fee paid in lieu of property taxes shall be determined by the amount of property taxes the property would generate if assessed as agricultural property. The increase may be determined by the department working cooperatively with the appropriate county assessor. The method used for determining the fee that would be due on department property is to be used only under this subsection and has no other application in any other section of the Idaho Code.
(d) The department shall then provide to the assessor of the county where the parcels are located on or before the second Monday of March each year, a listing identifying each parcel of unimproved property by legal description, size and amount of the fee for the preceding calendar year. The treasurer shall prepare and submit a billing for payment based on this information to the department. Once the fee has been determined, payment shall be made by June 20 of that year from moneys appropriated for that purpose. However, if the fees exceed the moneys appropriated for that purpose, the director of the department of fish and game shall calculate the percent reduction that must be made and certify the proportionate reduction to each county treasurer.
(e) For the purpose of this section only, unimproved real property shall mean property on which no homesite or improved site is located, and homesite or improved site shall mean any buildings, structures, or fixtures which have been erected or affixed to the land and the necessary acreage required to utilize the homesite or improved site as determined by the county assessor shall be exempt. For purposes of this subsection only, roads or fences shall not be considered as improvements.
[63-602A added 1996, ch. 98, sec. 7, p. 348; am. 2003, ch. 8, sec. 2, p. 16; am. 2013, ch. 134, sec. 1, p. 306.]
(1) The following property is exempt or partially exempt from taxation: real and personal property belonging to persons who, because of unusual circumstances that affect their ability to pay the property tax, should be relieved from paying all or part of said tax in order to avoid undue hardship, which undue hardship must be determined by the board of equalization.
(2) An exceptional value exemption granted under this section shall be for the current tax year only and property exempted hereunder shall continue to be listed and assessed for the ensuing tax years as other property.
(3) Claimants seeking exemption under this section must apply each year to the board of equalization and such claim must be submitted by the fourth Monday of June of the current year. The board of equalization must consider and act on all such claims no later than the second Monday of July.
(4) Each person claiming such exemption shall give a sworn statement containing full and complete information of his financial status to such board and shall make true answers to all questions propounded in writing, or otherwise, touching such person’s right to the exemption claimed. The chairman of the board shall have authority to administer oaths to each person appearing as a claimant for such exemption and, in addition to such examination, each claimant shall subscribe to and swear that his answers to questions propounded on written forms to be prescribed by the state tax commission are true, and which sworn statement shall be kept and filed by the clerk of the county board of equalization. The board may, in its discretion and for good cause shown, allow an agent or some person acting for and on behalf of the claimant to make the claim for exemption for any claimant in the manner herein provided, or where a person is unable to make such sworn statement, the person’s spouse, surviving spouse, guardian or personal representative, or other person having knowledge of the facts, may make such sworn statement in his stead.
(5) The county board of equalization shall decide and determine from each examination and from each written claim for exemption whether or not such person is entitled to the exemption claimed or to any part thereof, and shall make a record thereof accordingly.
[63-602AA added 1996, ch. 98, sec. 7, p. 359; am. 2016, ch. 10, sec. 1, p. 10.]
(1) The following property is exempt from taxation: property belonging to any religious limited liability company, corporation or society of this state, used exclusively for and in connection with any combination of religious, educational, or recreational purposes or activities of such religious limited liability company, corporation or society, including any and all residences used for or in furtherance of such purposes.
(2) If the entirety of any property belonging to any such religious limited liability company, corporation or society is leased by such owner, or if such religious limited liability company, corporation or society uses the entirety of such property for business or commercial purposes from which a revenue is derived, then the same shall be assessed and taxed as any other property. If any such property is leased in part or used in part by such religious limited liability company, corporation or society for such business or commercial purposes, the assessor shall determine the value of the entire exempt property, and the value of the part used or leased for such business or commercial purposes, and that part used or leased for such business or commercial purposes shall be taxed as any other property. The Idaho state tax commission shall promulgate rules establishing a method of determining the value of the part used or leased for such business or commercial purposes. If the value of the part used or leased for such business or commercial purposes is determined to be three percent (3%) or less of the value of the entirety, the whole of said property shall remain exempt. If the value of the part used or leased for such business or commercial purposes is determined to be more than three percent (3%) of the value of the entirety, the assessor shall assess such proportionate part of such property, and shall assess the trade fixtures used in connection with the sale of all merchandise for such business or commercial purposes, provided however, that the use or lease of any property by any such religious limited liability company, corporation or society for athletic or recreational facilities, residence halls or dormitories, meeting rooms or halls, auditoriums, or club rooms for and in connection with the purposes for which such religious limited liability company, corporation or society is organized, shall not be deemed a business or commercial purpose, even though fees or charges be imposed and revenue derived therefrom.
[63-602B added 1996, ch. 98, sec. 7, p. 349; am. 2007, ch. 38, sec. 1, p. 95; am. 2008, ch. 50, sec. 1, p. 122.]
(1) During the tax year 1997 and each year thereafter, a site as defined in section 39-7203, Idaho Code, and qualifying under chapter 72, title 39, Idaho Code, shall be eligible for property tax exemption not to exceed seven (7) years.
(2) "Remediated value" shall mean market value for assessment purposes of the land on January 1, less the market value for assessment purposes of the land on the January 1 prior to the year in which the remediation was completed.
(3) The exemption shall amount to fifty percent (50%) of the remediated land value. The exempted value assessed under this formula shall remain constant throughout the period of the exemption.
(4) The exemption allowed by this section may be granted only if:
(a) The covenant not to sue as provided in section 39-7207, Idaho Code, remains in full force and effect for the entire period of exemption;
(b) The site remains in the possession of the owner for the entire exemption period.
(5) The exemption allowed by this section may be rescinded if:
(a) The covenant not to sue as provided in section 39-7207, Idaho Code, is rescinded by the department;
(b) The site is transferred to a new owner.
(6) The owner need only make application for the exemption described in this section once over the course of the seven (7) year period.
(7) No owner of a site shall be granted the exemption provided in this section if said site has been:
(a) Previously granted the exemption provided in this section regardless of whether the entire seven (7) years of the exemption have been used;
(b) Denied by the department as a qualifying site pursuant to chapter 72, title 39, Idaho Code.
(8) The legislature declares this exemption to be necessary and just.
[63-602BB, added 1997, ch. 117, sec. 21, p. 321.]
The following property is exempt from taxation: property belonging to any fraternal, benevolent, or charitable limited liability company, corporation or society, the World War veteran organization buildings and memorials of this state, used exclusively for the purposes for which such limited liability company, corporation or society is organized; provided, that if any building or property belonging to any such limited liability company, corporation or society is leased by such owner or if such limited liability company, corporation or society uses such property for business purposes from which a revenue is derived which, in the case of a charitable organization, is not directly related to the charitable purposes for which such charitable organization exists, then the same shall be assessed and taxed as any other property, and if any such property is leased in part or used in part by such limited liability company, corporation or society for such purposes the assessor shall determine the value of the entire building and the value of the part used or leased for commercial purposes. If the value of the part used for commercial purposes is determined to be three percent (3%) or less than the value of the entirety, the whole of said property shall remain exempt. If the value of the part used for commercial purposes is determined to be more than three percent (3%) of the value of the entirety, the assessor shall assess such proportionate part of such building including the value of the real estate as is so leased or used for such purposes, and shall assess the trade fixtures used in connection with the sale of all merchandise; provided however, that the lease or use of any property by any such limited liability company, corporation or society for athletic or recreational facilities, residence halls or dormitories, meeting rooms or halls, auditoriums or club rooms within the purposes for which such limited liability company, corporation or society is organized, shall not be deemed a business or commercial purpose, even though fees or charges be imposed and revenue derived therefrom.
[63-602C added 1996, ch. 98, sec. 7, p. 349; am. 2003, ch. 8, sec. 3, p. 17; am. 2008, ch. 50, sec. 2, p. 123.]
(1) The following property is exempt from taxation: qualified equipment utilizing postconsumer waste or postindustrial waste used to manufacture products. This exemption shall be granted only if the list of all taxable personal property as described in section 63-302, Idaho Code, is submitted by the property owner or the agent thereof to the assessor not later than March 15 of each year. Additionally, the requirements of subsection (3) of this section shall be met.
(2) As used in this section:
(a) "Postconsumer waste" or "postindustrial waste" means only those products and materials consisting of metals, paper, glass or plastic generated by businesses or consumers which have served their intended end use or usefulness and either have been or would normally be disposed of as solid waste except for the fact that they are separated from solid waste for purposes of collection, recycling or reuse. "Postconsumer waste" or "postindustrial waste" shall not include radioactive waste, as defined in subsection (4)(g) of section 63-3029D, Idaho Code, or hazardous waste, as defined in chapter 44, title 39, Idaho Code.
(b) "Product" means any material resulting from a manufacturing process and offered for sale to the private or public sector which is composed of at least fifty percent (50%) postconsumer waste or postindustrial waste. "Product" does not include any shredded material unless such shredded material is incorporated directly into the manufacturing process.
(c) "Qualified equipment" means machinery or equipment located within Idaho which has at least an estimated three (3) years useful life and at least ninety percent (90%) of the total actual production from the equipment during the previous calendar year utilized postconsumer waste or postindustrial waste. "Qualified equipment" shall not include any machinery or equipment which is used for the collection, as defined herein, of postconsumer waste or postindustrial waste. As used in this section "collection" means:
(i) The acquisition of materials from businesses or the general public through purchase or donation, including the organization of systems for such acquisitions;
(ii) The preparation of materials for over-the-road transportation through cleaning, densification by shredding, baling, or any other method, or coalescence, including the organization of systems for such preparation; or
(iii) The transportation of postconsumer waste or postindustrial waste between separate geographical locations, including the movement of materials around the manufacturing site.
(3) On the list of taxable personal property required by subsection (1) of this section, the property owner, or agent thereof, shall identify all qualified equipment, and all machinery and equipment that does not meet the definitions of qualified equipment.
The property owner, or agent thereof, shall also report use of all qualified equipment, on forms prescribed by the state tax commission.
(4) The county assessor may request additional information of the company to verify the basis of the exemption claimed in this section.
(5) The legislature declares that this exemption is necessary and just.
[63-602CC, added 1997, ch. 117, sec. 22, p. 321.]
(1) For the purposes of this section, "hospital" means a hospital as defined by chapter 13, title 39, Idaho Code, and includes nonprofit medical clinics as defined in section 39-1319, Idaho Code, and facilities designated by the centers for medicare and medicaid services of the federal department of health and human services as a critical access hospital or a rural emergency hospital.
(2) The following property is exempt from taxation: the real property owned by a nonprofit hospital, a county hospital, a critical access hospital, a rural emergency hospital, or a hospital district that is operated as a hospital and personal property, including medical equipment, owned or leased by a nonprofit hospital, a county hospital, or a hospital district that is located and used in a hospital.
(3) In order to receive a property tax exemption, a nonprofit hospital must :
(a) Provide documentation showing that it is organized as a nonprofit corporation pursuant to chapter 30, title 30, Idaho Code, or pursuant to equivalent laws in its state of incorporation;
(b) Provide documentation showing that it has received an exemption from taxation from the internal revenue service pursuant to section 501(c)(3) of the Internal Revenue Code;
(c) Provide a copy of its internal revenue service form 990 schedule H; and
(d) For hospitals that are not facilities designated by the centers for medicare and medicaid services of the federal department of health and human services as critical access hospitals:
(i) Provide a copy of its most recent community health needs assessment and its adopted implementation strategy to meet the community health needs identified in the assessment as required by section 26 U.S.C. 501(r);
(ii) Provide a copy of its written financial assistance policy and policy related to emergency medical care as required by section 26 U.S.C. 501(r);
(iii) Limit the amount charged for emergency or other medically necessary care provided to individuals eligible for assistance under its financial assistance policy pursuant to 26 U.S.C. 501(r);
(iv) Make reasonable efforts to determine whether an individual is eligible for its financial assistance policy before engaging in extraordinary collection actions pursuant to 26 U.S.C. 501(r); and
(v) Provide a general public benefit to the county in which it is located as measured by its annual community benefit report filed with the board of equalization.
(4) If a nonprofit hospital uses property for business purposes from which a revenue is derived that is not directly related to the nonprofit hospital’s exempt purposes, then the property shall be assessed and taxed as any other property. If property is used in part by a nonprofit hospital for such purposes, then the assessor shall determine the value of the entire property and the value of the part used that is not directly related to the nonprofit hospital’s exempt purposes. If the value of the part that is not directly related to the nonprofit hospital’s exempt purposes is determined to be three percent (3%) or less than the value of the entire property, then the property shall remain exempt. If the value of the part that is not directly related to the nonprofit hospital’s exempt purposes is determined to be more than three percent (3%) of the value of the entire property, then the assessor shall assess the proportionate part of the property, including the value of the real estate used for such purposes.
(5) A nonprofit hospital issued an exemption from property taxation pursuant to this section and operating a hospital having one hundred fifty (150) or more patient beds shall prepare a community benefits report to be filed with the board of equalization by December 31 of each year. The report shall include audited information and shall itemize :
(a) The nonprofit hospital’s amount of unreimbursed services for the prior year from patients who are financially unable to pay for the cost of the care they received, charity care, and underreimbursed care covered through government programs;
(b) Special services and programs the hospital provides below its actual cost;
(c) Donated time, funds, subsidies, and in-kind services;
(d) Additions to capital such as physical plant and equipment;
(e) The methodology used to determine how much the cost of care exceeds government reimbursements for those services; and
(f) The process the hospital has used to determine general community needs that coincide with the hospital’s mission.
[63-602D added 1996, ch. 98, sec. 7, p. 350; am. 1999, ch. 126, sec. 1, p. 366; am. 2006, ch. 319, sec. 1, p. 1016; am. 2017, ch. 58, sec. 32, p. 127; am. 2025, ch. 323, sec. 1, p. 1338.]
The following property is exempt from taxation: Manufactured homes that are:
(1) Manufactured homes eligible to be used under a dealer’s license plate; or
(2) Manufactured homes designated as sheep and cow camps.
[63-602DD, added 2004, ch. 27, sec. 3, p. 44.]
(1) The following property is exempt from taxation: all property used exclusively for nonprofit school or educational purposes, property used for charter school purposes, and all property from which no profit is derived and which is held or used exclusively for endowment, building or maintenance purposes of schools or educational institutions.
(2) If property is used primarily for nonprofit school purposes or charter school purposes and for business purposes from which a revenue is derived, which revenue is not related to the educational purpose for which the nonprofit school or charter school exists, the assessor shall determine the value of the entire property, of the part used for nonprofit school purposes or charter school purposes, and of the part used for such unrelated business purposes. The portion of the building used for nonprofit school purposes or charter school purposes and for business and administration of the nonprofit school or charter school shall be exempt from taxation.
(3) Possessory interests in improvements on state college or state university owned land used exclusively for student housing, college or university operated dining, or other education related purposes approved by the state board of education and board of regents of the university of Idaho as proper for the operation of such state college or university shall be exempt from taxation.
[63-602E, added 1996, ch. 98, sec. 7, p. 350; am. 2003, ch. 222, sec. 1, p. 574; am. 2006, ch. 366, sec. 1, p. 1104; am. 2010, ch. 254, sec. 2, p. 645.]
The following property is exempt from taxation: class 2 property that is agricultural machinery and equipment and exclusively used in agriculture during the immediately preceding tax year. For purposes of this section:
(1) "Agricultural machinery and equipment" shall mean any machinery and equipment that is used in:
(a) Production or harvest of field crops including, but not limited to, grains, feed crops, fruits and vegetables, or the production of or caring for nursery stock as defined in section 22-2302, Idaho Code; or
(b) The grazing, feeding or raising of livestock, fur-bearing animals, fish, fowl and bees, or harvest of their production, to be sold or used as part of a net profit-making agricultural enterprise or dairy.
(2) "Harvest" shall include all activities necessary for a raw agricultural commodity to be put into its most basic salable form and shall also include on-farm storage of the commodity before it is first handled in the primary channels of trade.
(3) Buildings shall not be considered to be agricultural machinery and equipment.
(4) The provisions of this section shall be broadly interpreted in favor of granting the exemption.
[63-602EE, added 2018, ch. 297, sec. 3, p. 702; am. 2019, ch. 53, sec. 4, p. 142.]
The following property is exempt from taxation:
(1) Possessory rights to public lands;
(2) Mining claims not patented;
(3) All public cemeteries;
(4) All public libraries.
[63-602F added 1996, ch. 98, sec. 7, p. 350.]
(1) For each tax year, the first one hundred twenty-five thousand dollars ($125,000) of the market value for assessment purposes of the homestead as that term is defined in section 63-701, Idaho Code, or fifty percent (50%) of the market value for assessment purposes of the homestead as that term is defined in section 63-701, Idaho Code, whichever is the lesser, shall be exempt from property taxation.
(2) The exemption allowed by this section may be granted only if:
(a) The homestead is owner-occupied and used as the primary dwelling place of the owner. The homestead may consist of part of a multidwelling or multipurpose building and shall include all of such dwelling or building except any portion used exclusively for anything other than the primary dwelling of the owner. The presence of an office in a homestead, which office is used for multiple purposes, including business and personal use, shall not prevent the owner from claiming the exemption provided in this section; and
(b) The state tax commission has certified to the board of county commissioners that all properties in the county subject to appraisal by the county assessor have, in fact, been appraised uniformly so as to secure a just valuation for all property within the county; and
(c) The owner has certified to the county assessor that:
(i) He is making application for the exemption allowed by this section;
(ii) The homestead is his primary dwelling place; and
(iii) He has not made application in any other county for the exemption and has not made application for the exemption on any other homestead in the county.
(d) For the purpose of this section, the definition of "owner" shall be the same definition set forth in section 63-701(7), Idaho Code. When an owner, pursuant to the provisions of section 63-701(7), Idaho Code, is any person who is the beneficiary of a revocable or irrevocable trust, or who is a partner of a limited partnership, a member of a limited liability company, or a shareholder of a corporation, he or she may provide proof of the trust, limited partnership, limited liability company, or corporation in the manner set forth in section 63-703(4), Idaho Code.
(e) Any owner may request in writing the return of all copies of any documents submitted with the affidavit set forth in section 63-703(4), Idaho Code, that are held by a county assessor, and the copies shall be returned by the county assessor upon submission of the affidavit in proper form.
(f) For the purpose of this section, "primary dwelling place" means the single place where an owner has his true, fixed and permanent home and principal establishment, and to which whenever such owner is absent he has the intention of returning.
(g) For the purpose of this section, the definition of "occupied" shall be the same definition set forth in section 63-701(6), Idaho Code.
(3) The county assessor of each county shall prescribe and make available forms to be used by a homeowner to apply for the homestead exemption provided in this section. The homeowner shall provide on such forms the homeowner’s full name, date of birth, complete address, and most recent previous complete address. The homeowner shall also provide, as applicable, such homeowner’s Idaho state-issued driver’s license number or Idaho state-issued identification card number, except that such requirement shall not apply to a homeowner in active military service for the initial application for the exemption and during such time as the homeowner meets the qualifications provided in subsection (8) of this section. If the homeowner applying for the exemption provided in this section has not been domiciled in Idaho for at least ninety (90) days and does not have an Idaho state-issued driver’s license or Idaho state-issued identification card, the homeowner shall provide an Idaho state-issued driver’s license number or an Idaho state-issued identification card number to the county assessor within ninety (90) days of submitting such homeowner’s initial application for the exemption.
(4) An owner need make application for the exemption described in subsection (1) of this section only once, as long as all of the following conditions are met:
(a) The owner has received the exemption during the previous year as a result of making a valid application as set forth in subsection (2)(c) of this section.
(b) The owner or beneficiary, partner, member or shareholder, as appropriate, still occupies the same homestead for which the owner made application.
(c) The homestead described in paragraph (b) of this subsection is owner-occupied or occupied by a beneficiary, partner, member or shareholder, as appropriate, and used as the primary dwelling place of the owner or beneficiary, partner, member or shareholder, as appropriate.
(5) The full amount of the exemption allowed by this section shall be in effect as of January 1 of the tax year in which a complete application is submitted and approved, and shall be taken before the reductions in taxes provided in sections 63-701 through 63-710, Idaho Code, are applied. The exemption allowed by this section shall not be prorated. In order to receive the exemption for the current tax year, the homeowner shall make application on or before the end of the county’s normal business hours on the last business day of the year. Approved applications received after the second Monday in July will be granted as tax cancellations based on the amount of the exemption for which the property qualified pursuant to subsection (1) of this section.
(6) Recovery of property tax exemptions allowed by this section but improperly claimed or approved:
(a)(i) Prior to granting an exemption, the county assessor shall investigate whether an applicant for the exemption has claimed the exemption for another homestead and shall not grant the exemption where it appears the exemption has been improperly claimed. The applicant shall be notified of the county assessor’s refusal to grant the exemption.
(ii) Upon discovery of evidence, facts or circumstances indicating any exemption allowed by this section was improperly claimed or approved, the county assessor shall decide whether the exemption claimed should have been allowed and, if not, notify the taxpayer in writing, assess a recovery of property tax and notify the county treasurer of this assessment. If the county assessor determined that an exemption was improperly approved as a result of county error, the county assessor shall present the discovered evidence, facts or circumstances from the improperly approved exemption to the board of county commissioners, at which time the board may waive a recovery of the property tax and notify such taxpayer in writing.
(iii) Upon the first instance of a taxpayer being discovered to have claimed more than one (1) homestead exemption, the taxpayer shall be subject to a penalty, payable to the county treasurer, in an amount equal to the amount of property tax recovered pursuant to subparagraph (ii) of this paragraph, which shall be paid in addition to such recovery amount. The taxpayer shall be notified of the assessment of such penalty at the same time as the notice of the assessor’s refusal to grant the exemption in subparagraph (i) of this paragraph.
(iv) Any subsequent violation within seven (7) years of an instance pursuant to subparagraph (iii) of this paragraph shall be a misdemeanor, subject to the penalties provided in section 18-113, Idaho Code. The county assessor shall notify the county prosecuting attorney of any conduct that would constitute a misdemeanor pursuant to this subparagraph.
(v) Nothing in this paragraph shall prohibit a taxpayer from claiming a homestead exemption after January 1 for a property that is not already subject to the homestead exemption, provided any claim for an exemption is consistent with the requirements of subsection (2)(c)(iii) of this section. If a taxpayer claims a homestead exemption after January 1 and is receiving a homestead exemption claimed on a separate property in a prior tax year, the exemption on such separate property shall be removed the following tax year.
(b) Upon request by a county assessor conducting an investigation under paragraph (a) of this subsection, or when information indicating that an improper claim for the exemption allowed by this section is discovered by the state tax commission, the state tax commission shall disclose relevant information to the appropriate county assessor, board of county commissioners, county clerk, and county treasurer and to the secretary of state. Information disclosed to county officials and the secretary of state by the state tax commission under this subsection:
(i) May be used to decide the validity of any entitlement to the exemption provided in this section;
(ii) Shall, as necessary, be used to determine a person’s residence for voting purposes under title 34, Idaho Code; and
(iii) Is not otherwise subject to public disclosure pursuant to chapter 1, title 74, Idaho Code.
(c) The assessment and collection of the recovery of property tax must begin within the seven (7) year period beginning the date the assessment notice reflecting the improperly claimed or approved exemption was required to be mailed to the taxpayer.
(d)(i) An applicant for an exemption under this section may appeal to the county board of equalization the county assessor’s refusal to grant an exemption pursuant to paragraph (a) of this subsection within thirty (30) days of the date the county assessor sent notice of the refusal.
(ii) The taxpayer may appeal to the county board of equalization the decision by the county assessor to assess the recovery of property tax within thirty (30) days of the date the county assessor sent the notice to the taxpayer pursuant to this section. The board may waive the collection of all or part of any costs, late charges, and interest in order to facilitate the collection of the recovery of the property tax.
(iii) The taxpayer may appeal the imposition of the penalty provided in paragraph (a)(iii) of this subsection within thirty (30) days of the date the county assessor sent the notice to the taxpayer pursuant to this section.
(e) For purposes of calculating the tax, the amount of the recovered property tax shall be for each year the exemption allowed by this section was improperly claimed or approved, up to a maximum of seven (7) years. The amount of the recovery of property tax shall be calculated using the product of the amount of exempted value for each year multiplied by the levy for that year plus costs, late charges, and interest for each year at the rates equal to those provided for delinquent property taxes during that year.
(f) Any recovery of property tax shall be due and payable no later than the date provided for property taxes in section 63-903, Idaho Code, and if not timely paid, late charges and interest, beginning the first day of January in the year following the year the county assessor sent the notice to the taxpayer pursuant to this section, shall be calculated at the current rate provided for property taxes.
(g) Recovered property taxes shall be billed, collected and distributed in the same manner as property taxes, except each taxing district or unit shall be notified of the amount of any recovered property taxes included in any distribution.
(h) Thirty (30) days after the taxpayer is notified, as provided in paragraph (a) of this subsection, the assessor shall record a notice of intent to attach a lien. Upon the payment in full of such recovered property taxes prior to the attachment of the lien as provided in paragraph (i) of this subsection, or upon the successful appeal by the taxpayer, the county assessor shall record a rescission of the intent to attach a lien within seven (7) business days of receiving such payment or within seven (7) business days of the county board of equalization decision granting the appeal. If the real property is sold to a bona fide purchaser for value prior to the recording of the notice of the intent to attach a lien, the county assessor and treasurer shall cease the recovery of such unpaid recovered property tax.
(i) Any unpaid recovered property taxes shall become a lien on the real property in the same manner as provided for property taxes in section 63-206, Idaho Code, except such lien shall attach as of the first day of January in the year following the year the county assessor sent the notice to the taxpayer pursuant to this section.
(j) For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this subsection as recovery of property tax shall be treated as property tax revenue.
(7) The legislature declares that this exemption is necessary and just.
(8) A homestead that previously qualified for exemption under this section in the preceding year shall not lose such qualification due to: the owner’s, beneficiary’s, partner’s, member’s or shareholder’s absence in the current year by reason of active military service or because the homestead has been leased because the owner, beneficiary, partner, member or shareholder is absent in the current year by reason of active military service. An owner subject to the provisions of this subsection must apply for the exemption with the county assessor every year on or before a deadline date as specified by the county assessor for the county in which the homestead is claimed. If an owner fails to apply on or before the established deadline, the county may, at its discretion, discontinue the exemption for that year.
(9) A homestead that previously qualified for exemption under this section in the preceding year shall not lose such qualification due to the owner’s, beneficiary’s, partner’s, member’s or shareholder’s death during the year of the owner’s, beneficiary’s, partner’s, member’s or shareholder’s death and the tax year immediately following such death, provided that the homestead continues to be a part of the owner’s, beneficiary’s, partner’s, member’s or shareholder’s estate. After such time, the new owner shall reapply to receive the exemption pursuant to this section and shall meet the qualification criteria contained in this section.
(10) The amount by which each exemption approved under this section exceeds one hundred thousand dollars ($100,000) may, in the discretion of the governing board of a taxing district, be deducted from the new construction roll for the following year prepared by the county assessor in accordance with section 63-301A, Idaho Code, but only to the extent that the amount exceeds the same deduction made in the previous year.
(11) By July 1, 2023, the state tax commission shall establish a database of all active exemptions claimed under this section, which database shall be searchable by a person’s name and by the address of the homestead for which the exemption is claimed. The database shall be made accessible to officials listed in subsection (6)(b) of this section for the purpose of verifying that:
(a) Multiple active exemptions have not been claimed by the same person; and
(b) A person’s residence for voting purposes is the same as the homestead for which such person has an active exemption pursuant to this section, if an exemption is so claimed.
(12) Increases in taxable value resulting from any change in status of a property formerly or newly receiving the homeowner exemption shall be included by the county assessor on the property roll or subsequent property roll required pursuant to section 63-301, Idaho Code.
[63-602G, added 1996, ch. 98, sec. 7, p. 350; am. 1997, ch. 358, sec. 1, p. 1059; am. 1999, ch. 382, sec. 1, p. 1047; am. 2001, ch. 69, sec. 1, p. 129; am. 2001, ch. 166, sec. 1, p. 576; am. 2004, ch. 156, sec. 1, p. 495; am. 2004, ch. 190, sec. 1, p. 597; am. 2005, ch. 283, sec. 1, p. 919; am. 2006, ch. 429, sec. 1, p. 1313; am. 2007, ch. 39, sec. 1, p. 96; am. 2009, ch. 7, sec. 1, p. 7; am. 2012, ch. 214, sec. 1, p. 581; am. 2013, ch. 21, sec. 4, p. 37; am. 2014, ch. 324, sec. 1, p. 802; am. 2015, ch. 141, sec. 159, p. 501; am. 2016, ch. 94, sec. 1, p. 287; am. 2020, ch. 248, sec. 1, p. 727; am. 2021, ch. 360, sec. 1, p. 1110; am. 2022, ch. 81, sec. 4, p. 230; am. 2022, ch. 92, sec. 1, p. 258; am. 2024, ch. 168, sec. 1, p. 642; am. 2025, ch. 167, sec. 1, p. 799; am. 2025, ch. 202, sec. 3, p. 918; am. 2026, ch. 236, sec. 1, p. 1017.]
(1) As provided in this section, low-income housing owned by nonprofit organizations shall be exempt from taxation.
(2) In order to qualify as a nonprofit organization under this section, an organization must demonstrate that:
(a) It is organized as a nonprofit corporation pursuant to chapter 30, title 30, Idaho Code, or pursuant to equivalent laws in the applicable state of incorporation; and
(b) It has received an exemption from taxation from the internal revenue service pursuant to section 501(c)(3) of the Internal Revenue Code; and
(c) No proceeds or tax benefits of the organization or from the low-income housing property owned by the organization shall inure to any individual or for-profit entity other than normal employee compensation.
(3) In order to qualify for the exemption provided in this section, the low-income housing property shall meet the following qualifications:
(a) Both legal and equitable title to the property is solely owned by the nonprofit organization seeking the exemption and is managed by the owner or a related nonprofit organization qualifying for the exemption set forth in section 63-602C, Idaho Code; and
(b) Tenants shall not be evicted based upon their inability to pay for a period of three (3) months if such inability is due to a catastrophic event that is not under the tenant’s control. For purposes of this subsection, "catastrophic event" means a medical condition or injury in which sudden, serious and unexpected symptoms of illness or injury are sufficiently severe to render the tenant unable to participate in employment and such illness or injury has been certified by one (1) or more licensed physicians and/or psychiatrists or psychologists. The term "catastrophic event" does not apply to individuals who voluntarily remove themselves from the workforce; and
(c) Except for a manager’s unit, all of the housing units in the low-income housing property are dedicated to low-income housing in the following manner: Fifty-five percent (55%) of the units shall be rented to those earning sixty percent (60%) or less of the median income for the county in which the housing is located; twenty percent (20%) of the units shall be rented to those earning fifty percent (50%) or less of the median income of the county in which the housing is located; and twenty-five percent (25%) of the units shall be rented to those earning thirty percent (30%) or less of the median income for the county in which the housing is located.
(4) The exemption provided in this section shall not apply:
(a) If the project is financed after the effective date of this act and applicable law permits the payment of property taxes with federal or state funds, grants, loans or subsidies; or
(b) If the property is receiving federal project-based assistance, as provided by 42 U.S.C. sections 1437f(d)(2), 1437f(f)(6) and 1437f(o)(13); or
(c) To any property used by a taxpayer to qualify for tax credits under the provisions of 26 U.S.C. chapter 42 or any successor programs until such time as the property is solely owned by a nonprofit organization as defined in this section and is no longer utilized to receive federal tax credits.
(5) Notwithstanding any other provision of this section, a low-income housing property shall be exempt from taxation due to undue hardship if:
(a) The property was financed prior to the effective date of this act; and
(b) Such financing was dependent upon the tax-exempt status of the property; and
(c) The law does not allow additional federal or state revenues to be available for the payment of property taxes.
(6) Nothing in this section shall affect the qualification of properties for tax-exempt status under other provisions of title 63, Idaho Code.
[(63-602GG) 63-602FF, added 2002, ch. 341, sec. 2, p. 959; am. and redesig. 2003, ch. 16, sec. 16, p. 65; am. 2017, ch. 58, sec. 33, p. 128.]
(1) Residential property located in an area which was previously zoned residential but has been changed to a zone other than residential shall be appraised, assessed and taxed as if such property were in an area zoned residential as long as such property is continuously used by the owner thereof solely for residential purposes.
(2) "Residential property" as used herein is defined as any tract of three (3) acres or less which is used by the owner thereof solely for residential purposes.
[63-602H added 1996, ch. 98, sec. 7, p. 352.]
(1) The net taxable value of all property of a taxpayer in excess of eight hundred million dollars ($800,000,000) located within a single county in Idaho shall be exempt from property taxation and any special assessment.
(2) The property included in the calculation of the exemption set forth in this section shall include all real property owned, and all personal property owned, leased, or rented that would otherwise be subject to property tax; provided however, with respect to leased or rented personal property, only that portion of the property which a taxpayer is contractually liable for payment of property taxes thereon shall be included in the calculation of the exemption.
(3) Leased or rented personal property, included in the calculation of the exemption provided by this section shall not be assessable against the owner of such property.
(4) The exemption set forth in this section shall apply first to owned real and personal property and, if exhausted, shall then apply to leased or rented personal property.
(5) The taxpayer owning, leasing, or renting the property included in the calculation of the exemption shall designate the property to which the exemption applies.
(6) The exemption set forth in this section shall not be available to any taxpayer with respect to a given year who, in the immediately preceding calendar year, failed to make significant capital investments of at least twenty-five million dollars ($25,000,000), by the acquisition or improvement of real or personal property located within the county referred to in subsection (1) of this section.
(7) The exemption set forth in this section shall not be available to any taxpayer with respect to a given year who, as of the first day of such year, did not employ or engage on a regular full-time basis, or the equivalent thereof, at least one thousand five hundred (1,500) workers within the county referred to in subsection (1) of this section.
(8) Except for the exemption provided for in subsection (4) of section 63-3029B, Idaho Code, no other exemption from property tax or any special assessment provided by the statutes of this state shall be applicable to any property described in subsection (2) of this section with respect to a year in which the exemption set forth in subsection (1) of this section applies to any of the same property.
(9) Property exempted under this section shall not be included on any new construction roll prepared by the county assessor in accordance with section 63-301A, Idaho Code.
(10) The state tax commission shall adopt all rules that may be necessary to implement this section.
[63-602HH, added 2005, ch. 284, sec. 1, p. 922; am. 2006, ch. 59, sec. 1, p. 183.]
The following property is exempt from taxation: all household goods, furniture and furnishings actually in use by the owner in his private home or dwelling place, or temporarily in storage pending delivery by a vendor to him for his personal use, and not for sale or in commercial use, and all wearing apparel and other personal effects held by any person for the exclusive use and benefit of himself or family and not for sale or commercial use.
[63-602I added 1996, ch. 98, sec. 7, p. 352.]
(1) It is the intent of this section to preserve infrastructure and encourage economic development in the limited circumstances when a business or other commercial entity ceases to operate on property within a county.
(2) Following notice as prescribed in section 31-710, Idaho Code, and public hearings, the board of county commissioners of any county shall have the authority to exempt from taxation the unused infrastructure of a business, provided that the business states that such infrastructure is nonoperational under penalty of perjury.
(3) The exemption shall be for a period of up to five (5) years, provided that the board of county commissioners may vote to extend the exemption for a period not exceeding five (5) additional years.
(4) The board of county commissioners shall publish in its minutes any decision to grant or deny the exemption provided in this section and shall notify the county assessor and state tax commission of any exemption and the duration of such exemption. It shall be the responsibility of the assessor to return the property valuation of the unused infrastructure to the tax rolls upon the expiration of the exemption.
(5) The exemption provided in this section shall not be granted for any portion of an operating public utility.
(6) As used in this section, "unused infrastructure" means installed utilities including, but not limited to, rail, water, natural gas and electrical lines.
[(63-602II) 63-602HH, added 2005, ch. 279, sec. 1, p. 877; am. and redesig. 2006, ch. 16, sec. 25, p. 60.]
The following property is exempt from taxation: motor vehicles properly registered and for which the required fee has been paid under the provisions of the laws of the state of Idaho, recreational vehicles for which the fees imposed by law have been paid and vessels for which the certificate of registration fees imposed by law have been paid.
[63-602J added 1996, ch. 98, sec. 7, p. 352.]
Real estate, fixtures, or personal property is exempt from taxation if it is:
(1) Owned, controlled, operated, or managed by an electrical or natural gas association; a rate-regulated electric utility company; a producer of electricity by means of wind energy, solar energy, or geothermal energy; a rate-regulated affiliated gas company; or a rate-regulated gas company;
(2) Held or used in connection with or to facilitate the generation, transmission, distribution, delivery, or measuring of electric power, natural gas, or electric energy, and all conduits, ducts or other devices, materials, apparatus, or property for containing, holding, or carrying conductors used for the transmission, distribution, and delivery of electric power, natural gas, or electric energy, including construction tools, materials, and supplies; and
(3) Subject to the taxes on gross earnings of wind, solar, or geothermal energy, the kilowatt hour taxes on rate-regulated electric utility companies, or the taxes on therms of natural gas for rate-regulated affiliated gas companies and rate-regulated gas companies pursuant to chapter 35, title 63, Idaho Code, but not subject to assessment by a county assessor pursuant to section 63-402, Idaho Code.
(4) For purposes of this section and chapter 35, title 63, Idaho Code:
(a) "Rate-regulated affiliated gas company" means a public utility as defined in section 61-129, Idaho Code, that is engaged in the transmission, distribution, or delivery of natural gas in this state and that is part of a combined utility company that also owns and operates a rate-regulated electric utility company subject to tax pursuant to chapter 35, title 63, Idaho Code.
(b) "Rate-regulated gas company" means a public utility as defined in section 61-129, Idaho Code, that is engaged in the transmission, distribution, or delivery of natural gas in this state and is not part of a combined utility company and does not own or operate any other utility company subject to tax pursuant to chapter 35, title 63, Idaho Code.
(c) "Therm" means a measure of the heat content of natural gas equal to one hundred thousand (100,000) British thermal units.
[63-602JJ, added 2016, ch. 189, sec. 2, p. 513; am. 2025, ch. 188, sec. 4, p. 876.]
(1)(a) An item of taxable personal property purchased on or after January 1, 2013, shall be exempt from property taxation if the item of taxable personal property has an acquisition price of three thousand dollars ($3,000) or less.
(b) For purposes of this section, the term "acquisition cost" means all costs required to put an item of taxable personal property into service and includes:
(i) The purchase price of a new or used item;
(ii) The cost of freight and shipping;
(iii) The cost of installation, engineering, erection or assembly; and
(iv) Sales and use taxes.
(c) For purposes of this subsection, an "item of taxable personal property" means equipment, machinery, furniture or other personal property that is functioning at its highest and best use for the purpose it was designed and constructed and is generally capable of performing that function without being combined with other items of personal property. An item of taxable personal property is not an individual component part of a piece of equipment, machinery, furniture or other personal property as a whole. An item of taxable personal property does not include an improvement to real property, a part that will become an improvement, or anything defined as a fixture.
(2)(a) On and after January 1, 2015, except as provided in subsection (8) of this section, each person’s personal property, located in the county, and not otherwise exempt, shall be exempt to the extent of one hundred thousand dollars ($100,000).
(b) On and after January 1, 2022, except as provided in subsection (8) of this section, each person’s personal property, located in the county, and not otherwise exempt, shall be exempt to the extent of an additional amount of one hundred fifty thousand dollars ($150,000). The combined exemption under this paragraph and paragraph (a) of this subsection shall not exceed a total amount of two hundred fifty thousand dollars ($250,000).
(c) For the purposes of this section, a person includes two (2) or more people using the property in a common enterprise who are within a relationship described in section 267 of the Internal Revenue Code, as defined in section 63-3004, Idaho Code.
(d) On and after January 1, 2022, any locally assessed personal property is exempt from taxation if it is:
(i) Self-propelled, self-powered, or pull-type equipment and machinery;
(ii) Primarily employed for the use of construction, logging, or mining of salable minerals as defined in section 47-701A, Idaho Code; and
(iii) Designed to travel to various job sites.
(3)(a) No later than the third Monday of November 2013, the county clerk of each county shall certify to the state tax commission the amount of exemption from property taxes under subsection (2)(a) of this section in that county for that year. No later than the third Monday of November 2022, the county clerk of each county shall certify to the state tax commission the amount of exemption from property taxes under subsection (2)(b) of this section in that county for that year. The certification shall identify the property receiving tax reductions, the value of the property, the property’s location, the amount of the tax levy applicable to personal property in the location, and the tax before and after the exemption allowed in subsection (2) of this section. The certification shall be in the form prescribed by the state tax commission and shall include such additional information as the commission may require by rule as needed to implement the purpose of this section. The certification shall be reviewed and, if necessary, corrected by the state tax commission.
(b) Except as provided in subsection (7) of this section, a taxing district created prior to January 1, 2013, shall be eligible for reimbursement for the exemptions granted under subsection (2)(a) and (b) of this section. A taxing district created on and after January 1, 2013, and prior to January 1, 2022, shall be eligible for reimbursement of property taxes exempted only under subsection (2)(b) of this section. A taxing district created on or after January 1, 2022, shall not be eligible for reimbursement of any property taxes exempted under this section. The amount of annual replacement of property tax on personal property exempted pursuant to subsection (2) of this section shall be the amount approved by the state tax commission pursuant to paragraph (a) of this subsection.
(4)(a) Subject to the limitations of this section, the state tax commission shall reimburse from the amount appropriated for personal property tax replacement in section 63-3638, Idaho Code, the county treasurer of each county for the reduction on the certifications provided in subsection (3) of this section. The county treasurer shall reimburse from the amount received to each taxing district within the county an amount in proportion to the amount of reduction shown on the certifications in subsection (3) of this section as corrected. The amount that would otherwise be attributable to tax revenues derived from tax levies on personal property exempted by this section within an existing revenue allocation area as defined in section 50-2903(16), Idaho Code, shall be paid directly by the county treasurer to such public body or agency entitled thereto, equal to the amounts that would have been distributed in accordance with the formula for such distribution set forth in section 50-2908, Idaho Code.
(b) The state tax commission shall pay one-half (1/2) of the reimbursement provided in this section no later than December 20 of each year, and the second one-half (1/2) shall be paid by no later than June 20 of the following year. The money received by the county tax collector under the provisions of this section may be considered by counties and other taxing districts and budgeted against at the same time, and in the same manner, and in the same year as revenues from taxation. The total amount paid to the county treasurers shall not exceed the amount certified to the state tax commission under subsection (3) of this section.
(c) For purposes of the limitation provided by section 63-802, Idaho Code, moneys received from distributions pursuant to section 63-3638, Idaho Code, as property tax replacement for the taxable value of property exempt from taxation pursuant to this section shall be treated as property tax revenues.
(5)(a) Nothing contained in this section shall affect the taxation of forest lands or forest products pursuant to chapter 17, title 63, Idaho Code, or the taxation of the net profits of mines pursuant to chapter 28, title 63, Idaho Code.
(b) The exemption from personal property tax provided for in subsection (2) of this section shall not apply to motor vehicles, recreational vehicles, aircraft and boats that are not registered with the state of Idaho and for which required registration fees have not been paid.
(6)(a) The application for the exemption provided for in subsection (2) of this section shall be in the form prescribed by the state tax commission and shall include such information as the state tax commission may require by rule as needed to implement the purpose of this section including, but not limited to, a list of each item of personal property, the purchase date of each item of personal property, the unit cost of each item of personal property if more than the exemption allowed in subsection (1) of this section, and the total cost of the items of personal property.
(b) The application for this exemption, if the county is capable of so providing, may be transmitted by the county assessor electronically, as that term is defined in section 63-115, Idaho Code, when requested by the taxpayer, or mailed by the county assessor to the taxpayer, or his agent or representative at the taxpayer’s last known post office address, no later than March 1 of each year. The transmission or mailing of the application shall also include the taxpayer’s application for the exemption allowed by this section for the last year in which the taxpayer filed an application.
(c) A taxpayer need only make application for the exemption in this section once as long as all of the following conditions are met:
(i) The taxpayer has received the exemption during the previous year as a result of him making a valid application as defined in this section.
(ii) The amount of the exemption allowed by this section is more than the taxable value of personal property owned by the taxpayer.
(iii) The taxpayer has not made purchases of personal property, excluding items of taxable personal property exempted pursuant to subsection (1) of this section, that would cause the taxable value of the personal property owned by the taxpayer to exceed the maximum amount allowed as an exemption by this section.
(d) Knowingly failing to report changes in the taxable value of personal property that exceed the amount of the exemption allowed pursuant to this section shall subject the taxpayer to a fine not in excess of ten thousand dollars ($10,000) in addition to other penalties set forth in this chapter.
(7) Recovery of property tax exemptions allowed by this section but improperly claimed:
(a) Upon discovery of evidence, facts or circumstances indicating any exemption allowed by this section was improperly claimed, the county assessor shall decide whether the exemption claimed should have been allowed and, if not, notify the board of county commissioners, at which time the board may waive a recovery of the property tax and notify such taxpayer in writing.
(b) The assessment and collection of the recovery of property tax must begin within the seven (7) year period beginning on the date the assessment notice reflecting the improperly claimed exemption was required to be mailed to the taxpayer.
(c) The taxpayer may appeal to the board of tax appeals the decision by the board of county commissioners to assess the recovery of property tax within thirty (30) days of the date the county assessor sent the notice to the taxpayer pursuant to this section.
(d) For purposes of calculating the tax, the amount of the recovered property tax shall be for each year the exemption allowed by this section was improperly claimed or approved, up to a maximum of seven (7) years. The amount of the recovery of property tax shall be calculated using the product of the amount of exempted value for each year multiplied by the levy for that year plus costs, late charges and interest for each year at the rates equal to those provided for delinquent property taxes during that year. In cases of fraud, the fine set forth in subsection (6)(d) of this section shall be assessed for each tax year.
(e) Any recovery of property tax shall be due and payable no later than the date provided for property taxes in section 63-903, Idaho Code, and if not timely paid, late charges and interest, beginning the first day of January in the year following the year the county assessor sent the notice to the taxpayer pursuant to this section, shall be calculated at the current rate provided for property taxes.
(f) Recovered property taxes shall be billed, collected and distributed in the same manner as property taxes. If the recovery is for property tax for which the state provided replacement money, the amounts recovered shall be reported and remitted to the state tax commission, which shall reimburse the general fund. The state tax commission will then notify each affected taxing district or unit of its proportionate share of the recovered property tax, which amount shall be deducted from future payments to be made pursuant to subsection (3) of this section.
(g) Thirty (30) days after the taxpayer is notified, as provided in paragraph (a) of this subsection, the assessor shall record a notice of intent to attach a lien. Upon the payment in full of such recovered property taxes prior to the attachment of the lien as provided in paragraph (h) of this subsection, or upon the successful appeal by the taxpayer, the county assessor shall record a rescission of the intent to attach a lien within seven (7) business days of receiving such payment or within seven (7) business days of the county commissioners’ decision granting the appeal.
(h) Any unpaid recovered property taxes shall become a lien upon the taxpayer’s personal property in the same manner as provided for property taxes in section 63-206, Idaho Code, except such lien shall attach as of the first day of January in the year following the year the county treasurer sent the notice to the taxpayer pursuant to this section.
(i) For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this subsection as recovery of property tax shall be treated as property tax revenue.
(8) For operating property with values apportioned to more than one (1) county, the personal property exemption shall be subtracted from the Idaho allocated value prior to apportionment and, for private railcar companies, prior to determining whether their values are to be apportioned. Notwithstanding amounts calculated as provided in subsection (1) of this section, the amount of the exemption otherwise provided in subsection (2) of this section shall be calculated as follows:
(a) Take the lesser amount of:
(i) The number of counties in which a company has operating property multiplied by two hundred fifty thousand dollars ($250,000); or
(ii) The total statewide value of eligible personal property reported by the company.
(b) Reduce the amount calculated in paragraph (a) of this subsection by the value of any nonoperating personal property granted the exemption otherwise found in subsection (2) of this section, as reported by county assessors.
[63-602KK, added 2008, ch. 400, sec. 2, p. 1093; am. 2009, ch. 42, sec. 1, p. 119; am. 2013, ch. 243, sec. 1, p. 581; am. 2014, ch. 357, sec. 4, p. 890; am. 2015, ch. 96, sec. 1, p. 233; am. 2021, ch. 360, sec. 9, p. 1122; am. 2022, ch. 225, sec. 2, p. 740; am. 2025, ch. 300, sec. 12, p. 1271.]
(1) The following intangible personal property is exempt from taxation: capital stock and bonds. The deposits in national banks, state banks, and savings and loan associations. Shares and accounts of savings and loan associations, credit unions or associations organized under the laws of the state of Idaho for the purpose of accumulating the savings and funds of their members and lending the same to their members. Goodwill, customer lists, contracts and contract rights, patents, trademarks, custom computer programs as defined in section 63-3616, Idaho Code, copyrights, trade secrets, franchises, licenses, rights-of-way which are possessory only and not accompanied by title.
(2) The commission shall promulgate rules which shall provide for the exclusion of exempt intangible personal property from taxable value of operating property. Such rules shall allow each taxpayer the right to elect one (1) of the following three (3) methods for exclusion of exempt intangible personal property from its taxable value:
(a) Separate exclusion of the exempt intangible personal property at the system level value; or
(b) Separate exclusion of the exempt intangible personal property at the state allocated value; or
(c) Exclusion of the exempt intangible personal property by valuation of only tangible personal property and nonexempt intangible personal property using valuation models which do not impound or include values of the exempt intangible personal property.
[63-602L, added 1996, ch. 98, sec. 7, p. 353; am. 1998, ch. 400, sec. 4, p. 1254.]
The following property is exempt from taxation: all dues and credits secured by mortgage, trust deed or other liens except as otherwise provided by law.
[63-602M added 1996, ch. 98, sec. 7, p. 353.]
(1) Water rights for the irrigation of lands are exempt from taxation.
(2) Canals, ditches, pipelines, flumes, aqueducts, reservoirs, dams, and any other necessary facility used primarily for the conveyance, storage, or providing of water for the irrigation of lands, are exempt from taxation to the extent irrigation water is thereby conveyed, stored or diverted; provided that if any portion of such property is used for purposes other than irrigation of lands or the conveyance, storage, or providing of water to a nonprofit irrigation company or irrigation district, the assessor shall determine the entire value of such property so used and assess the proportionate part of such property that is devoted to such use.
(3) All real and personal property is exempt that is owned, used, operated or occupied:
(a) Primarily for the maintenance and operation of any irrigation project or irrigation works or system in conducting the business of furnishing water to landowners, members or shareholders; or
(b) By any organization, whether incorporated or unincorporated, heretofore organized or which shall hereafter be organized, for the operation, maintenance, or management of an irrigation project or irrigation works or system and for the purpose of furnishing water to landowners, members or shareholders, the control of which is actually vested in those entitled to the use of the water from such irrigation works or system for the irrigation of lands to which the water from such irrigation works or system is appurtenant, including all title and interest in such property as owner, lessee, or otherwise.
Provided, that if any portion of such property is used for commercial purposes by others than its landowners, members or shareholders, the assessor shall determine the entire value of such portion of the property so used and assess the proportionate part of the property that is used for commercial purposes.
[63-602N added 1996, ch. 98, sec. 7, p. 353; am. 2016, ch. 189, sec. 16, p. 522.]
(1) Provided that there is a plant investment that meets all tax incentive criteria as defined in subsection (2) of this section, the board of county commissioners may exempt all or a part of the change from the base value attributable directly to the plant investment.
(2) As used in this section:
(a) "Base value" means the assessed value on the county’s property rolls of property associated with the plant investment from the year immediately preceding the year representing the beginning of the project period during which a plant investment pursuant to this section occurs.
(b) "Building or structural components of buildings" means real property improvements to land as defined in section 63-201(11), Idaho Code, that are owned or leased by the taxpayer and located in Idaho within the boundaries of the project site.
(c) "Defined project" means a written plan presented to the county commissioners by a taxpayer outlining projected investment in new plant for new plant and building facilities during a project period and located at a project site.
(d) "Plant investment" means investment in new or existing plant and building facilities. Such plant and building facilities include buildings or structural components of buildings, related parking facilities, food service facilities, business office facilities and other building facilities directly related to the business making the plant investment. Plant investment also includes investments in the personal property associated with the plant and its facilities.
(e) "Project period" means the period of time beginning at the earlier of a physical change to the project site or the first employment of new employees or contractors located in Idaho who are related to the activities at the project site.
(f) "Project site" means an area or areas at which the affected plant and building facilities are located and at which the tax incentive criteria have been or will be met and which are either:
(i) A single geographic area located in this state at which the affected plant and building facilities owned or leased by the taxpayer are located; or
(ii) One (1) or more geographic areas located in this state if eighty percent (80%) or more of the plant investment is made at one (1) of the areas.
(g) "Tax incentive criteria" means the following conditions:
(i) The board of county commissioners shall by ordinance establish an investment amount not less than five hundred thousand dollars ($500,000) at all project sites within the county for which the exemption and all exemptions thereafter granted shall apply, thereby providing uniformity to all taxpayers;
(ii) The plant investment will bring significant economic benefits to the county; and
(iii) The plant or building facilities will be for nonretail purposes that are either commercial or industrial.
(3) The board of county commissioners may grant the property tax exemption for the defined project for a period of up to five (5) years. The agreement shall be considered a contract arrangement between the county and the taxpayer for the exemption time period granted by the board of county commissioners and the annual approval provision contained in subsection (3) of section 63-602, Idaho Code, shall not apply to the exemption provided in this section as long as the contract enumerated in this section is valid and in force and effect. If, within the project period, the use or nature of the defined project or investment in the new plant changes such that the project would no longer qualify for the tax exemption, the board of county commissioners may unilaterally terminate the agreement and withdraw the tax exemption.
(4) When considering whether to grant the property tax exemption, the board of county commissioners may consider trade secrets, as defined in section 74-107(1), Idaho Code, in executive session as allowed in section 74-206(1)(d), Idaho Code.
(5) Before granting a property tax exemption under this section, the board of county commissioners shall hold a public meeting regarding whether to grant the exemption. The board of county commissioners shall provide a summary of the application under consideration, a written notice of the time, date and location of the public meeting, and an invitation to participate in the meeting to all affected taxing districts, urban renewal agencies and the Idaho department of commerce at least five (5) calendar days before the meeting.
(6) Property exempted under this section shall not be included on any new construction roll prepared by the county assessor in accordance with section 63-301A, Idaho Code, until the exemption ceases.
(7) The legislature declares this exemption necessary and just.
[63-602NN, added 2008, ch. 327, sec. 1, p. 897; am. 2010, ch. 133, sec. 2, p. 284; am. 2017, ch. 263, sec. 1, p. 655.]
The following property is exempt from taxation: property used for generating or delivering electrical power to the extent that such property is used for furnishing power for pumping water for irrigation or drainage purposes on lands in the state of Idaho, and property used for transmitting or delivering natural gas energy to the extent that such property is used for furnishing natural gas energy for pumping water for irrigation or drainage purposes on lands in the state of Idaho. This exemption shall accrue to the benefit of the consumer of such power, or the consumer of such natural gas energy, except in cases where the water so pumped is sold or rented to irrigate lands, in which event the property used for generating or delivering power, and property used for transmitting or delivering natural gas energy, shall be assessed for taxation to the extent that such water is so sold or rented.
[63-602O added 1996, ch. 98, sec. 7, p. 354.]
The following property is exempt from taxation: wells drilled for the production of oil, gas or hydrocarbon condensate.
[63-602OO, added 2013, ch. 109, sec. 1, p. 259.]
(1) The following property is exempt from taxation: facilities, installations, machinery or equipment, attached or unattached to real property, and designed, installed and utilized in the elimination, control or prevention of water or air pollution, or, in event such facilities, installations, equipment or machinery shall also serve other beneficial purposes and uses, such portion of the assessed valuation thereof as may reasonably be calculated to be necessary for and devoted to elimination, control or prevention of water or air pollution. The state tax commission or county assessor shall determine such exempt portion, and shall not include as exempt any portion of any facilities which have value as the specific source of marketable by-products.
(2) If any water corporation, as defined by section 61-125, Idaho Code, regulated by the Idaho public utilities commission is or has been ordered by the department of environmental quality or the Idaho public utilities commission to install equipment designed and utilized in the elimination, control or prevention of water pollution, the Idaho public utilities commission shall notify the Idaho state tax commission of the percentage such property bears to the total invested plant of the company and said portion shall be exempt from property taxation. Said percentage reported to the Idaho state tax commission by the Idaho public utilities commission may be contested by any person or party at a public hearing held before the Idaho state tax commission.
[63-602P, added 1996, ch. 98, sec. 7, p. 354; am. 2025, ch. 47, sec. 17, p. 239.]
The following property is exempt from taxation: cooperative telephone lines from which no profit is derived and upon or over which no fees or tolls are charged or collected. This exemption shall only apply to any cooperative telephone system having twenty-five (25) or less subscribers or users.
[63-602Q added 1996, ch. 98, sec. 7, p. 354.]
The following property is exempt from property taxation: agricultural crops, whether growing or held for use or sale, while the legal or equitable title remains with the producer, and fruit and nut-bearing trees and grapevines; provided that nothing herein contained shall be construed to exempt timber, forest, forest land, or forest products from the provisions of chapter 17, title 63, Idaho Code.
[63-602R added 1996, ch. 98, sec. 7, p. 355.]
(1) Any person, firm or corporation engaged in the storing or processing of fruits or vegetables held for human consumption or shipment of seeds out of the state must file a full declaration of such property as of the assessment date with the county assessor. On any assessment made on fruits and vegetables held for sale for human consumption, or any processed product, thereof, or seeds, in the hands of farmers, producers, or of a processor, or while being transported to or held in storage in a public or private warehouse structure, the board of equalization of the county in which the assessment was made, at its meeting on the first Monday of December as provided by law for equalizing the assessments of personal property on the subsequent personal property assessment roll, shall cancel such assessments in whole or proportionate part on receipt of sufficient documentary proof that the personal property so assessed was actually sold and transported or shipped to another point outside the state of Idaho on or before December 1 of the current year of assessment. No such cancellation shall be made unless such proof be furnished to said board on or before such meeting in such year.
(2) Public warehousing is the storing of personal property by any person, firm or corporation regularly engaged in the business of storing such property for hire.
(3) Private warehousing is the storage of personal property by any person, firm or corporation which is carrying on the activity of warehousing or storing such property only in the operation of his or its own business.
(4) This exemption shall only apply to private storage from and after a notice, describing by address and physical premises, is filed with the county assessor, which notice shall be filed annually.
[63-602S added 1996, ch. 98, sec. 7, p. 355.]
(1) Any person, firm, or corporation engaged in the manufacture or processing of personal property in this state which property is stored in a public or private warehouse structure or area must file a full declaration of such property as of the assessment date with the county assessor. On any assessment made on personal property manufactured or processed in this state by person, firms or corporations having a domicile or place of business in Idaho, being stored in a public or private warehouse structure or area, the board of equalization of the county in which such assessment was made, at its meeting on the first Monday of December as provided by law for equalizing the assessments of personal property on the subsequent personal property assessment roll, shall cancel such assessments in whole or proportionate part on receipt of sufficient documentary proof that the personal property so assessed was actually sold and transported or shipped to another point outside the state of Idaho on or before December 1 of the current year of assessment. No such cancellation shall be made unless such proof be furnished to said board on or before such meeting in such year. The term "manufactured" or "processed" as used herein refers to personal property which has been fabricated, constructed, assembled, milled or converted into a finished product and is not intended to include any personal property undergoing a stage of manufacture or process prior to the end finished product.
(2) Public warehousing is the storing of personal property by any person, firm or corporation regularly engaged in the business of storing such property for hire.
(3) Private warehousing is the storage of personal property by any person, firm or corporation which is carrying on the activity of warehousing or storing such property only in the operation of his or its own business.
(4) Private or public warehouse area is intended to mean for purposes of this act open storage or place properly identified which is normally used to store personal property by any person, firm or corporation.
(5) This exemption shall only apply to a private warehouse, private and public warehousing area from and after a notice, describing by address and physical premises, is filed with the county assessor, which notice shall be filed annually.
[63-602T added 1996, ch. 98, sec. 7, p. 355.]
(1) Personal property shipped into this state and stored in a public or private warehouse structure, which property is not offered for sale in Idaho and designated for reshipment outside of the state, is considered to be "in transit" and shall be exempt from taxation. Such property shall not be deprived of exemption because while in storage, awaiting such further shipment, such personal property is labeled, packaged, disassembled, divided, broken in bulk, relabeled, or repackaged, or because the personal property is held for resale to customers outside the state of Idaho. Provided that all personal property claimed to be exempt "in transit" be labeled as such and shall be designated immediately upon receipt as being in transit upon the books and records of the warehouse, whether public or private, wherein the same is located. The books and records of such storage warehouse shall contain a full, true and correct inventory of all such property, together with the date of receipt of same, the point of origin, the date of its withdrawal, and, if known, the ultimate destination thereof. The books and records pertaining to the storage of any such in transit property shall be opened to inspection by any taxing authority in the state of Idaho having jurisdiction thereof upon reasonable demand having been made.
(2) Public warehousing is the storing of personal property by any person, firm or corporation regularly engaged in the business of storing such property for hire.
(3) Private warehousing is the storage of personal property by any person, firm or corporation which is carrying on the activity of warehousing or storing such property only in the operation of his or its own business. This exemption shall only apply to private storage from and after a notice, describing by address and physical premises, is filed with the county assessor, which notice shall be filed annually.
[63-602U added 1996, ch. 98, sec. 7, p. 356.]
Personal property of any person, firm or corporation, having neither domicile nor place of business in this state, which property upon being brought or shipped into this state is forthwith stored in the original package in a warehouse operated for public use and for hire, shall, while so stored, be deemed in transit and shall be exempt from taxation.
[63-602V added 1996, ch. 98, sec. 7, p. 357.]
The following property is exempt from property taxation: business inventory. For the purpose of this section, "business inventory" means all items of tangible personal property or other property, including site improvements, described as:
(1) All livestock, fur-bearing animals, fish, fowl and bees.
(2) All nursery stock, stock-in-trade, merchandise, products, finished or partly finished goods, raw materials, and all forest products subject to the provisions of chapter 17, title 63, Idaho Code, supplies, containers and other personal property that is held for sale or consumption in the ordinary course of the taxpayer’s manufacturing, farming, wholesale jobbing, or merchandising business.
(3) Residential improvements never occupied. Once residential improvements are occupied as defined in section 63-317, Idaho Code, they shall be subject to the tax provided by section 63-317, Idaho Code. The provisions of section 63-602Y, Idaho Code, shall not apply to the exemption provided by this subsection. The exemption provided by this subsection applies only to improvements to real property, and only until first occupied. For purposes of this section, the term "residential improvements" means only:
(a) Single family residences; or
(b) Residential townhouses; or
(c) Residential condominium units.
The nonresidential portion of an improvement to real property that is used or is to be used for residential and nonresidential purposes does not qualify for the exemption provided by this section. If an improvement contains multiple residential units, each such unit shall lose the exemption provided in this section when it becomes occupied.
(4) Site improvements that are associated with land, such as roads and utilities, on real property held by the land developer, either as owner or vendee in possession under a land sale contract, for sale or consumption in the ordinary course of the land developer’s business until other improvements, such as buildings or structural components of buildings, are completed or the real property is conveyed to a third party. For purposes of this subsection, a transfer of title to real property to a legal entity of which at least fifty percent (50%) is owned by the land developer, the land developer’s original entity or the same principals who owned the land developer’s original entity shall not be considered a conveyance to a third party. For purposes of this subsection, the amount of the exemption shall be the difference between the market value of the land with site improvements and the market value of the land without site improvements as shall be determined by a comparative market analysis of a similarly situated parcel or parcels of real property that have not been improved with such site improvements contemplated by this subsection. In the case the market value of land without site improvements cannot be reasonably assessed because of the absence of comparable sales, an exemption value of seventy-five percent (75%) of the market value of land with site improvements shall be granted to that parcel. An application is required for the exemption provided in this subsection in the first year the exemption is claimed; in subsequent consecutive years no new application is required. The application must be made to the board of county commissioners by April 15 and the taxpayer and county assessor must be notified of any decision and assessment of property by May 15. The decision or assessment of property, or both, of the board of county commissioners may be appealed to the county board of equalization no later than the fourth Monday in June. The applicant shall notify the board of county commissioners in writing of any change in eligibility for the parcel by April 15.
[63-602W, added 1996, ch. 98, sec. 7, p. 357; am. 1997, ch. 242, sec. 1, p. 703; am. 1998, ch. 95, sec. 1, p. 341; am. 2012, ch. 192, sec. 1, p. 517; am. 2013, ch. 276, sec. 1, p. 714; am. 2021, ch. 360, sec. 3, p. 1115.]
(1) The following property is exempt from taxation: real and personal property which has been damaged by an event causing casualty loss to all or a portion of the property. The board of equalization on a case-by-case basis shall determine whether to grant an exemption.
An exemption granted under this section shall be for the year in which the real or personal property has been damaged or destroyed. Claimants seeking exemption under this section must apply to the county board of equalization. The application must be in writing on a form provided by the county and must identify the claimant, the date of the casualty loss, and the property that has been damaged or destroyed. The application must be filed on or before the end of the county’s normal business hours on the fourth Monday of June of the year in which the casualty loss occurred. If an exemption is granted, the value of the property subject to taxation shall be calculated by dividing the number of days in the year prior to the casualty loss by the number of days in the year and multiplying the resulting quotient by the market value of the property less any applicable exemptions, as of 12:01 a.m. on the first day of January of the tax year.
(2) The county board of equalization shall decide whether to grant such claim for exemption on or before the second Monday of July of the year in which the claim is filed. If granted, either in whole or in part, the county board of equalization shall order all necessary adjustments made in the property roll.
[63-602X, added 1996, ch. 98, sec. 7, p. 357; am. 1997, ch. 117, sec. 20, p. 320.]
(1) If any property, real or personal, which is exempted from taxation on the first day of January shall thereafter have a changed status during the year, either by change in ownership or otherwise, in a manner that if the changed status had existed on the first day of January the property would have been taxable at that time, then the property shall be assessed in the following manner: If the status changed before the first day of April, then for its full market value for assessment purposes; if on the first day of April and before the first day of July, then for three-fourths (3/4) of its full market value for assessment purposes; if on the first day of July and before the first day of October, then for one-half (1/2) of its full market value for assessment purposes; and if the status changed on or after the first day of October, then for one-fourth (1/4) of its full market value for assessment purposes. However, if the changed status results from the leasing or rental of property normally constituting business inventory, the same shall be subject to property tax only for the period it is so leased or rented and upon its return to business inventory shall again be exempt. Each owner of such property shall, on the first Monday of November of each year, file with the assessor for the home county of the owner with a copy for every other county involved, a statement listing and sufficiently identifying such property, the counties where it was situated and the periods of the preceding twelve (12) calendar months during which the property was leased or rented within each county.
(2) At the time of filing such statement with the assessor of his home county, the owner of such leased or rented property shall provide such assessor with a copy for every other county involved.
(3) The assessor of such home county shall ascertain the portion of said preceding twelve (12) calendar months during which such property was leased or rented in the home county and shall enter such property upon the subsequent or missed property roll and the tax collector of the home county shall compute and collect the property tax thereon. The assessor shall indorse the full market value for assessment purposes of each item of such property upon copies of the statement and the owner of the property shall, within five (5) days, furnish an indorsed copy of the owner’s statement to the assessor of each county of the state wherein such property was located during the lease or rental period, and each such other county assessor shall likewise assess and the tax collector shall collect the property taxes due for the portion of the preceding twelve (12) calendar months the leased or rented property was situate in their county.
(4) The property taxes due thereon shall be a first and prior lien upon such property and all real and personal property of the owner thereof within the state until all property taxes due have been paid.
[63-602Y added 1996, ch. 98, sec. 7, p. 358.]
Any improvement to real property exempt from property taxation under the laws of this state or under the laws of the United States shall be exempt from occupancy taxation.
[63-602Z added 1996, ch. 98, sec. 7, p. 358.]
(1) The state tax commission shall, at the time of assessment of the property of any electrical, or gas, public utility, cooperative organized under the rural electrification administration act of the United States congress, or other company distributing electrical power ("utility"), determine the amount of the exemption under section 63-602O, Idaho Code, and shall reduce such assessment so that any such utility shall not be required to pay any property taxes upon that portion of its property so exempted.
The amount of such exemption or reduction by the state tax commission shall be as nearly as practicable, such as would yield the amount of property taxes included in the rates of such utility under the tariff schedule(s) applicable to the furnishing of such electricity or gas.
(2) The full amount of property taxes which would have been due from such utility if such exemption had not been made, shall be credited or paid annually, for the year in which the exemption is made, on the electric or gas bill, to the consumer by the utility furnishing such electricity or gas for irrigation purposes.
(3) If the consumer is not a customer of the deliverer of electrical power or natural gas energy, the full amount of property taxes which would have been due from such utility if such exemption had not been made, shall be paid annually, for the year in which the exemption is made, directly to the consumer by the utility delivering such electricity or gas for irrigation purposes. To qualify for credit or direct payment the person or organization at the point of delivery must also be the person or organization pumping water for irrigation purposes and not a distributor or redistributor of electrical power or natural gas energy.
(4) For the purposes of determining the benefit to which each consumer is entitled by virtue of this exemption, the following procedure is provided.
To receive the benefit of the exemption under section 63-602O, Idaho Code, and this section, each consumer who is not a customer of the deliverer of electrical power or gas energy must file an application with the state tax commission on or before April 30 each year except that for the year 1993, only such application may be filed on or before June 15. The state tax commission shall prescribe by rule the form and information necessary for such application.
On or before the fifteenth day of November each year, the tax collector of each county shall transmit to the state tax commission, duplicate tax statements of each utility, showing the property taxes payable by such utility in his county. The state tax commission shall as soon as practicable thereafter, certify to each utility, the aggregate saving in property taxes effected in the several counties to each utility by reason of this exemption. On or before the fifteenth day of December of each year, each utility shall file with the state tax commission of Idaho, a statement showing the revenues which were or are to be collected from each irrigation or drainage pumping consumer, and the ratio between the aggregate savings in property taxes certified to it by the state tax commission and the aggregate revenues which were or are to be collected from these consumers. The utility shall determine the credit to which each consumer is entitled by virtue of this exemption and shall certify to the state tax commission that it has refunded or credited against the consumer’s bills, the amounts due each consumer. This refund or credit shall equal each consumer’s bill for the year multiplied by the ratio calculated pursuant to the provisions of this paragraph. The public utilities commission shall have jurisdiction under the public utilities law to insure utility compliance with the provisions of this statute.
[63-603 added 1996, ch. 98, sec. 7, p. 359.]
(1) For property tax purposes, land actively devoted to agriculture shall be eligible for appraisal, assessment, and taxation as agricultural property each year it meets one (1) or more of the following qualifications:
(a) The total area of such land, including the homesite, is more than five (5) contiguous acres, and is actively devoted to agriculture, which means:
(i) It is used to produce field crops including, but not limited to, grains, feed crops, fruits and vegetables; or
(ii) It is used to produce nursery stock as defined in section 22-2302(11), Idaho Code; or
(iii) It is used by the owner for the grazing of livestock to be sold as part of a for-profit enterprise or is leased by the owner to a bona fide lessee for grazing purposes; or
(iv) It is in a cropland retirement or rotation program.
(b) The area of such land is five (5) contiguous acres or less and such land has been actively devoted to agriculture within the meaning of subsection (1)(a) of this section during the last three (3) growing seasons; and
(i) It agriculturally produces for sale or home consumption the equivalent of fifteen percent (15%) or more of the owner’s or lessee’s annual gross income; or
(ii) It agriculturally produced gross revenues in the immediately preceding year of one thousand dollars ($1,000) or more. When the area of land is five (5) contiguous acres or less, such land shall be presumed to be nonagricultural land until it is established that the requirements of this subsection have been met.
(2) Land that is contiguous to land qualifying under subsection (1) of this section shall also be appraised, assessed, and taxed as land actively devoted to agriculture if the land:
(a) Consists of pivot corners for a center pivot-irrigated crop, provided such pivot corners are not used for a commercial or residential purpose; or
(b) Is used primarily to store agricultural commodities or agricultural equipment, or both.
(3) Land shall not be classified or valued as agricultural land which is part of a platted subdivision with stated restrictions prohibiting its use for agricultural purposes, whether within or without a city.
(4) Land utilized for the grazing of a horse or other animals kept primarily for personal use or pleasure rather than as part of a bona fide for-profit enterprise shall not be considered to be land actively devoted to agriculture.
(5) Land actively devoted to agriculture, having previously qualified for exemption under this section in the preceding year, or that would have qualified under this section during the current year, shall not lose such qualification due to the owner’s or lessee’s absence in the current year by reason of active military service in a designated combat zone, as defined in section 112 of the Internal Revenue Code. If an owner fails to timely apply for exemption as required in this section solely by reason of active duty in a designated combat zone, as defined in section 112 of the Internal Revenue Code, and the land would otherwise qualify for exemption under this section, then the board of county commissioners of the county in which the land actively devoted to agriculture is located shall refund property taxes, if previously paid, in an amount equal to the exemption that would otherwise have applied.
(6) If the land qualified for exemption pursuant to section 63-602FF, Idaho Code, in 2005, then the land will qualify in 2006 for the exemption pursuant to section 63-602K, Idaho Code, upon the filing of a statement by the owner with the board of county commissioners that the land will be actively devoted to agriculture pursuant to this section in 2006.
(7) For purposes of this section, the act of platting land actively devoted to agriculture does not, in and of itself, cause the land to lose its status as land being actively devoted to agriculture if the land otherwise qualifies for the exemption under this section.
(8) As used in this section:
(a) "Contiguous" means being in actual contact or touching along a boundary or at a point, except no area of land shall be considered not contiguous solely by reason of a roadway or other right-of-way.
(b) "For-profit" means the enterprise will, over some period of time, make or attempt to make a return of income exceeding expenses.
(c) "Platting" means the filing of the drawing, map or plan of a subdivision or a replatting of such, including certification, descriptions and approvals with the proper county or city official.
[63-604, added 1996, ch. 98, sec. 7, p. 360; am. 2001, ch. 12, sec. 1, p. 14; am. 2002, ch. 93, sec. 1, p. 255; am. 2005, ch. 271, sec. 1, p. 835; am. 2006, ch. 233, sec. 2, p. 692; am. 2021, ch. 270, sec. 1, p. 820.]
(1) For the tax year commencing January 1, 2007, an application for appraisal, assessment and taxation under this section as land actively devoted to agriculture pursuant to section 63-604, Idaho Code, shall be filed in the office of the county assessor on or before the fourth Monday in June 2007. For the tax year commencing January 1, 2008, and for each and every year thereafter, an application for appraisal, assessment and taxation under this section as land actively devoted to agriculture pursuant to section 63-604, Idaho Code, shall be filed in the office of the county assessor between January 1 and April 15 of each year for which the requested tax status is to apply. Land eligible for this tax status is land which is either:
(a) Owned and used for wildlife habitat by a private, nonprofit corporation which corporation has a recognized tax exempt status under section 501(c)(3) of the Internal Revenue Code, and which corporation qualifies for exemption status under section 63-602C, Idaho Code, and which corporation is dedicated to the conservation of wildlife or wildlife habitat; or
(b) Being managed pursuant to a conservation easement or a conservation agreement, as defined in this section and which easement or agreement has been entered into with a private, nonprofit corporation which has a tax exempt status under section 501(c)(3) of the Internal Revenue Code, which corporation qualifies for exemption status under section 63-602C, Idaho Code, and which land qualified, for three (3) consecutive years immediately preceding management of the land pursuant to a conservation easement or a conservation agreement, as land actively devoted to agriculture pursuant to section 63-604, Idaho Code.
(2) As used in this section, "conservation agreement" means a written document between a private, nonprofit corporation enumerated in subsection (1) of this section and the landowner which defines wildlife, flora or fauna or freshwater biota to be protected and outlines a minimum of a ten (10) year management plan to protect target species and to control noxious weeds in accordance with Idaho noxious weed law in chapter 24, title 22, Idaho Code. Progress in managing the target species and controlling noxious weeds shall be monitored and an annual progress report shall be submitted each year along with the application filed as required in this section.
(3) The conservation agreement or a copy of the document creating the conservation easement shall be filed with the county assessor by April 15 of the year for which application for the tax status is made. Following initial approval of an application in any tax year, for each subsequent, consecutive year in which application is made and the tax status is claimed, it shall not be necessary to resubmit the conservation agreement or a copy of the document creating the conservation easement unless the agreement or easement document has been amended. In the event the document is amended, the amended version shall be submitted with that year’s application.
(4) Failure to file an application for each year that tax status under this section is claimed, or failure to annually document progress in managing the target species and controlling noxious weeds as required in subsection (2) of this section, shall result in loss of the tax status provided in this section.
[63-605 added 1996, ch. 98, sec. 7, p. 361; am. 2000, ch. 215, sec. 1, p. 603; am. 2007, ch. 168, sec. 1, p. 496.]
(1) The county board of equalization of any county in which any property, the investment in which qualifies for the income tax credits described in sections 63-4403 and 63-4404, Idaho Code, is located may exempt all or a portion of the value of such property from property taxation. The board may grant the exemption when it finds that the investments in such property benefit the citizens within the county and taxing districts within the county in a manner and to such a degree that to grant the exemption is necessary and just.
(2) Property exempted under this section shall not be included on any new construction roll prepared by the county assessor in accordance with section 63-301A, Idaho Code.
(3) Applications for the exemption under this section shall be considered by the board as other applications for exemption under section 63-501, Idaho Code. Upon request of the board, the state tax commission may disclose to the board or county official designated by the board information necessary to identify and determine the property upon which the exemption may be granted.
[63-606A, added 2005, ch. 370, sec. 2, p. 1185.]
As used in this chapter:
(1) "Claimant" means a person who has filed an application under section 63-602G, Idaho Code, and has filed a claim under the provisions of sections 63-701 through 63-710, Idaho Code. Except as provided in section 63-702(2), Idaho Code, on January 1 or before April 15 of the year in which the claimant first filed a claim on the homestead in question, a claimant must be an owner of the homestead, a claimant must have lawful presence in the United States pursuant to section 67-7903, Idaho Code, and on January 1 of said year a claimant must be:
(a) Not less than sixty-five (65) years old; or
(b) A child under the age of eighteen (18) years who is fatherless or motherless or who has been abandoned by any surviving parent or parents; or
(c) A widow or widower; or
(d) A disabled person who is recognized as disabled by the social security administration pursuant to title 42 of the United States Code, or by the railroad retirement board pursuant to title 45 of the United States Code, or by the office of management and budget pursuant to title 5 of the United States Code, or, if a person is not within the purview of, and is therefore not recognized as disabled by, any other entity listed in this paragraph, then by the public employee retirement system or public employee disability plan in which the person participates that may be of any state, local unit of government or other jurisdiction in the United States of America; or
(e) A disabled veteran of any war engaged in by the United States, whose disability is recognized as a service-connected disability of a degree of ten percent (10%) or more, or who has a pension for nonservice-connected disabilities, in accordance with laws and regulations administered by the United States department of veterans affairs; or
(f) A person, as specified in 42 U.S.C. 1701, who was or is entitled to receive benefits because he is known to have been taken by a hostile force as a prisoner, hostage or otherwise; or
(g) Blind.
(2) "Homestead" means the dwelling, owner-occupied by the claimant as described in this chapter and used as the primary dwelling place of the claimant and may be occupied by any members of the household as their home, and so much of the land surrounding it, not exceeding one (1) acre, as is reasonably necessary for the use of the dwelling as a home. It may consist of a part of a multidwelling or multipurpose building and part of the land upon which it is built. "Homestead" does not include personal property such as furniture, furnishings or appliances, but a manufactured home may be a homestead.
(3) "Household" means the claimant and the claimant’s spouse. The term does not include bona fide lessees, tenants, or roomers and boarders on contract. "Household" includes persons described in subsection (8)(b) of this section.
(4) "Household income" means all income received by the claimant and, if married, all income received by the claimant’s spouse, in a calendar year.
(5) "Income" means the sum of federal adjusted gross income as defined in the Internal Revenue Code, as defined in section 63-3004, Idaho Code, and to the extent not already included in federal adjusted gross income:
(a) Alimony;
(b) Support money;
(c) Nontaxable strike benefits;
(d) The nontaxable amount of any individual retirement account, pension or annuity, including railroad retirement benefits, all payments received under the federal social security act except the social security death benefit as specified in this subsection, state unemployment insurance laws, and veterans disability pensions and compensation, excluding any return of principal paid by the recipient of an annuity and excluding rollovers as provided in 26 U.S.C. 402 or 403, and excluding the nontaxable portion of a Roth individual retirement account distribution, as provided in 26 U.S.C. 408A;
(e) Nontaxable interest received from the federal government or any of its instrumentalities or a state government or any of its instrumentalities;
(f) Worker’s compensation; and
(g) The gross amount of loss of earnings insurance.
It does not include gifts from nongovernmental sources or inheritances. To the extent not reimbursed, the cost of medical care as defined in section 213(d) of the Internal Revenue Code, incurred and paid by the claimant and, if married, the claimant’s spouse, may be deducted from income. To the extent not reimbursed, personal funeral expenses, including prepaid funeral expenses and premiums on funeral insurance, of the claimant and claimant’s spouse only, may be deducted from income up to an annual maximum of five thousand dollars ($5,000) per claim. "Income" does not include veterans disability pensions received by a person described in subsection (1)(e) of this section who is a claimant or a claimant’s spouse if the disability pension is received pursuant to a service-connected disability of a degree of forty percent (40%) or more. "Income" does not include dependency and indemnity compensation or death benefits paid to a person described in subsection (1) of this section by the United States department of veterans affairs and arising from a service-connected death or disability. "Income" does not include lump sum death benefits made by the social security administration pursuant to 42 U.S.C. 402(i). Documentation of medical expenses may be required by the county assessor and state tax commission in such form as the county assessor or state tax commission shall determine. For purposes of this chapter only and in the case of a claimant who owns and whose homestead is a certified family home as defined in section 39-3502, Idaho Code, "income" does not include payments that the claimant received as an enrolled medicaid provider from the medical assistance program. "Income" shall be that received in the calendar year immediately preceding the year in which a claim is filed. Where a claimant and/or the claimant’s spouse does not file a federal tax return, the claimant’s and/or the claimant’s spouse’s federal adjusted gross income, for purposes of this section, shall be an income equivalent to federal adjusted gross income had the claimant and/or the claimant’s spouse filed a federal tax return, as determined by the county assessor. The county assessor or state tax commission may require documentation of income in such form as each shall determine, including, but not limited to: copies of federal or state tax returns and any attachments thereto; and income reporting forms such as the W-2 and 1099.
For determining income for certain married individuals living apart, the provisions of sections 2(c) and 7703(b) of the Internal Revenue Code shall apply.
(6) "Occupied" means actual use and possession.
(7) "Owner" means a person holding title in fee simple or holding a certificate of motor vehicle title (either of which may be subject to mortgage, deed of trust or other lien) or who has retained or been granted a life estate or who is a person entitled to file a claim under section 63-702, Idaho Code. "Owner" shall also include any person who:
(a) Is the beneficiary of a revocable or irrevocable trust which is the owner of such homestead and under which the claimant or the claimant’s spouse has the primary right of occupancy of the homestead; or
(b) Is a partner of a limited partnership, member of a limited liability company or shareholder of a corporation if such entity holds title in fee simple or holds a certificate of motor vehicle title and if the person holds at least a five percent (5%) ownership in such entity, as determined by the county assessor; or
(c) Has retained or been granted a life estate.
"Owner" includes a vendee in possession under a land sale contract. Any partial ownership shall be considered as ownership for determining initial qualification for property tax reduction benefits; however, the amount of property tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant to section 63-705, Idaho Code, shall be computed on the value of the claimant’s partial ownership. "Partial ownership," for the purposes of this section, means any one (1) person’s ownership when property is owned by more than one (1) person or where the homestead is held by an entity, as set forth in this subsection, but more than one (1) person has the right of occupancy of such homestead. A person holding either partial title in fee simple or holding a certificate of motor vehicle title together with another person, but who does not occupy the dwelling as his primary dwelling place, shall not be considered an owner for purposes of this section, if such person is a cosignatory of a note secured by the dwelling in question and at least one (1) of the other cosignatories of the note occupies the dwelling as his primary dwelling place. The combined community property interests of both spouses shall not be considered partial ownership as long as the combined community property interests constitute the entire ownership of the homestead, including where the spouses are occupying a homestead owned by an entity, as set forth in this subsection, and the spouses have the primary right of occupancy of the homestead. The proportional reduction required under this subsection shall not apply to community property interests. Where title to property was held by a person who has died without timely filing a claim for property tax reduction, the estate of the deceased person shall be the "owner," provided that the time periods during which the deceased person held such title shall be attributed to the estate for the computation of any time periods under subsection (8)(a) or (b) of this section.
(8)(a) "Primary dwelling place" means the claimant’s dwelling place on January 1 or before April 15 of the year for which the claim is made. The primary dwelling place is the single place where a claimant has his true, fixed and permanent home and principal establishment, and to which whenever the individual is absent he has the intention of returning. A claimant must establish the dwelling to which the claim relates to be his primary dwelling place by clear and convincing evidence or by establishing that the dwelling is where the claimant resided on January 1 or before April 15 and:
(i) At least six (6) months during the prior year; or
(ii) The majority of the time the claimant owned the dwelling if owned by the claimant less than one (1) year; or
(iii) The majority of the time after the claimant first occupied the dwelling if occupied by the claimant for less than one (1) year. The county assessor may require written or other proof of the foregoing in such form as the county assessor may determine.
(b) Notwithstanding the provisions of paragraph (a) of this subsection, the property upon which the claimant makes application shall be deemed to be the claimant’s primary dwelling place if the claimant is otherwise qualified and resides in a care facility and does not allow the property upon which the claimant has made application to be occupied by persons paying a consideration to occupy the dwelling. Payment of utilities shall not be payment of a consideration to occupy the dwelling. A claimant’s spouse who resides in a care facility shall be deemed to reside at the claimant’s primary dwelling place and to be a part of the claimant’s household. A care facility is a hospital, nursing facility or intermediate care facility as defined in section 39-1301, Idaho Code, or a facility as defined in section 39-3302, Idaho Code, or a dwelling other than the one upon which the applicant makes application where a claimant who is unable to reside in the dwelling upon which the application is made lives and receives help in daily living, protection and security.
[63-701, added 1996, ch. 98, sec. 8, p. 362; am. 1997, ch. 24, sec. 1, p. 33; am. 1997, ch. 117, sec. 23, p. 323; am. 1998, ch. 352, sec. 1, p. 1108; am. 1999, ch. 40, sec. 1, p. 77; am. 1999, ch. 382, sec. 2, p. 1049; am. 2000, ch. 20, sec. 1, p. 38; am. 2000, ch. 109, sec. 1, p. 239; am. 2000, ch. 154, sec. 1, p. 390; am. 2000, ch. 274, sec. 149, p. 883; am. 2001, ch. 69, sec. 2, p. 131; am. 2001, ch. 325, sec. 1, p. 1140; am. 2004, ch. 156, sec. 2, p. 497; am. 2005, ch. 31, sec. 1, p. 143; am. 2005, ch. 241, sec. 1, p. 749; am. 2005, ch. 280, sec. 58, p. 912; am. 2006, ch. 350, sec. 2, p. 1066; am. 2008, ch. 117, sec. 1, p. 323; am. 2010, ch. 235, sec. 55, p. 591; am. 2011, ch. 85, sec. 1, p. 176; am. 2015, ch. 224, sec. 1, p. 687; am. 2017, ch. 14, sec. 1, p. 22; am. 2019, ch. 159, sec. 3, p. 517; am. 2020, ch. 65, sec. 2, p. 151; am. 2022, ch. 307, sec. 1, p. 993; am. 2025, ch. 122, sec. 41, p. 649; am. 2025, ch. 208, sec. 22, p. 950.]
(1) (a) A property tax reduction shall be allowed pursuant to the provisions of sections 63-701 through 63-710, Idaho Code, if the owner occupies the residential improvements after January 1 but before April 15, and if no other property tax reductions or occupancy tax reductions under this section have been claimed by the owner for the same year.
(b) An occupancy tax reduction shall be allowed pursuant to the provisions of sections 63-701 through 63-710, Idaho Code, if the owner occupies the newly constructed residential improvements at any time during the year and has not filed for a property tax reduction or occupancy tax reduction under this section on any other homestead for the same year.
(c)(i) Notwithstanding any other provision of law, an owner may transfer his property tax reduction or occupancy tax reduction benefits upon changing his residence after April 15 if he meets all of the following requirements:
The owner is a veteran with a service-connected disability of one hundred percent (100%) or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs;
The owner has applied for and been granted the tax reduction benefit under this section before April 15;
After April 15 but before October 1, the qualified veteran has changed his homestead to a separate property that, but for the date requirements, would qualify for a reduction under this section; and
The owner has notified the state tax commission before October 1 of the desire to transfer his tax reduction benefits to the qualifying property.
(ii) The state tax commission must notify the appropriate county officials to transfer the tax reduction benefits to the property qualifying for the tax reduction.
(2) The right to file a claim under the provisions of sections 63-701 through 63-710, Idaho Code, shall be personal to the claimant and shall not survive his death except:
(a) Such right may be exercised on behalf of a living claimant by an agent authorized in writing to so act, by a guardian or other representative acting pursuant to judicial authority or by any person or entity described in section 63-711(3), Idaho Code. If a claimant dies after having filed a timely claim, the amount thereof shall be allowed to his personal representative, if one is appointed, or to surviving heirs or to the trust or other entity owning the property, as appropriate; and
(b) In the case of property owned by an estate, revocable trust, irrevocable trust, limited partnership, limited liability company or corporation, where the deceased person’s widow or widower succeeds to the interest of the deceased person in that entity and occupies the dwelling as required in this chapter, the deceased owner’s widow or widower, or any person or entity described in section 63-711(3), Idaho Code, on behalf of that widow or widower:
(i) May file a claim on behalf of the deceased spouse if the deceased spouse qualified or would have qualified as a claimant under subsection (1) of this section in the year in which the claim is filed; or
(ii) The widow or widower shall be deemed the owner of the property in any year after the year of the death of the spouse.
[63-702, added 1996, ch. 98, sec. 8, p. 364; am. 1997, ch. 117, sec. 24, p. 325; am. 2001, ch. 69, sec. 3, p. 135; am. 2001, ch. 166, sec. 2, p. 578; am. 2004, ch. 156, sec. 3, p. 501; am. 2019, ch. 31, sec. 2, p. 87; am. 2021, ch. 68, sec. 1, p. 249.]
(1) Any claim filed shall be signed by the claimant or by any person or entity described in section 63-711(3), Idaho Code. By signing such claim, the claimant or other person or entity signing such claim shall attest to the truth of such claim and shall be subject to the penalties provided by section 18-5401, Idaho Code, for stating as true any material fact known to be false. All claims shall be made on forms prescribed by the state tax commission and shall be in triplicate. One (1) copy of the form shall be provided to the claimant or the person or entity acting on behalf of the claimant, one (1) copy shall be kept for all county purposes, and one (1) copy shall be forwarded to the state tax commission with the property tax reduction roll. Except as provided in section 63-707, Idaho Code, the claim and its documentation shall not be deemed to be public records and may not be used for any commercial purpose; provided however, the state tax commission and the county assessor may use the contents of such claims and documentation for general statistical analysis and may publish such analysis, or any part of such analysis, as appropriate.
(2) By filing a claim, a claimant does not relinquish any right he or any member of his household may have to apply for a cancellation of property taxes pursuant to section 63-711, Idaho Code. The county commissioners may grant any such claimant, or any member of his household, a cancellation of property taxes, late charges and interest under such section, if a claim has been filed under the provisions of sections 63-701 through 63-710, Idaho Code.
(3) If two (2) or more individuals of a household are able to meet the qualifications of a claimant, they may decide between themselves who may obtain a reduction in property taxes or occupancy taxes under the provisions of sections 63-701 through 63-710, Idaho Code, and shall certify such division in writing to the county assessor in such form as the county assessor shall require, but if they do not decide between themselves, then the reduction shall be divided equally among or between the claimants in the household or shall be divided as determined under section 63-701(7), Idaho Code, whichever is appropriate.
(4) When an "owner" is any person who is the beneficiary of a revocable or irrevocable trust, or is a partner of a limited partnership, or member of a limited liability company, or shareholder of a corporation, if such entity holds title in fee simple or holds a certificate of motor vehicle title, and if said person holds at least a five percent (5%) ownership in such entity, he or she, or any person or entity described in section 63-711(3), Idaho Code, may provide proof of the foregoing as follows:
(a) If the owner of the homestead is a revocable or irrevocable trust, by an affidavit stating:
(i) That the claimant, or the claimant’s spouse, is a beneficiary of the trust; and
(ii) That the claimant, or the claimant’s spouse, is the occupier of the residential property and uses the property as the primary dwelling place of the occupier as of January 1 or before April 15.
The affidavit shall include the attaching of copies of those portions of the trust which set forth the status of the claimant or the claimant’s spouse as beneficiary and which contain the signature page or pages of the trust.
(b) If the owner is a limited partnership, limited liability company, or corporation, by an affidavit stating the entity holds title in fee simple or holds a certificate of motor vehicle title, and if said person holds at least a five percent (5%) ownership in such entity. The affidavit shall include the attaching of:
(i) Proof of the current status of the entity owning the property, including statements from the secretary of state as to such status if appropriate;
(ii) Copies of any documents, or portions thereof, relating to the entity including, but not limited to, those portions of the articles of organization or operating agreements of the entity indicating the person’s membership or ownership in the entity and the membership or ownership percentage held by such person; and
(iii) Copies of any contracts or other agreements between the entity and the claimant or the claimant’s spouse including, but not limited to, any portions thereof that show the right of occupancy of the homestead by the person.
(c) Any other documentation which the county assessor determines would aid the county assessor in carrying out the provisions of this chapter.
[63-703, added 1996, ch. 98, sec. 8, p. 364; am. 1997, ch. 117, sec. 25, p. 325; am. 2001, ch. 69, sec. 4, p. 135; am. 2004, ch. 156, sec. 4, p. 501; am. 2019, ch. 31, sec. 3, p. 87.]
(1) Each claimant qualifying for and applying for a reduction in property taxes or occupancy taxes under the provisions of sections 63-701 through 63-710, Idaho Code, shall be allowed a reduction in taxes on his homestead for the current year only, in the amounts provided by subsection (4) of this section.
(2) All property taxes and occupancy taxes continue to be the responsibility of the individual taxpayer, and all taxes continue to be perpetual liens against the property against which assessed. All taxes may be collected and enforced in the usual manner, if the taxpayer does not receive any tax reduction as provided under sections 63-701 through 63-710, Idaho Code, or if the taxpayer receives less tax reduction than the whole amount of property taxes or occupancy taxes he is charged with.
(3) The claimant property owner’s tax reduction shall be based upon the current year’s assessed value and the current year’s levy.
(4) Property tax and occupancy tax reductions qualified under sections 63-701 through 63-710, Idaho Code, shall be allowed as set out in section 2, chapter 59, laws of 1992, and adjusted for cost-of-living fluctuations as provided in section 63-705, Idaho Code.
(5) A claimant who is a veteran with a service-connected disability of one hundred percent (100%) or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs, shall also be eligible for a special property tax or occupancy tax reduction, as provided in section 63-705A, Idaho Code.
[63-704, added 1996, ch. 98, sec. 8, p. 365; am. 1997, ch. 117, sec. 26, p. 326; am. 2001, ch. 69, sec. 5, p. 137; am. 2018, ch. 183, sec. 1, p. 401; am. 2019, ch. 31, sec. 4, p. 89; am. 2020, ch. 246, sec. 1, p. 719.]
(1) The state tax commission shall publish adjustments to the income limitations, which shall be the greater of:
(a) An individual’s income as defined in section 63-701, Idaho Code, of not more than thirty-seven thousand dollars ($37,000) per household for tax year 2023 and each tax year thereafter; or
(b) One hundred eighty-five percent (185%) of the federal poverty guidelines for a household of two (2) for tax year 2021 and each tax year thereafter.
(2) On and after January 1, 2023, if the current year’s assessed value of the home owned by the individual, according to the current year’s assessment notice, exceeds the greater of four hundred thousand dollars ($400,000) or two hundred percent (200%) of the median assessed valuation for all homes in the county receiving the homestead exemption pursuant to section 63-602G, Idaho Code, then the individual will instead be referred to the property tax deferral program set forth in sections 63-712 through 63-721, Idaho Code. Using the current year’s assessed values, each county shall report the median assessed value of all properties receiving the homestead exemption in such county as of that date to the state tax commission no later than the first Monday in June. Provided, however, the provisions of this paragraph do not apply to a veteran with either a service-connected disability of one hundred percent (100%) or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs.
(3) The lowest income limitation shall allow a maximum reduction of one thousand five hundred dollars ($1,500) in tax year 2021 and thereafter or actual property taxes or occupancy taxes, as applicable, whichever is less. Each income limitation and reduction amount shall be prorated based on the basic maximum reduction, in practicable increments, so that the highest income limitation will provide for a reduction of two hundred fifty dollars ($250) or actual property taxes, whichever is less.
(4) The state tax commission shall publish the adjustments required by this section each and every year the secretary of health and human services announces cost-of-living modifications, pursuant to 42 U.S.C. 415(i). The adjustments shall be published no later than October 1 of each such year and shall be effective for claims filed in and for the following property tax year.
(5) The publication of adjustments under this section shall be exempt from the provisions of chapter 52, title 67, Idaho Code, but shall be provided to each county and to members of the public upon request and without charge.
[63-705, added 1996, ch. 98, sec. 8, p. 365; am. 1997, ch. 117, sec. 27, p. 327; am. 1998, ch. 102, sec. 2, p. 351; am. 2006, ch. 350, sec. 1, p. 1065; am. 2019, ch. 31, sec. 5, p. 89; am. 2021, ch. 360, sec. 4, p. 1116; am. 2022, ch. 230, sec. 1, p. 751; am. 2023, ch. 200, sec. 10, p. 546.]
(1) For tax year 2021 and thereafter, regardless of any reduction received under section 63-705, Idaho Code, a veteran with a service-connected disability of one hundred percent (100%) or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs, shall receive a special reduction in property taxes or occupancy taxes levied on his homestead, as defined in section 63-701, Idaho Code. The special tax reduction shall be in the amount of one thousand five hundred dollars ($1,500) or for the amount of the veteran’s actual property taxes or occupancy taxes, as applicable, whichever is less. If a veteran qualifies for tax reduction under both this section and section 63-705, Idaho Code, the combined tax reduction amount may not exceed the actual amount of the veteran’s property taxes or occupancy taxes on his homestead.
(2) An applicant for a special property tax or occupancy tax reduction under this section shall comply with all procedural requirements set forth in sections 63-701 through 63-710, Idaho Code, with the exception of any income documentation and the exception of the date limitations as set forth in subsection (5) of this section.
(3) In the event that a qualified veteran applies for the special tax reduction in this section but then dies, the veteran’s surviving spouse is entitled to receive the special tax reduction in that year and subsequent years, until such time as the surviving spouse remarries, dies, or no longer has property tax levied on the homestead.
(4) An applicant who is a veteran with a one hundred percent (100%) service-connected permanent and total disability, having once applied for and received the reduction under this section, shall be entitled to continue receiving the benefit in subsequent years without applying annually, unless the veteran changes homesteads pursuant to subsection (5) of this section.
(5) If a qualified veteran has applied for the special tax reduction under this section but after April 15 changes his homestead to a different property that would otherwise qualify for the special tax reduction under this section, the special tax reduction benefit is available for transfer. The state tax commission must notify the appropriate county officials to transfer the special tax reduction benefit to the qualifying property when all of the following conditions are met:
(a) The qualified veteran has applied for and been granted the tax reduction benefit before April 15;
(b) After April 15 but before October 1, the qualified veteran has changed his homestead to a separate property that would otherwise qualify for the special tax reduction authorized under this section; and
(c) The qualified veteran notifies the state tax commission before October 1 of the desire to transfer the tax reduction benefits to the qualifying property.
[63-705A, added 2018, ch. 183, sec. 2, p. 401; am. 2019, ch. 31, sec. 6, p. 89; am. 2020, ch. 246, sec. 2, p. 720; am. 2021, ch. 68, sec. 2, p. 250; am. 2021, ch. 360, sec. 5, p. 1117; am. 2023, ch. 137, sec. 1, p. 381.]
(1) Any claim for property tax reduction to be granted under the provisions of sections 63-701 through 63-710, Idaho Code, shall be filed in the office of the county assessor between January 1 and April 15 of each year. If April 15 is a weekend or a certain holiday recognized by the internal revenue service, such claims shall be considered timely filed if filed on the next business day.
(2) Any claim for occupancy tax reduction to be granted under the provisions of sections 63-701 through 63-710, Idaho Code, shall be governed by the provisions of section 63-317, Idaho Code, but must be filed in the office of the county assessor no later than the fourth Monday in January of the year following the year for which the occupancy tax was levied.
[63-706, added 1996, ch. 98, sec. 8, p. 366; am. 1997, ch. 117, sec. 28, p. 327; am. 2001, ch. 69, sec. 6, p. 137; am. 2011, ch. 85, sec. 2, p. 179; am. 2013, ch. 21, sec. 5, p. 40; am. 2019, ch. 31, sec. 7, p. 90.]
(1) The county assessor shall prepare a tax reduction roll, which shall be in addition to the property roll, the subsequent property roll, and missed property rolls. The tax reduction roll shall show:
(a) The name of the taxpayer;
(b) The description of the property for which a reduction in property taxes or occupancy taxes is claimed, suitably detailed to meet the requirements of the individual county;
(c) The assessor’s best estimate of current market value, and any prorated net taxable value of the eligible portion of the property’s current market value for assessment purposes;
(d) The amount of tax reduction for which the applicant is eligible as determined by the income of the claimant and, if married, the claimant’s spouse, pursuant to sections 63-704 and 63-705, Idaho Code; and
(e) The amount of tax reduction for which a disabled veteran homeowner is eligible, pursuant to section 63-705A, Idaho Code.
(2) Except as provided in section 63-317, Idaho Code, and as soon as possible, but in any event by no later than June 1, the tax reduction roll shall be certified to the county auditor and to the state tax commission in the manner prescribed by rules promulgated by the state tax commission. The property tax reduction roll shall be accompanied by a copy of the claim forms.
(3) (a) Except as provided in section 63-317, Idaho Code, and as soon as possible, but in any event by no later than the fourth Monday of October, the county auditor shall complete the tax reduction roll by adding the following information:
(i) The current year’s levy for the code area in which the property is situated;
(ii) The amount of occupancy tax reduction claimed based on the current year’s market value for assessment purposes and the current year’s levy;
(iii) The amount of property tax reduction claimed based on the current year’s market value for assessment purposes and the current year’s levy; and
(iv) The current year’s market value for assessment purposes.
(b) Except as provided in section 63-317, Idaho Code, and as soon as possible, but in any event no later than the fourth Monday of October, the county auditor shall certify the completed tax reduction roll to the state tax commission in the manner prescribed by rules promulgated by the state tax commission.
(4) The state tax commission shall determine the total number of claims to be allowed in each county, the dollar amount of each claim allowed, and the total dollar amount for all claims for each county. These amounts shall be certified to the county auditor and tax collector by the state tax commission by no later than the third Monday in November.
(5) The state tax commission may audit each and every claim submitted to it and, any other provision of law notwithstanding, may utilize income tax returns filed by the claimant or by the claimant’s spouse to determine the income of the claimant or the claimant’s spouse.
(6) If it is determined by the state tax commission that a claim is erroneous, the tax commission shall disapprove so much of the claim as necessary in order to conform with statutory standards. The tax commission shall provide the claimant, or the person or entity acting on behalf of the claimant, written notice of the tax commission’s intent to disapprove all or a portion of the claim. The claimant, or the person or entity acting on behalf of the claimant, shall have twenty-eight (28) days to make written protest to the tax commission of the intended action. The claimant, or the person or entity acting on behalf of the claimant, may submit additional information and may request an informal hearing with the commission. If the claimant, or the person or entity acting on behalf of the claimant, fails to make written protest within twenty-eight (28) days, the tax commission shall provide written notice of disapproval to the claimant, or the person or entity acting on behalf of the claimant, by the second Monday of October and to the county auditor of the county from which the claim was received. Any claimant, or person or entity acting on behalf of the claimant, whose claim is disapproved in whole or in part by the state tax commission may:
(a) File a claim with the county commissioners for a special cancellation pursuant to section 63-711, Idaho Code;
(b) Appeal such disapproval by the state tax commission to the board of tax appeals or to the district court of the county of residence of the taxpayer within thirty (30) days.
[63-707 added 1996, ch. 98, sec. 8, p. 366; am. 2001, ch. 69, sec. 7, p. 138; am. 2004, ch. 156, sec. 5, p. 503; am. 2011, ch. 85, sec. 3, p. 180; am. 2018, ch. 183, sec. 3, p. 402; am. 2019, ch. 31, sec. 8, p. 90.]
Within three (3) years of payment, the state tax commission may recover any erroneous or incorrect payment made under sections 63-701 through 63-710, Idaho Code, from any "claimant" as defined in section 63-701(1), Idaho Code. The deficiency determination, collection, and enforcement procedures provided by the Idaho income tax act, sections 63-3039, 63-3042, 63-3043 through 63-3064, Idaho Code, shall apply and be available to the commission for enforcement and collection under sections 63-701 through 63-710, Idaho Code, and such sections shall, for this purpose, be considered part of sections 63-701 through 63-710, Idaho Code. Wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under sections 63-701 through 63-710, Idaho Code, be described as tax relief liens and proceedings. In connection with such sections, a deficiency shall consist of any amount erroneously claimed by or paid to a claimant under sections 63-701 through 63-710, Idaho Code.
[63-708, added 1996, ch. 98, sec. 8, p. 368; am. 1997, ch. 117, sec. 29, p. 328.]
(1) By no later than December 20 of each year, the state tax commission shall pay to the county tax collector of each county one-half (1/2) of the amount due each county as reimbursement for reduction in property taxes as provided in sections 63-701 through 63-710, Idaho Code, as shown on the abstract of property tax reduction roll and claims forms approved by the state tax commission, and shall pay the second one-half (1/2) of such amount by not later than June 20 of the following year.
(2) The state tax commission may make one (1) lump sum payment by June 20 of the following tax year to the appropriate county tax collector if the reimbursement results from the granting of occupancy tax reduction and the claim was entered on the supplemental roll. Any amount of occupancy tax scheduled to be reimbursed by the state tax commission shall not be subject to late fees, penalties, or interest of any kind.
[63-709, added 1996, ch. 98, sec. 8, p. 368; am. 1997, ch. 117, sec. 30, p. 328; am. 2004, ch. 156, sec. 6, p. 504; am. 2019, ch. 31, sec. 9, p. 91.]
The money received by the county tax collector under the provisions of section 63-709, Idaho Code, may be considered by the counties and other taxing districts and budgeted against at the same time, in the same manner and in the same year as revenues from taxation.
[63-710, added 1996, ch. 98, sec. 8, p. 368; am. 2004, ch. 156, sec. 7, p. 505; am. 2006, ch. 59, sec. 2, p. 184.]
(1) Property taxes may be canceled for reason of undue hardship. The commissioners may, at their discretion, grant such cancellation for a specified time period. The commissioners may, at their discretion, cancel taxes on property which has been damaged by an event causing casualty loss to all or a portion of the property when the event occurs after the fourth Monday of June or casualty losses for which the amount of loss cannot be determined until after the fourth Monday of June.
(2) Applicants seeking a cancellation pursuant to this section must apply to the county commissioners. Each applicant shall give a sworn statement containing full and complete information of his financial status to the county commissioners and shall make true answers to all questions put before him touching such person’s right to the cancellation. The county commissioners shall decide and determine from each examination and from each written application for said cancellation whether or not such person is entitled to the cancellation claimed or any part thereof accordingly. In applying for a cancellation pursuant to this section, an applicant may submit an application at any time and the county commissioners may grant such application, either in whole or in part, at any regular meeting and the burden of proving the right of such cancellation shall rest upon the applicant.
(3) The county commissioners may, for good cause shown, allow an agent or some person or entity acting for and on behalf of the applicant to make the application for the cancellation provided in this section for any applicant, or where a person is entitled to cancellation shall be mentally incompetent or physically unable to make such sworn statement, his or her spouse, widow, widower, guardian, power of attorney, or personal representative, or other person having knowledge of the facts, may make the application for the cancellation.
(4) Any time within thirty (30) days after mailing of a decision of the county commissioners, or pronouncement of a decision announced at a meeting, or the failure of the county commissioners to act, an appeal may be taken to the district court for the county in which the property is located. Such appeal may only be filed by the property owner or by any person aggrieved, or by a person or entity acting on behalf of such person, when he deems any such action illegal or prejudicial to the public interest. Nothing in this section shall be construed so as to suspend the payment of property taxes pending said appeal.
Notice of such appeal stating the grounds thereafter shall be filed with the county auditor, who shall forthwith transmit a copy of said notice to the county commissioners.
(5) The county commissioners shall order all necessary adjustments to be made in the property tax records of the various county officers and taxing districts.
(6) The cancellation of property taxes which have become delinquent shall affect only those property taxes granted a cancellation by order of the county commissioners and all interest and late charges on such taxes.
[63-711, added 1996, ch. 98, sec. 8, p. 368; am. 1997, ch. 117, sec. 31, p. 329; am. 1998, ch. 102, sec. 3, p. 352; am. 2001, ch. 69, sec. 8, p. 139.]
The provisions of sections 63-712 through 63-721, Idaho Code, shall be known and may be cited as the "Property Tax Deferral Act."
[63-712, added 2006, ch. 234, sec. 1, p. 694.]
In addition to the definitions in section 63-701, Idaho Code, the following definitions apply to sections 63-712 through 63-721, Idaho Code.
(1) "Qualified claimant" means:
(a) An individual who is a claimant who applies for and properly receives property tax relief under the provisions of sections 63-701 through 63-710, Idaho Code; or
(b) An individual who meets the definition of "claimant" under section 63-701, Idaho Code, and is otherwise eligible to file a claim under sections 63-701 through 63-710, Idaho Code, except by reason of exceeding the income limitations of section 63-705, Idaho Code, may nevertheless be a qualified claimant, provided his household income does not exceed fifty thousand dollars ($50,000) for the tax year 2021, which amount shall be increased by the annual cost-of-living percentage modification as determined by the secretary of health and human services pursuant to 42 U.S.C. 415(i) beginning in 2022.
(2) "Qualified property" means property owned by a qualified claimant, provided that the property is the "homestead," as defined in section 63-701, Idaho Code, of the qualified claimant.
(3) "Sufficient equity" means that:
(a) The property is not security for a reverse mortgage, a home equity loan or line of credit, or any similar loan or encumbrance; and
(b) The amount of all encumbrances of any nature on the property that are superior to any liens for deferral, plus the amount of property tax and interest previously deferred on the same property, does not exceed eighty percent (80%) of the current year’s market value for assessment purposes.
[63-713, added 2006, ch. 234, sec. 1, p. 694; am. 2008, ch. 214, sec. 1, p. 670; am. 2013, ch. 22, sec. 1, p. 42; am. 2021, ch. 238, sec. 1, p. 728.]
(1) A qualified claimant, as defined in section 63-713(1)(a), Idaho Code, may elect, upon the application for property tax relief filed under section 63-703, Idaho Code, to defer payment of any property tax due, including delinquencies, interest, late charges, costs, and fees. A qualified claimant, as defined in section 63-713(1)(b), Idaho Code, may apply for property tax deferral under sections 63-712 through 63-721, Idaho Code. The state tax commission shall prescribe the form and manner by which the election must be made and may require that the application include information establishing the outstanding balance of any encumbrances, proof of insurance of an amount adequate for the amount of deferred tax and interest, and such other information as the state tax commission reasonably determines to be necessary. The state tax commission may require written or other proof of the encumbrances or casualty insurance in such form as the state tax commission may determine.
(2) No application for deferral of property taxes shall be granted if:
(a) The application fails to show sufficient equity in that property; or
(b) The application fails to show proof of insurance of an amount adequate for the amount of the deferred tax and interest.
(3)(a) Applications for deferral of property taxes submitted after the September deadline pursuant to section 63-715, Idaho Code, and before December 31, shall be accepted and processed after January 1 of the following year with no interest or penalties accruing for the time period between the application submission and the receipt by the county of reimbursement payment from the state tax commission pursuant to section 63-717, Idaho Code.
(b) Applications that include property tax delinquencies for more than two (2) property tax years shall be submitted by the September deadline.
(4) For a qualified claimant who owes property taxes for one (1) or more tax years, the deferral of property taxes provided in this section shall include in the deferral any outstanding balance owed in property taxes on the property, including delinquencies, interest, late charges, costs, and fees.
(5) Nothing in this section shall preclude a qualified claimant from applying for property tax deferral on qualified property in any subsequent years.
[63-714, added 2006, ch. 234, sec. 1, p. 694; am. 2008, ch. 214, sec. 2, p. 670; am. 2013, ch. 22, sec. 2, p. 42; am. 2025, ch. 299, sec. 1, p. 1252.]
Elections for deferral of payment of property tax shall be subject to the provisions of section 63-706, Idaho Code, and shall be included on the property tax reduction roll and processed and reviewed as provided in section 63-707, Idaho Code, for claims for property tax relief, except that an application for deferral must be submitted to the state tax commission by no later than the first Monday in September.
[63-715, added 2006, ch. 234, sec. 1, p. 695; am. 2011, ch. 85, sec. 4, p. 181; am. 2021, ch. 360, sec. 6, p. 1118.]
(1) Upon approval by the state tax commission, payment of any amount of property tax due for the year to which the election relates, after application of the property tax relief available under sections 63-701 through 63-710, Idaho Code, and subject to the limitation in section 63-717(2), Idaho Code, in regard to the qualified property subject to the election, shall be deferred until the deferral is terminated under section 63-718, Idaho Code.
(2) During the period of deferral, interest shall accrue on the amount deferred at the annual rate of interest provided in section 63-3045, Idaho Code.
(3) The lien imposed by section 63-206, Idaho Code, shall continue to be a lien on the property in the amount of deferred taxes and interest thereon. The state tax commission shall file with the county recorder of the county in which the property is located a notice of lien for deferred property taxes. Notwithstanding the provisions of section 63-206, Idaho Code, the lien for deferred taxes and interest shall not be a first and prior lien but shall take its priority from the date and time of filing of the notice of lien.
[63-716, added 2006, ch. 234, sec. 1, p. 695; am. 2011, ch. 85, sec. 5, p. 181; am. 2021, ch. 238, sec. 2, p. 729.]
(1) By no later than December 20 of each year, the state tax commission shall pay to the county tax collector of each county one-half (1/2) of the amount due each county as reimbursement for property taxes deferred as provided in sections 63-712 through 63-721, Idaho Code, as shown on the property tax reduction roll required under section 63-707, Idaho Code, as modified by actions of the state tax commission relating to claims approved or disapproved by the state tax commission and shall pay the second one-half (1/2) of such amount by not later than June 20 of the following year. The payments may be combined with payments made under section 63-709, Idaho Code.
(2) The total amount of reimbursement payable to all counties under this section shall not exceed five million dollars ($5,000,000) in regard to property taxes for one (1) calendar year. In the event that the amount of taxes approved for deferral exceeds five million dollars ($5,000,000), the amount of taxes deferred for each qualifying property shall be reduced proportionately and the balance of property tax not deferred shall be entered on the property tax notice required by section 63-902, Idaho Code, and shall be payable as required by chapter 9, title 63, Idaho Code.
[63-717, added 2006, ch. 234, sec. 1, p. 695; am. 2021, ch. 238, sec. 3, p. 729.]
(1) A deferral of property tax payments shall terminate on the earlier of:
(a) Voluntary payment of the full amount of deferred tax and interest to the state tax commission;
(b) The death of the qualified claimant or if there is more than one (1) qualified claimant, the death of the last surviving qualified claimant;
(c) A sale or other transfer of title to the property or any part of the property except a transfer of title to a surviving spouse of a deceased qualified claimant;
(d) The property no longer qualifies for the exemption provided in section 63-602G, Idaho Code, for residential improvements;
(e) A determination by the state tax commission under section 63-720, Idaho Code, that the deferral of property tax payments was erroneously granted to a person who is not a qualified claimant or in regard to property that is not qualified property.
(2) When a deferral of property tax is terminated any unpaid amount of deferred tax and interest shall be paid to the state tax commission no later than one hundred eighty (180) days after the termination.
(3) Any payments of deferred property tax received by the state tax commission under this section or under sections 63-719 and 63-720, Idaho Code, shall be distributed to the property tax deferral recovery fund which is hereby created. Amounts in the property tax deferral recovery fund are hereby continuously appropriated for the purposes of section 63-3638(5), Idaho Code.
[63-718, added 2006, ch. 234, sec. 1, p. 696; am. 2013, ch. 22, sec. 3, p. 43.]
Any amount of deferred tax due under section 63-718, Idaho Code, which is not paid to the state tax commission on the due date, is a delinquency subject to the provisions of chapter 10, title 63, Idaho Code, except that references to county and county officials in that chapter shall be taken as references to the state tax commission.
[63-719, added 2006, ch. 234, sec. 1, p. 696.]
(1) In addition to the provisions of section 63-719, Idaho Code, the state tax commission may recover deferrals of tax payments made under sections 63-712 through 63-721, Idaho Code, from any person who elected the deferral under section 63-714, Idaho Code, if the commission determines that:
(a) A deferral was granted to a person who is not a qualified claimant or in regard to property that is not qualified property; or
(b) The owner of the property subject to the deferral does not possess sufficient equity in that property.
(2) The deficiency determination, collection, and enforcement procedures provided by the Idaho income tax act, sections 63-3039, 63-3042, 63-3043 through 63-3064, Idaho Code, shall apply and be available to the commission for enforcement and collection under sections 63-712 through 63-721, Idaho Code, and such sections shall, for this purpose, be considered part of sections 63-712 through 63-721, Idaho Code. Wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under sections 63-712 through 63-721, Idaho Code, be described as tax deferral liens and proceedings. In connection with such sections, a deficiency shall consist of any amount subject to recovery under this section together with any interest and penalty due thereon.
[63-720, added 2006, ch. 234, sec. 1, p. 696; am. 2013, ch. 22, sec. 4, p. 43.]
Every person who applies for deferral of taxes under section 63-714, Idaho Code, knowing that the person for whom the application is made is not a qualified claimant or knowing that the property is not qualified property, is guilty of a misdemeanor and on conviction thereof shall be punished as provided for misdemeanors in section 18-303, Idaho Code.
[63-721, added 2006, ch. 234, sec. 1, p. 697.]
(1) It is the intent of the legislature to provide property tax relief on owner-occupied properties in Idaho receiving the homestead property tax exemption pursuant to section 63-602G, Idaho Code, as of the second Monday in July each year by providing state moneys as replacement funding as provided in this section. This section does not apply to occupancy taxes levied pursuant to section 63-317, Idaho Code.
(2) For the purpose of this section:
(a) "Eligible property taxes" means all property tax levies on homes receiving the homestead property tax exemption pursuant to section 63-602G, Idaho Code, as of the second Monday in July each year, except for bonds, school district levies, plant facility levies, and any voter-approved temporary levy for a specific duration. When calculating the eligible property taxes for the purpose of this section, the taxable value of each property shall include the value of no more than one (1) acre.
(b) "Homeowner property tax relief homestead" means a property receiving the homestead property tax exemption pursuant to section 63-602G, Idaho Code, as of the second Monday in July each year.
(3) There is hereby created in the state treasury the homeowner property tax relief account. Moneys in this account shall consist of moneys transferred from the general fund and are continuously appropriated for homeowner property tax relief pursuant to the provisions of this section.
(4) The county assessor shall prepare a homeowner property tax relief roll, which shall be in addition to all other property rolls. By no later than the first Monday of September each year, the homeowner property tax relief roll shall be certified by the county assessor to the county auditor in the manner prescribed by rules promulgated by the state tax commission. The homeowner property tax relief roll shall show:
(a) The name of the taxpayer;
(b) An accurate description of the homeowner property tax relief homestead; and
(c) The property’s current market value for assessment purposes.
(5)(a) The county auditor shall complete the homeowner property tax relief roll by adding the following information:
(i) The immediate prior year’s eligible levy for the tax code area in which the property is situated;
(ii) The estimated amount of eligible property taxes calculated by applying the levy in subparagraph (i) of this paragraph to the current year’s market value for assessment purposes on each qualifying homestead; and
(iii) The total estimated amount of eligible property taxes on all properties within the county that are receiving the homestead property tax exemption as of the second Monday in July of the current year.
(b) By no later than the second Monday of September each year, the county auditor shall certify the completed homeowner property tax relief roll to the state tax commission in the manner prescribed by rules promulgated by the state tax commission.
(6) The state tax commission shall determine the total number of homeowner property tax relief homesteads to be allowed in each county, the dollar amount of eligible property taxes for each homeowner property tax relief homestead allowed, and the total dollar amount of eligible property taxes for all homeowner property tax relief homesteads within each county from the amounts certified on the homeowner property tax relief roll. Such amounts shall be summed for all eligible property tax relief homesteads in all counties to determine the total amount of estimated eligible property taxes. This sum shall be divided into the amount of moneys in the homeowner property tax relief account as of August 1 of each year. The result shall be multiplied by the total amount of estimated eligible property taxes on such homesteads in each county. This amount shall be certified to the county auditor and tax collector by the state tax commission no later than the third Monday in September. By no later than December 20 of each year, the state tax commission shall pay to the county tax collector of each county the first half of the amount due to each county as reimbursement for homeowner property tax relief as provided in this section and shall pay the second half of such amount by no later than June 20 of the following year.
(7) The state tax commission may audit each and every property on the homeowner property tax relief roll. If the state tax commission determines that a homeowner property tax relief homestead credit is erroneous, the state tax commission shall disapprove as much of the credit as necessary in order to conform with statutory standards. The state tax commission shall provide the homeowner written notice of the state tax commission’s intent to disapprove all or a portion of the credit. The homeowner shall have twenty-eight (28) days to make written protest to the state tax commission of the intended action. The homeowner may submit additional information and may request an informal hearing with the state tax commission. If the homeowner fails to make written protest within twenty-eight (28) days, the state tax commission shall provide written notice of disapproval to both the homeowner and the county auditor of the county in which the property is situated by December 20. Any homeowner whose claim is disapproved in whole or in part by the state tax commission may appeal such disapproval to the board of tax appeals or to the district court of the county of residence of the taxpayer within thirty (30) days.
(8) Each county treasurer shall apply the moneys received pursuant to subsection (6) of this section to the eligible property taxes levied on the properties listed on the certified homeowner property tax relief roll that year. The moneys shall be designated as a line item credit against the total of all eligible property taxes on the property tax bill for each property receiving the tax relief provided by this section. Such moneys shall be distributed in the same manner as property tax revenues.
(9) The amount of property tax relief for a homeowner’s property taxes shall be applied after the homestead exemption pursuant to section 63-602G, Idaho Code, has been applied. The property tax relief amount cannot exceed the actual amount of current eligible property taxes due on the homeowner’s property tax notice. No delinquent property taxes, penalties, interest, or fines may be paid with moneys from this program.
(10) Nothing in this section shall prevent a homeowner from applying for or receiving any other property tax relief provided pursuant to this chapter. The property tax relief provided pursuant to this section shall be credited to the homeowner’s property tax bill before any other property tax relief is applied, up to a maximum of the actual property taxes due on the homeowner property tax relief homestead.
(11) Any amount of homeowner property tax relief moneys distributed by the state tax commission to a county that exceeds the total amount of all eligible property taxes due from all homeowner property tax relief homesteads in the county shall revert to the state general fund. The county treasurer shall deposit such moneys with the state treasurer by the fourth Monday in July each year for the preceding property tax year.
(12) Within three (3) years of payment, the state tax commission may recover any erroneous or incorrect payment made to any homeowner receiving relief under this section. The deficiency determination, collection, and enforcement procedures provided in chapter 30, title 63, Idaho Code, shall apply and be available to the state tax commission for enforcement and collection under this section. Wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under this section, be described as tax relief liens and proceedings. In connection with this section, a deficiency shall consist of any amount erroneously paid on behalf of a homeowner under this section.
[63-724, added 2023, ch. 200, sec. 11, p. 547; am. 2024, ch. 237, sec. 26, p. 835.]
(1) The county commissioners in each county in this state must meet on the second Monday of September in each year to ascertain the tax rate necessary to be levied on each dollar of the valuation of all the taxable property in the county for such year in order to raise the amount of state taxes apportioned to such county by the state tax commission. The total of all levies must be within the limits prescribed by the laws of this state.
(2) In any period during which a sales tax is in force in this state, there shall be no levy of the general state property tax permitted by section 9, article VII, of the constitution of the state of Idaho.
[63-801 added 1996, ch. 98, sec. 9, p. 369.]
(1) Except as otherwise provided in this section, no taxing district shall certify a budget request for an amount of property tax revenues to finance an annual budget that exceeds the maximum sum permitted under this section:
(a)(i) The highest dollar amount of property taxes certified for its annual budget for any one (1) of the three (3) tax years preceding the current tax year, which amount may be increased by a growth factor of not to exceed three percent (3%) plus the amount of revenue calculated as described in this subsection. Except for fire protection districts and ambulance service districts, the taxing district shall determine what portion of the three percent (3%) increase permitted under this subparagraph that it requires and then calculate a preliminary levy rate based on the percent chosen. In calculating the preliminary levy rate, the most current taxable market value shall be used, except that for taxable market values of centrally assessed operating property, the prior year’s valuation may be used instead of the current year’s taxable market values. The preliminary levy rate shall be multiplied by the value shown on the new construction roll compiled pursuant to section 63-301A, Idaho Code, and by ninety percent (90%) of the value of annexation during the previous calendar year, as certified by the state tax commission for taxable market values of operating property of public utilities and by the county assessor. For fire protection districts and ambulance service districts, the previous year’s levy rate shall be multiplied by the value shown on the new construction roll compiled pursuant to section 63-301A, Idaho Code, and by ninety percent (90%) of the value of annexation during the previous calendar year, as certified by the state tax commission for the taxable market values of operating property of public utilities and by the county assessor.
(ii) Except as provided in this subparagraph, the total budget increase calculated under this paragraph must not exceed eight percent (8%). For fire protection districts and ambulance service districts, the total budget increase calculated under this paragraph shall not exceed fifteen percent (15%). Provided, however, that any increase in the amount of property tax revenue to finance an annual budget added as a result of the following shall not be subject to such limitation[s]:
The termination, de-annexation, plan modification of, or the withdrawal of certain taxing districts from, a revenue allocation area of an urban renewal district pursuant to section 63-301A(3)(f), (i), (j), or (k), Idaho Code, or section 50-2908(1)(g), Idaho Code;
A fire protection district annexing territory pursuant to section 31-1411(3) or 31-1429, Idaho Code; or
A library district annexing territory of another library district pursuant to section 33-2711A, Idaho Code.
(iii) Following the first year in which a fire protection district has annexed city property pursuant to section 31-1429, Idaho Code, the city shall subtract an amount equal to the moneys spent on fire protection services during the last full year the city provided fire protection services to its residents from its budget limitation under this section.
(b) If the taxing district has not imposed a levy for three (3) or more years, the highest dollar amount of property taxes certified for its annual budget for the purpose of paragraph (a)(i) of this subsection shall be the dollar amount of property taxes certified for its annual budget during the last year in which a levy was made.
(c) The dollar amount of the actual budget request may be substituted for the amount in paragraph (a) of this subsection if the taxing district is newly created, except as may be provided in paragraph (i) of this subsection.
(d) This section does not apply to school district levies imposed in section 33-802, Idaho Code.
(e)(i) In the case of a fire protection district or ambulance service district for which less than the maximum allowable increase in the dollar amount of property taxes is certified for annual budget purposes in any one (1) year prior to property tax year 2026, or any other nonschool district for which less than the maximum allowable increase in the dollar amount of property taxes is certified for annual budget purposes in any one (1) year, such a district may, in any following year, recover the forgone increase by certifying, in addition to any increase otherwise allowed, any or all of the increase originally forgone. Provided however, that prior to budgeting any forgone increase, the district must provide notice of its intent to do so, hold a public hearing that may be in conjunction with its annual budget hearing, and certify by resolution the amount of forgone increase to be budgeted and the specific purpose for which the forgone increase is being budgeted. Upon adoption of the resolution, the clerk of the district shall file a copy of the resolution with the county clerk and the state tax commission. Said additional amount shall be included in future calculations for increases as allowed, except as provided in subparagraph (iii) of this paragraph.
(ii) If the forgone increase is budgeted for the purpose of maintenance and operations, the rate of recovering the reserved forgone moneys may increase the taxing district’s budget by no more than one percent (1%) per year.
(iii) If the forgone increase is budgeted for a capital project or projects, the rate of recovering the reserved forgone moneys may not exceed three percent (3%) of the taxing district’s budget for the year in which the forgone increase is budgeted. Forgone moneys budgeted for a capital project must be deducted from the taxing district’s forgone balance in the year in which it is budgeted. Upon completion of such a capital project, the taxing district shall certify such completion to the state tax commission and county clerk. If, upon certification, the state tax commission finds that the taxing district included forgone moneys for a capital project in calculating the increase permitted under paragraph (a) of this subsection, the state tax commission shall direct the taxing district to reduce its property tax budget for any year in which the forgone moneys were used to calculate a budget increase, in an amount equal to the forgone moneys budgeted plus any increases attributed to the forgone moneys improperly included in the taxing district’s property tax budget. For the purpose of this paragraph, a capital project includes:
The construction, expansion, renovation, or replacement of public facilities, including the acquisition of land and other site improvements;
The construction, expansion, or reconstruction of public works improvements, including roads, bridges, water systems, sewer systems, and broadband systems; and
The purchase of equipment with a useful life of ten (10) years or more.
(f) If a fire protection district or ambulance service district elects to budget less than the maximum allowable increase in the dollar amount of property taxes for any property tax year prior to 2026, or any other taxing district elects to budget less than the maximum allowable increase in the dollar amount of property taxes, the taxing district may reserve the right to recover all or any portion of that year’s forgone increase in a subsequent year by adoption of a resolution specifying the dollar amount of property taxes being reserved. Otherwise, that year’s forgone increase may not be recovered under paragraph (e) of this subsection. The district must provide notice of its intent to do so and hold a public hearing that may be in conjunction with its annual budget hearing, if applicable. The resolution to reserve the right to recover the forgone increase for that year shall be adopted at the annual budget hearing of the taxing district if the district has a budget hearing requirement.
(g) In the case of cities, if the immediately preceding year’s levy subject to the limitation provided by this section is less than 0.004, the city may increase its budget by an amount not to exceed the difference between 0.004 and the actual prior year’s levy multiplied by the prior year’s market value for assessment purposes. The additional amount must be approved by sixty percent (60%) of the voters voting on the question at an election called for that purpose and held on the date in May or November provided by law and may be included in the annual budget of the city for purposes of this section.
(h) A taxing district may submit to the electors within the district the question of whether the budget from property tax revenues may be increased beyond the amount authorized in this section, but not beyond the levy authorized by statute. The additional amount must be approved by sixty-six and two-thirds percent (66 2/3%) or more of the voters voting on the question at an election called for that purpose and held on the May or November dates provided by section 34-106, Idaho Code. If approved by the required minimum sixty-six and two-thirds percent (66 2/3%) of the voters voting at the election, the new budget amount shall be the base budget for the purposes of this section.
(i) When a nonschool district consolidates with another nonschool district or dissolves and a new district performing similar governmental functions as the dissolved district forms with the same boundaries within three (3) years, the maximum amount of a budget of the district from property tax revenues shall not be greater than the sum of the amounts that would have been authorized by this section for the district itself or for the districts that were consolidated or dissolved and incorporated into a new district.
(j) This section does not apply to cooperative service agency levies imposed in sections 33-317 and 33-317A, Idaho Code.
(k) The amount of money received in the twelve (12) months immediately preceding June 30 of the current tax year as a result of distributions of the tax provided in section 63-3502B(2), Idaho Code.
(2) In the case of fire districts, during the year immediately following the election of a public utility or public utilities to consent to be provided fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of property tax revenues permitted in subsection (1) of this section may be increased by an amount equal to the current year’s taxable value of the consenting public utility or public utilities multiplied by that portion of the prior year’s levy subject to the limitation provided by subsection (1) of this section.
(3) No board of county commissioners shall set a levy, nor shall the state tax commission approve a levy for annual budget purposes, which exceeds the limitation imposed in subsection (1) of this section unless authority to exceed such limitation has been approved by a majority of the taxing district’s electors voting on the question at an election called for that purpose and held pursuant to section 34-106, Idaho Code, provided however, that such voter approval shall be for a period of not to exceed two (2) years.
(4) The amount of property tax revenues to finance an annual budget does not include revenues from nonproperty tax sources and does not include revenue from levies for the payment of judicially confirmed obligations pursuant to sections 63-1315 and 63-1316, Idaho Code, and revenue from levies that are voter-approved for bonds, override levies or supplemental levies, plant facilities reserve fund levies, school emergency fund levies, or for levies applicable to newly annexed property or for levies applicable to new construction as evidenced by the value of property subject to the occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax year. The amount of property tax revenues to finance an annual budget does not include any property taxes that were collected and refunded on property that is exempt from taxation, pursuant to section 63-1305C, Idaho Code.
(5) The amount of property tax revenues to finance an annual budget shall include moneys received as recovery of property tax for a revoked provisional property tax exemption under section 63-1305C, Idaho Code.
(6) For tax year 2023, before calculating the amount required in subsection (1)(a)(i) of this section, the board of county commissioners shall reduce the approved property tax levy portion of its budget for the immediate prior three (3) years in an amount equal to the amount levied for indigent public defense. The reduced budget amount shall be the base budget for the purpose of subsection (1)(a)(i) of this section.
[63-802, added 2012, ch. 339, sec. 12, p. 941; am. 2015, ch. 10, sec. 2, p. 14; am. 2016, ch. 69, sec. 2, p. 243; am. 2016, ch. 189, sec. 4, p. 515; am. 2017, ch. 148, sec. 1, p. 366; am. 2018, ch. 194, sec. 4, p. 434; am. 2019, ch. 205, sec. 5, p. 628; am. 2020, ch. 41, sec. 1, p. 92; am. 2021, ch. 360, sec. 7, p. 1118; am. 2022, ch. 8, sec. 1, p. 20; am. 2022, ch. 318, sec. 54, p. 1026; am. 2025, ch. 300, sec. 13, p. 1275; am. 2026, ch. 197, sec. 3, p. 856; am. 2026, ch. 316, sec. 2, p. 1265.]
(1) Not later than April 30 of each year, each taxing district shall set and notify the county clerk of the date and location set for the budget hearing of the district. If no budget hearing is required by law, the county clerk shall be so notified.
(2) Beginning in 2003, a taxing district that fails to comply with subsection (1) of this section shall be prohibited from including in its budget any budget increase otherwise permitted by either subsection (1)(a) or (1)(e) of section 63-802, Idaho Code.
(3) If a taxing district wishes to change the time and location of such budget hearing as stated on the assessment notice, it shall publish such change of time and location in advance of such hearing as provided by law.
[63-802A, added 1999, ch. 36, sec. 1, p. 73; am. 2000, ch. 265, sec. 1, p. 743; am. 2006, 1st Ex. Sess., ch. 1, sec. 16, p. 59.]
(1) In the case of an election to create a new taxing district, the county clerk, of the county or counties where the proposed taxing district is proposed to be located, shall mail a notice of the election to all residences within the proposed taxing district or to residents in the proposed taxing district who are eligible to vote in this election. The notice shall be mailed not less than fourteen (14) calendar days prior to the day of the election and shall state with specificity: the purpose of the election, the date of the election, which shall be on a date authorized in section 34-106, Idaho Code, the polling places, the time the polls will be open, the aggregate amount of taxes that will be raised in the proposed taxing district if the election is successful and the increase that will occur per one hundred thousand dollars ($100,000) of taxable value of property, above any exemptions, of residential property, commercial property, industrial property, land actively devoted to agriculture and operating property.
(2) The county clerk shall, within ten (10) days after the filing of the petition to create the new taxing district, estimate the cost of advertising and holding the election provided in this section and notify in writing the person or any of the persons filing the petition as to the amount of the estimate. The person or persons shall within twenty (20) days after receipt of the written notice deposit the estimated amount with the county clerk in cash, or the petition shall be deemed withdrawn. If the deposit is made and the proposed new taxing district is formed, the person or persons so depositing the sum shall be reimbursed from the first moneys collected by the county from the taxes authorized to be levied by this section.
(3) Compliance with this section shall satisfy any notice or publication requirement as may be provided by law.
[63-802C, added 2007, ch. 364, sec. 1, p. 1097; am. 2009, ch. 341, sec. 143, p. 1064.]
(1) Whenever any taxing district is required by law to certify to any county treasurer, county auditor, county assessor, county commissioners, or other county officer any property tax levy on property located within said district, such certification shall, notwithstanding any other provision of the law applicable to any such district, be made at the time and in the manner hereinafter provided.
(2) The county auditor shall inform each of the taxing districts within his county of the taxable value of that district as soon as such value is known to the auditor, whether the value comes from the appraisal and assessment of real and personal property, from allocation of the taxable value of operating property, or from other sources.
(3) Using the taxable value of the district, the council, trustees, board, or other governing body of any taxing district shall certify the total amount required from a property tax upon property within the district to raise the amount of money fixed by its budget as previously prepared or approved. The amount of money so determined shall be certified in dollars to the appropriate county commissioners. Any taxing unit, except regional airport authorities, located in more than one (1) county shall divide its dollar budget for certification to the separate counties by multiplying the amount of such budget by a fraction, the numerator of which shall be the total taxable value of all property in such taxing unit within the county to which such certification is to be made, and the denominator of which shall be the total taxable value of property in such taxing unit in all such counties. Budget certification to the participating counties of regional airport authorities shall be made in the manner prescribed in section 21-807(10), Idaho Code. Taxable value shall be certified by the county auditor of each affected county to such taxing unit and such certification shall be used in this formula. Except as provided in section 33-805, Idaho Code, relating to school emergency fund levies, the certification to the county commissioners required in this section shall be made not later than the Thursday prior to the second Monday in September, unless, upon application therefor, the county commissioners grant an extension of not more than seven (7) working days. After receipt of this certification, the county commissioners shall make a tax levy as a percent of taxable value of all property in the taxing district which, when applied to the tax rolls, will meet the budget requirements certified by such taxing districts.
(4) Except as provided in section 50-2908(1), Idaho Code, for the purpose of this section, "taxable value" shall mean the portion of the equalized assessed value, less any exemptions, not including the additional exemption provided for tax year 2022 in section 63-602KK(2)(b), Idaho Code, and the value that exceeds the value of the base assessment roll for the portion of any taxing district within a revenue allocation area of an urban renewal district, located within each taxing district that certifies a budget to be raised from a property tax levy. When the county auditor is notified of revenues sufficient to cover expenses as provided in section 50-2903(5), Idaho Code, taxable value shall also include the value that exceeds the value of the base assessment roll for the portion of any taxing district within a revenue allocation area. For each taxing district, taxable value shall include the value from the property and operating property rolls for the current year and subsequent and missed property rolls for the prior year or the best estimate of the subsequent and missed property rolls for the current year.
(5) At the time of certifying to the county commissioners the amount required from a property tax under subsection (3) of this section, any taxing district with one (1) or more voter-approved bonds and levies shall submit to the appropriate county tax collector the expiration date of each voter-approved bond and levy applicable to the taxing district.
[63-803 added 2012, ch. 339, sec. 13, p. 942; am. 2013, ch. 243, sec. 3, p. 585; am. 2014, ch. 37, sec. 2, p. 64; am. 2014, ch. 357, sec. 6, p. 894; am. 2019, ch. 205, sec. 6, p. 630; am. 2021, ch. 327, sec. 1, p. 1001; am. 2021, ch. 360, sec. 10, p. 1126.]
The council, trustees, board or other governing body of any taxing district shall at the time of certifying the total amount required from a property tax upon property within the district to raise the amount of money fixed by their budget as previously prepared or approved and as provided for in section 63-803, Idaho Code, file with the appropriate county commissioners a certified copy of their budget as previously prepared, approved and adopted.
[63-804 added 1996, ch. 98, sec. 9, p. 372.]
(1) The county commissioners of each county in this state may levy annually upon all taxable property of said county, a property tax for general county purposes, including the provision of public defender services, to be collected and paid into the county treasury and apportioned to the county current expense fund which levy shall not exceed twenty-six hundredths percent (.26%) of market value for assessment purposes of such property, or a levy sufficient to raise two hundred fifty thousand dollars ($250,000), whichever is greater. If a county establishes the justice fund, as provided in section 31-4602, Idaho Code, the maximum current expense levy shall be reduced to twenty hundredths percent (.20%) of market value for assessment purposes, or a levy sufficient to raise two hundred fifty thousand dollars ($250,000), whichever is greater.
(2) The county commissioners of each county in this state may levy upon all taxable property of said county, a property tax for the purposes set forth in the statutes authorizing a county justice fund, to be collected and paid into the county treasury and apportioned to the county justice fund, if one has been established. Said levy shall not exceed twenty hundredths percent (.20%) of market value for assessment purposes of such property, or a levy sufficient to raise two hundred fifty thousand dollars ($250,000), whichever is greater.
The county commissioners shall have the right to make a "general reserve appropriation," said appropriation not to exceed five percent (5%) of the county justice fund budget as finally adopted. The total levy, however, for the county justice fund, including the "general reserve appropriation," shall be within the limitations imposed by chapter 8, title 63, Idaho Code, or by any statutes of the state of Idaho in force and effect.
(3) Annually, before the second Monday in September, the board of trustees of any school district within the county having determined the number, if any, of pupils in average daily attendance above the number included in the last annual report thereof, and the amount of money required to provide the educational support programs and transportation support programs for such additional pupils in average daily attendance, as defined in chapter 10, title 33, Idaho Code, the county commissioners shall determine the total of such new requirements within the county and upon the taxable property situate within the district requesting the same, and the county commissioners shall levy a tax sufficient to provide such amount, provided in no case shall the levy be more than six-hundredths percent (.06%) of the taxable value of the property to be collected and paid to the requesting district.
(4) (a) The county commissioners of each county in this state may levy annually upon all taxable property of its county, a property tax for the acquisition, maintenance and operation of public parks or public recreational facilities, to be collected and paid into the county treasury and apportioned to a fund to be designated as the "parks and recreation fund," which is hereby created, and such county commissioners may appropriate otherwise unappropriated funds for such purposes. No levy made under this subsection shall exceed one-hundredth percent (.01%) of the market value for assessment purposes on all taxable property within the district.
(b) Any funds unexpended from the "parks and recreation fund," or any funds unexpended from the current year’s certified parks and recreation budget may be retained in, or deposited to, the "parks and recreation fund" for the purpose of future land acquisition, park expansion or improvement, or the acquisition of operating equipment. The maximum accumulation of funds allowable shall not exceed twice the amount of money provided by the levy authorized in paragraph (a) of this subsection.
(5) Upon the same property and for the same year the county commissioners must also levy such other property taxes as may be necessary for the payment of the interest on county bonds or to provide a sinking fund for the redemption of county bonds or such other authorized taxes as may be necessary for any other or special purposes, to be collected and paid into the county treasury and apportioned as provided by the laws of this state.
[63-805 added 1996, ch. 98, sec. 9, p. 372; am. 2016, ch. 214, sec. 3, p. 601.]
(1) Upon the same property and for the same year the county commissioners shall levy a property tax for the redemption of outstanding county warrants issued prior to the first day of October in said year, to be collected and paid into the county treasury and apportioned to the county warrant redemption fund, which levy shall be sufficient for the redemption of all the outstanding county warrants, unless the amount of outstanding warrants exceeds the amount that would be raised by a levy of two-tenths of one percent (.2%) of the market value for assessment purposes on all taxable property in the county, in which case the county commissioners shall annually levy a property tax of two-tenths of one percent (.2%) of the market value for assessment purposes on all taxable property in the county for the redemption of such outstanding warrants.
(2) All property taxes levied in any year for the county current expense fund, county road fund and county bridge fund and collected on or after the first day of January in the succeeding year and any property tax levied for any purpose and which is no longer needed for such purpose when collected must be paid into the county treasury and apportioned to the county warrant redemption fund, except as otherwise provided by law. All money in the county treasury on the first day of October to the credit of the county current expense fund, county road fund, county bridge fund or any other fund which is no longer needed must be transferred to the county warrant redemption fund upon the books of the county auditor and county treasurer by resolution of the county commissioners entered upon the records of the proceedings.
[63-806 added 1996, ch. 98, sec. 9, p. 373.]
No taxing district formed or organized after the first day of January, in any year, shall be authorized to make a levy for that calendar year, nor shall the auditor of any county in which the taxing district may be situated be required to extend any levy on behalf of the taxing district upon the county rolls extended by him for the year. No existing taxing district which shall annex any territory after the first day of January of the current year, shall be authorized to levy a property tax for the year upon the property situated in the annexed territory and the property shall in all respects be taxed as if the annexation had not taken place. However, should any existing school district or school districts divide, consolidate or reorganize after the assessment date in any year, the board of trustees of the divided, consolidated or reorganized school district shall have the power to levy property taxes and certify the levy for the year in the same manner and according to the same boundaries which the separate school districts involved in the division, consolidation or reorganization could have levied property taxes had the division, consolidation or reorganization not taken place.
[63-807 added 1996, ch. 98, sec. 9, p. 374; am. 2016, ch. 30, sec. 1, p. 73.]
(1) The clerk of the board must keep a record of all proceedings of the county commissioners relating to the levy of property taxes in the minutes and all levies authorized and fixed by the county commissioners must be recorded in said minutes. Except as otherwise provided in subsection (2) of this section, the clerk must, on or before the third Monday of September in each year, prepare four (4) certified copies of the record of all levies authorized and fixed by the county commissioners, and deliver one (1) of such copies to the assessor, and one (1) of such copies to the tax collector, and one (1) of such copies to the state tax commission, who must each file the same in his or their office, and the clerk must file the other copy in his office as county auditor.
(2) When the county commissioners grant an extension for the certification required in section 63-803(3), Idaho Code, the clerk must prepare the certified copies specified in subsection (1) of this section on or before the fourth Monday of September.
[63-808 added 1996, ch. 98, sec. 9, p. 374.]
(1) The state tax commission shall carefully examine the statements furnished to it, as provided in section 63-808, Idaho Code. On or before the fourth Monday in October, the state tax commission shall notify the county commissioners of each county of the approval of all previously certified levies. The state tax commission shall also notify the county commissioners of each county and the governing authorities of any city, school district, or any other taxing district or municipality no later than the fourth Monday of October if it appears that the county commissioners or governing authorities have fixed a levy or certified a property tax budget increase that exceeds any limitation provided by law.
(2) If it appears that the county commissioners of any county have fixed a levy for any purpose or purposes not authorized by law, or in excess of the maximum provided by law for any purpose or purposes, the state tax commission shall thereupon notify the attorney general, and if it appears that the governing authorities of any city, school district, or any other district or municipality to which is delegated by law the authority to levy property taxes, have fixed a levy for any purpose or purposes not authorized by law or in excess of the maximum provided by law for any purpose or purposes, the commission shall on or before the fourth Monday in October notify the board of county commissioners, county treasurer and county attorney of the county in which it appears that such unauthorized or excess levy has or levies have been fixed.
(3) The attorney general or the county attorney so notified shall immediately bring suit in a court of proper jurisdiction against the county commissioners or governing authorities of any city, school district or other district or municipality levying such unauthorized or excess levy to set aside such levy as being illegal.
(4) Any necessary expenses incurred by the attorney general or the county attorney in the prosecution of such action shall be borne by the county in which the suit was brought.
[63-809 added 1996, ch. 98, sec. 9, p. 374; am. 2000, ch. 433, sec. 1, p. 1390.]
(1) Whenever the county commissioners have discovered that a levy has been made by unintentional clerical, mathematical or electronic error, in any levy certified by such board, the county commissioners on their own motion may:
(a) If discovered prior to the fourth Monday of November of the year for which the levy is certified, order all necessary corrections made in all property tax records, if the corrected levy is otherwise within statutory limits.
(b) If discovered after the fourth Monday of November of the year for which the levy is certified, but before February 15 of the succeeding year, order all necessary corrections made in all property tax records, if the corrected levy is otherwise within statutory limits. The corrected levy shall be applied to the taxable value within each taxing district and the property taxes so applied shall be a perpetual lien on the property, and such property tax levy and tax charge shall supersede all previous incorrect levies and charges made for that year, except that the property tax computed using the corrected levy shall allow a credit for the amount of property taxes previously paid. If additional property tax is owed due to the corrected levy, the county tax collector shall, prior to the fourth Monday in May, mail to the last record owner of any property affected by such erroneous levy a notice of tax correction. The deadline for paying such property tax shall be no later than June 20 of that year. Late charges and interest will be added if full property tax is not paid by June 20 and interest will be calculated from January 1 as provided in section 63-1001, Idaho Code.
(c) Provided the levy correction is made after the fourth Monday of November or after tax notices have been mailed, the levy correction shall be considered at a hearing held by the county commissioners at which time any taxpayer may appear and be heard upon the issue. Notice of the date, time, place and purpose of such hearing shall be published in a newspaper published in the county, or if there is none, then in a newspaper of general circulation in the county. The notice shall be run once each week for the two (2) weeks preceding the hearing. The hearing shall be held not less than seven (7) days after the first notice is published.
(2) The county commissioners shall submit the corrected levy and a copy of the order to the state tax commission. The state tax commission shall review the corrected levy and take action as required in section 63-809, Idaho Code.
(3) For the purposes of sections 63-701 through 63-710, Idaho Code, and for the purposes of the distributions required in section 63-3638, Idaho Code, the state tax commission, county auditor, and the county commissioners shall use the corrected values and numbers allowed in this section to recompute and correct such distributions by adjusting future distributions to account for any difference. For the purposes of chapters 8 and 10, title 33, Idaho Code, the state department of education shall use the corrected values and numbers allowed in this section.
[63-810 added 1996, ch. 98, sec. 9, p. 375; am. 2012, ch. 38, sec. 4, p. 116; am. 2013, ch. 21, sec. 6, p. 40.]
(1) The county auditor must cause to be computed the amount of the local property taxes levied on the total of the taxable value as entered on the property and operating property rolls, and must deliver the property and operating property rolls to the tax collector on or before the first Monday of November.
(2) The county auditor must cause to be computed the amount of the local property taxes levied on the total of the taxable value as entered on the subsequent property roll, and must deliver the subsequent property roll to the tax collector as soon as possible, without delay, after the first Monday of December.
(3) The county auditor must cause to be computed the amount of the state property tax and the amount of the local property taxes levied on the total taxable value as entered on the missed property roll, and must deliver the missed property roll to the tax collector as soon as possible, without delay, in the year following the year in which the assessment was entered on the missed property roll.
(4) Except as provided in section 50-2908(1), Idaho Code, for the purpose of this section, "taxable value" shall mean the portion of the equalized assessed value, less any exemptions and the value that exceeds the value of the base assessment roll for the portion of any taxing district within a revenue allocation area of an urban renewal district, located within each taxing district which certifies a budget to be raised from a property tax levy.
(5) The county auditor, at the time of delivery to the county tax collector of the property roll, subsequent property roll, missed property roll or operating property roll with all property taxes computed, must subscribe an affidavit to such roll that he has to the best of his knowledge and ability computed the proper amount of property taxes due, and recorded such orders of the board of equalization as have been made and has made no other changes.
(6) Failure of the auditor to make the affidavit shall not affect the validity of any entry on the roll. The making of such affidavit, however, is declared to be a duty pertaining to the office of the county auditor. In every case where the said affidavit is omitted from the real property assessment roll, completed and delivered as aforesaid, the board of county commissioners must require the county auditor to make the same, and upon refusal or neglect of such county auditor to make and subscribe to such affidavit forthwith, the chairman of the said board must immediately file in the district court in the county, an information in writing, verified by his oath, charging such county auditor with refusal or neglect to perform the official duties pertaining to his office, and thereupon he must be proceeded against as in such cases provided by law.
[63-811, added 1996, ch. 98, sec. 9, p. 376; am. 2006, 1st Ex. Sess., ch. 1, sec. 17, p. 60; am. 2008, ch. 253, sec. 3, p. 743; am. 2012, ch. 339, sec. 6, p. 938; am. 2017, ch. 96, sec. 1, p. 245; am. 2019, ch. 205, sec. 7, p. 631.]
The tax collector shall collect and account for the amount of property taxes due and remit any property tax revenues collected to the county auditor showing distribution to the proper accounts or funds.
[63-812 added 1996, ch. 98, sec. 9, p. 377.]
All property taxes must be paid in lawful money of the United States. Notwithstanding the provisions of this section, a county may allow for payment of taxes by use of a debit card, credit card or electronic funds transfer.
[63-901 added 1996, ch. 98, sec. 10, p. 377; am. 2008, ch. 53, sec. 2, p. 134.]
(1) For property on the property roll or operating property roll, the county tax collector must, prior to the fourth Monday of November in each year, mail or transmit electronically, as that term is defined in section 63-115, Idaho Code, if electronic transmission is requested by the taxpayer, to every taxpayer, or to his agent or representative, at his last known post office address, a tax notice prepared upon forms prescribed in section 63-219, Idaho Code, which shall contain at least the following:
(a) The year in which the property tax was levied;
(b) The name and address of the property owner;
(c) An accurate description of the property or, in lieu thereof, the tax number of record;
(d) The parcel number;
(e) Full market value for assessment purposes;
(f) The total amount of property taxes due:
(i) State;
(ii) County;
(iii) City;
(iv) School district separately shown as:
(A) Maintenance and operation;
(B) Bond;
(C) Supplemental;
(D) Other;
(v) And every other tax being separately shown.
(g) All property tax levies in the tax code area;
(h) The expiration dates of all bonds and levies approved by voters at an election for each taxing district as defined in section 63-3101, Idaho Code, submitted to the tax collector pursuant to section 63-803(5), Idaho Code;
(i) The date when such property taxes become delinquent;
(j) Notation of delinquencies against said property;
(k) Whether an interim payment account exists;
(l) The combined amount of property tax savings, which shall be labeled on the notice as "tax relief appropriated by the Legislature", for each taxpayer as a result of moneys received by a school district from the school district facilities fund established pursuant to section 33-911, Idaho Code, and the homeowner property tax relief granted pursuant to section 63-724, Idaho Code, if any;
(m) The different payment options available to the taxpayer, his agent, or representative, which shall be printed in boldface type in a contrasting color or highlighted on the face of the tax notice; and
(n) The total amount of property taxes for the previous tax year.
(2) The information required by subsection (1)(h) of this section may be satisfied if the county treasurer provides an annual insert with the tax notice or a link on the tax notice to the county website where the information required by subsection (1)(h) of this section can be accessed. Such information must be archived on the county website. In addition to including the link to the county website, the county treasurer may also include on the tax notice a quick response code to access the information required by subsection (1)(h) of this section.
(3) The tax notices shall be numbered consecutively and the numbers must be entered upon all property rolls.
(4) Tax notices prepared in tax code area format shall state that levy sheets are available to the public.
(5) Levy sheets shall list the total property tax levy for each taxing district or taxing jurisdiction and the total in each tax code area.
(6) If the taxpayer is one other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the taxpayer shall deliver to the equitable titleholder a statement of the total amount of property taxes billed, on or before the second Monday of December.
(7) The tax collector in each county of the state is authorized to destroy all duplicate property tax receipts and microfilm of tax receipts on file in his office as they reach ten (10) years old. Property tax receipts may be destroyed if information has been replicated in other storage media.
(8) Computer and data processing routines for completion of all phases of the property tax roll procedures may be utilized with the responsibility for completion of each office’s statutory duties to remain under the supervision of that office. Wherever the designation "property roll" appears within title 63, Idaho Code, data processing or computer procedures and forms may be substituted as permanent records.
(9) The county tax collector must, as soon as possible after the subsequent or missed property roll is delivered to him from the county auditor, mail or transmit electronically, if electronic transmission is requested by the taxpayer, a notice to every taxpayer listed on the subsequent or missed property roll, or to his agent or representative. The notice shall conform as nearly as possible to the notice required for property listed on the property roll.
(10) Failure to mail or transmit electronically, if electronic transmission is requested by the taxpayer, such property tax notice, or receipt of said notice by the taxpayer, shall not invalidate the property taxes, or any proceedings in the collection of property taxes, or any proceedings in the foreclosure of property tax liens.
(11) No charge, other than property taxes, shall be included on a tax notice unless the entity placing such charge has received approval from the board of county commissioners to place such charge on the tax notice and such entity:
(a) Has the authority by law to place a lien on property; and
(b) Has the authority to certify such charge to the auditor; and
(c) Is required to collect such charge in the same manner provided by law for the collection of real and personal property taxes.
(12) If a taxpayer requests to receive a tax notice electronically, the request must be made on a form provided by the county tax collector.
[63-902, added 1996, ch. 98, sec. 10, p. 377; am. 1997, ch. 117, sec. 33, p. 331; am. 1997, ch. 241, sec. 1, p. 701; am. 2006, ch. 322, sec. 1, p. 1021; am. 2014, ch. 14, sec. 1, p. 21; am. 2020, ch. 215, sec. 1, p. 637; am. 2021, ch. 327, sec. 2, p. 1002; am. 2023, ch. 200, sec. 12, p. 549.]
(1) All property taxes extended on the property and operating property rolls shall be due and payable in full to the tax collector without late charges and interest on or before December 20 of the year in which the property taxes are levied. The property taxes may be paid in full or paid in two (2) halves, the first half on or before December 20 with a grace period extending to June 20 for the second half if the first half is totally paid.
(2) Any portion of a property tax may be paid at any time, but nothing in this section shall excuse costs, interest or late charges pursuant to section 63-1002, Idaho Code.
(3) If the first one-half (1/2) is not totally paid on or before December 20, late charges as defined in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, shall be assessed. If the first one-half (1/2) of the property tax has been paid in part, late charges and interest shall be calculated on the remaining first half tax due.
(4) If the second one-half (1/2) is not totally paid on or before June 20, late charges as defined in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, shall be assessed. If the second one-half (1/2) has been paid in part, late charges and interest shall be calculated on the remaining property tax due.
(5) Property taxes on the subsequent or missed property roll shall be billed within thirty (30) days after delivery of the property roll to the county tax collector or as otherwise provided. The tax collector shall notify the property owner of the property taxes due. The deadline for paying such property tax shall be the same as provided in subsection (4) of this section. Delinquency occurs if the tax remains unpaid after June 20. Late charges as defined in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, shall be assessed in the same manner as all other property taxes.
(6) All property taxes and fees, together with any costs, late charges and interest collected by the county tax collector shall be remitted to the county auditor as provided in section 63-1201, Idaho Code. The county auditor shall apportion the late charges and interest among the taxing districts, in the same proportion as each taxing district receives in property taxes from the total amount collected in property taxes for the entire county.
(7) Payment of any current property taxes shall not invalidate any proceeding in the collection of a delinquency.
[63-903 added 1996, ch. 98, sec. 10, p. 378; am. 2018, ch. 69, sec. 1, p. 164; am. 2025, ch. 202, sec. 4, p. 922; am. 2026, ch. 20, sec. 1, p. 107.]
(1) If a personal property owner fails to make timely payment on the first one-half (1/2) provided for, the unpaid portion of the entire tax shall immediately become due and payable and a late charge as provided in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, on the unpaid portion of the first half shall be added. Interest shall be calculated from January 1 of the year following the year for which the taxes were assessed.
(2) All personal property taxes are due and payable upon demand. If no demand is made, taxes may be paid in part or in full until the tax collector issues a warrant of distraint for collection of said taxes.
(3) Whenever the county assessor notifies the tax collector of personal property that has been listed on a property roll, the tax collector may demand immediate payment of any property taxes due from the owner. Property taxes due shall be calculated using the previous year’s levies, unless current year’s levies are known.
(4) In lieu of demanding immediate payment of property taxes due, the county tax collector may require a surety bond adequate to secure the payment and collection of property taxes that may be due to that county.
(5) In the event a taxpayer is unable to pay his personal property tax due on or before December 20, he may appeal to the county commissioners prior to the property tax becoming delinquent. If sufficient information is given to satisfy the county commissioners that the property taxes will be paid, the county commissioners may grant an extension of time for the payment of the property taxes, late charges and interest, not to exceed four (4) months. A warrant of distraint shall not be issued until the expiration of the extended time. No extensions shall be granted on the second one-half (1/2) of the property tax.
[63-904 added 1996, ch. 98, sec. 10, p. 379; am. 2022, ch. 225, sec. 3, p. 744.]
Upon payment of property taxes, the tax collector shall issue a receipt if requested by the taxpayer. The record of payment must show the date paid and the amount of payment. If the taxpayer is other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the taxpayer shall, upon request of the equitable titleholder, deliver to the equitable titleholder a receipt of property taxes paid. In the event payment is mailed to the tax collector, the cancelled check may serve as a receipt.
[63-905 added 1996, ch. 98, sec. 10, p. 379.]
Any person, upon application to the tax collector, may establish a payment schedule to allow payments including, but not limited to, monthly or quarterly, in amounts of at least twenty-five dollars ($25.00) or the balance owing, to be accumulated toward the payment of current or future real or personal property taxes.
(1) The tax collector shall issue a numbered receipt consisting of:
(a) Date deposited;
(b) Name and address of person making deposit;
(c) The amount of payment; and
(d) Account identification number or parcel number or legal description.
(2) The county shall pay no interest on any interim payment receipts, and the amount so deposited cannot be withdrawn by the depositor. Such receipts shall not invalidate any proceedings in the collection of property taxes, or in the issuance of any delinquency or any proceedings in the foreclosure of tax liens.
(3) The payment shall be posted to the roll when the current property tax becomes due.
(4) The tax collector may return to the depositor any moneys deposited in excess of the amount necessary to satisfy the tax lien if the payment schedule is not maintained.
(5) The tax collector shall be held accountable for all moneys received under this subsection and shall be liable on his official bond for the custody and safekeeping of such moneys, except as to what may be on deposit in designated depositories under the provisions of the public depository law, which is hereby made applicable to such deposits.
[63-906 added 1996, ch. 98, sec. 10, p. 380; am. 2006, ch. 322, sec. 2, p. 1022.]
The county treasurer shall, on or before the first day of January in the succeeding year, enter all delinquent taxes on the property rolls. Such entries shall be dated as of the first day of January and shall have the force and effect of a sale to the treasurer as grantee in trust for the county, for all property entered upon the property roll on which first installment of the taxes has not been paid. The settlement date shall be as of the close of business on the December due date of the preceding year.
The county treasurer shall, on or before the first day of July in the succeeding year, make delinquency entries to be dated as of the first day of January in the year the taxes fall delinquent for all property entered upon the property roll on which the second installment of the taxes have not been paid. The settlement date shall be as of the close of business on the June due date of the current year.
[63-907 added 1996, ch. 98, sec. 10, p. 380.]
To avoid delinquency, total payment must be made in full to the county tax collector by the due date. Any delinquency shall have the force and effect of a sale to the county tax collector as grantee in trust for the county of the property described. Any payment on a delinquency is, in effect, a partial redemption of the property from tax sale. Interest on a delinquency will be charged at one percent (1%) per month calculated from January 1 following the year the tax lien attached, provided however, that the interest shall not be charged on collection costs.
[63-1001 added 1996, ch. 98, sec. 11, p. 381.]
(1) Whenever a delinquency exists for any year, the taxpayer may pay to the tax collector any part of such delinquency together with the costs, late charges and interest. Costs include certified mailings, title searches, advertising and all other expenses for the processing and collection of the delinquency. Provided however, that any delinquency shall be applied to costs, collection costs, special assessments, charges, fees, interest, late charges and property tax in the proportion each bears to the total amount due. Payment applied to the property tax shall be posted directly to the roll.
(2) Payment shall only be paid and accepted upon the oldest delinquency standing on the records of the county tax collector wherein such payment is made unless otherwise authorized by a judicial action. The second one-half (1/2) shall not be considered current if the first one-half (1/2) is delinquent.
(3) Upon payment of a delinquency, the tax collector shall issue to the taxpayer a receipt, if requested by the taxpayer. In the event payment is mailed to the tax collector, the cancelled check may serve as the receipt. Payment of current taxes shall not invalidate any proceeding in the collection of a delinquency.
[63-1002 added 1996, ch. 98, sec. 11, p. 381; am. 2018, ch. 70, sec. 1, p. 165.]
(1) Any delinquency on real property taxes in accordance with the provisions of this title shall constitute a perpetual lien in favor of the county for all property taxes, late charges and interest on the property described and shall entitle the county to a tax deed for such property in the manner provided for in this title. Such delinquency entry shall further constitute prima facie evidence in any legal proceedings in which it may lawfully be used that the property described was subject to appraisal, assessment and taxation at the time the same was assessed, that said property was appraised, assessed and equalized according to law, that the property taxes levied on such property were levied according to law, that such taxes were not paid before the delinquency became effective, and that the property and taxes were entered upon the property roll.
(2) Any delinquency on personal property taxes in accordance with the provisions of this title shall be a first and prior, perpetual lien, except as otherwise provided by law, upon such personal property and all real and personal property of the owner of such personal property until all property taxes due upon such personal property have been paid.
[63-1003 added 1996, ch. 98, sec. 11, p. 381.]
(1) The record owner or owners or any party in interest of a segregated portion of the property covered by a delinquency may release the lien for property taxes, by paying to the tax collector the amount of property taxes due along with late charges, interest and costs, if any, on that particular piece of property. The county assessor shall determine and provide to the tax collector the market value for assessment purposes of that segregated portion of property, and the tax collector will calculate the property tax to be paid for any prior year or years of delinquency, including the late charges, accrued interest and costs incurred.
(2) The record owner or owners or any party in interest of a segregated portion of property covered by a tax deed may redeem that property at the time and in the manner provided in section 63-1007, Idaho Code, by paying to the tax collector the amount due on that particular piece of property including, but not limited to, the late charges, accrued interest, title search fees and other costs incurred. The county assessor shall determine and provide to the tax collector the market value for assessment purposes of that segregated portion of property, and the tax collector will calculate the property tax to be paid for that current calendar year and all prior years of delinquency.
[63-1004 added 1996, ch. 98, sec. 11, p. 382.]
(1) If real property on which there is a delinquency is not redeemed within three (3) years from the date of delinquency, the county tax collector of the county wherein such property is situated must make, in favor of said county, a tax deed for such property. However, the county shall not be entitled to a tax deed for such real property until:
(a) A notice of pending issue of tax deed has been given; and
(b) An affidavit of compliance has been recorded.
(2) The county tax collector of the county wherein the real property for which a tax deed may issue shall serve or cause to be served written notice of pending issue of tax deed upon the record owner or owners and parties in interest of record in the following exclusive manner:
(a) By serving or causing to be served a copy of such notice by certified mail with return receipt demanded upon the record owner or owners and parties in interest of record at their last known address, such service of notice to be made no more than five (5) months nor less than two (2) months before the time set for the tax deed to issue;
(b) In the event that such notice is served as above described and returned undelivered after attempting to locate and serve the record owner or owners and parties in interest of record, by publishing a summary of such notice in a newspaper having general circulation in the county wherein the real property is situated. Such publication must be made at least once a week for four (4) consecutive weeks, the last publication of which is to be no more than two (2) months nor less than fourteen (14) days before the time set for the tax deed to issue.
(3) The record owner or owners and parties in interest of record shall be liable and pay to the county tax collector all costs and fees in the preparation, service and publication of such notice and the tax deed process and such costs shall become a perpetual lien upon the property in favor of the county tax collector.
(4) Such notice and summary thereof must contain the following items:
(a) The name and last known address of the record owner or owners;
(b) An accurate description of the property on which the delinquency stands, or, in lieu thereof, the tax number of record or parcel number used in assessing the same;
(i) A street address or other information which would be of assistance to the public in ascertaining the location of the property; or
(ii) The name and telephone number of a person, firm or business office from whom information concerning the location of the property may be obtained;
(c) The year for which the property tax was assessed and for which the delinquency exists;
(d) An itemized statement detailing the delinquency and all costs and fees incident to the delinquency and notice up to and including the date of the making of such notice;
(e) The date the delinquency occurred;
(f) The time, date, place at which, and by whom the tax deed will issue; and
(g) A statement that the record owner or owners or any party in interest shall have adequate opportunity to be heard, to confront and cross-examine any evidence or witness against the record owner or owners, and obtain and present evidence on behalf of the record owner or owners or any party in interest. Such statement shall also contain notice of to whom inquiries and objections shall be directed concerning the notice and information contained therein and by what date such inquiries and objections must be received.
(5) Any party in interest may file a written request for such notice in the office of the county tax collector of the county wherein the property for which the delinquency stands have been made is situated. Such request shall contain the following items:
(a) The name and address of the record owner or owners;
(b) An accurate description of the property covered by the interest, or, in lieu thereof, the tax number of record or parcel number used in assessing the same;
(c) The name and address of the party in interest;
(d) An accurate description of the interest held; and
(e) The date of expiration of the interest held.
(6) If a record owner or owners or a party in interest shall have actual notice of the notice of pending issue of tax deed or that issuance of a tax deed is pending, it shall be deemed sufficient notice under this section.
(7) Service shall be deemed completed upon depositing the certified letter containing the original or a copy of the notice of pending issue of tax deed with return receipt demanded in any United States post office, or upon physical delivery of such notice or copy thereof by the county tax collector or his appointed agent to the record owner or owners or party in interest, or upon the date of last publication.
(8) No less than five (5) working days prior to the date on which the tax deed shall be issued, the county tax collector shall make an affidavit of compliance stating that he has complied with the conditions of issuance of notice of pending issue of tax deed described in this section, and stating particularly the facts relied on as constituting such compliance.
(9) Such affidavit shall be recorded in the office of the county recorder. Such record of affidavit shall be prima facie evidence that such notice has been given.
(10) Any person who knowingly and intentionally swears falsely to facts averred in any affidavit shall be guilty of perjury and be punished by a fine of not more than three hundred dollars ($300).
[63-1005 added 1996, ch. 98, sec. 11, p. 382.]
(1) When a record owner or owners or any party in interest upon whom a notice of pending issue of tax deed is served or who has actual knowledge of such notice or its contents fails, to appear or otherwise defend and answer at the time set for hearing in such notice and the county commissioners are satisfied that the county tax collector has fulfilled the requirements of section 63-1005, Idaho Code, the county commissioners shall, without further notice, immediately direct the county tax collector to issue and record a tax deed in favor of the county.
(2) When a record owner or owners or any party in interest upon whom such notice is served or who has actual knowledge of such notice or its contents appears or answers at the date specified in such notice, the county commissioners shall hear evidence and witnesses and make a final decision in writing. Such final decision shall be mailed by registered or certified mail return receipt demanded upon all parties affected by its action. If the county commissioners shall find that the county tax collector has conformed to the requirements of section 63-1005, Idaho Code, and that a delinquency was owing on the property described and that such delinquency has not been paid, the county commissioners shall immediately direct the county tax collector to issue a tax deed in favor of the county. Such final decision shall include findings of fact and conclusions of law.
(3) A record of the proceedings shall be kept and entered into the county minutes.
(4) Any person who is aggrieved by a final decision of the county commissioners concerning the issuance of a tax deed is entitled to have that decision reviewed by the district court of the district wherein the county is located by filing a petition in the district court within thirty (30) days after receipt of the final decision of the county commissioners. Such filing does not itself stay enforcement of the county commissioners’ decision; however, the county commissioners may grant, or the reviewing court may order, a stay upon appropriate terms. Review shall be conducted by the court without a jury and shall be confined to the record in the county minutes. The court may reverse or modify the decision of the county commissioners if substantial rights of the appellant have been prejudiced because the county commissioners’ findings, conclusions or decisions are:
(a) Made upon unlawful procedure;
(b) Clearly erroneous in view of reliable, probative and substantial evidence on the whole record; or
(c) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
(5) All costs and fees of any hearing or proceeding shall be awarded to the prevailing party or in the discretion of the reviewing court each party shall be responsible for their own costs and fees; provided however, the costs and fees shall not be ordered paid by any county or its officials in absence of a showing of gross negligence, gross nonfeasance or gross malfeasance by the county or its officers and a showing of substantial and definite injury to the petitioning party.
(6) The form of the tax deed issued must contain the following items:
(a) The name and address of the former record owner or owners;
(b) The name of the county in whose favor the tax deed issues;
(c) An accurate description of the property using a township, range, section and division of section, together with a statement as to acreage, or in the appropriate case, using block and lot numbers or as described in a city plat; and if appropriate, include the tax number;
(d) A statement that the tax deed issues out of a delinquency and hearing; and
(e) The tax deed must be signed by the county tax collector and acknowledged before the county recorder and shall be recorded as provided by law.
[63-1006 added 1996, ch. 98, sec. 11, p. 384.]
(1) After the issuance of a tax deed, real property may be redeemed only by the record owner or owners, or party in interest, up to the time the county commissioners have entered into a contract of sale or the property has been transferred by county deed. In order to redeem real property, the record owner or owners, or party in interest, shall pay any delinquency including the late charges, accrued interest, and costs, including, but not limited to, title search and other professional fees. The property taxes accrued against such property subsequent to the issuance of a tax deed to the county shall be extended upon a valuation to be given by the assessor upon application of the tax collector. The property taxes shall be computed according to the authorized levies for the year or years to be extended, including the current calendar year which shall be calculated using the previous year’s levies until the current levies are authorized.
(2) Should such payments be made, a redemption deed shall be issued by the county tax collector into the name of the redemptioner and the rights, title and interest acquired by the county shall cease and terminate; provided however, that such right of redemption shall expire fourteen (14) months from the date of issuance of a tax deed to the county, in the event the county commissioners have not extinguished the right of redemption by contract of sale or transfer by county deed during said redemption period. In the event a tax deed is issued and payment is not received within fourteen (14) months of the issuance of such tax deed, then said tax deed to the county is presumptive evidence of the regularity of all proceedings prior thereto and the fee simple title, after the issuance of said tax deed, rests in the county.
[63-1007 added 1996, ch. 98, sec. 11, p. 385; am. 2001, ch. 193, sec. 1, p. 658; am. 2014, ch. 15, sec. 1, p. 23.]
(1) The matters recited in the delinquency must be recited in the deed, and such deed duly acknowledged or proved is prima facie evidence that:
(a) The property was appraised and assessed as required by law;
(b) The property was equalized as required by law;
(c) The property taxes were levied in accordance with law;
(d) The property taxes were not paid;
(e) The delinquency took effect at the proper time as prescribed by law;
(f) The property was not redeemed;
(g) The person who executed the deed was the proper officer;
(h) Where the real property was sold to pay property taxes on personal property that the real property belonged to the person liable to pay the property tax.
(2) The deed duly acknowledged or proved is prima facie evidence of the regularity of all other proceedings, from the assessment by the assessor inclusive up to the execution of the deed.
[63-1008 added 1996, ch. 98, sec. 11, p. 386.]
The deed conveys to the grantee the right, title, and interest held by the record owner or owners, provided that the title conveyed by the deed shall be free of any recorded purchase contract, mortgage, deed of trust, security interest, lien, or lease, as long as notice has been sent to the party in interest as provided in sections 63-201(17) and 63-1005, Idaho Code, and the lien for property taxes, assessments, amounts certified to the tax collector pursuant to section 50-1715, Idaho Code, charges, interest, and penalties for which the lien is foreclosed and in satisfaction of which the property is sold.
[63-1009 added 1996, ch. 98, sec. 11, p. 386; am. 2016, ch. 273, sec. 7, p. 758; am. 2020, ch. 273, sec. 4, p. 808.]
In all cases where real property has been or may hereafter be sold for delinquency and a deed has been issued to the county therefor, and redemption has been made in the manner provided and in accordance with the provisions of section 63-1007, Idaho Code, the county tax collector, must issue a deed to the redemptioner; and upon the giving of such deed, such tax deed so issued to the county and the delinquency and tax sale upon which the same is based and all delinquencies and sales for prior year delinquencies shall become null and void, and all right, title and interest acquired by the county, under and by virtue of such tax deed, or tax sales, or delinquencies, shall cease and terminate.
[63-1010 added 1996, ch. 98, sec. 11, p. 386.]
(1) Any and all tax deeds issued by counties, or any other municipal or quasi-municipal corporations of the state of Idaho, authorized by law to issue deeds for delinquencies or assessments, shall, when the property has been sold by such counties or other municipal or quasi-municipal corporations and held and peaceably possessed by the purchaser or his successors in interest for more than one (1) year and upon which the purchaser or his successors in interest have paid all property taxes lawfully assessed thereon for such period, be conclusive as to the regularity and validity of all proceedings required by law to be done in making the levy, assessment, or sale of such property for the delinquency or assessment for which such property was sold.
(2) No action shall be maintained to contest any delinquency or assessment, or the proceedings upon which the tax deed has been issued after such property has been sold by the taxing agency, and the purchaser or his successors in interest have paid all property taxes legally levied or assessed thereon for a period of one (1) year, and such purchaser’s deed from such county or other taxing agency, shall be conclusive evidence of the doing of each and all of the acts, and taking of each and all proceedings required by law as to the issuance of a valid tax deed to such property.
[63-1011 added 1996, ch. 98, sec. 11, p. 386; am. 2001, ch. 193, sec. 2, p. 658.]
(1) Upon a delinquency of any personal property tax, the county tax collector shall issue a warrant of distraint for the collection of the delinquency. The warrant of distraint shall bear the date of its issuance, and shall be directed to the county sheriff. The warrant shall give the name of the delinquent taxpayer and his mailing address as ascertained by the county tax collector. The warrant shall also describe generally the personal property upon which the delinquency exists and give the amount of each delinquency. The warrant shall contain a direction to the county sheriff to seize and sell a sufficient amount of the property, or any other personal property of the delinquent taxpayer to be found within the county, with the minimum bid sufficient to pay the delinquency, together with interest and late charges thereon and together with all fees, commissions, mileage and costs accruing thereon.
(2) The county tax collector shall keep a record of the date of the issuance of each warrant of distraint and of the return, showing in detail the amount collected or the fact that no personal property belonging to the delinquent taxpayer was found. A record of all warrants of distraint shall, upon their return, be kept by the tax collector for a period of two (2) years. The collection of any delinquency, or the return of a warrant of distraint showing no property found, shall relieve the county sheriff and tax collector and their bondsmen from responsibility of that delinquency. Upon the return of any warrant of distraint showing property taxes uncollected it shall be the duty of the tax collector, when directed by the county commissioners, to commence and prosecute to judgment an action against the delinquent taxpayer, and no property shall be exempt from levy and sale upon execution issued on the judgment.
[63-1012 added 1996, ch. 98, sec. 11, p. 387.]
(1) All warrants of distraint issued by the tax collector shall be served and executed by the sheriff in the manner provided by law for the services of executions by levy upon personal property and he shall make return of the same to the tax collector of the county within ninety (90) days from the date of his receipt thereof with an endorsement thereon showing that the delinquency therein described, together with interest, late charges and costs, as provided by law, have been collected, or that, no property can be found to seize under the warrant. For making a false return the sheriff shall be liable to the county for double the amount of the property taxes, with interest and costs.
(2) Fees allowed for issuing warrants of distraint, collection, levy and return of the same, shall be set by ordinance by the board of county commissioners. When levying on a warrant of distraint, the provisions of section 31-3203, Idaho Code, shall apply in determining service fees.
(3) If the sheriff returns the warrant of distraint showing that no property can be found upon which a levy can be made to collect the delinquency, he shall note in the return the county, if any, in this state to which the delinquent taxpayer may have moved together with his mailing address and the date of his departure shall also be noted on the returns. Upon the filing of the sheriff’s return showing that any delinquent taxpayer has moved to another county in this state, it shall be the duty of the tax collector to immediately issue and mail another warrant of distraint to the sheriff of the county to which the delinquent taxpayer is so shown to have moved, or in which personal property belonging to him may be found, and the sheriff to whom the other warrant of distraint is issued shall serve and return the warrant in the manner provided for the service and return of original warrants of distraint, making return of fees and commissions earned by him to the county auditor of his county, and paying any delinquency and fees collected, shown by the other warrant of distraint to be due, to the tax collector issuing the other warrant. Should a sheriff to whom the other warrant of distraint is issued be unable to find any property out of which the delinquency may be collected, he shall so return to the tax collector issuing the warrant.
[63-1013, added 1996, ch. 98, sec. 11, p. 387; am. 1997, ch. 117, sec. 34, p. 332; am. 2010, ch. 115, sec. 1, p. 241.]
(1) Whenever any person, firm or corporation owning any personal property shall desire to remove the personal property from the county or sell or repossess the property before all property taxes due and payable including the current year’s taxes have been paid upon the personal property, the property taxes shall be paid to the tax collector upon demand and before the removal of the property from the county. It shall be the duty of the tax collector to collect the property taxes provided for in this section, and all the provisions of this chapter are hereby made available to the tax collector in the collection of such taxes.
(a) If a person holding a purchase money security interest desires to repossess and sell a specific piece of personal property and the market value of that personal property exceeds twenty thousand dollars ($20,000), that person shall provide to the tax collector a request to segregate that specific piece of personal property from the personal property tax parcel. The person holding the purchase money security interest shall provide a copy of the purchase money security interest agreement with the request for segregation.
(b) The county assessor shall determine and provide to the tax collector the market value for assessment purposes of that segregated portion of personal property. The tax collector shall calculate property tax to be paid for any delinquencies, including late charges, accrued interest, costs incurred and the estimated taxes for the current year relating to that segregated portion of personal property.
(c) The person holding the purchase money security interest shall pay all personal property taxes owed, including late charges, accrued interest and costs incurred on the specific segregated personal property to the tax collector before taking possession of the personal property or selling the property.
(d) The segregation of specific personal property from the personal property tax parcel shall not affect the priority of the tax lien on the remaining personal property items in the parcel.
(2) It shall be a misdemeanor for any person, firm or corporation to move from the county or sell or repossess any personal property or manufactured home without the payment of the current year’s property taxes or without paying property taxes due and owing, and upon conviction the person, firm or corporation shall, in addition to any penalty which the court may impose, pay to the tax collector a sum not in excess of double the amount of property tax which was collectible on the property removed or sold or repossessed, together with all costs and late charges provided for in this chapter. The excess sum shall be collected by the tax collector in the same manner as the original property tax.
[63-1014 added 1996, ch. 98, sec. 11, p. 388; am. 2012, ch. 307, sec. 1, p. 848.]
Upon the redemption from tax sale of any property described in any delinquency entry, the amount paid on account of such redemption, shall be paid into the county treasury by the tax collector, upon the certificate of the county auditor, to be apportioned among the several state and county funds and taxing districts, as provided for the apportionment of property taxes.
[63-1015 added 1996, ch. 98, sec. 11, p. 388.]
In case any person refuses to pay the property tax levied on any personal property belonging to him when demanded by the tax collector, the tax collector shall direct the sheriff to seize and sell as much of the personal property or any other property of the person as will be sufficient to pay the property taxes, late charges, interest, costs and expenses accruing thereon, as estimated by the tax collector.
[63-1101 added 1996, ch. 98, sec. 12, p. 389.]
The sale must be made after one (1) week’s notice of the time and place thereof, given by publication in a newspaper of general circulation in the county or posting in three (3) public places within the county, and must be at public auction for cash, and each article seized must be sold separately to the highest bidder.
[63-1102 added 1996, ch. 98, sec. 12, p. 389.]
The sheriff shall collect from the proceeds of the sale, in addition to the estimated amount of property taxes, all costs and expenses incurred in publishing or posting the notices of the sale, in making the sale and in keeping and caring for the property. After collecting the proceeds and noting the costs of the sale, the sheriff shall have an immediate settlement with the tax collector.
[63-1103 added 1996, ch. 98, sec. 12, p. 389.]
On payment of the amount bid for the property sold the sheriff shall make out and deliver a bill of sale thereof which, with the delivery of the property sold, vests title thereto, in the purchaser.
[63-1104 added 1996, ch. 98, sec. 12, p. 389.]
In the event of the refusal of any bidder to pay the amount bid and complete his purchase, the sheriff may either sue the purchaser upon his bid or offer the property for resale.
[63-1105 added 1996, ch. 98, sec. 12, p. 389.]
In the event that the property seized does not bring sufficient money to pay the property taxes and costs, the tax collector shall direct the sheriff to seize and sell additional property liable for the property tax, pursuant to section 63-1012(1), Idaho Code.
[63-1106 added 1996, ch. 98, sec. 12, p. 389.]
All excess over the property taxes and costs of the proceedings of any sale must be returned to the owner of the property or deposited in the county treasury to be refunded by order of the county commissioners. Any unsold portion of any such property shall be stored until claimed by the owner or for thirty (30) days, whichever is less. The owner shall pay storage and transportation costs when reclaiming any unsold property.
[63-1107 added 1996, ch. 98, sec. 12, p. 389.]
In the event that no person bids on any property offered for sale, or if such property in the judgment of the tax collector exceeds in value the amount of the highest bid made, the tax collector may bid on the property if it is deemed in the best interest of the county. He shall dispose of the purchased property by sale in the same manner as other personal property belonging to the county. However, the tax collector shall not buy any property for the county when a sufficient sum to defray the property taxes and costs of sale is bid therefor.
[63-1108, added 1996, ch. 98, sec. 12, p. 390; am. 2015, ch. 199, sec. 1, p. 609.]
On the first Monday of each month, except the second Monday of January and July, the county tax collector shall settle with the county auditor for all moneys collected, including property taxes levied on property, together with any late charges and interest collected, and make a detailed statement under oath, showing the amount of money collected for state and county purposes and for every city, school district, road district or other taxing district or authority, since his last settlement, and shall pay all the moneys into the county treasury upon the certificate of the county auditor, to be apportioned as provided by law.
[63-1201 added 1996, ch. 98, sec. 13, p. 390; am. 2026, ch. 20, sec. 2, p. 108.]
(1) The county auditor must, on the second Monday of each month, transmit to the clerk of every taxing district having a treasurer whose duty it is to receive, keep and disburse all moneys belonging to it, a settlement of all moneys belonging to each district, including all property taxes together with late charges and interest, paid into the county treasury since the last transmittal; provided however, that in the months of July and January the money may be transmitted no later than the twenty-fifth day of the month.
(2) On the second Monday of each month the county auditor shall transmit to the appropriate agency all moneys belonging to the state paid into the county treasury on and after the second Monday of the preceding month, showing from what sources the money was received and the amount received from each source, with a statement duly sworn to before an officer authorized to administer oaths.
[63-1202 added 1996, ch. 98, sec. 13, p. 390; am. 2026, ch. 20, sec. 3, p. 108.]
The provisions of this title governing and in aid of the appraisal, assessment, levy and collection of state and county property taxes, are hereby made applicable to all general and special taxes of any taxing district incorporated, organized or chartered under any general or special laws of this state and authorized to collect revenue under the provisions of the laws of this state.
[63-1301 added 1996, ch. 98, sec. 14, p. 391.]
(1) The county commissioners may, at any time when in session, cancel property taxes which for any lawful reason should not be collected, and may refund to any taxpayer any money to which he may be entitled by reason of a double payment of property taxes on any property for the same year, or the double assessment or erroneous assessment of property through error. Notwithstanding any other provisions of law, in any case in which the county commissioners find that, due to error or otherwise by fault of the county, an excess amount of property tax was paid, the county commissioners may refund the excess amount so collected plus pay the same late charges and delinquency interest rate on that amount which the county would regularly require of a taxpayer who is delinquent, and the county commissioners may adopt an ordinance or resolution to establish such payments.
(2) The county commissioners may refund to the purchaser of any property when it has been determined by the county commissioners that such sale is void or invalid, the amount paid by such purchaser to the county with interest thereon from the date of such payment at the rate of six percent (6%) per annum.
(3) All proceedings of the county commissioners in the cancellation or refund of property taxes or refund of payments made at void sale must be recorded in the official minutes. All such refund of property taxes or payments must be paid upon warrants drawn on the county current expense fund by the county auditor or upon checks issued by the county tax collector. All such refunds shall be apportioned to the various funds or taxing districts.
[63-1302 added 1996, ch. 98, sec. 14, p. 391.]
(1) Whenever the county commissioners shall make any adjustments correcting errors or any other tax adjustments coming within the authority vested by law in such body, the clerk of the board shall, without delay, prepare and deliver to the county tax collector, a copy of the proceedings of the county commissioners.
(2) It shall be the duty of the tax collector to make the necessary corrections. All such copies shall be full authority for the tax collector to make adjustments as ordered; however, the tax collector shall assume no personal responsibility as to the legality of the orders but such responsibility shall rest entirely with the county commissioners.
[63-1303 added 1996, ch. 98, sec. 14, p. 391.]
The county commissioners of any county within the state of Idaho may, by resolution, authorize the county tax collector to make adjustments of late charges, interest and fees, not to exceed the designated limit as set by the county commissioners, in order to facilitate the collection of property taxes.
[63-1304 added 1996, ch. 98, sec. 14, p. 391.]
(1) When any court or the board of tax appeals orders a refund of any property taxes imposed under chapters 1 through 17, title 63, the county commissioners of the county or counties which collected the taxes may either refund taxes or apply the amount to be refunded as a credit against taxes due from the taxpayer in the following year. The county commissioners may use a combination of both a payment and a credit to effect the refund.
(2) As used in this section, "refund" includes property tax described in subsection (1) of this section found by the court or the board of tax appeals to have been overpaid and not lawfully due, interest due on the refund of such tax, costs and other amounts ordered paid by a court or the board of tax appeals.
(3) In the event a refund is paid, payments must be made by warrants drawn on the county’s current expense fund by the county auditor. The auditor shall apportion the amount of property taxes cancelled as credit to the tax collector. The auditor shall charge the various funds and taxing districts with their proportionate share of the refund and credit the current expense account.
(4) If a credit is given the following year, the credit shall be allowed against actual property taxes assessed to the taxpayer by the taxing districts which received the taxes ordered to be refunded.
(5) Amounts equal to the refunds or credits allowed in this section may be included in amounts certified pursuant to sections 63-802 through 63-807, Idaho Code, but shall not be a part of the operating budget within the meaning of section 63-802, Idaho Code.
[63-1305 added 1996, ch. 98, sec. 14, p. 392.]
(1) It is the intent of the legislature that property that is being constructed or renovated to fulfill a purpose that is exempt from taxation under the constitution or the laws of Idaho shall not be subject to property tax during the period of construction or renovation preparatory to its completion for a tax exempt use.
(2) A property owner may apply to the board of county commissioners for a provisional property tax exemption at the time that a building permit is applied for or at the time that construction or renovation of the property begins, whichever is earlier, or at any time thereafter during construction or renovation of the property. If the board of county commissioners finds that the intended use of the property, once construction or renovation has been completed, qualifies for a property tax exemption under the constitution or the laws of the state of Idaho, it shall grant a provisional property tax exemption, conditioned on the achievement of the intended tax exempt purpose. Any property with a provisional property tax exemption shall not be included on the county assessor’s new construction roll, and no taxes shall be assessed on the property during the period of its exemption.
(3) Once construction or renovation of a property with a provisional property tax exemption has been completed, the board of county commissioners shall review the tax exempt status of the completed property. In the event that the property does not qualify for a tax exemption, the board of county commissioners shall revoke the provisional property tax exemption and the property owner shall be liable for back taxes that would have been due on the property during construction, if not for the granting of the provisional property tax exemption. Property that is actually used for its intended tax exempt purpose shall be granted a property tax exemption by the board of county commissioners, if such approval is required under section 63-602, Idaho Code.
(4) In the event that property taxes have been assessed and collected on a property during the time that it qualified for a provisional property tax exemption and whose owner applied for a provisional property tax exemption during construction or renovation, the property owner may apply to the board of county commissioners for a refund of the property taxes within five (5) years of the payment of such taxes. The board of county commissioners shall order a refund of any property taxes imposed on a tax exempt property. The county commissioners shall refund the collected taxes to the owner within forty-five (45) days of a finding by the county commissioners or of an order by the board of tax appeals or a court that the taxes should not have been collected on the property. If the property is only partially exempt, the county commissioners may apply the amount to be refunded as a credit against taxes due from the taxpayer in the following year or may use a combination of both a payment and a credit to effect the refund.
(5) As used in this section, "refund" includes property tax described in subsection (4) of this section found by the county commissioners, the board of tax appeals or a court to have been overpaid and not lawfully due, interest due on the refund of such tax, costs and any other amounts ordered paid by a court or the board of tax appeals.
(6) In the event a refund is paid, payments must be made by warrants drawn on the county’s current expense fund by the county auditor. The auditor shall apportion the amount of property taxes canceled as credit to the tax collector. The auditor shall charge the various funds and taxing districts with their proportionate share of the refund and credit the current expense fund.
(7) If a credit is given the following year, the credit shall be allowed against actual property taxes assessed to the taxpayer by the taxing districts that received the taxes being refunded.
(8) Amounts equal to the refunds or credits allowed in this section may not be included in amounts certified pursuant to sections 63-802 through 63-807, Idaho Code.
[63-1305C, added 2018, ch. 194, sec. 1, p. 430.]
(1) No procedure or action relating to the appraisal or assessment of property or the collection of property taxes is illegal on account of informality.
(2) Proof of payment of property taxes shall be the sole responsibility of the taxpayer.
[63-1306 added 1996, ch. 98, sec. 14, p. 392.]
All moneys required under the provisions of this title to be transmitted to the state treasurer shall be transmitted at the expense of the county.
[63-1307 added 1996, ch. 98, sec. 14, p. 392.]
(1) All property taxes paid under protest shall be apportioned as other property taxes are apportioned.
(2) An action against a county, an officer, or officer de facto, for property taxes or money paid to such county, officer, or officer de facto under protest, or seized by such officer, in his official capacity as a collector of taxes, and which it is claimed ought to be refunded, shall be commenced within sixty (60) days after such payment or seizure.
[63-1308 added 1996, ch. 98, sec. 14, p. 392.]
If any election has been held for the formation of any special taxing district, or for the approval of any bond issue or other proposal that would have resulted in a property tax levy, and the proposal submitted at such election was defeated, no subsequent election shall be held within two (2) months from and after the date of such prior election for the same or a similar purpose in any district that includes any part of the area that was affected by the prior election. In the event any school building is destroyed or rendered unusable for school purposes by reason of fire, flood or other catastrophe, and a school bond election for the purpose of the replacement of such building is prohibited by the provisions of this section or by the provisions of section 34-106, Idaho Code, the state board of education shall have the power to authorize an election for such purpose by order based upon a finding of such facts. The provisions of this section shall not apply to school elections held solely for determining property tax levies for general school purposes not involving the issuance of bonds. This time requirement between elections shall not apply to municipalities or water and/or sewer districts when bond issues are being proposed for the installation or improvement of water supply systems or public sewerage systems that have been deemed necessary by the Idaho department of environmental quality to bring such system or systems in conformance with state statutes or rules.
[63-1309, added 1996, ch. 98, sec. 14, p. 392; am. 2009, ch. 341, sec. 144, p. 1064; am. 2025, ch. 47, sec. 18, p. 239.]
In the event of the destruction of personal property by fire, flood or other natural disaster after the first day of January of any year the lien of the personal property tax shall attach to and follow any insurance that may be upon said property and the insurer shall pay to the county tax collector from the insurance money all property taxes, late charges, interest and costs incurred that may be due unless cancelled by the county commissioners.
[63-1310 added 1996, ch. 98, sec. 14, p. 393.]
(1) Notwithstanding any other provision of law, the governing board of any taxing district may impose and cause to be collected fees for those services provided by that district which would otherwise be funded by property tax revenues. The fees collected pursuant to this section shall be reasonably related to, but shall not exceed, the actual cost of the service being rendered.
(2) No charge, other than property taxes shall be included on a tax notice unless the taxing district placing such charge has received approval by the board of county commissioners to place such charge on the tax notice and meets the criteria set forth in section 63-902, Idaho Code.
[63-1311, added 1996, ch. 98, sec. 14, p. 393; am. 1997, ch. 117, sec. 35, p. 333.]
No taxing district may make a decision approving a fee increase that is in excess of five percent (5%) of the amount of the fee last collected or a decision imposing a new fee, unless it first holds a hearing upon such proposed fee increase or fee imposition at a regular or special meeting of the district’s governing body and after it gives public notice of such hearing in the manner provided in this section. Any taxing district that is required to hold a hearing and give public notice of the hearing as provided in this section, and which fails to do so, shall have the validity of all or a portion of the fee increase that it collects be voidable.
The taxing district shall give public notice of its intent to make a decision on a proposed fee increase, that is in excess of five percent (5%) of the amount of fees last collected prior to such decision, or a decision to impose a new fee by giving public notice either by advertising in at least one (1) newspaper as defined in section 60-106, Idaho Code, or by holding three (3) public meetings in three (3) different locations in the district or by a single mailing notice to all district residents, providing that the same information is given and providing the meeting shall be held not less than seven (7) days after mailing of the notice. An advertisement used to satisfy the requirements of this section shall be run once each week for the two (2) weeks preceding the week during which the hearing required by this section will be held. The advertisement shall state that the taxing district will meet on a certain day, time and place fixed in the advertisement, for the purpose of hearing public comments regarding any proposed fee increase beyond the limits prescribed by this section, or imposition of a new fee and to explain the reasons for such action.
[63-1311A, added 1997, ch. 117, sec. 36, p. 333; am. 2007, ch. 159, sec. 1, p. 482.]
(1) Prior to the fourth Monday of March of the current year the county auditor must notify every taxing district or authority, other than school districts, of the total taxable valuation of all the taxable property situated within such districts for the preceding calendar year for the purpose of assisting such governing authorities in their determination of tax rates to be levied for the current year and other informational purposes.
(2) Prior to the first Monday in August the auditor of each county in the state shall notify the state tax commission and the clerk of each taxing unit in his county of the taxable valuation of all the taxable property situated within that taxing district from the property roll for the current year, from the operating property roll for the previous year, from the prior year’s actual or current year’s estimated subsequent property roll and missed property roll, and the amount of value subject to occupancy tax notwithstanding exemptions authorized in chapter 6, title 63, Idaho Code, for the previous year.
(3) The auditor shall furnish the valuation from the current operating property roll upon receipt from the state tax commission.
(4) Subsequent to the notification of the county auditor of revenues sufficient to cover expenses as provided in section 50-2903(5), Idaho Code, taxable value as used in this section shall also include the value that exceeds the value of the base assessment roll for the portion of any taxing district within a revenue allocation area.
[63-1312 added 1996, ch. 98, sec. 14, p. 393; am. 2002, ch. 143, sec. 8, p. 404; am. 2012, ch. 38, sec. 5, p. 117; am. 2016, ch. 13, sec. 1, p. 15.]
(1) (a) Except as provided in section 63-802, Idaho Code, during any one (1) tax year, the maximum amount of all property taxes from all sources on any property subject to appraisal, assessment, and property taxation within the state of Idaho shall not exceed one percent (1%) of the market value for assessment purposes of such property, including the current market values of all residential improvements, notwithstanding any exemption of a portion of such values from property taxation.
(b) The limitation provided for in paragraph (a) of this subsection shall not apply to property taxes or special assessments to pay the principal of and the interest and redemption charges on any indebtedness incurred prior to the time this section becomes effective, nor shall the limitation provided for in paragraph (a) of this subsection apply to property taxes to pay the principal of and the interest and redemption charges on any indebtedness incurred on or after November 7, 1978, as prescribed by the constitution of the state of Idaho, nor shall the limitation provided for in paragraph (a) of this subsection apply to special assessments levied on or after November 7, 1978, as provided by law.
(2) The market value for assessment purposes of real and personal property subject to appraisal by the county assessor shall be determined by the county assessor according to the rules prescribed by the state tax commission, as provided in section 63-208, Idaho Code, but where real property is concerned it shall be the actual and functional use of the real property. All taxable property shall be annually appraised or indexed to reflect that valuation.
[63-1313 added 1996, ch. 98, sec. 14, p. 394.]
Costs and fees for professional services incurred by the county in the collection of property taxes are a perpetual lien on the property and may be attached to the property taxes, current and delinquent.
Such professional services shall include, but not be limited to, attorney fees and title searches.
[63-1314 added 1996, ch. 98, sec. 14, p. 394.]
(1) A nonschool taxing district having a population of less than seven thousand five hundred (7,500) may certify a budget request for an amount of property tax revenues to finance an annual budget in excess of the limitations imposed by section 63-802, Idaho Code, for the purpose of paying an obligation that has been judicially confirmed pursuant to chapter 13, title 7, Idaho Code, provided that all of the following conditions are met:
(a) The taxing district has, within the previous five (5) years, held at least three (3) elections to obtain voter approval to incur the debt;
(b) The taxing district first budgets the maximum amount of property tax permitted pursuant to section 63-802, Idaho Code, including any available forgone amount;
(c) All surplus funds available to the taxing district are used to pay the obligation;
(d) The obligation was judicially confirmed after March 1, 2018, but before December 31, 2019;
(e) The obligation amount exceeds one-third (1/3) of the property tax revenues used to finance the taxing district’s highest annual budget in the preceding three (3) years; and
(f) The amount in excess of the limitations imposed by section 63-802, Idaho Code, authorized by this section does not increase the budget that would otherwise be applicable by more than the amount raised by a levy rate of one-tenth of one percent (0.1%).
(2) The provisions of subsection (1) of this section pertain regardless of whether the obligation is paid in cash, redeemable warrants, the proceeds of bonded indebtedness permitted as an ordinary and necessary expense, or any combination of these methods of payment.
(3) The state tax commission may promulgate rules necessary to administer the provisions of this section.
(4) The levy resulting from the provisions of subsection (1) of this section may be imposed only until the obligation is paid in full.
[63-1315, added 2019, ch. 205, sec. 1, p. 625.]
(1) No nonschool taxing district shall exercise any powers provided pursuant to section 63-1315, Idaho Code, unless a majority of qualified electors have voted to approve the obligation provided for in section 63-1315, Idaho Code, within the five (5) years prior to the budget request.
(2) The election provided for in this section shall be held in accordance with the provisions of section 34-106, Idaho Code.
[63-1316, added 2019, ch. 205, sec. 2, p. 626.]
(1) The assessor is hereby authorized to administer oaths to all persons who may be required to swear, and he may examine under oath any person who is required under the provisions of this chapter to list property for appraisal, assessment or taxation, concerning the amount and value of such property, and he may examine under oath any person whom he may suppose to have knowledge of the amount or value of the property of any person refusing to list such property or to verify such list, or whenever the assessor shall be of the opinion that the person listing property for himself or for any other person has not made a complete list of such property. If any person shall refuse to answer under oath any question asked of him by the assessor concerning the amount and value of the property required to be listed by him, the assessor may list and assess such property according to his best judgment and information, but, if any property is willfully concealed, removed, transferred, misrepresented or not listed by the person required to do so, such property, upon discovery, must be appraised, assessed and taxed at two (2) times its value for each year such property has escaped taxation. The county board of equalization may excuse the liability for such penalty upon a proper showing that by good and sufficient cause the requirement to list such property need not be complied with. Any person making a false list, schedule or statement under oath shall be guilty of perjury.
(2) The assessor shall note, at the time of appraisal, all cases where the owner, agent or other person required by this title to list property: refused or failed to make the sworn taxpayer’s declaration required of him; refused to answer any question asked of him by the assessor in reference to the appraisal of property; was absent or willfully concealed, removed, transferred, misrepresented or failed to list such property.
[63-1401 added 1996, ch. 98, sec. 15, p. 394.]
(1) It is a misdemeanor:
(a) For any assessor to knowingly or willfully assess any property at more or less than market value.
(b) For any assessor to fail to complete and deliver the real, subsequent or missed property rolls or affidavits within the time prescribed by law.
(c) For any member of the board of equalization to knowingly or willfully permit any appraisal to stand, or permit any alteration to be made in the real, subsequent or missed property rolls whereby any property is appraised at more or less than market value.
(d) For any member of the county commissioners to knowingly or willfully permit any unjust, excessive or insufficient county property tax levy to stand.
(e) For any county officer or any officer of any taxing district to knowingly or willfully make any false statements to the county commissioners in its determination of the amount of property taxes to be levied.
(f) For any auditor to fail to complete and deliver the property rolls or affidavits within the time prescribed by law.
(g) For any tax collector to knowingly or willfully fail to mail a property tax notice within the time prescribed by law.
(h) For any tax collector to knowingly or willfully fail to collect any property tax which has been properly levied.
(i) For any person to remove from the county or sell or repossess any personal property without the payment of property taxes levied thereon.
(j) For any treasurer to neglect or refuse to make any payments or settlements within ten (10) days after the time prescribed therefor.
(k) For any auditor to neglect or refuse to transmit any order or sworn statement within ten (10) days after the time prescribed therefor.
(l) For any assessor to neglect or refuse to transmit any order or sworn statement within ten (10) days after the time prescribed therefor.
(m) For any member of the state tax commission to knowingly or willfully permit any unjust appraisal or assessment, or incorrect apportionment of state property taxes to stand or be made.
(2) In addition to criminal penalties which may be imposed under this section:
(a) The assessor shall be liable upon his official bond for the amount of property tax on any property which he has knowingly or willfully allowed to escape appraisal or on any property on which he has knowingly or willfully entered any untrue or incorrect classification of land or other property upon the property roll.
(b) Any member of the board of equalization shall be liable upon his official bond for the amount of property tax on any property which he has knowingly or willfully allowed to escape assessment and taxation or on any property on which he has knowingly or willfully allowed any untrue or incorrect classification of land or other property to stand.
(c) The tax collector shall be liable upon his official bond for all property taxes which have not been collected or accounted for in his settlement with the county commissioners or county auditor.
(d) The treasurer shall be liable upon his official bond for all payments or settlements which he refuses or neglects to make within ten (10) days after the time prescribed therefor.
(e) The county auditor shall be liable upon his official bond for neglecting or refusing to transmit any order or sworn statement within ten (10) days after the time prescribed therefor and shall forfeit the sum of one thousand dollars ($1,000).
[63-1402 added 1996, ch. 98, sec. 15, p. 395.]
(1) The attorney general of this state is empowered to sue and collect, for and on behalf of any other political subdivision or state of the United States taxes legally due such political subdivision or state provided that the law of such state contains a reciprocal provision by which that state will enforce and collect taxes due this state or its political subdivision.
(2) The attorney general or an appropriate official of any political subdivision of this state may bring suits in the courts of other states to collect taxes legally due this state or any political subdivision thereof. The officials of other states which extend a like comity to this state are empowered to sue for the collection of such taxes in the courts of this state. A certificate by the secretary of state under the great seal of the state that such officers have authority to collect the tax is conclusive evidence of such authority.
[63-1403 added 1996, ch. 98, sec. 15, p. 396.]
(1) Every public officer shall comply with any lawful order or rule of the state tax commission made pursuant to the provisions of this title.
(2) Every county officer or employee performing related functions shall provide information regarding property rolls and related documents and procedures and parcel numbers to the state tax commission as provided in section 63-219, Idaho Code, may use the computer software prescribed and furnished by the state tax commission, and shall record and transmit information required by the state tax commission in the performance of its duties.
(3) Whenever it appears to the state tax commission that any public officer or employee whose duties relate to the assessment or equalization of assessments of property for taxation has failed to comply with any law relating to such duties, or the rules of the state tax commission made in pursuance thereof, the state tax commission, after a hearing on the facts, may request an order directing the public officer or employee to comply with such law or rule. An order of the state tax commission may require a county to conduct a revaluation of some or all of the property within the county as the state tax commission may find necessary to promote uniformity of taxation within the county. When necessary for the implementation of such an order, the state tax commission is empowered to reconvene a county board of equalization for a period not to exceed ninety (90) days beyond the date otherwise prescribed for the adjournment of such board for the sole purpose of permitting the board to hear and determine protests of valuations resulting from such ordered reappraisal provided that such protests are filed on or before the date otherwise prescribed for the adjournment of the board of equalization and that such extension is necessary for the proper completion of the board’s duties. The order may further permit the certification of estimated values by the county to the state tax commission subject to the approval of the tax commission if necessary to permit the board of equalization to properly complete its work and such values, when approved by the tax commission, may be used to set levies if actual values are unavailable on the date prescribed for setting levies.
(4) If such public officer or employee, for a period of ten (10) days after service on him of the state tax commission’s order, neglects or refuses to comply therewith, the state tax commission may apply to a judge of the district court of the county in which the public officer holds office for an order, returnable within five (5) days thereof, to compel such public officer or employee to comply with the state tax commission’s order, or to show cause why he should not be compelled to do so.
(5) Any order issued by the judge pursuant thereto shall be final; provided however, that any person aggrieved by such order may appeal to the supreme court of the state of Idaho in the manner provided for appeals in other civil actions. An appeal shall not stay any order issued by any judge.
(6) The remedy provided in this section shall be cumulative and shall not exclude the state tax commission from exercising any other power or right delegated to it.
[63-1404 added 1996, ch. 98, sec. 15, p. 397.]
Any county officer upon whom any duties devolve under the revenue laws of this state, who willfully neglects or refuses to perform any such duty, may be removed from office in the manner prescribed by law. When proceedings are commenced to remove such officer, the county commissioners, or in case such officer be a commissioner, then the district judge, may suspend such officer from his powers and duties under the revenue laws, and appoint a competent person in his place until a proper tribunal has either removed or acquitted such suspended officer. Any act relating to the appraisal of property, the assessment of property, the levy or collection of property taxes, or the sale of property for nonpayment of property taxes, performed by any such temporary officer, is valid and of the same force and effect as if performed by a duly qualified officer, elected to such office; provided, that such temporary officer has been bonded, as is required of persons duly elected to such office.
[63-1405 added 1996, ch. 98, sec. 15, p. 398.]
As used in this act, the following terms shall have the following meanings:
"Contracting units" shall include the state or any officer or department thereof, the counties or other subdivisions of the state, and all municipal and quasi-municipal corporations therein.
"Contractor" shall mean any person, firm, copartnership, association, or corporation, foreign or domestic, entering into a contract for the construction, erection, repair, or improvement of any kind or character of public works in this state.
"Taxes" shall mean all taxes, assessments, excises, and license fees authorized to be levied, assessed, and collected under the laws of this state, other than taxes on real property.
"Taxing unit" shall mean the state or any officer or department thereof, the counties or other subdivisions of the state, and all municipal and quasi-municipal corporations therein authorized by law to assess, levy and collect taxes.
[63-1501, added 1937, ch. 246, sec. 1, p. 440.]
Before entering into a contract for the construction of any public works in this state, the contracting unit shall require as conditions precedent that the contractor be authorized to do business in this state and that he furnish satisfactory evidence that he has paid or secured to the satisfaction of the respective taxing units all taxes for which he or his property is liable then due or delinquent.
[63-1502, added 1937, ch. 246, sec. 2, p. 440.]
Every contract for the construction of public works by a contracting unit of this state shall contain substantially the following provisions:
The contractor, in consideration of securing the business of erecting or constructing public works in this state, recognizing that the business in which he is engaged is of a transitory character, and that in the pursuit thereof, his property used therein may be without the state when taxes, excises, or license fees to which he is liable become payable, agrees:
To pay promptly when due all taxes, (other than on real property), excises and license fees due to the state, its subdivisions, and municipal and quasi-municipal corporations therein, accrued or accruing during the term of this contract, whether or not the same shall be payable at the end of such term;
That if the said taxes, excises, and license fees are not payable at the end of said term, but liability for the payment thereof exists, even though the same constitute liens upon his property, to secure the same to the satisfaction of the respective officers charged with the collection thereof; and
That, in the event of his default in the payment or securing of such taxes, excises, and license fees, to consent that the department, officer, board, or taxing unit entering into this contract may withhold from any payment due him hereunder the estimated amount of such accrued and accruing taxes, excises, and license fees for the benefit of all taxing units to which said contractor is liable.
[63-1503, added 1937, ch. 246, sec. 3, p. 440.]
Before the state board of examiners, the board of county commissioners, or the board of any municipal or quasi-municipal corporation or other taxing unit in this state, shall approve any claim on account of the construction of public works in this state, it shall require that the claimant furnish evidence that he has paid all taxes, excises, and license fees due to the state and its taxing units, due and payable during the term of the contract for such construction, and that he has secured all such taxes, excises, and license fees liability for the payment of which has accrued during the term of such contract, notwithstanding they may not yet be due or payable.
[63-1504, added 1937, ch. 246, sec. 4, p. 440.]
Any officer of a contracting unit who fails to comply with or violates any of the provisions hereof shall be liable personally and on his official bond for the amount of any tax loss by any taxing unit incurred as a result of failure to comply with the terms hereof.
[63-1505, added 1937, ch. 246, sec. 5, p. 440.]
It is the intent of the legislature to make provisions available for the prepayment of a portion of certain taxpayers’ ad valorem taxes to minimize the impact on public facilities caused by new business operations within a county.
[63-1601, added 1980, ch. 226, sec. 1, p. 505.]
In order to minimize the impact on public facilities as a result of new business operations and to permit affected taxing districts to use prepaid ad valorem taxes for planning, construction, expansion, or operation of public facilities, any taxpayer seeking to prepay ad valorem taxes shall petition the board of county commissioners in the applicable county. The petition, in addition to such information as the taxpayer may choose to present, shall contain the following:
(a) A statement that the taxpayer intends to engage or is engaged in new business operations and that such operations will have an impact on public facilities in the county;
(b) A declaration that the taxpayer has or will have taxable property in the county and taxing districts during the term of the impact period, which shall not exceed ten (10) years;
(c) A request that the taxpayer be allowed to prepay a portion, but not to exceed fifty percent (50%) of the estimated ad valorem taxes that will be due during the first one-half of the term of the impact period, which shall not exceed ten (10) years; and
(d) A request that a local impact committee be organized.
[63-1602, added 1980, ch. 226, sec. 1, p. 505.]
(1) On receipt of a petition from a taxpayer pursuant to section 63-1602, Idaho Code, the board of county commissioners shall:
(a) Within five (5) days of receipt of such petition, forward a copy of the petition to the chairman of the governing board of each taxing district in which any part of the property of the taxpayer is or will be situated during the term of the impact period; and
(b) Within thirty (30) days of receipt of such petition hold one or more public hearings at which the taxpayer, all taxing districts to which the petition was forwarded, and interested persons may appear and be heard relative to the impact on public facilities in such county and the matters contained in the taxpayer’s petition.
(2) Within fifteen (15) days after the close of the hearings, the board shall enter an order either granting or denying the petition.
(a) If the petition is denied, the taxpayer may not reapply or file a new petition until the start of the next tax year.
(b) If the petition is granted, the board shall enter an order declaring:
(i) That the taxpayer intends to engage in or is engaged in new business operations in the county and that such operations will have an impact on public facilities in the county;
(ii) That the taxpayer has or will have taxable property in the county and taxing districts during the term of the impact period;
(iii) That the taxpayer be allowed to prepay a portion, but not to exceed fifty percent (50%) of the estimated ad valorem taxes that will accrue during the term of the impact period, and receive ad valorem tax credits for such prepaid taxes, in accordance with the provisions of this chapter; and
(iv) That a local impact committee be created.
[63-1603, added 1980, ch. 226, sec. 1, p. 506.]
If a local impact committee is ordered pursuant to section 63-1603, Idaho Code, the board of county commissioners shall appoint the members of the committee. The committee shall consist of a member of the governing board of each taxing district in which any part of the property of the taxpayer is or will be situated during the term of the impact period, the county assessor, and the chairman of the board of county commissioners, who shall be the permanent chairman of the local impact committee. The board of county commissioners, with the advice of the committee, shall:
(1) Work with the taxpayer to determine the impact on public facilities for a period of not to exceed ten (10) years;
(2) Develop a plan for construction, expansion, or operation of public facilities for a period of not to exceed ten (10) years;
(3) Estimate the total amount of ad valorem taxes that the taxpayer will become obligated to pay for a period of not to exceed ten (10) years, and the estimated amount of taxes that may be prepaid during the first one-half of the impact period;
(4) Determine the priority of public facilities that are to be funded from prepaid ad valorem taxes, the taxing districts which will receive such prepaid ad valorem taxes, the dollar amount of such taxes, and the taxing districts which need to provide a credit during the term of the impact period to the taxpayer for prepaid ad valorem taxes.
[63-1604, added 1980, ch. 226, sec. 1, p. 506.]
In each county in which a local impact committee is formed, under the provisions of this chapter, there is hereby created and established in the county treasury a local impact fund to which all prepaid ad valorem taxes shall be credited as received.
Moneys in the local impact fund may be expended or transferred to a taxing district only upon the approval of the board of county commissioners with the advice of the local impact committee, any other provisions of law notwithstanding.
The preparation of a budget for the moneys in the fund shall be controlled by the provisions of this chapter, any other provision of law notwithstanding.
The expenditure of moneys from the fund, or the transfer of moneys in the fund to a taxing district, shall be exempt from the provisions of chapter 16, title 31, Idaho Code.
[63-1605, added 1980, ch. 226, sec. 1, p. 507; am. 1996, ch. 208, sec. 15, p. 673; am. 1996, ch. 322, sec. 58, p. 1087.]
Prepayment of ad valorem taxes under the provisions of this chapter shall be optional and voluntary on the part of the taxpayer, unless an agreement has been entered into with a local impact committee, in which case the terms of the agreement shall be binding.
[63-1606, added 1980, ch. 226, sec. 1, p. 507.]
During the last one-half (1/2) of the impact period and for not to exceed three (3) years thereafter, each taxpayer who has prepaid taxes shall be allowed a credit for such taxes paid during the first one-half (1/2) of the impact period. The credit shall be allowed against the actual taxes assessed to the taxpayer by the taxing district which received prepaid taxes from the local impact fund, and shall be calculated to provide an approximately equal credit during each year that the credit is allowed. Any extension of time during which the credit may be allowed shall require the approval of the local impact committee.
[63-1607, added 1980, ch. 226, sec. 1, p. 507; am. 1981, ch. 224, sec. 6, p. 442; am. 1988, ch. 355, sec. 1, p. 1058; am. 1996, ch. 208, sec. 16, p. 674; am. 1996, ch. 322, sec. 59, p. 1087; am. 1997, ch. 117, sec. 37, p. 334.]
If for any reason during the impact period the taxpayer should cease business operations and the credits accumulated for prepaid ad valorem taxes have not been completely set off against taxes due, the balance of the unused credit shall be forfeited, and the county and taxing districts shall be under no obligation to pay off the unused credits.
[63-1608, added 1980, ch. 226, sec. 1, p. 507.]
As used in this chapter, unless the context requires otherwise:
(1) "Average annual net wood production" means the average net usable volume of wood one (1) acre of forest land will grow in one (1) year under average current and actual forest conditions and under current and reasonable management practices for each forest value zone.
(2) "Designation period" means any one (1) ten (10) year period in a sequence of ten (10) year periods which begin January 1, 1983.
(3) "Forest" means forest land and the timber thereon.
(4) "Forest land" means privately owned land being held and used primarily for the continuous purpose of growing and harvesting trees of a marketable species. Having met the above criteria, forest land may be further identified by the consideration of any of the following criteria:
(a) Forest land is land evidenced by present use and silvicultural treatment.
(b) Forest land is land which has a dedicated use that is further evidenced by a forest land management plan that includes eventual harvest of the forest crop.
(c) Forest land is land bearing forest growth or land which has not been converted to another use.
(d) Forest land is land which has had the trees removed by man through harvest, including clear-cuts or by natural disaster, such as but not limited to fire, and which within five (5) years after harvest or initial assessment will be reforested as specified in the forest practices act (chapter 13, title 38, Idaho Code).
(5) "Forest landowner" means the legal entity which holds the property rights under law to the forest land surface.
(6) "Forest products" means any forest crop harvested from forest land.
(7) "Forest products yield tax" means a tax levied on the value of forest products harvested from a parcel as prescribed in sections 63-1703 and 63-1706, Idaho Code.
(8) "Forest value" means the market value for assessment purposes as determined only on the basis of its ability to produce timber, other forest products, and associated agricultural products through the timber productivity valuation process as prescribed by section 63-1705, Idaho Code.
(9) "Stumpage value" means the value of timber, whether standing or downed by other than an intentional act of severance, expressed in terms of dollars per unit of measure.
(10) "Timber" means wood growth, of any species and of any size, standing or down on privately owned lands.
(11) "Bare land value" means the value of forest land exclusive of the value of timber and other products growing or being thereon.
(12) "Stumpage owner" means the legal entity which holds the property rights under law to the timber growing on private lands.
(13) "A substantial change of use" means any use other than as forest land as defined in subsection (4) of this section.
(14) "Deferred taxes" as used in section 63-1703, Idaho Code, means a tax levied to recapture the difference between taxes that were collected on a parcel designated under section 63-1706, Idaho Code, and what would have been collected on the parcel, had it been designated under section 63-1702 or 63-1705, Idaho Code.
(15) "Custodial expense" shall mean those expenses incurred in the maintenance of the forest land and limited to the following:
(a) Reforestation;
(b) Road maintenance;
(c) Managing public use;
(d) Forest inventory;
(e) Forest management planning;
(f) Facility operations and maintenance;
(g) Environmental analysis and documentation;
(h) Appeals and litigation;
(i) Land survey;
(j) Forest fire suppression;
(k) Other management expenses; and
(l) Labor associated with items (a) through (k) of this subsection, but shall not include the salaries or expenses, or any portion thereof, of any person or officer not directly engaged in the management of the forest land.
(16) "CFTM" means the committee on forest land taxation methodologies as provided in section 63-1705, Idaho Code.
[63-1701, added 1982, ch. 123, sec. 5, p. 351; am. 1989, ch. 235, sec. 1, p. 572; am. 1992, ch. 18, sec. 1, p. 52; am. 1994, ch. 370, sec. 1, p. 1189; am. 2005, ch. 24, sec. 1, p. 74.]
Land parcels of less than five (5) contiguous acres must be appraised, assessed and taxed as real property, without regard to its ability to produce timber or forest products. Buildings and other improvements located on forest lands of less than five (5) contiguous acres shall be appraised, assessed and taxed as provided by applicable laws, rules and regulations.
[63-1702, added 1982, ch. 123, sec. 5, p. 352.]
For the purposes of appraisal, assessment and taxation under the provisions of this chapter, all forest lands in parcels of five (5) or more acres but less than five thousand (5,000), whether contiguous or not, as long as such parcels are held in common ownership, must be designated by the forest landowner to be subject to the provisions of either subsection (a) or (b) of this section. A forest landowner cannot have parcels designated under the provisions of both subsections (a) and (b) of this section at one time. If the forest landowner fails to make a designation, his forest lands shall be subject to appraisal, assessment and taxation under the provisions of section 63-1702, Idaho Code. Once a designation is made by the forest landowner, such designation must remain in effect until the designation period expires, unless the forest lands are transferred to another owner using a different taxing category; in such case, the taxing category of the transferred forest lands shall be the same as that maintained by the new owner.
A forest landowner may change the designation of all forest lands in common ownership at the end of any designation period, subject to the recapture of any deferred taxes due as a result of such change. After January 1 and by December 31 of the tenth year of each designation period, the forest landowner must notify the county assessor of any change in forest land designation. Failure to notify the county assessor will result in the continuation of the landowner’s present designation until the end of the next designation period.
Any substantial change in the use of forest lands not conforming with the definition of "forest land" in section 63-1701, Idaho Code, during such ten (10) year period under the designations made in subsection (a) or (b) of this section shall be reported by the landowner to the county assessor within thirty (30) days of the change in use. Upon notification of the change in use or a determination by the assessor that the land no longer meets the definition of "forest land" in section 63-1701, Idaho Code, the assessor shall appraise, assess and tax those acres as provided by applicable laws and rules. Failure to notify the assessor of the change in use when forest lands have been designated as subject to the provisions of subsection (a) or (b) of this section shall cause forfeiture of such designation and cause that property to be appraised, assessed and taxed as provided in section 63-1702, Idaho Code. If there are deferred taxes subject to recapture as a result of loss of forest land designation, the assessor shall take no action to supply deferred tax amounts to the county treasurer before the taxpayer has been notified and provided an opportunity to appeal the decision of the assessor to the county board of equalization. Said appeal shall be considered timely if filed with the county clerk within thirty (30) days of receipt of the notification of the decision of the assessor. Upon the filing of a timely appeal, the taxpayer shall be given at least ten (10) days’ notice of the date and location of the next meeting of the county board of equalization at which the appeal shall be considered. Once the appeal is considered, the county board of equalization shall notify the appellant of the decision, which is further appealable pursuant to section 63-511, Idaho Code.
Forest lands designated for assessment pursuant to the provisions of section 63-1706, Idaho Code, shall be subject to the recapture of deferred taxes upon removal of such designation, a substantial change in use, or ownership transfer, except that there shall be no recapture initiated upon ownership transfer of forest lands designated as subject to the provisions of section 63-1706, Idaho Code, to a landowner with forest lands already designated as subject to the provisions of section 63-1706, Idaho Code, prior to the transfer, or who so designates his lands to be subject to the provisions of section 63-1706, Idaho Code. In the event payment is offered or made, it shall be accepted by the county treasurer and applied in the manner of payment of other property tax.
The dollar amount of deferred taxes subject to recapture shall be determined by the county assessor by applying current tax levies against the current values that would have been in effect if the lands were subject to appraisal and assessment during the current year under the provisions of section 63-1705, Idaho Code, if there has been a change in ownership or a removal of designation, or section 63-1702, Idaho Code, if there has been a change in use with no change in ownership, which amount shall be multiplied by the number of years that the lands have been subject to the designation under section 63-1706, Idaho Code. The amount of the deferred tax shall accrue through designation periods, up to a maximum of ten (10) years, and shall apply to the most recent ten (10) years in which the parcel has been designated under the provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes actually paid under the provisions of section 63-1706, Idaho Code, for an identical ten (10) year period, up to the total amount of the deferred taxes. All deferred amounts shall be a lien against the land. Deferred tax amounts shall be calculated by the county assessor on forms prescribed by the state tax commission. Deferred tax amounts shall be supplied by the county assessor to the county treasurer by May 15 of the year following conveyance or within thirty (30) days of the lapsing or conclusion of the appeals procedure provided in this section with regard to the removal of the forest land designation, or of learning of a change in use. All deferred tax amounts shall be due and payable to the county treasurer on demand and shall become delinquent if not paid by the demand due date specified by the county treasurer on the forms prescribed by the state tax commission. If the deferred tax is not paid as provided in this section, the payment becomes delinquent and subject to late charges and interest in the amounts provided in sections 63-201(12) and 63-1001, Idaho Code, and subject to collection in the manner as set forth in chapter 10, title 63, Idaho Code. Estimated deferred tax amounts may be held by the county treasurer in a tax anticipation account from the date of conveyance until June 1 of the year following conveyance.
The county treasurer shall cause the deferred taxes and any penalty and interest paid pursuant to the provisions of this section to be apportioned to the various taxing authorities within which the property subject to the tax is located in the same manner as property taxes.
(a) A forest landowner may choose to have his forest land assessed, appraised and taxed under the provisions of section 63-1705, Idaho Code, by filing such choice with the county assessor on a form prescribed by the state tax commission. Designation filed pursuant to section 63-1705, Idaho Code, shall become effective the first day of January following the year of designation.
(b) A forest landowner may choose to have his forest land assessed, appraised and taxed under the provisions of section 63-1706, Idaho Code, by filing such choice with the county assessor on a form prescribed by the state tax commission. Designation filed pursuant to section 63-1706, Idaho Code, shall become effective the first day of January following the year of designation.
(c) All forest products or timber harvested from investment lands not designated as subject to the provisions of section 63-1702, 63-1705 or 63-1706, Idaho Code, and delivered to a point of utilization as logs or semiprocessed forest products, except those forest products harvested for the domestic use of the landowner under the provisions of section 63-1708, Idaho Code, shall be subject to the yield tax at the time of harvest in the same manner provided for in section 63-1706, Idaho Code.
[63-1703, added 1982, ch. 123, sec. 5, p. 352; am. 1984, ch. 237, sec. 1, p. 567; am. 1992, ch. 18, sec. 2, p. 53; am. 1994, ch. 370, sec. 2, p. 1190; am. 1995, ch. 90, sec. 1, p. 259; am. 1996, ch. 322, sec. 60, p. 1088; am. 1996, ch. 431, sec. 1, p. 1464; am. 2004, ch. 183, sec. 1, p. 573; am. 2008, ch. 53, sec. 4, p. 135; am. 2008, ch. 400, sec. 5, p. 1099; am. 2009, ch. 11, sec. 24, p. 37; am. 2016, ch. 16, sec. 1, p. 21.]
Tracts of forest lands which consist of five thousand (5,000) or more acres, whether contiguous or not, so long as such tracts are held in common ownership, must be appraised, assessed and taxed as real property as provided in section 63-1705, Idaho Code.
[63-1704, added 1982, ch. 123, sec. 5, p. 353; am. 1996, ch. 431, sec. 2, p. 1466.]
(1) In order to encourage private forest landowners to retain and improve their holdings of forest lands and to promote better forest management, forest lands subject to this option shall be appraised, assessed and taxed as real property under the provisions of this section.
(2) Forest lands shall be governed by the following productivity classifications and assessments:
(a) All forest land shall retain the productivity classification that it held in tax year 2021 for each year thereafter, unless there is a substantial change of use or the landowner successfully appeals the classification pursuant to chapter 5, title 63, Idaho Code. All forest land shall be assessed in accordance with subsection (4) of this section.
(b) Changes to productivity classification of forest land prior to January 1, 2021, shall be made pursuant to the process set forth in section 63-1705A, Idaho Code, and shall be assessed each year thereafter in accordance with the provisions of subsection (4) of this section, except that all reviews by county assessors pursuant to section 63-1705A, Idaho Code, shall be completed no later than January 1, 2021.
(c) The productivity classification for land newly classified as forest land after tax year 2021 shall be determined pursuant to section 63-1705A, Idaho Code. In the year immediately following classification and for each year thereafter, newly classified forest land shall retain its productivity classification and shall be valued in accordance with the provisions of subsection (4) of this section.
(3)(a) Prior to tax year 2021, the forest land value shall be determined by the timber productivity valuation process, as provided for in the committee on forest land taxation methodologies (CFTM), user’s guide to the timber productivity option’s valuation method – 2005 (Schlosser, January 1, 2005, Moscow, Idaho), referred to in this chapter as the "user’s guide," on file with the Idaho state tax commission, available on the website of the Idaho state tax commission, and which shall be made available in the office of each county assessor, which values the net wood production over a reasonable rotation period plus other agricultural-related income, if any, less annualized custodial expenses as defined in section 63-1701, Idaho Code. The state tax commission shall promulgate rules relating to the timber productivity valuation process, including custodial expenses, as provided for in the user’s guide and the provisions of this chapter.
(b) The market value for assessment purposes shall be determined annually by the county assessor using the timber productivity valuation process developed by the CFTM, and as further prescribed in rule. Effective January 1, 2012, the forest land values for taxation purposes will be floored at the 2011 valuation level of all four (4) of the forest value zones for the next ten (10) year period. The ceiling for taxation purposes for forest land values during such ten (10) year period will be capped at thirty percent (30%) above the 2011 forest land values. The annual changes for taxation purposes shall be limited to not more than a five percent (5%) annual increase or decrease from the immediate prior year based upon the 2005 user’s guide valuation model, provided however, that no decrease shall be in an amount less than the established floor nor increase above the established ceiling.
(c) Actual annual valuation calculations shall also be tracked, though not necessarily utilized for taxation purposes. Actual annual valuation calculations may drop below the floor or rise above the ceiling. Forest land values derived by the model will be used as the forest land value for taxation purposes only when the derived value is between the floor and the ceiling. Furthermore, the actual annual valuation calculations shall not exceed a five percent (5%) adjustment from the previous year’s valuation calculation. When the model-derived values for a given year are below the floor, the forest land value for taxation purposes will be equal to the floor value for that year. When the model-derived values in a given year are above the ceiling, the forest land value for taxation purposes will be equal to the ceiling for that year.
(d) Except as provided in subsection (6) of this section, any change to the productivity classification of a forest land parcel prior to tax year 2021 shall adhere to the process set forth in this subsection and in section 63-1705A, Idaho Code, or else such change shall be void. However, the assessor’s appraisal shall be upheld upon appeal if the board of equalization determines that the landowner has purposely or unreasonably denied the assessor timely access to the land to complete fieldwork under the provisions of section 63-1705A, Idaho Code.
(e) The CFTM may recommend to the legislature a new process by which county assessors establish forest land productivity classification for land newly designated as forest land after tax year 2021.
(4) Beginning in tax year 2021 and each tax year thereafter, land assessed as forest land shall be valued by indexing each parcel’s value by the percentage change in the five (5) year rolling average stumpage values, with 2019 being the base year. The stumpage values shall be based upon the preceding five (5) year rolling average value of timber harvested within the forest value zone from state timber sales or, if unavailable, the best available data for the same five (5) year period. Any changes in value shall be limited to no more than a five percent (5%) annual increase or decrease from the immediate prior year. The state tax commission shall provide the stumpage value calculation required under this subsection by March 1 of each year.
(5) Pursuant to the provisions of section 63-602W, Idaho Code, the inventory of forest products shall not be included as part of the valuation of the forest land.
(6) Forest lands upon which, at any time after January 1, 1982, the trees are destroyed by fire, disease, insect infestation or other natural disaster such that the lands affected will not meet minimum stocking requirements under rules adopted pursuant to chapter 13, title 38, Idaho Code, shall be eligible for a reduction in value for the first ten (10) property tax years following the loss. The amount of reduction shall be determined by dividing the average age of the trees destroyed by the rotation age for the specific forest productivity class appropriate for the affected acres. In no instance shall the annual reduction exceed eighty percent (80%) of the original forest value per year. In order to obtain a reduction, the landowner shall, on or before January 1 following the destruction, make written application to the assessor indicating the legal description of the lands in question and stating all pertinent facts. The assessor may investigate the facts and may request assistance from the state tax commission in performing such investigations. If the requirements are met, such forest lands shall be assessed and taxed on the reduced basis herein provided.
(7) Buildings and other improvements, other than roads, located on forest lands shall be appraised, assessed and taxed as provided by applicable laws and rules.
(8) There is created within the Idaho state tax commission the CFTM. The membership of the CFTM shall be:
(a) A nonvoting chairman who shall be the member of the Idaho state tax commission assigned to property tax matters;
(b) Four (4) members who are representing business entities owning no fewer than five thousand (5,000) acres of Idaho forest land, provided that there shall be only one (1) representative for each individual business entity and provided further that affiliated business entities shall be considered a single business entity for the purposes of this section. The business entity employing such member shall designate a successor member at its discretion. If a vacancy occurs among the representatives of forest landowners owning no fewer than five thousand (5,000) acres, a replacement member will be selected by the remaining members qualifying under the provisions of this section;
(c) One (1) member selected from the membership of the Idaho forest owners’ association;
(d) Five (5) members selected from the membership of the Idaho association of counties; and
(e) The state superintendent of public instruction or his/her designee, in a nonvoting capacity.
(9) The CFTM may retain a forest economist selected by a majority of its members to advise the CFTM.
(10) The costs of each CFTM member shall be borne by the respective member. The fees and costs of the forest economist shall be borne as determined by the CFTM.
(11) The CFTM may prepare and deliver written reports to the house of representatives revenue and taxation committee and the senate local government and taxation committee of its findings and recommendations for legislation as the need may arise. The CFTM may meet periodically as determined by its chairman or the CFTM.
[63-1705, added 1982, ch. 123, sec. 5, p. 353; am. 1984, ch. 237, sec. 2, p. 568; am. 1996, ch. 322, sec. 61, p. 1090; am. 1998, ch. 198, sec. 1, p. 711; am. 2000, ch. 156, sec. 2, p. 397; am. 2005, ch. 24, sec. 2, p. 75; am. 2011, ch. 5, sec. 1, p. 11; am. 2012, ch. 9, sec. 1, p. 14; am. 2017, ch. 48, sec. 1, p. 76; am. 2018, ch. 83, sec. 1, p. 186; am. 2020, ch. 247, sec. 1, p. 721.]
(1) The state shall be divided into four (4) forest valuation zones:
(a) Zone 1 shall consist of Boundary, Bonner, and Kootenai counties;
(b) Zone 2 shall consist of Benewah, Shoshone, Latah, Clearwater, Nez Perce, Lewis, and Idaho counties;
(c) Zone 3 shall consist of Adams, Valley, Washington, Payette, Gem, Boise, Canyon, Ada, Elmore, Camas, Blaine, Gooding, Lincoln, Jerome, and Minidoka counties; and
(d) Zone 4 shall consist of the remaining nineteen (19) counties.
(2) In all forest valuation zones, there shall be three (3) separate productivity classes of forest land: poor, medium, and good. These classes apply to forest land that may or may not be stocked with commercial or young growth timber.
(a) Poor productivity class is defined as forest land having a mean annual increment (MAI) of one hundred twenty-five (125) board feet per acre per year, based on a seventy-three (73) year rotation. This productivity class includes western white pine site index 35-45 and ponderosa pine site index 45-80. One hundred twenty-five (125) board feet per acre MAI shall be used in the valuation process.
(b) Medium productivity class is defined as forest land having an MAI of two hundred twenty-five (225) board feet per acre per year, based on a sixty-eight (68) year rotation. This productivity class includes western white pine site index 46-60 and ponderosa pine site index 81-110. Two hundred twenty-five (225) board feet per acre MAI shall be used in the valuation process.
(c) Good productivity class is defined as forest land having an MAI of three hundred fifty (350) board feet per acre per year, based on a sixty-three (63) year rotation. This productivity class includes western white pine site index 61 and above and ponderosa pine site index 111 and above. Three hundred fifty (350) board feet per acre MAI shall be used in the valuation process.
(d) For forest valuation zones 1 and 2, forest land shall be stratified into areas of similar productive potential using the habitat typing methodology described in "forest habitat types of northern Idaho: a second approximation," published by the United States government printing office for the United States forest service in 1991. Within these stratified areas, site index trees shall be selected and measured that will identify the site index to be used to place the land in one (1) of the three (3) productivity classes set forth in paragraphs (a), (b), and (c) of this subsection.
(e) For forest valuation zones 3 and 4, the criteria for stratification shall be generally the same as that used in zones 1 and 2 based on the habitat typing methodology described in "forest habitat types of central Idaho," published by the United States government printing office for the United States forest service in 1981, with the following adjustments made in growth rates for lower moisture levels:
(i) For poor productivity class, one hundred twenty-five (125) board feet per acre MAI shall be used in the valuation process;
(ii) For medium productivity class, two hundred thirteen (213) board feet per acre MAI shall be used in the valuation process; and
(iii) For good productivity class, three hundred twenty (320) board feet per acre MAI shall be used in the valuation process.
(3) Lakes, solid rock bluffs, talus slopes, and continuously flooded swampy areas that are larger than five (5) contiguous acres in size and that can be identified through remote sensing shall be valued at forty percent (40%) of the poor bare land value as described in section 63-1706, Idaho Code. These areas are defined as being incapable of growing trees.
(4) Except as provided in subsection (5) of this section, no parcel’s productivity classification can be changed from the classification existing on January 1, 2016, until requirements for landowner notification, inspector qualifications, and document retention have been met.
(a) Notice of intent to change classification must be provided in writing to the landowner of record or the landowner’s designee within two (2) weeks of any determination by the county assessor of intent to change classification. Such notice must be provided no later than the first Monday in November for the change to be in effect during the following year. Notice may be delivered in person or by United States mail, or, if agreed to by the assessor and the landowner, by electronic mail. Notice of intent to change classification shall include:
(i) A statement of intent to change the classification;
(ii) A statement of the present classification and the intended new classification;
(iii) A statement that the intent notice is not an assessment notice and that the assessment notice will be sent by the first Monday in June in the following year;
(iv) A statement that both the taxable value stated on the assessment notice and the classification may be appealed to the county board of equalization as provided in section 63-501A, Idaho Code; and
(v) Contact information identifying assessor’s office staff who may be contacted and how to do so.
(b) The inspector is the person assigned by the county assessor to review property characteristics and complete a timberland classification form provided by the state tax commission. The inspector must be proficient in each of the following:
(i) Navigating forest locations;
(ii) Skilled mapping techniques;
(iii) Establishment of plot locations;
(iv) Plant and tree identification; and
(v) Site tree identification and measurements.
(c) Inspector proficiency must be established by a minimum of twelve (12) months of experience doing fieldwork, including reviewing the characteristics of timberland, and:
(i) Passing a state tax commission-sponsored class on timberland appraisal and inspection;
(ii) Passing equivalent courses from an accredited college or university; or
(iii) Obtaining a degree in forestry or a related field from an accredited institution.
(d) Documentation related to timberland productivity classification shall be retained for no less than ten (10) years following classification determination. Documentation shall include but is not limited to:
(i) Timberland characteristics, on a form provided by the state tax commission, with sufficient detail to verify the classification, including the calculation of productivity class as set forth in subsection (2) of this section;
(ii) The location of any field plots and any site trees using map or global positioning system (GPS) coordinates;
(iii) A map illustrating property boundaries, habitat type-based stratifications as provided in subsection (2) of this section, and plot locations used in the determination of productivity class; and
(iv) Any imagery used to assess the parcel prior to field review.
(5) Provided the county assessor and forest land owner agree and the data is deemed by the county assessor to be acceptable and accurate, the data used to establish any parcel’s productivity classification may be provided by the forest land owner. In this case, inspector qualifications and proficiency provisions of this section shall not apply.
(a) When productivity data is provided to the county assessor by the forest land owner, it shall be deemed confidential production record information and not subject to public disclosure, pursuant to section 74-107(2), Idaho Code.
(b) When the alternate method described in this section is to be used, the county shall not be required to have a certified inspector to review property characteristics.
(c) To be considered acceptable, the classification of the timberland so established must result in market value for assessment purposes as defined in section 63-1705(3), Idaho Code.
[63-1705A, added 2020, ch. 247, sec. 2, p. 724.]
(1) All forest lands designated by the owner to be subject to the provisions of section 63-1703(b), Idaho Code, shall be appraised, assessed and taxed according to the provisions of this section.
(2) Forest lands held in private ownership and designated by the owner to be subject to the provisions of this section for property taxation shall be valued by the county assessor as real property at rates which reflect only bare forest land value as determined under rules of the state tax commission.
(3) All timber severed from lands subject to the provisions of this section and delivered to a point of utilization as logs or semiprocessed forest products shall be subject to a forest products yield tax. This yield tax is in lieu of and replacement for, and not in addition to, property taxes on timber.
(4) The yield tax rate shall be three percent (3%) of stumpage value as determined by the state tax commission. In establishing stumpage values, the state tax commission shall:
(a) Divide the state into appropriate stumpage value zones, with each zone designated so as to recognize the uniqueness of timber marketing areas.
(b) By November 1, set stumpage values by zone for each species and/or product for use in the reporting and payment of yield taxes for timber severed during the following calendar year. Stumpage values shall be based on a five (5) year rolling average value of comparable timber harvested from state timber sales within the stumpage value zone and/or the best available data for the same five (5) year period.
(5) Report and payment of yield taxes become the direct liability and responsibility of the landowner at the time of severance. At the time of severance the yield taxes become a perpetual lien on the real and personal property of the landowner. Yield tax amounts shall be calculated by the county assessor on forms prescribed by the state tax commission. Yield tax amounts shall be supplied by the county assessor to the county tax collector on or before November 15 for timber that was severed from January 1 through June 30. The county tax collector shall, by the fourth Monday in November, notify the landowner of any such yield tax amount with payments due and payable on or before December 20. If the taxes due for said period are not paid on or before December 20, the payment becomes delinquent and subject to late charges and interest in the amount provided in sections 63-201 and 63-1001 or 63-904, Idaho Code, calculated from the following January 1. Yield tax amounts shall be supplied by the county assessor to the county tax collector on or before May 15 for timber severed from July 1 through December 31 in the year following severance. The county tax collector shall, by the fourth Monday in May, notify the landowner of any such yield tax amount with payments due on or before June 20 in the year following severance. If the yield taxes due for said period are not paid on or before June 20, the payment becomes delinquent and subject to late charges and interest in the amount provided in sections 63-201 and 63-1001 or 63-904, Idaho Code, calculated from the following July 1. Delinquent yield taxes shall remain a lien against the land from which the timber was harvested and against any other real and personal property of the landowner who owned the land at the time of severance. To collect delinquent yield taxes, the treasurer may use either the personal or real property collection procedures provided in title 63, Idaho Code.
(6) All yield tax revenues and any late charges or interest thereon shall be apportioned among the several county funds and taxing districts as provided for the apportionment of property taxes.
(7) The party utilizing logs or semiprocessed forest products as raw materials shall be required to report the quantity, species and source of all such materials to the Idaho department of lands. Such report shall be structured to comply with and act as a simultaneous report of data already required under the provisions of section 38-122, Idaho Code. The report format shall include the identification of the forest landowner at the source, legal description of the source, timber or product owner at time of severance, harvester and volume of forest products severed. The Idaho department of lands shall deliver to the various county assessors without fee, copies of these reports as they are available. In the event the point of utilization lies out of the state or a report is not required under the provisions of section 38-122, Idaho Code, the timber owner at time of severance shall be responsible for the reporting of the above-stated data to the department of lands.
(8) If reports required by this section are found to be intentionally false or when appropriate reports are not made, the assessor shall value the forest crop harvested, based on the best available estimates.
(9) Not reporting timber or forest products delivery or receipt as required by this section shall be deemed a misdemeanor.
(10) Buildings and other improvements, other than roads, located on forest lands shall be appraised, assessed and taxed as provided by applicable law and rules.
[63-1706, added 1982, ch. 123, sec. 5, p. 354; am. 1987, ch. 205, sec. 1, p. 432; am. 1994, ch. 370, sec. 3, p. 1192; am. 1996, ch. 98, sec. 17, p. 398; am. 1996, ch. 132, sec. 1, p. 455; am. 1997, ch. 117, sec. 38, p. 334; am. 2014, ch. 77, sec. 3, p. 204.]
In order to properly administer the provisions of this chapter, the state tax commission shall have the right at reasonable times to examine the books, accounts and records of the landowner, timber owner or forest products owner at the time of severance or harvest, or party utilizing the logs or other forest products at the time of severance or harvest as necessary to verify the reports required under the provisions of this chapter and shall have the right to examine the source land.
[63-1707, added 1982, ch. 123, sec. 5, p. 355.]
The following property is exempt from the yield tax imposed by section 63-1706, Idaho Code: Christmas trees, annual forest crops to include nuts, berries, foliage, cones and other forest products harvested for domestic use of the landowner; provided, that the taxes exempted from any one (1) ownership shall not exceed twenty-five dollars ($25.00) in any one (1) year.
[63-1708, added 1982, ch. 123, sec. 5, p. 356.]
This act may be cited as the "Short-term Rental and Vacation Rental Act."
[63-1801, added 2017, ch. 239, sec. 1, p. 591.]
This act is designed to promote access to short-term rentals and vacation rentals by limiting local governmental authority to prohibit these beneficial property uses, or to specifically target them for regulation, except in circumstances necessary to safeguard public health and welfare. This act is also designed to preserve personal property rights and promote property owner access to platforms for offering their properties as short-term rentals and vacation rentals, and enhancing local tax revenue by permitting platforms to assume tax collection and remittance responsibilities.
[63-1802, added 2017, ch. 239, sec. 1, p. 591.]
In this chapter:
(1) "Local government" means any governmental entity or agency, including counties, municipalities, and taxing districts, but not the state of Idaho and the agencies and departments of the state.
(2) "Lodging operator" means a person that rents a short-term rental or vacation rental to an occupant using a short-term rental marketplace.
(3) "Lodging transaction" means a charge to an occupant by a lodging operator for the occupancy of any short-term rental or vacation rental using a short-term rental marketplace.
(4) "Short-term rental" or "vacation rental" means any individually or collectively owned single-family house or dwelling unit or any unit or group of units in a condominium, cooperative or timeshare, or owner-occupied residential home that is offered for a fee and for thirty (30) days or less. Short-term rental or vacation rental does not include a unit that is used for any retail, restaurant, banquet space, event center or another similar use.
(5) "Short-term rental marketplace" means a person that provides a platform through which a lodging operator, or the authorized agent of the lodging operator, offers a short-term rental or vacation rental to an occupant.
[63-1803, added 2017, ch. 239, sec. 1, p. 591.]
(1) A local government may not levy a sales, use, franchise, receipts, or other similar tax or fee on the business of operating a short-term rental marketplace.
(2) A short-term rental marketplace shall register with the state tax commission for collection, reporting, and payment of sales and use and travel and convention taxes levied by this state and any applicable local government taxes administered by the state tax commission on short-term rentals and vacation rentals due from a lodging operator on any lodging transaction facilitated by the short-term rental marketplace.
(3) A short-term rental marketplace shall collect, report, and pay taxes imposed on the lodging operator or occupant of a short-term rental or vacation rental by any local government.
(4) Any local government that has levied a tax pursuant to statutory authorization, may contract with the state tax commission for the collection and administration of such taxes in like manner and under definitions and rules of the state tax commission for the collection and administration of the state sales or use tax under chapter 36, title 63, Idaho Code. Alternatively, such local government shall have authority to administer and collect such tax. All revenues collected on behalf of the local governments by the state tax commission pursuant to this chapter shall be distributed as follows: An amount of money shall be distributed to the state refund fund sufficient to pay current refund claims. All refunds authorized by the commission to be paid shall be paid through the state refund fund and those moneys are continuously appropriated. The state tax commission may retain an amount of money equal to such fee as may be agreed upon between the state tax commission and such local government for the actual cost of the collection and administration of the tax. The amount retained by the commission shall not exceed the amount authorized to be expended by appropriation by the legislature. Any unencumbered balance in excess of the actual cost at the end of each fiscal year shall be distributed as provided in this section. All remaining moneys received pursuant to this chapter shall be placed in a fund designated by the state controller and remitted monthly to the local government levying such tax.
(5) If an owner of a short-term rental offers a short-term rental or vacation rental directly to an occupant without the use of a short-term rental marketplace, such owner shall comply with all the requirements provided in this section applicable to a short-term rental marketplace.
(6) A short-term rental marketplace that has not facilitated a lodging transaction in Idaho shall have forty-five (45) days to comply with this section upon completion of their first lodging transaction in Idaho.
[63-1804, added 2017, ch. 239, sec. 1, p. 591; am. 2026, ch. 22, sec. 2, p. 111.]
(1) The county treasurer shall issue consecutively numbered licenses for each class provided for in this chapter. The licenses shall have essentially the following information:
(a) County issuing the license;
(b) Type of license and amount paid;
(c) Person or business to whom issued;
(d) Date of issuance and expiration date;
(e) Treasurer’s signature.
(2) The treasurer shall keep in his office an accounting for all licenses sold by him.
[63-2301, added 1995, ch. 206, sec. 2, p. 701.]
A license must be procured immediately before the commencement of any business or occupation liable to a license tax from the treasurer of the county where the applicant desires to transact the business which license authorizes the party obtaining it in his particular locality in the county to transact the business described in the license. Separate licenses must be obtained for each branch, establishment or separate house of business located in the same county.
No license issued under this chapter shall be required of any person to carry on any business within the limits of any incorporated city having power by its charter to impose or levy city license taxes, if such person procures the license required by the ordinances or orders of such city.
[63-2302, added 1995, ch. 206, sec. 2, p. 701; am. 1997, ch. 146, sec. 1, p. 422.]
Each pawnbroker whose business is located in the county and outside the limits of an incorporated city must obtain a pawnbroker’s license from the treasurer and must pay therefor fifty dollars ($50.00) per calendar quarter.
[63-2303, added 1995, ch. 206, sec. 2, p. 702; am. 1997, ch. 146, sec. 2, p. 422.]
Licenses to take tolls on bridges or ferries are fixed annually by the commissioners. The licenses therein provided for must be obtained from the treasurer of the county.
[63-2305, added 1995, ch. 206, sec. 2, p. 702.]
On the first Monday in each month the treasurer shall pay into the county treasury all money collected from all licenses sold during the preceding month upon the certificate of the county auditor, and shall file a statement or report each month with the county auditor showing the amount of licenses collected in each school district to be apportioned in the following manner:
(1) If by applicants within an incorporated city or city acting under special charter:
(a) Thirty percent (30%) to the school district in which the licenses are collected for general revenue purposes;
(b) Forty percent (40%) for general revenue purposes of the city; and
(c) Thirty percent (30%) to the county current expense fund.
(2) If by applicants without an incorporated city:
(a) Fifty percent (50%) to the school district in which the licenses are collected; and
(b) Fifty percent (50%) to the county current expense fund.
[63-2306, added 1995, ch. 206, sec. 2, p. 702.]
Against any person required to take out a license who fails, neglects or refuses to take out such license, or who carries on, or attempts to carry on, business without such license, the treasurer may direct suit in the name of the state of Idaho as plaintiff, to be brought for the recovery of the license tax, and in such case either the treasurer or prosecuting attorney may make the necessary affidavit for a writ of attachment, which may issue without bond being given on behalf of the plaintiff. In case of a judgment for the plaintiff, five hundred dollars ($500) therefor and costs must be paid by the defendant into the county current expense fund.
[63-2307, added 1995, ch. 206, sec. 2, p. 702.]
Upon the trial of any action authorized by this chapter, the defendant is deemed not to have procured the proper license unless he either produces it or proves that he did procure it; but he may plead in bar of the action a recovery against him and the payment by him in a civil action of the proper license tax, together with the damages and costs.
[63-2308, added 1995, ch. 206, sec. 2, p. 703.]
Anyone failing to comply with any of the provisions of this chapter shall be guilty of a misdemeanor and upon conviction thereof shall be subject to a fine not exceeding three hundred dollars ($300) or imprisonment in the county jail for not to exceed six (6) months or by both such fine and imprisonment.
[63-2309, added 1995, ch. 206, sec. 2, p. 703.]
In this chapter:
(1) "Aircraft engine fuel" means:
(a) Aviation gasoline, defined as any mixture of volatile hydrocarbons used in aircraft reciprocating engines; and
(b) Jet fuel, defined as any mixture of volatile hydrocarbons used in aircraft turbojet and turboprop engines.
(2) "Biodiesel" means any fuel that is derived in whole or in part from agricultural products or animal fats or the wastes of such products and is suitable for use as fuel in diesel engines.
(3) "Biodiesel blend" means any fuel produced by blending biodiesel with petroleum-based diesel to produce a fuel suitable for use in diesel engines.
(4) "Bond" means:
(a) A surety bond, in an amount required by this chapter, duly executed by a surety company licensed and authorized to do business in this state conditioned upon faithful performance of all requirements of this chapter, including the payment of all taxes, penalties and other obligations arising out of the provisions of this chapter; or
(b) A deposit with the commission by any person required to be licensed pursuant to this chapter under terms and conditions as the commission may prescribe, of a like amount of lawful money of the United States or bonds or other obligations of the United States, the state of Idaho, or any county of the state; or
(c) An irrevocable letter of credit issued to the commission by a bank doing business in this state payable to the state upon failure of the person on whose behalf it is issued to remit any payment due under the provisions of this chapter.
(5) "Commercial motor boat" means any boat, equipped with a motor, which is wholly or partly used in a profit-making enterprise or in an enterprise conducted with the intent of making a profit.
(6) "Commission" means the state tax commission of the state of Idaho.
(7) "Distributor" means any person who receives motor fuel in this state and includes a special fuels dealer. Any person who sells or receives gaseous special fuels will not be considered a distributor unless:
(a) The gaseous special fuel is delivered into the fuel supply tank or tanks of a motor vehicle not then owned or controlled by him; or
(b) The gaseous special fuel is placed in certain gaseous special fuels bulk tanks upon which the seller may charge tax as the result of an agreement with the customer.
(8) "Dyed fuel" means diesel fuel that is dyed pursuant to requirements of the internal revenue service, or the environmental protection agency.
(9) "Exported" means delivered by truck or rail across the boundaries of this state by or for the seller or purchaser from a place of origin in this state.
(10) "Gasohol" means gasoline blended with ten percent (10%) or more of anhydrous ethanol.
(11) "Gasoline" means any mixture of volatile hydrocarbons suitable as a fuel for the propulsion of motor vehicles or motor boats. "Gasoline" also means aircraft engine fuels when used for the operation or propulsion of motor vehicles or motor boats and includes gasohol, but does not include special fuels.
(12) "Highways" means every place of whatever nature open to the use of the public as a matter of right for the purpose of vehicular travel which is maintained by the state of Idaho or an agency or taxing subdivision or unit thereof or the federal government or an agency or instrumentality thereof. Provided, however, if the cost of maintaining a roadway is primarily borne by a special fuels user who operates motor vehicles on that roadway pursuant to a written contract during any period of time that a special fuels tax liability accrues to the user, such a roadway shall not be considered a "highway" for any purpose related to calculating that user’s special fuels’ tax liability or refund.
(13) "Idling" means the period of time greater than twenty-five hundredths (.25) of an hour when a motor vehicle is stationary with the engine operating at less than one thousand two hundred (1,200) revolutions per minute (RPM), without the power take-off (PTO) unit engaged, with the transmission in the neutral or park position, and with the parking brake set.
(14) "Imported" means delivered by truck or rail across the boundaries of this state by or for the seller or purchaser from a place of origin outside this state.
(15) "International fuel tax agreement" and "IFTA" mean the international fuel tax agreement required by the intermodal surface transportation efficiency act of 1991, Public Law 102-240, 105 Stat. 1914, and referred to in 49 U.S.C. 31701, including subsequent amendments to that agreement.
(16) "Jurisdiction" means a state of the United States, the District of Columbia, a province or territory of Canada, or a state, territory or agency of Mexico in the event that the state, territory or agency participates in the international fuel tax agreement.
(17) "Licensed motor fuel distributor" means any distributor who has obtained a license under the provisions of section 63-2427A, Idaho Code.
(18) "Motor fuel" means gasoline, ethanol, ethanol blended fuel, gasoline blend stocks, natural gasoline, special fuels, aircraft engine fuels or any other fuels suitable for the operation or propulsion of motor vehicles, motor boats or aircraft.
(19) "Motor vehicle" means every self-propelled vehicle designed for operation, or required to be licensed for operation, upon a highway.
(20) "Person" means any individual, firm, fiduciary, copartnership, association, limited liability company, corporation, governmental instrumentality including the state and all of its agencies and political subdivisions, or any other group or combination acting as a unit, and the plural as well as the singular number, unless the intent to give a more limited meaning is disclosed by the context. Whenever used in any clause prescribing and imposing a fine or imprisonment, or both, the term "person" as applied to an association means the partners or members, and as applied to corporations, the officers.
(21) "Recreational vehicle" means a snowmobile as defined in section 67-7101, Idaho Code; a motor driven cycle or motorcycle as defined in section 49-114, Idaho Code; any recreational vehicle as defined in section 49-119, Idaho Code; and an all-terrain vehicle as defined in section 67-7101, Idaho Code.
(22) "Retail dealer" means any person engaged in the retail sale of motor fuels to the public or for use in the state.
(23) "Special fuels" means:
(a) All fuel suitable as fuel for diesel engines;
(b) A compressed or liquefied gas obtained as a by-product in petroleum refining or natural gasoline manufacture, such as butane, isobutane, propane, propylene, butylenes, and their mixtures; and
(c) Natural gas, either liquid or gas, and hydrogen, used for the generation of power for the operation or propulsion of motor vehicles.
(24) "Special fuels dealer" means "distributor" under subsection (7) of this section.
(25) "Special fuels user" means any person who uses or consumes special fuels for the operation or propulsion of motor vehicles owned or controlled by him upon the highways of this state.
(26) "Use" means either:
(a) The receipt, delivery or placing of fuels by a licensed distributor or a special fuels dealer into the fuel supply tank or tanks of any motor vehicle not owned or controlled by him while the vehicle is within this state; or
(b) The consumption of fuels in the operation or propulsion of a motor vehicle on the highways of this state.
[63-2401, added 1983, ch. 158, sec. 4, p. 441; am. 1984, ch. 87, sec. 1, p. 170; am. 1985, ch. 40, sec. 1, p. 81; am. 1985, ch. 242, sec. 1, p. 571; am. 1986, ch. 315, sec. 1, p. 777; am. 1987, ch. 82, sec. 1, p. 155; am. 1988, ch. 265, sec. 578, p. 872; am. 1991, ch. 306, sec. 1, p. 802; am. 1991, ch. 307, sec. 1, p. 805; am. 1992, ch. 106, sec. 1, p. 328; am. 1994, ch. 344, sec. 1, p. 1080; am. 1995, ch. 132, sec. 1, p. 566; am. 1995, ch. 348, sec. 1, p. 1143; am. 1996, ch. 223, sec. 1, p. 731; am. 1997, ch. 86, sec. 1, p. 205; am. 2001, ch. 104, sec. 1, p. 343; am. 2002, ch. 30, sec. 1, p. 37; am. 2002, ch. 174, sec. 3, p. 510; am. 2002, ch. 345, sec. 35, p. 978; am. 2004, ch. 235, sec. 1, p. 694; am. 2004, ch. 265, sec. 1, p. 745; am. 2005, ch. 293, sec. 1, p. 931; am. 2007, ch. 37, sec. 1, p. 88; am. 2010, ch. 14, sec. 1, p. 14; am. 2015, ch. 38, sec. 1, p. 79; am. 2018, ch. 80, sec. 1, p. 179.]
(1) A tax is hereby imposed upon the distributor who receives motor fuel in this state. The legal incidence of the tax imposed under this section is borne by the distributor. The tax becomes due and payable upon receipt of the motor fuel in this state by the distributor unless such tax liability has previously accrued to another distributor pursuant to this section. The tax shall be imposed without regard to whether use is on a governmental basis or otherwise, unless exempted by this chapter.
(2) The tax imposed in this section shall be at the rate of thirty-two cents (32¢) per gallon of motor fuel received. This tax shall be subject to the exemptions, deductions and refunds set forth in this chapter.
(3) Nothing in this chapter shall prohibit the distributor who is liable for payment of the tax imposed under subsection (1) of this section from including as part of the selling price an amount equal to such tax on motor fuels sold or delivered by such distributor; provided however, that nothing in this chapter shall be deemed to impose tax liability on any person to whom such fuel is sold or delivered except as provided in subsection (6) of this section.
(4) Any person coming into this state in a motor vehicle may transport in the manufacturer’s original tank of that vehicle, for his own use only, not more than thirty (30) gallons of motor fuel for the purpose of operating that motor vehicle, without complying with the provisions of this chapter.
(5) The tax imposed in this section does not apply to:
(a) Special fuels that have been dyed at a refinery or terminal under the provisions of 26 U.S.C. section 4082 and regulations adopted thereunder, or under the clean air act and regulations adopted thereunder; or
(b) Special fuels that are gaseous special fuels, as defined in section 63-2424, Idaho Code, except that part thereof that is delivered into the fuel supply tank or tanks of a motor vehicle or certain gaseous special fuels bulk tanks. Upon agreement with the customer, the licensed distributor may charge tax when placing gaseous special fuels into the customer’s bulk tanks; or
(c) Aircraft engine fuel subject to tax under section 63-2408, Idaho Code.
(6) Should the distributor of first receipt be exempt from imposition of the tax as a matter of federal law, by virtue of its status as a federally recognized Indian tribe or member of such tribe, such distributor shall not bear the tax’s legal incidence and must pass the tax through as part of the selling price of the fuel. Such distributor shall retain the administrative obligation to remit the tax, and such obligation shall accrue upon receipt in accordance with subsection (1) of this section. Should a retailer otherwise subject to the tax be exempt from imposition of the tax as a matter of federal law, by virtue of its status as a federally recognized Indian tribe or member of such tribe, the retailer shall not bear the tax’s legal incidence and must pass the tax through as part of the selling price of the fuel to the consumer, unless such consumer is exempt from imposition of the tax as a matter of federal law, by virtue of its status as a federally recognized Indian tribe or membership in such tribe, and the retailer shall be entitled to claim a credit against taxes otherwise due and owing under this chapter or a tax refund, together with interest, attributable to the fuel purchased by such consumer.
[63-2402, added 1983, ch. 158, sec. 4, p. 443; am. 2002, ch. 174, sec. 2, p. 509; am. 2007, ch. 288, sec. 1, p. 817; am. 2015, ch. 38, sec. 2, p. 81; am. 2015, ch. 175, sec. 1, p. 573; am. 2015, ch. 341, sec. 4, p. 1282; am. 2018, ch. 80, sec. 2, p. 181.]
Motor fuel is received as follows:
(1) (a) Motor fuel produced, refined, manufactured, blended or compounded by any person or stored at a pipeline terminal in this state by any person is received by that person when it is loaded into tank cars, tank trucks, tank wagons or other types of transportation equipment or when it is placed into any tank or other container from which sales or deliveries not involving transportation are made.
(b) Motor fuel is received by a person other than the person designated in subsection (1)(a) of this section in the following circumstances:
(i) Motor fuel delivered from a pipeline terminal in this state to a licensed distributor is received by the licensed distributor to whom it is first delivered.
(ii) Motor fuel delivered to a person who is not a licensed distributor for the account of a person that is so licensed, is received by the licensed distributor for whose account it is shipped.
(2) Notwithstanding the provisions of subsection (1) above, motor fuel shipped or delivered from a refinery or pipeline terminal to another refinery or pipeline terminal, is not received by reason of that shipment or delivery.
(3) Any product other than motor fuel that is blended to produce motor fuel other than at a refinery or pipeline terminal in this state is received by the person who is the owner of the blended fuel after the blending is completed.
(4) (a) Motor fuel imported into this state, other than fuel placed in storage at a refinery or pipeline terminal in this state, is received at the time the fuel arrives in this state by the person who is, at the time of arrival, the owner of the fuel.
(b) Motor fuel imported into this state by a licensed distributor and delivered directly to a person not a licensed distributor is received by the licensed distributor importing that fuel into this state at the time the fuel arrives in this state.
(c) Fuel arrives in this state at the time it crosses the border of this state.
[63-2403, added 1983, ch. 158, sec. 4, p. 443; am. 1997, ch. 85, sec. 1, p. 204; am. 2002, ch. 174, sec. 4, p. 512.]
Motor fuels and other petroleum products received by distributors shall be reported under rules prescribed by the state tax commission, and be based upon consistent methods, generally recognized and accepted for motor fuels tax accounting purposes, in respect to gallonage, stock transfers and stock accounting records.
[63-2404, added 1983, ch. 158, sec. 4, p. 444; am. 2011, ch. 6, sec. 2, p. 16.]
The excise tax imposed by section 63-2402, Idaho Code, is to be paid by the distributor, and measured by the total number of gallons of motor fuel received by him, at the rate specified in section 63-2402, Idaho Code. That tax, together with any penalty and/or interest due, shall be remitted with the monthly distributor’s report required in section 63-2406, Idaho Code.
[63-2405, added 1983, ch. 158, sec. 4, p. 444; am. 1983, ch. 242, sec. 2, p. 652; am. 1983 (Ex. Sess.), ch. 1, sec. 5, p. 3; am. 1984, ch. 87, sec. 2, p. 172; am. 1984, ch. 195, sec. 34, p. 475; am. 1986, ch. 344, sec. 2, p. 852; am. 1988, ch. 198, sec. 1, p. 376; am. 1991, ch. 120, sec. 1, p. 259; am. 1994, ch. 166, sec. 1, p. 374; am. 1996, ch. 343, sec. 4, p. 1153; am. 1998, ch. 103, sec. 2, p. 355; am. 2002, ch. 30, sec. 2, p. 39; am. 2002, ch. 174, sec. 5, p. 513.]
(1) Each distributor shall, not later than the last day of each calendar month or for such other reporting period as the commission may authorize, render to the commission an accurate report of all motor fuel received by him in this state during the preceding reporting period. The report shall be made in the manner and on forms required by the commission.
(2) The distributor’s report shall include:
(a) An itemized statement of the total number of gallons of motor fuel received during the preceding calendar month; and
(b) Other information as the commission may require for the proper administration of this chapter.
(3) The report shall be accompanied by a remittance of the tax shown to be due on the report together with any applicable interest and penalty, unless the amounts due are paid by electronic funds transfer in the manner provided by section 67-2026, Idaho Code.
(4) Any distributor required to pay the tax imposed by this chapter who fails to pay such tax shall be liable to the commission for the amount of tax not remitted plus any applicable penalty or interest. The commission may collect such amounts in the manner provided in section 63-2434, Idaho Code.
(5) The commission may prescribe rules providing standards consistent with section 63-115, Idaho Code, for determining which returns must be transmitted electronically. The commission may not require any person to transmit returns electronically unless such person is required to report on the return at least twenty-five (25) transactions involving the receipt or disbursement of motor fuel during the period to which the return relates. In promulgating such rules, the commission shall take into account, among other relevant factors, the ability of the taxpayer to comply, at a reasonable cost, with the requirements of such rules.
[63-2406, added 1983, ch. 158, sec. 4, p. 444; am. 1998, ch. 103, sec. 3, p. 356; am. 2000, ch. 155, sec. 1, p. 393; am. 2009, ch. 3, sec. 1, p. 5.]
Each licensed distributor shall deduct from his monthly report:
(1) Motor fuel exported from this state other than in the supply tanks of motor vehicles, motor boats or aircraft when supported by a shipping document, an invoice signed by the purchaser, or other proper documents approved by the commission but only if:
(a) The purchaser is not a licensed distributor and the seller can establish that any tax due in the jurisdiction to which the motor fuel is destined is paid; or
(b) The purchaser is a licensed distributor in the jurisdiction to which the motor fuel is destined.
(2) Motor fuel returned to a licensed distributor’s refinery or pipeline terminal storage when supported by proper documents approved by the commission.
(3) Motor fuel lost or destroyed by fire, lightning, flood, tornado, windstorm, explosion, or other accidental casualty, after presenting to the commission satisfactory proof of loss.
(4) The number of gallons which would be equal to two percent (2%) of the total number of gallons received during the reporting period, less the total number of gallons deducted under subsections (1) through (3) of this section, which credit is granted to the licensed distributor to reimburse him for loss from evaporation, handling, spillage and shrinkage, except losses caused by casualty as provided in subsection (3) of this section.
(5) Motor fuel sold to the Idaho national guard for use in aircraft and in vehicles used off public highways provided, however, such deduction is supported by an exemption certificate signed by an authorized officer of the Idaho national guard.
[63-2407, added 1983, ch. 158, sec. 4, p. 445; am. 1987, ch. 209, sec. 1, p. 442; am. 1989, ch. 406, sec. 1, p. 994; am. 1995, ch. 132, sec. 2, p. 568; am. 1995, ch. 303, sec. 1, p. 1051; am. 1996, ch. 223, sec. 2, p. 733; am. 1998, ch. 103, sec. 4, p. 356; am. 2002, ch. 30, sec. 3, p. 39; am. 2007, ch. 37, sec. 2, p. 90; am. 2007, ch. 288, sec. 2, p. 818; am. 2009, ch. 332, sec. 1, p. 962.]
(1) An excise tax is hereby imposed on all aircraft engine fuel received in this state. The tax is to be paid by the distributor, and measured by the total number of gallons received by him, at the rate of seven cents (7¢) per gallon of aviation gasoline, and six cents (6¢) per gallon of jet fuel. The tax, together with any penalty and/or interest due, shall be remitted with the monthly distributor’s report required in section 63-2406, Idaho Code.
(2) For gasoline, other than aircraft engine fuel, used in aircraft engines, the refund of gasoline tax provided in section 63-2410, Idaho Code, shall be the amount of gasoline tax paid less the aviation gasoline fuel tax required in this section.
(3) A tax is hereby imposed on fuel which is placed into the fuel supply tank of aircraft in this state on which tax is not collected under subsection (1) of this section, the tax shall be payable at the rate established in subsection (1) of this section, to the commission by the user or consumer of the fuels and shall be a debt owing to the state until it is paid. The tax shall be imposed without regard to whether the fuel is used in the performance of a government contract.
[63-2408, added 1983, ch. 158, sec. 4, p. 446; am. 1991, ch. 306, sec. 2, p. 805; am. 1995, ch. 132, sec. 3, p. 569; am. 2008, ch. 31, sec. 1, p. 63.]
(1) Any person who purchases fifty (50) gallons or more, and uses the gasoline in motor vehicles operated on highways outside of the state of Idaho where a duplicate tax is assessed for the same gasoline, will be entitled to a refund when a claim is presented to the commission in the manner required in subsection (5)(c) of this section. A claimant shall present to the commission a statement accompanied by a verification of the use determined by an audit of his operations conducted as prescribed by the state tax commission; or his claim may be verified by the filing of a receipt or proof showing the payment of tax on the gasoline used in any other state.
(2) Any person who purchases within any one (1) year fifty (50) gallons or more of gasoline used for the purposes described in this subsection shall be entitled to be refunded the amount of gasoline tax previously paid on that gasoline. Exempt uses are:
(a) Operating stationary gasoline engines;
(b) Propelling equipment or vehicles that are not licensed or required to be licensed for operation on a highway;
(c) Operating commercial motor boats; and
(d) Propelling an all-terrain vehicle that is not required to be registered pursuant to chapter 4, title 49, Idaho Code, or chapter 71, title 67, Idaho Code.
(3) No refund of gasoline tax shall be allowed for any gasoline that is:
(a) Used in motor vehicles required to be licensed or used in any motor vehicle exempt from registration by reason of the ownership or residence;
(b) Aircraft engine fuel placed in aircraft, provided however, if tax has been paid at the rate provided in section 63-2405, Idaho Code, on any motor fuel placed in the fuel supply tank of an aircraft, the user of the fuel may apply for a refund of the difference between the tax paid on the fuel and the tax imposed in section 63-2408, Idaho Code;
(c) Used in recreational vehicles except all-terrain vehicles exempted as provided in subsection (2)(d) of this section; or
(d) Used in noncommercial motor boats or in boats operated by a governmental entity.
(4) Any licensed distributor paying the gasoline tax and/or aircraft engine fuel tax to the state of Idaho erroneously shall be allowed a credit or refund of the amount of tax paid by him if a written claim for credit or refund is filed with the commission within three (3) years after the date those taxes were paid. Such credit or refund shall include interest at the rate established in section 63-3045, Idaho Code, computed from the date taxes to be refunded or credited were paid to the commission.
(5) (a) All claims for refund of gasoline taxes arising under subsection (1), (2) or (3)(b) of this section may be filed separately or in conjunction with the claimant’s income tax return due pursuant to chapter 30, title 63, Idaho Code. When filed in conjunction with the income tax return, the refund will be a refundable credit to income tax. The gasoline tax refund claimed must be for tax paid on gasoline actually purchased during the taxable year to which the income tax return relates. The gasoline tax refund due will be offset against any other taxes, penalties or interest due before any balance is refunded by the commission to the claimant. Subject to a limitation as to the amount of refund to be claimed as the commission may provide by rule, refund claims may be submitted and paid for any period not greater than one (1) year or less than one (1) month.
(b) If a claimant is not required to file an income tax return, the claimant will file claims using a filing cycle on forms and in the manner as the commission may provide. The refund claim must be for taxes paid on gasoline actually purchased in the year preceding the filing and the refund claim will be due according to income tax payment requirements in section 63-3085, Idaho Code. Refund claims may be submitted and paid for any period not greater than one (1) year or less than one (1) month.
(c) Claims for refunds under subsection (1) or (2) of this section shall be filed in the manner prescribed in section 63-3072, Idaho Code. Such credit or refund shall include interest at the rate established in section 63-3045, Idaho Code, computed from sixty (60) days following the later of the due date of the claimed refund under paragraph (a) or (b) of this subsection or the filing of the claim. No refund will be paid under this section unless a written claim for such refund has been filed with the commission within three (3) years after the due date, including extensions, of the income tax return in regard to which the claim relates or the due date of the claim established in paragraph (b) of this subsection.
(d) The commission may require that all claims be accompanied by the original signed invoice or invoices issued to the claimant, showing the total amount of gasoline on which a refund is claimed and the reason, the amount of the tax and any additional information required by the commission. Each separate delivery shall constitute a purchase and a separate invoice shall be prepared, at least in duplicate, to cover the delivery. All invoices, except those prepared by a computer or similar machine, shall be prepared in ink, or double-spaced carbon shall be used between the original and first duplicate.
(6) (a) Should the commission find that the claim contains errors, it may correct the claim and approve it as corrected, or the commission may require the claimant to file an amended claim. The commission may require any person who makes a claim for refund to furnish a statement under oath, giving his occupation, description of the machine or equipment in which the gasoline was used, the place where used and any other information as the commission may require. If the commission determines that any claim has been fraudulently presented, or is supported by an invoice or invoices fraudulently made or altered, or that any statement in the claim or affidavit is willfully false and made for the purpose of misleading, the commission may reject the claim in full. If the claim is rejected, the commission may suspend the claimant’s right to any refund for purchases made during a period not to exceed one (1) year beginning with the date the rejected claim was filed, and it shall take all other action deemed appropriate.
(b) The commission has authority, in order to establish the validity of any claim, to examine the books and records of the claimant for that purpose, and failure of the claimant to accede to the demand for the examination may constitute a waiver of all rights to the refund claimed.
(7) In the event of the loss or destruction of the original invoice or invoices, the person claiming a refund may submit a duplicate copy of the invoice certified by the vendor, but payment based on the duplicate invoice shall not be made until one (1) year after the date on which the gasoline was purchased.
[63-2410, added 1983, ch. 158, sec. 4, p. 446; am. 1986, ch. 175, sec. 1, p. 465; am. 1993, ch. 47, sec. 4, p. 123; am. 1995, ch. 132, sec. 5, p. 570; am. 1995, ch. 348, sec. 2, p. 1145; am. 1998, ch. 196, sec. 1, p. 707; am. 2001, ch. 104, sec. 2, p. 345; am. 2002, ch. 30, sec. 4, p. 41; am. 2004, ch. 235, sec. 2, p. 696; am. 2015, ch. 35, sec. 1, p. 73; am. 2018, ch. 81, sec. 1, p. 183.]
(1) The revenues received from the taxes imposed by sections 63-2402 and 63-2421, Idaho Code, upon the receipt or use of gasoline, and any penalties, interest, or deficiency additions, shall be distributed periodically as follows:
(a) An amount of money equal to the actual cost of collecting, administering and enforcing the gasoline tax requirements by the commission, as determined by it, shall be retained by the commission. The amount retained by the commission shall not exceed the amount authorized to be expended by appropriation by the legislature. Any unencumbered balance in excess of the actual cost of collecting, administering and enforcing the gasoline tax requirements by the commission at the end of each fiscal year shall be distributed as listed in paragraph (f) of this subsection.
(b) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the commission to be paid shall be paid from the state refund account, and those moneys are hereby continuously appropriated for that purpose.
(c) As soon as possible after the beginning of each fiscal year, the sum of two hundred fifty thousand dollars ($250,000) shall be distributed to the railroad grade crossing protection fund, to pay the amounts from the fund pursuant to the provisions of section 62-304C, Idaho Code.
(d) As soon as possible after the beginning of each fiscal year, the sum of three hundred thousand dollars ($300,000) shall be distributed to the local bridge inspection fund, to pay the amounts from the account pursuant to the provisions of section 40-703, Idaho Code.
(e) An amount of money equal to seven percent (7%) shall be distributed to the state highway account established in section 40-702, Idaho Code.
(f) From the balance remaining with the commission after distributing the amounts in paragraphs (a) through (e) of this subsection:
One and twenty-eight hundredths percent (1.28%) shall be distributed as follows: sixty-six percent (66%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the waterways improvement fund, as created in chapter 15, title 57, Idaho Code. Up to twenty percent (20%) of the moneys distributed to the waterways improvement fund under the provisions of this paragraph may be used by the department of parks and recreation to defray administrative costs. Any moneys unused at the end of the fiscal year by the department of parks and recreation shall be returned to the state treasurer for deposit in the waterways improvement fund. Thirty-three percent (33%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed into the park and recreation capital improvement account as created in section 57-1801, Idaho Code. One percent (1%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the search and rescue fund created in section 67-2913, Idaho Code;
One and twenty-eight hundredths percent (1.28%) shall be distributed as follows: sixty-six percent (66%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the off-road motor vehicle account, as created in section 57-1901, Idaho Code. Up to twenty percent (20%) of the moneys distributed to the off-road motor vehicle account by this subparagraph may be used by the department of parks and recreation to defray administrative costs. Any moneys unused at the end of the fiscal year by the department of parks and recreation shall be returned to the state treasurer for deposit in the off-road motor vehicle account. Thirty-three percent (33%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed into the park and recreation capital improvement account as created in section 57-1801, Idaho Code. One percent (1%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the search and rescue fund created in section 67-2913, Idaho Code; and
Forty-four hundredths percent (.44%) shall be distributed to the park and recreation capital improvement account as created in section 57-1801, Idaho Code, to be used solely to develop, construct, maintain and repair roads, bridges and parking areas within and leading to parks and recreation areas of the state.
The balance remaining shall be distributed to the highway distribution account created in section 40-701, Idaho Code.
(2) Provided however, the distribution pursuant to subsection (1) of this section of revenues received from the taxes imposed pursuant to section 63-2402(2), Idaho Code, shall apply only to twenty-five cents (25¢) of every thirty-two cents (32¢) received. The remaining seven cents (7¢) of every thirty-two cents (32¢) received pursuant to the provisions of section 63-2402(2), Idaho Code, shall be distributed to the highway distribution account created in section 40-701, Idaho Code.
(3) The revenues received from the taxes imposed by section 63-2408, Idaho Code, and any penalties, interest, and deficiency amounts, shall be distributed as follows:
(a) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the commission to be paid shall be paid from the state refund account, and those moneys are hereby continuously appropriated.
(b) The balance remaining of all the taxes collected shall be distributed to the state aeronautics fund, as provided in section 21-211, Idaho Code.
[63-2412, added 1983, ch. 158, sec. 4, p. 448; am. 1984, ch. 87, sec. 4, p. 173; am. 1984, ch. 195, sec. 35, p. 475; am. 1985, ch. 33, sec. 1, p. 66; am. 1985, ch. 253; sec. 9, p. 702; am. 1986, ch. 73, sec. 8, p. 208; am. 1986, ch. 99, sec. 3, p. 279; am. 1988, ch. 253, sec. 1, p. 487; am. 1990, ch. 395, sec. 1, p. 1106; am. 1991, ch. 120, sec. 2, p. 259; am. 1993, ch. 301, sec. 1, p. 1116; am. 1994, ch. 280, sec. 6, p. 872; am. 1994, ch. 315, sec. 3, p. 1006; am. 1997, ch. 50, sec. 1, p. 85; am. 2000, ch. 100, sec. 1, p. 220; am. 2000, ch. 186; sec. 3, p. 458; am. 2002, ch. 174, sec. 6, p. 513; am. 2009, ch. 332, sec. 2, p. 963; am. 2010, ch. 14, sec. 2, p. 16; am. 2015, ch. 341, sec. 5, p. 1283; am. 2016, ch. 152, sec. 1, p. 420; am. 2020, ch. 48, sec. 1, p. 114; am. 2026, ch. 98, sec. 2, p. 529.]
Unless as otherwise provided in subsection (5) of this section, revenues received from the tax imposed by this chapter upon the receipt of special fuel and any penalties, interest or deficiency additions, or from the fees imposed by the commission under the provisions of section 63-2424 or 63-2438, Idaho Code, shall be distributed as follows:
(1) An amount of money equal to the actual cost of collecting, administering and enforcing the special fuels tax provisions by the commission, as determined by it, shall be retained by the commission. The amount retained by the commission shall not exceed the amount authorized to be expended by appropriation by the legislature. Any unencumbered balance in excess of the actual cost of collecting, administering and enforcing the special fuels tax requirements by the commission at the end of each fiscal year shall be distributed to the highway distribution account.
(2) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the commission to be paid under this chapter shall be paid from the state refund account, those moneys being hereby continuously appropriated.
(3) An amount of money equal to seven percent (7%) shall be distributed to the state highway account as established in section 40-702, Idaho Code.
(4) The balance remaining with the commission after distributing the amounts specified in subsections (1), (2) and (3) of this section shall be distributed to the highway distribution account established in section 40-701, Idaho Code.
(5) For those special fuels subject to tax pursuant to section 63-2402 or 63-2424, Idaho Code, twenty-five cents (25¢) of every thirty-two cents (32¢) of revenue received from such tax shall be distributed pursuant to the provisions of subsections (1), (2), (3) and (4) of this section. The remaining seven cents (7¢) of every thirty-two cents (32¢) of the revenue received shall be distributed to the highway distribution account created in section 40-701, Idaho Code.
[63-2418, added 1983, ch. 158, sec. 4, p. 449; am. 1984, ch. 87, sec. 7, p. 175; am. 1984, ch. 195, sec. 36, p. 477; am. 1985, ch. 33, sec. 2, p. 68; am. 1985, ch. 253, sec. 10, p. 704; am. 1986, ch. 73, sec. 9, p. 209; am. 2000, ch. 155, sec. 3, p. 394; am. 2002, ch. 174, sec. 8, p. 515; am. 2009, ch. 332, sec. 3, p. 964; am. 2010, ch. 14, sec. 3, p. 17; am. 2016, ch. 152, sec. 2, p. 421; am. 2026, ch. 98, sec. 3, p. 531.]
(1) For the privilege of using the highways of this state, any person, including a person described in paragraph (c) of subsection (1) of section 63-2427A, Idaho Code, who consumes motor fuels in a motor vehicle licensed or required to be licensed by the laws of this state, or which is required to be licensed under the laws of another jurisdiction and is operated on the highways of this state upon which the tax imposed by section 63-2402, Idaho Code, has not been paid or is subject to credit or refund under IFTA and which fuel is not exempted from tax by this chapter, shall be liable for the tax.
(2) Except for motor vehicles licensed under IFTA or operating with a temporary permit under section 49-432, Idaho Code, a person liable under subsection (1) of this section shall report the amount of tax liability and pay the taxes due in conjunction with his income or franchise tax return due under the provisions of chapter 30, title 63, Idaho Code, in the manner and form prescribed by the commission. Payment of motor fuels taxes shall be made in conjunction with any other taxes due on that return and motor fuels taxes due may be offset against refunds of any other taxes shown on the return to be due the taxpayer.
(3) In the case of a person liable under subsection (1) of this section other than one who consumes motor fuels in a motor vehicle described in the exception in subsection (2) of this section and not required to file a return under chapter 30, title 63, Idaho Code, the tax shall be paid annually, on a calendar year basis, in the manner and form required by the commission. The return and payment for each calendar year shall be due on or before April 15 of the immediately succeeding calendar year.
(4) In the case of a person liable under subsection (1) of this section whose motor vehicles are licensed or required to be licensed under IFTA as provided in sections 63-2438 and 63-2439, Idaho Code, or operating with a temporary permit under section 49-432, Idaho Code, the tax shall be paid in the manner required by those provisions.
[63-2421, added 1983, ch. 158, sec. 4, p. 451; am. 1992, ch. 106, sec. 5, p. 332; am. 1995, ch. 132, sec. 7, p. 572; am. 1997, ch. 86, sec. 2, p. 207; am. 2002, ch. 30, sec. 5, p. 43; am. 2002, ch. 174, sec. 9, p. 515; am. 2005, ch. 28, sec. 2, p. 139; am. 2009, ch. 21, sec. 2, p. 50.]
(1) Any person who has paid his special fuels tax directly to the distributor from whom it was purchased shall be refunded the amount of:
(a) Except as provided in subsection (2) of this section, any special fuels tax paid on special fuels used for purposes other than operation or propulsion of motor vehicles upon the highways in the state of Idaho;
(b) Any tax paid on special fuels used in motor vehicles owned or leased and operated by an instrumentality of the federal government or of the state of Idaho, including the state and all of its political subdivisions;
(c) Any special fuels tax paid on special fuels exported for use outside the state of Idaho. Special fuels carried from the state in the fuel tank of a motor vehicle will not be deemed to be exported from the state unless it is subject to a like or similar tax in the jurisdiction to which it is taken and that tax is actually paid to the other jurisdiction; and
(d) Any tax, penalty or interest erroneously or illegally paid or collected.
(2) No refund of special fuels tax shall be paid on:
(a) Special fuels used in a recreational vehicle; or
(b) Special fuels used in noncommercial motor boats or in motor boats operated by a governmental entity; or
(c) Special fuels used while idling a registered motor vehicle, pursuant to the definition of "idling" as provided in section 63-2401, Idaho Code.
(3) Refunds authorized in this section shall be claimed in the same manner as applies to refunds of gasoline tax under section 63-2410, Idaho Code, and shall be subject to interest computed pursuant to subsection (5) of that section.
[63-2423, added 1983, ch. 158, sec. 4, p. 451; am. 1995, ch. 348, sec. 4, p. 1149; am. 1997, ch. 375, sec. 1, p. 1205; am. 1998, ch. 103, sec. 6, p. 357; am. 1998, ch. 196, sec. 2, p. 709; am. 2004, ch. 265, sec. 2, p. 747; am. 2011, ch. 6, sec. 4, p. 17; am. 2013, ch. 19, sec. 1, p. 29; am. 2015, ch. 175, sec. 3, p. 575.]
(1) In the case of gaseous special fuels, the commission shall provide by rule the method to be used for converting the measurement of the fuel to the equivalent of gallons for the purpose of applying tax rates. The method provided shall cause the tax rate provided in section 63-2402, Idaho Code, to apply to an amount of gaseous special fuels having energy equal to one (1) gallon of gasoline.
(2) The commission shall use the following measurement for natural gas:
(a) When determining the tax on liquefied natural gas, a "diesel gallon equivalent" is a quantity that weighs six and six hundredths (6.06) pounds; and
(b) When determining the tax on compressed natural gas, a "gasoline gallon equivalent" is one hundred twenty-six and sixty-seven hundredths (126.67) cubic feet of natural gas at sixty (60) degrees Fahrenheit and fourteen and seven-tenths (14.7) pounds per square inch absolute or a quantity of compressed natural gas that weighs five and sixty-six hundredths (5.66) pounds.
(3) As used in this chapter, "gaseous special fuels" means a motor fuel that is a gas at standard pressure and temperature (i.e., at sixty (60) degrees Fahrenheit and fourteen and seven-tenths (14.7) pounds per square inch absolute).
[63-2424, added 1983, ch. 158, sec. 4, p. 452; am. 1991, ch. 334, sec. 1, p. 867; am. 1995, ch. 132, sec. 8, p. 572, am. 1998, ch. 103, sec. 7, p. 358; am. 2002, ch. 174, sec. 10, p. 516; am. 2011, ch. 6, sec. 5, p. 17; am. 2013, ch. 19, sec. 2, p. 30; am. 2015, ch. 175, sec. 2, p. 574.]
(1) Except as provided in subsections (2) and (5) of this section, no person shall operate a motor vehicle on a highway in this state if the fuel supply tanks of the vehicle contain diesel fuel that has been dyed or marked at a refinery or terminal under the provisions of 26 U.S.C. 4082 and regulations adopted thereunder or under the clean air act and regulations adopted thereunder or if the tanks contain other motor fuel on which the tax under section 63-2402, Idaho Code, has not been paid.
(2) The following vehicles may use dyed fuel on the highway but are subject to the tax under section 63-2402, Idaho Code, unless exempt under other provisions of this chapter:
(a) State and local government vehicles; and
(b) Any vehicles that may use dyed fuel on the highway under the provisions of 26 U.S.C. 4082 or regulations adopted thereunder.
(3) For the purposes of enforcement of this section, Idaho state police officers or employees of the Idaho transportation department may conduct a visual observation of fuel to detect the presence of dye. If dye is observed, such officers or employees shall take a photograph of the dyed fuel. Such photographs shall be preserved as evidence.
(4) In the event of a change of ownership or other disposal of a motor vehicle authorized to use dyed fuel on the highway pursuant to subsection (2) of this section but that no longer falls within the provisions of that subsection, the motor vehicle’s owner, before selling or disposing of such vehicle, shall remove the dyed fuel from the vehicle’s fuel tanks and certify that such dyed fuel has been removed.
(5) Incidental use or crossing of public roads or highways by vehicles intended primarily for off-highway use, including as provided for in section 49-110(3), Idaho Code, with respect to an implement of husbandry, shall not be considered a violation of this section.
[63-2425, added 1995, ch. 348, sec. 5, p. 1149; am. 2002, ch. 174, sec. 11, p. 517; am. 2009, ch. 150, sec. 1, p. 439; am. 2015, ch. 38, sec. 4, p. 82; am. 2020, ch. 327, sec. 3, p. 944.]
The commission shall enforce the provisions of this chapter and may prescribe, adopt, and enforce reasonable rules and regulations relating to the administration and enforcement of those provisions.
[63-2427, added 1983, ch. 158, sec. 4, p. 452.]
(1) It is unlawful for a person to act as a motor fuel distributor without a motor fuel distributor license. A person required to obtain such license is the first receiver of taxable motor fuel in Idaho. A person is not required to obtain a motor fuel distributor license when the person:
(a) Only purchases motor fuel on which any tax due under this chapter has previously been imposed upon a licensed distributor; or
(b) Only purchases dyed fuel upon which the transfer fee imposed in section 41-4909, Idaho Code, has been imposed upon a licensed distributor; or
(c) Only produces five thousand (5,000) gallons or less of biodiesel in a calendar year for that person’s personal consumption. Any producer who sells or transfers any quantity of biodiesel to any other person is the first receiver of the biodiesel and is required to obtain a motor fuel distributor license.
(2) Application for a license shall be made upon forms furnished and in a manner prescribed by the commission and shall contain information as it deems necessary. An application will not be accepted unless it is accompanied by a bond in the amount required in section 63-2428, Idaho Code. The commission shall not issue a motor fuel distributor license to any person who does not consent to be sued in Idaho district court for purposes of the state enforcing any provision of this chapter.
(3) Upon receipt of the application and bond in proper form the commission shall issue the applicant a license to act as a distributor unless the applicant:
(a) Is a person who formerly held a license under the provisions of this chapter, any predecessor statute, under the laws of any other jurisdiction, or under the laws of the United States which license, prior to the time of filing this application, had been revoked for cause within five (5) years from the date of such application; or
(b) Is a person who has outstanding fuel tax liabilities to or is in violation of the motor fuel laws of this state, any other jurisdiction or the United States government; or
(c) Is a person who has been convicted, under the laws of the United States or any state or jurisdiction or subdivision thereof, of fraud, tax evasion, or a violation of the laws governing the reporting and payment of fees or taxes for petroleum products within five (5) years from the date of making such application; or
(d) Is a person who has been convicted of a felony or been granted a withheld judgment following an adjudication of guilt of a felony within five (5) years from the date of such application; or
(e) Who is not the real party in interest and the real party in interest is a person described in paragraph (a), (b), (c) or (d) of this subsection.
(4) Upon approval of the application, the license shall be valid until it is canceled by the licensee or revoked for cause.
(5) No license shall be transferable.
(6) The commission shall furnish each licensed distributor with a list of all distributors licensed pursuant to this section. The list shall be supplemented by the commission from time to time to reflect additions and deletions.
[63-2427A, added 1995, ch. 132, sec. 9, p. 573; am. 2003, ch. 96, sec. 52, p. 310; am. 2007, ch. 288, sec. 3, p. 820; am. 2009, ch. 21, sec. 3, p. 51; am. 2015, ch. 38, sec. 5, p. 83.]
(1) In lieu of the motor fuel distributor license required by section 63-2427A, Idaho Code, the commission may issue a gaseous fuels distributor license to a distributor who applies for the license and who does not deal in fuel, other than gaseous fuels, except fuel which is either:
(a) Motor fuel on which any tax due under this chapter has previously been imposed upon a licensed distributor; or
(b) Dyed fuel upon which the transfer fee imposed in section 41-4909, Idaho Code, has been imposed upon a licensed distributor.
(2) Licensed gaseous fuels distributors shall, not later than the last day of each calendar month or for such other reporting period as the commission may authorize, render to the commission an accurate report of all gaseous fuels that are subject to tax under this chapter during the preceding reporting period. The report shall be made in the manner and on forms required by the commission and shall include such other information as the commission may require for the proper administration of this chapter.
[63-2427B, added 1998, ch. 103, sec. 8, p. 359; am. 2003, ch. 96, sec. 53, p. 311; am. 2015, ch. 38, sec. 6, p. 84.]
A limited distributor license will be issued to persons only required to remit the fee imposed by chapter 49, title 41, Idaho Code, and not required to obtain a license under section 63-2427A or 63-2427B, Idaho Code. The licensee is a licensed distributor for the purposes of filing reports, paying fees and other actions necessary for the proper administration of the petroleum clean water trust fund act. A limited distributor license will not be valid for any other purpose. No bond shall be required for a limited distributor license.
[63-2427C, added 2006, ch. 60, sec. 1, p. 186; am. 2015, ch. 38, sec. 7, p. 84.]
(1) At the time an application for a motor fuel distributor license under section 63-2427A, Idaho Code, is submitted to the commission, the applicant shall file a bond with the commission conditioned upon faithful performance of all of the requirements of this chapter. The total amount of the bond shall be fixed by the commission and shall be equivalent to at least twice the estimated average tax liability for the reporting period for which the applicant will be required to file a distributor’s report under section 63-2406, Idaho Code. The bond required by this section shall in no case be less than one thousand dollars ($1,000) nor more than two hundred thousand dollars ($200,000). Based on prior years’ experience, the total amount required to be secured by the bond may be increased or reduced by the commission at any time. The bond will be waived if the commission is satisfied that the distributor has the financial responsibility to meet the required bond amount. Financial responsibility may be determined by the commission upon review of all relevant public documents including appropriate county records and records of tax payments to the state of Idaho. The distributor can be required to provide a commercial credit rating, balance sheet, or income statement to demonstrate present financial solvency, i.e. ownership of real and/or personal property, the unencumbered value of which exceeds the bond amount otherwise required. If such financial solvency is established, and if the distributor has been doing business in Idaho as a licensed distributor for five (5) or more consecutive years without a default in the payment of taxes imposed in this chapter, financial responsibility shall be presumed. Any bond given in conjunction with this chapter shall be a continuing instrument, and shall cover the period during which the license in connection with which the bond is given is in effect, unless the surety on the bond is released or discharged by the commission. Any surety on any bond furnished by a licensee shall be discharged and released from any and all liability to the state accruing on the bond after the expiration of thirty (30) days from the date upon which the surety shall have lodged with the commission a written request to be released and discharged. The request shall not operate to relieve, release or discharge the surety from any liability accrued, or which will accrue, before the expiration of the thirty (30) day period. The commission shall promptly, upon receipt of the notice of the request, notify the licensee and require him to furnish a new bond. Unless the licensee files a new bond with the commission in the amount provided in this section before the expiration of the thirty (30) day period, the commission shall immediately cancel the licensee’s license.
(2) In the event that any taxes due under the provisions of this chapter are not paid by a licensed distributor, and the unpaid taxes are assessed by the commission, and after all avenues for appeal of the assessment have been exhausted, the commission may apply the unpaid tax liability against the bond required by this section.
[63-2428, added 1983, ch. 158, sec. 4, p. 452; am. 1988, ch. 231, sec. 1, p. 445; am. 1995, ch. 132, sec. 10, p. 574; am. 1998, ch. 103, sec. 9, p. 359; am. 2015, ch. 38, sec. 8, p. 85.]
(1) Every distributor and every special fuels dealer and every person reporting, manufacturing, refining, dealing, transporting or storing motor fuels in this state shall keep records, receipts, invoices and other pertinent records as the commission may require. Records required and all other relevant books and records shall be available for inspection by the commission at all times during regular record keeper’s business hours.
(2) Records required in subsection (1) of this section shall be kept for a period of three (3) years from the date on which the distributor’s report or special fuels dealer’s return to which they relate was required to be filed with the commission.
[63-2429, added 1983, ch. 158, sec. 4, p. 453; am. 2011, ch. 6, sec. 6, p. 18.]
The taxes imposed by this chapter shall be in lieu of all other excise taxes, license fees or property taxes imposed upon motor fuels by this state or any political subdivision of this state.
[63-2431, added 1983, ch. 158, sec. 4, p. 454; am. 2011, ch. 6, sec. 7, p. 18.]
If the commission determines that any person is engaged in business as a distributor or special fuels dealer without holding a valid license, it may proceed by injunction or other legal process to prevent the continuance of the business, and an injunction enjoining the continuance of the business by any unlicensed person may be granted without bond by any court or judge authorized by law to grant injunctions.
[63-2432, added 1983, ch. 158, sec. 4, p. 454.]
For the purpose of carrying out its duties to enforce or administer the provisions of this chapter, the commission shall have the powers and duties provided by sections 63-3038, 63-3039, 63-3042 through 63-3066, 63-3068, 63-3071, 63-3074 through 63-3078, and 63-217, Idaho Code, which sections are incorporated by reference herein as though set out verbatim.
[63-2434, added 1983, ch. 158, sec. 4, p. 454; am. 1994, ch. 344, sec. 6, p. 1085; am. 1996, ch. 322, sec. 62, p. 1091.]
The commission may require any railroad or other common carrier, or contract carrier, or any person, other than a licensee, who makes delivery in this state of any motor fuels to report in writing to the commission, not later than the last day of each calendar month, all the deliveries for the preceding calendar month. The commission may require information in the reports to include the place of origin and place of destination of the motor fuels delivered, the names and addresses of consignors and consignees, loading ticket numbers, number of gallons delivered, and any other information the commission may require.
[63-2436, added 1983, ch. 158, sec. 4, p. 455; am. 2001, ch. 104, sec. 3, p. 347; am. 2011, ch. 6, sec. 8, p. 18.]
The commission may require a monthly report from each pipeline terminal located in this state not later than the last day of the next succeeding calendar month. The commission may require information in the report to include the date of withdrawal, bill of lading number, manifest number, or loading ticket number and the origin, consignee, consignor, transportation company, and number of gallons separately indicated of gasoline, aircraft engine fuel and special fuels and any other information as the commission may require.
[63-2437, added 1983, ch. 158, sec. 4, p. 455; am. 2001, ch. 104, sec. 4, p. 347.]
(1) It shall be unlawful for any person to consume special fuels in the operation or propulsion of a motor vehicle over twenty-six thousand (26,000) pounds maximum gross weight on the highways of this state unless such motor vehicle is:
(a) Licensed under the provisions of the international fuels tax agreement; or
(b) Operating under a temporary permit under section 49-432, Idaho Code; or
(c) Registered solely for operation in this state under section 49-434, Idaho Code, and is not a vehicle proportionally registered under section 49-435, Idaho Code.
(2) The application for an Idaho IFTA license shall be made to the commission upon a form prepared and furnished by the commission and containing such information as the commission deems necessary. Carriers based in other IFTA jurisdictions must apply to their base jurisdiction to obtain an IFTA license.
(3) No IFTA license shall be transferable.
(4) The commission may collect a fee for issuance of the IFTA license and decal, which fee shall not exceed the cost of issuance.
[63-2438, added 1983, ch. 158, sec. 4, p. 455; am. 1984, ch. 87, sec. 9, p. 176; am. 1992, ch. 106, sec. 6, p. 332; am. 1997, ch. 86, sec. 4, p. 209; am. 1998, ch. 103, sec. 10, p. 360; am. 2002, ch. 30, sec. 6, p. 43.]
(1) Each person issued an Idaho IFTA license as required under section 63-2438, Idaho Code, shall file with the commission in the manner and form prescribed by it, the tax report required by the IFTA. Such report shall contain a declaration by the person making the same, to the effect that the statements contained therein are true and are made under penalties of perjury, which declaration shall have the same force and effect as a verification of the report and shall be in lieu of such verification. The report shall show such information as the commission may reasonably require for the proper administration and enforcement of this chapter.
(2) The tax report shall be accompanied by the remittance covering the total tax, penalty and interest due. The tax due shall be calculated by multiplying the tax rate per gallon for each IFTA jurisdiction by the number of taxable gallons of fuel taxable in each IFTA jurisdiction, less any tax already paid upon purchases of fuel in that jurisdiction. The taxable gallons consumed shall be calculated by dividing the taxable miles traveled in each jurisdiction by such motor vehicles by the fleet average miles per gallon of such motor vehicles.
[63-2439, added 1983, ch. 158, sec. 4, p. 456; am. 1987, ch. 89, sec. 1, p. 169; am. 1987, ch. 298, sec. 1, p. 634; am. 1992, ch. 106, sec. 7, p. 333; am. 1994, ch. 344, sec. 7, p. 1085; am. 1997, ch. 86, sec. 5, p. 209.]
(1) In lieu of obtaining an IFTA license, any person operating a motor vehicle over twenty-six thousand (26,000) pounds maximum gross weight, propelled by special fuels in this state, shall secure a temporary permit under section 49-432, Idaho Code, authorizing the operation of such vehicle in the state. The temporary permit shall be obtained through the Idaho transportation department. The fees shall be those provided by section 49-432, Idaho Code, and the revenues shall be distributed as provided by section 40-701, Idaho Code.
(2) A motor vehicle owned or operated by another state of the United States or an agency or political subdivision thereof shall be exempt from the requirements of sections 63-2438 and 63-2439, Idaho Code, if the state where the vehicle is owned grants a substantially similar exemption to vehicles owned by the state of Idaho, its agencies or political subdivisions.
(3) Recreational vehicles, as defined in section 63-2401, Idaho Code, and buses used exclusively for personal pleasure by an individual shall be exempt from the requirements of sections 63-2438 and 63-2439, Idaho Code. A recreational vehicle used in connection with any business or institutional endeavor shall not qualify for the exemption under this subsection.
[63-2440, added 1983, ch. 158, sec. 4, p. 456; am. 1984, ch. 87, sec. 10, p. 177; am. 1985, ch. 242, sec. 2, p. 573; am. 1985, ch. 253, sec. 11, p. 704; am. 1988, ch. 146, sec. 1, p. 267; am. 1988, ch. 265, sec. 579, p. 875; am. 1992, ch. 106, sec. 8, p. 334; am. 1994, ch. 344, sec. 8, p. 1086; am. 1995, ch. 132, sec. 11, p. 575; am. 1997, ch. 86, sec. 6, p. 210; am. 2002, ch. 30, sec. 7, p. 44.]
For the purpose of administering the provisions of this chapter, the commission and the Idaho transportation department may enter into such written agreements for the exchange of information or delegation of authority or both as the commission and the department may find necessary to properly implement the letter and intent of the provisions of this chapter.
[63-2442, added 1984, ch. 87, sec. 12, p. 178.]
(1) The commission may enter into cooperative agreements with other jurisdictions for exchange of information and auditing of distributors, dealers and users of motor fuels. The commission shall participate in the international fuel tax agreement as required by the intermodal surface transportation efficiency act of 1991, Public Law 102-240, 105 Stat. 1914, including subsequent amendments to that agreement.
(2) Any person operating a motor vehicle over twenty-six thousand (26,000) pounds maximum gross weight which is (a) based in this state and (b) operated in this state and in any other jurisdiction which is a member of the international fuels tax agreement shall report and pay all fuel use taxes due to any IFTA member jurisdiction, together with any other charges due to any such jurisdiction which are reportable on the IFTA report, in the manner required by IFTA. If the provisions set forth in the international fuel tax agreement are in conflict with any provision of this chapter, the agreement provisions shall prevail. An agreement, arrangement, declaration or amendment thereto is not effective until stated, in writing, and filed with the commission.
(3) An agreement may provide for determining the base jurisdiction for users, users records requirements, audit procedures, exchange of information, persons eligible for tax licensing, defining qualified motor vehicles, determining if bonding is required, specifying reporting requirements and periods including defining uniform penalty and interest rates for late reporting, determining methods for collecting and forwarding of motor fuels taxes, penalties or interest to another jurisdiction, and other provisions as will facilitate the administration of the agreement.
(4) The commission may, as required by the terms of an agreement, forward to officers of another jurisdiction any information in the commission’s possession relative to the manufacture, receipts, sale, use, transportation, or shipment of motor fuels by any person. The commission may disclose to officers of another jurisdiction, the location of officers, motor vehicles, and other real and personal property of users of motor fuels.
(5) An agreement may provide for each jurisdiction to audit the records of persons based in the jurisdiction, to determine if the motor fuels taxes due each jurisdiction are properly reported and paid. Each jurisdiction shall forward the findings of the audits performed on persons based in the jurisdiction, to each jurisdiction in which the person has taxable use of motor fuels. For persons not based in this state and who have taxable use of motor fuels in Idaho, the commission may serve the audit findings received from another jurisdiction, in the form of an assessment, on the person as though an audit was conducted by the commission.
(6) The commission may enter into additional cooperative agreements with other jurisdictions for mutual enforcement of taxes on gasoline and special fuels not subject to collection pursuant to the international fuel tax agreement. Such agreements may provide for collection and enforcement of the motor fuels taxes of all signatory jurisdictions pursuant to the law, rules, and regulations of the jurisdiction in which a person liable for such taxes maintains his principal place of business. An agreement may provide for any or all of the following: determining the base jurisdiction of persons liable for taxes, records requirements, audit procedures, exchange of information, persons eligible for tax licensing, determining if bonding is required, specifying reporting requirements and periods including defining uniform penalty and interest rates for late reporting, determining methods for collecting and forwarding of motor fuels taxes and penalties to another jurisdiction, and other provisions as will facilitate the administration of the agreement.
(7) Any agreement entered into pursuant to this section does not preclude the commission from auditing the records of any person covered by the provisions of this chapter.
(8) The legal remedies for any person served with an order or assessment under this section are as prescribed in this chapter.
(9) If the commission enters into any agreement under the authority of this section, and the provisions set forth in the agreement are in conflict with any rules promulgated by the commission, the agreement provisions prevail.
[63-2442A, added 1986, ch. 315, sec. 2, p. 779; am. 1994, ch. 344, sec. 9, p. 1087; am. 1997, ch. 86, sec. 8, p. 211; am. 2000, ch. 155, sec. 4, p. 395.]
Taxes imposed by this chapter shall not apply to motor fuel that is the subject of an agreement authorized by section 67-4002, Idaho Code, to the extent provided by the agreement, but only if the agreement is signed by the governor and appropriate representative of a tribe before December 1, 2007.
[63-2444, added 2007, ch. 288, sec. 5, p. 821.]
(1) It is unlawful for any person in the state of Idaho to:
(a) Refuse or knowingly and intentionally fail to make and file any statement required by this chapter in the manner or within the time required;
(b) Fail to pay any tax due or any fee required by this chapter or any related penalties or interest;
(c) Knowingly make any false statement or conceal any material fact in any record, return or affidavit provided for in this chapter with intent to evade or to aid in the evasion of the tax imposed by this chapter;
(d) Conduct any activities requiring a license under this chapter without an active license;
(e) Fail to keep and maintain the books and records required by this chapter;
(f) Use dyed or untaxed fuel in a manner prohibited by this chapter;
(g) Violate any other provision of this chapter.
(2) It is unlawful to purchase, receive or accept any untaxed motor fuel unless authorized by this chapter.
(3) It is unlawful to sell or transfer any untaxed motor fuel unless authorized by this chapter.
[63-2450, added 2015, ch. 38, sec. 13, p. 86.]
(1) It is unlawful for any person to operate a motor vehicle or consume any motor fuel in the propulsion of a motor vehicle over twenty-six thousand (26,000) pounds maximum gross weight on the highways of this state, except as provided in section 63-2438, Idaho Code, unless:
(a) Such person is exempt from such requirement under section 63-2440, Idaho Code, or any other provision of state or federal law; or
(b) In the case of vehicles using a gaseous special fuel, such person has complied with section 63-2424, Idaho Code.
(2) It is unlawful to display any international fuels tax agreement (IFTA) cab card or decal or temporary permit that:
(a) Is fictitious or counterfeit; or
(b) Is owned by a person other than the owner, operator or lessee of the vehicle on which it is displayed.
[63-2455, added 2015, ch. 38, sec. 14, p. 86.]
(1) Any person who violates any provision of this chapter or who violates any provision of Idaho law relating to the assessment and collection of any unpaid tax or fee associated with this chapter is guilty of a misdemeanor, unless the violation is declared a felony by any other law of this state. Any person so convicted of a misdemeanor shall be punished by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). Each day that an unlicensed person engages in the activities of a licensed distributor constitutes a separate violation.
(2) (a) Notwithstanding the provisions of subsection (1) of this section, any person operating a vehicle licensed or required to be licensed on a highway in this state with diesel fuel in violation of section 63-2425, Idaho Code, will be subject to the following:
(i) Upon the first violation, a civil penalty in the amount of two hundred fifty dollars ($250);
(ii) Upon the second violation, a civil penalty in the amount of five hundred dollars ($500); and
(iii) Upon the third or subsequent violation, a civil penalty in the amount of one thousand dollars ($1,000) for each such violation.
(b) Except for the penalties set forth in paragraph (a) of this subsection, no additional fines or penalties shall be imposed.
(3) The commission may assess the penalties set forth in subsection (2) of this section as deficiencies in tax pursuant to sections 63-2434 and 63-3045, Idaho Code.
(4) Penalties are cumulative and each violation of the provisions of this chapter is subject to a separate penalty. The penalties provided for in this section shall be in addition to any other penalty imposed by any other provision of Idaho law.
[63-2460, added 2015, ch. 38, sec. 15, p. 87; am. 2020, ch. 327, sec. 4, p. 945.]
(1) A licensee may cancel his license at any time without prejudice, unless the commission has issued a notice of revocation letter to the licensee. If the licensee cancels his license after receiving a notice of revocation, then the cancellation will be treated as a revocation.
(2) All licenses issued under this chapter may be held only by persons actively engaged in activities requiring a license under this chapter. Any person not so engaged shall surrender his license to the commission for cancellation. A person is actively engaged in activities requiring a license under this chapter when such person is:
(a) A distributor:
(i) Purchasing, selling or otherwise transferring motor fuel or other petroleum products or gaseous fuel decals; or
(ii) Reporting receipts, disbursements or other transactions subject to the motor fuel tax, transfer fee or gaseous fuel decals;
(b) An international fuel tax agreement (IFTA) licensee accruing reportable distance and fuel use in any IFTA jurisdiction. The IFTA licensee is not actively engaged in these activities when the requirements for cancellation or denial of renewal are met according to the IFTA articles of agreement, article III, section R345, license renewal (revised July 2013).
(3) A license authorized under this chapter may be denied, revoked or suspended when:
(a) The licensee or applicant fails to comply with the motor fuels laws of this state or any other jurisdiction; or
(b) The licensee does not maintain any required bond; or
(c) The licensee is not actively engaged in the activities identified in subsection (2) of this section for twelve (12) consecutive months.
(4) An IFTA licensee may appeal the denial, cancellation or revocation of an IFTA license following the procedure in the IFTA articles of agreement, article XIV (revised July 2013). The decision of the state tax commission is final and must be issued pursuant to section 63-3045B, Idaho Code, using a thirty (30) day appeal period.
(5) When the state tax commission decides to deny, cancel or revoke a distributor license, it shall immediately notify the person of that decision at the person’s last known address. The notice must be accompanied by an explanation of the specific reason for the decision and the right to appeal the decision. Within sixty-three (63) days after the notice is mailed, the person may file a protest in writing requesting a review of the decision. The appeal must contain legal or factual reasons why the person disagrees with the decision. The person may not make any proceedings at court or other action until the appeal rights relating to the decision have become final.
(6) The decision of the state tax commission is final and must be issued pursuant to section 63-3045B, Idaho Code.
(7) The distributor may only appeal the denial of a properly completed application. When any of the required information is not provided, the state tax commission may consider the application incomplete and request additional information, return the application or deny the application.
(8) A person will not be issued a distributor license after one has previously been revoked, unless the state tax commission is satisfied that the former holder of the license will comply with all the requirements of this chapter and correct any other violations of this chapter upon which the revocation was based. All bonding requirements for the reinstated licensee must be met. A bond waiver may not be requested for five (5) years after the reinstatement of the license. A reinstated distributor’s bond is not subject to the maximum bonding limits in section 63-2428, Idaho Code, but may not exceed the estimated tax liability for six (6) months.
(9) When a license is revoked within one (1) year of a previous revocation, there is no right to appeal the second revocation.
[63-2470, added 2015, ch. 38, sec. 16, p. 87.]
It is the intent and purpose of this act to levy a tax on all cigarettes sold, used, consumed, handled or distributed within this state, and to collect the tax from the person who first sells, uses, consumes, handles, or distributes the cigarettes.
[63-2501, added 1974, ch. 211, sec. 1, p. 1548.]
For the purpose of this act, unless otherwise required by the context:
(a) The word "wholesaler" means and includes every person who purchases, sells or distributes cigarettes to other wholesalers or to retailers for the purpose of resale and "delivery sellers" as defined in 15 U.S.C. section 375.
(b) The word "retailer" means every person, other than a wholesaler, who purchases, sells, offers for sale, or distributes cigarettes at retail, irrespective of quantity or amount, or the number of sales.
(c) The phrase "wholesale sale" means a sale of cigarettes by a wholesaler to a retailer.
(d) The word "cigarette" shall be taken in the ordinary context of that word and shall be any roll for smoking, made wholly or in part of tobacco, where such roll has a wrapper or cover made of paper or any other material, except where such wrapper is wholly or in the greater part made of tobacco.
(e) The phrase "package of cigarettes" means the individual package, box, or other container in or from which retail sales of cigarettes are normally made or intended to be made. A package shall contain no less than twenty (20) cigarettes and be packaged in increments of five (5).
[63-2502, added 1974, ch. 211, sec. 2, p. 1548; am. 1984, ch. 228, sec. 1, p. 548; am. 2011, ch. 2, sec. 1, p. 4.]
(1) It shall be unlawful for a person to act as a wholesaler of cigarettes without a permit. The permit shall be obtained by application to the state tax commission upon a form furnished by it, accompanied by a fee of fifty dollars ($50.00). The wholesaler permit shall be nonassignable and shall continue in force until surrendered or canceled.
(2) It shall be unlawful for any retailer to purchase, sell, offer for sale, distribute, store or possess any cigarettes without first applying for and receiving a seller’s permit under section 63-3620, Idaho Code.
(3) A permit shall be held only by persons actively engaged in making wholesale sales of cigarettes. Any person not so engaged shall forthwith surrender his permit to the state tax commission for cancellation.
(4) Whenever any person fails to comply with any provision of this chapter relating to the purchase, sale or offering for sale or distribution of cigarettes or any rules of the state tax commission relating to the cigarette tax prescribed and adopted under this chapter, the state tax commission may revoke or suspend any permit held by the person or may deny a new permit to such person.
(5) The state tax commission may revoke the permit of a person not actively engaged in activities requiring a permit under this section.
(6) Notice of revocation shall be given in the manner provided for deficiencies in taxes in section 63-3629, Idaho Code, which shall be subject to review as provided in section 63-3631, Idaho Code.
(7) A permit, held by a person who for a period of twelve (12) consecutive months files reports showing no cigarette activity reportable under this chapter, shall expire automatically upon the state tax commission providing notice of the expiration to the last known address of the person to whom the permit was issued.
(8) A person who engaged in activities requiring a permit under this section without a permit or after a permit has been revoked or suspended, and any person who is a responsible person, as defined in section 63-3627, Idaho Code, of such a business shall, after receiving written notice from the state tax commission, be subject to a civil penalty not in excess of one hundred dollars ($100), and each day shall constitute a separate offense, which the state tax commission may assess as a deficiency pursuant to section 63-2516, Idaho Code.
[63-2503, added 1986, ch. 193, sec. 2, p. 489; am. 2006, ch. 60, sec. 2, p. 187; am. 2008, ch. 20, sec. 1, p. 31; am. 2013, ch. 5, sec. 1, p. 13.]
No wholesaler may be issued a permit or otherwise engage in and carry on business as a wholesaler of cigarettes until he first shall qualify under the rules promulgated by the state tax commission with reference to financial ability. Such restriction shall not apply to any wholesaler lawfully in business on the date this act is passed and approved. In addition no wholesaler’s permit shall be issued unless:
(1) in the case of a natural person, he be an Idaho resident, or
(2) in case of a corporation, it is an Idaho corporation or a foreign corporation holding a certificate of authority issued by the secretary of state and maintaining a registered office and registered agent pursuant to the Idaho business corporation act, chapter 1, title 30, Idaho Code.
[63-2504, added 1974, ch. 211, sec. 4, p. 1548; am. 1986, ch. 193, sec. 3, p. 489; am. 1998, ch. 43, sec. 1, p. 188.]
(1) It shall be unlawful for any person to transport into, export from or receive in this state or carry or move from place to place within this state, except as provided in this section, any cigarettes which do not have affixed thereto Idaho stamps.
(2) Any wholesaler engaged in interstate business, who shall furnish surety bond in a sum satisfactory to the state tax commission, shall be permitted to set aside such part of his stock as may be necessary for the conduct of such interstate business without affixing the stamps required by this chapter. Every wholesaler, at the time of shipping or delivering cigarettes, shall make a duplicate invoice, showing complete details of the sale, and shall retain the duplicate for inspection by the state tax commission or its agent.
(3) Except as provided in subsection (4) of this section, every person who shall transport cigarettes not stamped as required in this chapter upon the public highways, waterways, airways, roads or streets of this state shall have in his actual possession invoices or delivery tickets for such cigarettes which shall show:
(a) The true name and the complete and exact address of the consignor or seller; and
(b) The true name and complete and exact address of the consignee or purchaser; and
(c) The quantity and brands of the cigarettes transported; and
(d) Either:
(i) The true name and complete and exact address of the wholesaler licensed under this chapter who has or shall assume payment of taxes under this chapter; or
(ii) The true name and complete and exact address of the person authorized to receive unstamped cigarettes by the law of the state or foreign country to which the cigarettes are destined.
(4) Any common or contract carrier, as defined in 18 U.S.C. section 2341, who transports cigarettes under a proper bill of lading or freight bill which states the quantity, source and destination of such cigarettes and who is without notice to itself or to any of its agents or employees that said cigarettes are not stamped as required in this chapter shall be deemed to have complied with this section.
[63-2505, added 1974, ch. 211, sec. 5, p. 1548; am. 1995, ch. 43, sec. 1, p. 64.]
(1) On and after July 1, 2005, a tax upon the purchase, storage, use, consumption, handling, distribution or wholesale sale of cigarettes is hereby imposed at the rate of fifty-seven cents (57¢) per package of twenty (20) cigarettes, which tax shall be paid by the wholesaler and collected by the state tax commission. Beginning July 1, 2014, and every year thereafter, of the tax collected pursuant to this subsection, three million three hundred fifteen thousand dollars ($3,315,000) shall be subject to appropriation to the public school income fund to be utilized to develop and implement school safety improvements and to facilitate and provide substance abuse prevention programs in the public school system and the Idaho bureau of educational services for the deaf and the blind. Beginning July 1, 2014, and every year thereafter, of the tax collected pursuant to this subsection, three million three hundred fifteen thousand dollars ($3,315,000) shall be subject to appropriation to the department of juvenile corrections for distribution to the counties to be utilized for county juvenile probation services.
(2) Appropriated funds shall be distributed quarterly to the counties based upon the percentage the population of the county bears to the population of the state as a whole.
(3) The remaining moneys collected and those moneys not appropriated under the provisions of this section shall be distributed as specified in section 63-2520, Idaho Code.
[63-2506, added 1974, ch. 211, sec. 6, p. 1548; am. 1987, ch. 254, sec. 1, p. 517; am. 1994, ch. 447, sec. 2, p. 1432; am. 1995, ch. 160, sec. 1, p. 638; am. 1995, ch. 368, sec. 2, p. 1282; repealed 1995, ch. 368, sec. 4, p. 1283; new section added 1995, ch. 368, sec. 5, p. 1283; am. 1997, ch. 268, sec. 4, p. 771; am. 2003, ch. 362, sec. 1, p. 966; am. 2005, ch. 404, sec. 1, p. 1377; am. 2014, ch. 115, sec. 2, p. 329; am. 2018, ch. 94, sec. 1, p. 201.]
The state tax commission is hereby authorized and required to design and have printed Idaho cigarette stamps which are to be affixed to each individual package of cigarettes, which stamps shall be in the amount of the tax imposed by section 63-2506, Idaho Code. Except as otherwise prescribed by the state tax commission, each stamp shall be affixed in such a manner that it cannot be removed without being mutilated or destroyed. Stamps may be obtained only from the state tax commission, or its authorized agent, and only by a holder of a valid and current wholesaler permit.
[63-2507, added 1974, ch. 211, sec. 7, p. 1548; am. 1986, ch. 193, sec. 4, p. 490; am. 1995, ch. 43, sec. 2, p. 65.]
No cigarettes may be purchased, sold, distributed, stored or held on hand or in possession of any person without Idaho stamps having been affixed thereto, within a reasonable time after receipt thereof.
No person may import cigarettes, nor hold or have in possession unstamped cigarettes, unless he shall have qualified under this act as a wholesaler and obtained a permit, as provided for in section 63-2503, Idaho Code.
[63-2508, added 1974, ch. 211, sec. 8, p. 1548; am. 1986, ch. 193, sec. 5, p. 490.]
On and after July 1, 2005, wholesalers shall be allowed as compensation for affixing stamps, three and three-tenths percent (3.3%) of the face value of the stamps purchased by them.
[63-2509, added 1974, ch. 211, sec. 9, p. 1548; am. 2003, ch. 362, sec. 2, p. 966; am. 2005, ch. 404, sec. 2, p. 1378.]
(1) The cigarette taxes imposed in section 63-2506, Idaho Code, are due from the person required under section 63-2508, Idaho Code, to affix stamps, and are payable to the state tax commission monthly, together with the return required in this section.
(2) Every person owing cigarette taxes and every wholesaler shall file a return with the state tax commission in such form as the commission shall prescribe. The return shall report all taxes due regarding cigarettes received during the month or other reporting period, approved by the state tax commission, to which the return relates. The return shall contain such other information as the state tax commission shall require, and shall be signed by the person required to file the return or by such person’s duly authorized agent. The return shall be filed on or before the twentieth day of the month following the end of the taxable period to which the return relates.
(3) The amount allowed as compensation for affixing stamps under section 63-2509, Idaho Code, shall be separately stated on the return as a credit against taxes due on the return.
(4) In addition to reporting the tax due as provided in this section, the return shall provide an accounting of all cigarette stamps acquired, held, and affixed by the wholesaler. The return shall include:
(a) The number of stamps which were held at the beginning of the reporting period and were not affixed to packages;
(b) The number of stamps acquired during the reporting period;
(c) The number of stamps affixed to packages during the reporting period;
(d) The number of unaffixed stamps held at the end of the reporting period; and
(e) The number, if any, of stamps lost or destroyed. If stamps are lost or destroyed, a statement describing the circumstances giving rise to the loss or destruction shall accompany the return.
(5) In the event that any stamps obtained by a wholesaler are lost, destroyed, or otherwise unaccounted for, the wholesaler shall be liable for an amount of tax equal to the tax on the number of cigarettes to which such stamps would have been affixed, unless the wholesaler can establish, by clear and convincing evidence, that a specific number of stamps were actually destroyed or mutilated in such a manner as to render them unusable.
(6) In the event that a wholesaler or any other person in possession of unused cigarette stamps shall cease doing business as a wholesaler of cigarettes, such wholesaler or other person shall return all unused stamps to the state tax commission or shall be liable for an amount of tax equal to the tax on the number of cigarettes to which such stamps would have been affixed.
(7) A wholesaler may claim a credit against taxes due on the tax return for taxes previously paid on cigarettes, which after stamps are affixed, become unmarketable and are returned to the manufacturer. When such return is verified in such manner as the state tax commission may, by rule provide, the credit applies to the tax return for the month in which the verification occurs; except that, any amount of credit exceeding the tax due on the tax return may be carried forward to the succeeding tax return, in chronological order until exhausted.
(8) Taxes paid on cigarettes sold on or after January 1, 2000, on accounts later found to be worthless and actually charged-off may be credited upon a subsequent payment of the tax on cigarettes or, if no such tax is due, refunded. If all or part of such an account is thereafter collected, the tax shall be paid based upon the proportion of the amount collected.
[63-2510, as added by 1988, ch. 224, sec. 2, p. 430; am. 1991, ch. 2, sec. 1, p. 13; am. 1994, ch. 43, sec. 1, p. 71; am. 2000, ch. 163, sec. 2, p. 413.]
(1) At the time an application for a wholesaler’s license or permit, under section 63-2503, Idaho Code, is submitted to the state tax commission, the applicant shall file a bond, in such form as the commission may determine, conditioned upon faithful performance of all of the requirements of this chapter. The total amount of the bond shall be fixed by the commission and shall be the greater of twice the estimated average tax liability for the reporting period for which the applicant will be required to file a return, under section 63-2510, Idaho Code, or the value of stamps in the wholesaler’s inventory including the value of stamps ordered but not yet received. The total amount required to be secured by the bond may be increased or reduced by the commission at any time. Any bond given in conjunction with the provisions of this section shall be a continuing instrument, and shall cover the period during which the license or permit in connection with which the bond is given is in effect, unless the surety on the bond is released or discharged by the commission. Any surety on any bond furnished by a wholesaler shall be discharged only by the commission. Any surety on any bond furnished by a wholesaler shall be discharged and released by the commission from, any and all, liability to the state, accruing on the bond after the expiration of thirty (30) days from the date upon which the surety shall have lodged with the commission a written request to be released and discharged. The request shall not operate to relieve, release, or discharge the surety from any liability accrued, or which will accrue, before the expiration of the thirty (30) day period. The commission shall promptly, upon receipt of the notice of the request, notify the wholesaler and require him to furnish a new bond. Unless the wholesaler files a new bond with the commission in the amount provided in this section before the expiration of the thirty (30) day period, the commission shall immediately cancel the wholesaler’s license or permit.
(2) In the event that any taxes due under the provisions of this chapter are not paid by a wholesaler, and the unpaid taxes are assessed by the commission, and after all avenues for appeal of the assessment have been exhausted, the commission may apply the unpaid tax liability against the bond required in this section.
(3) A wholesaler may pay full value for stamps in advance in lieu of posting a bond. A wholesaler that has posted a bond may petition for release from the bond requirement after having filed timely and fully paid cigarette tax returns, as provided in section 63-2510, Idaho Code, for a period of not less than twelve (12) months. Upon such petition from the wholesaler, the commission will review the cigarette tax return filing and payment record of the wholesaler and, if determined necessary, within sixty (60) days examine the books and records of the wholesaler. The commission will, no later than ninety (90) days from the date of receipt of the petition, advise the wholesaler in writing of its determination and the reasons therefor. If the wholesaler wishes to seek a redetermination of the commission’s decision, a petition for redetermination may be filed as provided in section 63-3045, Idaho Code.
(4) If at any time after release of a bond requirement the wholesaler becomes delinquent for any period in the filing of tax returns or the payment of the tax as required in section 63-2510, Idaho Code, the commission may make immediate demand that the return be filed or the payment be tendered and that a bond be filed as set forth in subsection (1) of this section. Any wholesaler against whom such demand is made may petition for a redetermination as provided in section 63-3045, Idaho Code, except that the petition must be filed no later than ten (10) days after service upon the person of notice thereof. If a petition for redetermination is not filed within the ten (10) day period, the determination shall become final and the commission shall issue a jeopardy assessment as provided in section 63-3630, Idaho Code, and thereafter may:
(a) Seize all Idaho cigarette stamps in the possession of the wholesaler which are not applied to cigarettes;
(b) File a lien of record upon the cigarettes held in inventory by the wholesaler or seize such cigarettes;
(c) Revoke the wholesaler’s cigarette permit as provided in section 63-2503, Idaho Code, except that no notice or hearing shall be required; and
(d) Notify the manufacturers of the cigarettes held in inventory by the wholesaler of any or all actions so taken.
(5) A wholesaler who acquires all cigarettes with tax stamps affixed at the time of acquisition may petition the state tax commission for waiver of the bond required in subsection (1) of this section. Upon receipt of evidence establishing that the wholesaler is not required to pay cigarette taxes under this chapter because the wholesaler exclusively purchases cigarettes with stamps affixed by another wholesaler, the state tax commission may waive the requirement for a bond. Any such waiver is conditioned upon the wholesaler’s continuing qualification for the waiver under this subsection.
[63-2510A, added 1988, ch. 224, sec. 3, p. 430; am. 1990, ch. 41, sec. 1, p. 64; am. 1992, ch. 49, sec. 4, p. 153; am. 2006, ch. 60, sec. 6, p. 189; am. 2016, ch. 28, sec. 1, p. 69.]
Each wholesaler of cigarettes shall keep and preserve for a period of four (4) years, records showing the purchase and sale of cigarettes, as well as separate invoices and records of stamps purchased. All records and stocks of cigarettes on hand shall be open to inspection by the state tax commission or authorized employees at all reasonable times. Additionally, the state tax commission may require reports to be submitted to it from time to time concerning the purchase and sale of cigarettes and stamps.
All retailers shall permit the state tax commission or authorized employees to inspect all cigarettes on hand.
[63-2511, added 1974, ch. 211, sec. 11, p. 1548; am. 1986, ch. 193, sec. 6, p. 490; am. 2014, ch. 230, sec. 1, p. 590.]
The penalties herein prescribed are not intended as exclusive, but are in addition and supplemental to any and all other existing remedies and procedures prescribed by law for the enforcement of the revenue laws of this state.
(a) Any person who shall forge or counterfeit an Idaho cigarette stamp shall be guilty of a felony and upon conviction thereof shall be punished in accordance with the provisions of the criminal code, and additionally shall be ineligible to have issued him or to hold any state license or permit to sell or vend goods or merchandise of any kind or type, or to be employed by or work in any manner for any person who sells cigarettes for a period of five (5) years thereafter.
(b) The possession, purchase or consumption by any person of more than ten (10) packages of cigarettes without Idaho cigarette stamps is prohibited. Any person who possesses, purchases or consumes more than ten (10) packages of cigarettes without Idaho cigarette stamps shall be subject to a civil penalty equal to three (3) times the amount of tax due for each full or partial package of unstamped cigarettes in excess of ten (10), but in no event shall the penalty be less than fifty dollars ($50.00). Such penalty shall be assessed and collected, as provided in section 63-2516, Idaho Code.
The penalty imposed by this subsection shall apply to persons acquiring cigarettes from internet, catalog, telephone and facsimile retailers.
(c) All violations of the provisions of this chapter for which criminal penalties are not otherwise imposed shall be misdemeanors and punishable in accordance with the provisions of the criminal code.
(d) The provisions of this section shall be applicable to all proceedings pending before the state tax commission, the board of tax appeals, or the courts of this state on the effective date of this act.
[63-2512, added 1974, ch. 211, sec. 12, p. 1548; am. 1976, ch. 175, sec. 2, p. 637; am. 1986, ch. 193, sec. 7, p. 489; am. 1988, ch. 319, sec. 1, p. 977; am. 1990, ch. 17, sec. 1, p. 28; am. 2006, ch. 60, sec. 4, p. 188; am. 2006, ch. 196, sec. 1, p. 610.]
Any unstamped cigarettes held, owned, possessed or in control of any person for a period of time longer than necessary to affix Idaho stamps, are hereby declared to be contraband goods, except as authorized under subsection (b) of section 63-2512, Idaho Code, and may be seized by the state tax commission, or an employee of the state tax commission, or any peace officer, when directed by the state tax commission, without a warrant. Any vehicle, not a common carrier operating in interstate commerce, used in violating this act, shall likewise be subject to confiscation. Said cigarettes or vehicles seized shall be offered for sale. Fifteen (15) days’ notice of the sale shall be given; net proceeds from the sale shall be deposited in the general fund. The state tax commission shall require the purchaser at the sale to affix the proper amount of tax stamps to cigarette packages.
[63-2513, added 1974, ch. 211, sec. 13, p. 1548; am. 1976, ch. 175, sec. 1, p. 637; am. 1991, ch. 2, sec. 2, p. 14.; am. 2011, ch. 2, sec. 2, p. 5.]
When the state tax commission has reason to believe that any cigarettes are being kept, sold, offered for sale or given away in violation of this act, an employee, delegate or deputy of the state tax commission, or any peace officer, may make affidavit of such fact, describing the place or thing to be searched, before a magistrate, or such official shall issue a search warrant directed to the sheriff, constable, police officer, or employee delegate or deputy of the state tax commission commanding him to search any place or vehicle that may be designated in the affidavit and search warrant, and to seize any cigarettes so possessed as well as any article, machine or vehicle wherein the same are found, kept or stored as contraband and to arrest the person in control or possession thereof for violation of the provisions of section 63-2512, Idaho Code.
[63-2514, added 1974, ch. 211, sec. 14, p. 1548; am. 1990, ch. 17, sec. 2, p. 29.]
When it is shown to the satisfaction of the state tax commission that there was no intention to violate any of the provisions of this act, the commission may return any property confiscated to the party and permit the party to affix the proper amount of stamps to any cigarettes, provided additionally the party pays all costs incurred and a penalty of twenty-five per cent (25%) of the amount of tax as well as interest on the total value of the stamps required to be purchased at one per cent (1%) for each month or portion thereof, from the date of the initial incident or occurrence of violations.
[63-2515, added 1974, ch. 211, sec. 15, p. 1548.]
In addition to the enforcement and penalty provisions in this act otherwise provided, the deficiency in tax and notice of deficiency as well as the collection and enforcement procedures provided by the Idaho income tax act, sections 63-3030A, 63-3038, 63-3039, 63-3040, 63-3042, 63-3043, 63-3044, 63-3045, 63-3045A, 63-3045B, 63-3046, 63-3047, 63-3048 through 63-3065, 63-3068, 63-3071, 63-3073, 63-3075 and 63-3078, Idaho Code, shall apply and be available to the state tax commission for enforcement of the provisions of this act and the assessment and collection of any amounts due, and said sections shall for this purpose be considered a part of this act and wherever liens or any other proceedings are defined as income tax liens or proceedings they shall, when applied in enforcement or collection under this act, be described as cigarette tax liens and proceedings. Any reference to taxable year in the income tax act shall be, for the purposes of this act, considered a taxable period.
The state tax commission may be made a party defendant in an action at law or in equity by any person aggrieved by the unlawful seizure or sale of his property, or in any suit for refund or to recover an overpayment, but only the state of Idaho shall be responsible for any final judgment secured against the state tax commission, and said judgment shall be paid as provided for payment of cigarette tax refunds.
[63-2516, added 1974, ch. 211, sec. 16, p. 1548; am. 1986, ch. 193, sec. 8, p. 491; am. 2007, ch. 10, sec. 7, p. 19; am. 2014, ch. 230, sec. 2, p. 590; am. 2018, ch. 48, sec. 1, p. 124.]
A deficiency assessed and due and payable by a person not within the state may be prosecuted against such person by an action in any court in this state having jurisdiction of the subject matter, and the court shall have personal jurisdiction of such a person in any such action for taxes imposed and assessed under this act. Notice shall be given such person by personal service without the state or by publication. In the event such notice shall be by publication, notice shall also be mailed by registered or certified mail or secure electronic communication to such person at his last known address.
[63-2517, added 1974, ch. 211, sec. 17, p. 1548; am. 2026, ch. 153, sec. 4, p. 698.]
If the state tax commission determines that any person is engaged in business as a wholesaler without holding a valid permit or license, it may proceed, by injunction or other legal process, to prevent the continuance of the business. An injunction, enjoining the continuance of the business by such person, may be granted without bond by any court or judge authorized by law to grant injunctions.
[63-2519, added 1988, ch. 224, sec. 5, p. 430.]
Revenues received from the taxes imposed by this chapter, and any revenues received from licenses, permits, penalties, interest, or deficiency additions, shall be distributed by the state tax commission as follows:
(a) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized under this chapter by the state tax commission shall be paid through the state refund account, and those moneys are continuously appropriated.
(b) The balance remaining with the state treasurer after deducting the amount described in subsection (a) of this section shall be distributed as follows:
(1) Five million dollars ($5,000,000) shall be distributed to the permanent building fund created by section 57-1108, Idaho Code.
(2) Three hundred sixty thousand dollars ($360,000) shall be distributed to the central cancer registry fund and is subject to appropriation as provided for in chapter 35, title 67, Idaho Code.
(3) Three hundred thousand dollars ($300,000) shall be distributed to the cancer control fund created by section 57-1702, Idaho Code, and is subject to appropriation as provided for in chapter 35, title 67, Idaho Code.
(4) All remaining moneys shall be distributed in the following priority order:
(i) Four million seven hundred thousand dollars ($4,700,000) to be used for the purpose of paying the state match as required for federal funds committed to pay the annual scheduled GARVEE debt service until such time as the Idaho housing and finance association certifies that any such bonds or notes are adequately paid for, in accordance with chapter 62, title 67, Idaho Code;
(ii) Five million dollars ($5,000,000) to the secondary aquifer planning, management and implementation fund as established in section 42-1780, Idaho Code. Such moneys shall be used for statewide aquifer stabilization; and
(iii) All remaining moneys following distributions pursuant to subparagraphs (i) and (ii) of this paragraph shall be distributed to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code.
[63-2520, added 1974, ch. 211, sec. 20, p. 1548; am. 1975, ch. 57, sec. 1, p. 121; am. 1976, ch. 51, sec. 15, p. 179; am. 1978, ch. 182, sec. 1, p. 413; am. 1979, ch. 33, sec. 2, p. 49; am. 1980, ch. 1, sec. 1, p. 3; am. 1982, ch. 49, sec. 1, p. 74; am. 1984, ch. 146, sec. 1, p. 341; am. 1986, ch. 73, sec. 10, p. 210; am. 1987, ch. 254, sec. 2, p. 517; am. 1989, ch. 345, sec. 1, p. 872; am. 1994, ch. 45, sec. 2, p. 73; am. 1994, ch. 180, sec. 155, p. 522; am. 2000, ch. 60, sec. 2, p. 132; am. 2003, ch. 362, sec. 3, p. 967; am. 2005, ch. 404, sec. 3, p. 1378; am. 2006, ch. 311, sec. 11, p. 967; am. 2009, ch. 344, sec. 2, p. 1078; am. 2014, ch. 115, sec. 3, p. 329; am. 2014, ch. 337, sec. 2, p. 834; am. 2017, ch. 322, sec. 12, p. 850; am. 2023, ch. 139, sec. 1, p. 383; am. 2024, ch. 237, sec. 27, p. 837.]
(1) Where there has been an overpayment of any cigarette tax imposed by this chapter, the amount of such overpayment shall be credited against any taxes then due to the state tax commission from the taxpayer and any balance of such excess shall be refunded to the taxpayer.
(2) No such credit or refund of taxes, penalties or interest paid, shall be allowed or made after three (3) years from the time the return was filed, unless before the expiration of such period a claim therefor is filed by the taxpayer with the commission.
(3) Interest shall be allowed on the amount of such credits or refunds at the rate provided in section 63-3045, Idaho Code, from the date such tax was paid.
(4) If the state tax commission denies a claim for refund in whole or in part, it shall provide notice of the denial and the claimant may petition the state tax commission for a redetermination of the denial in the manner provided in section 63-3045, Idaho Code. Appeal of a tax commission decision denying in whole or in part a claim for refund shall be made in accordance with and within the time limits prescribed in section 63-3049, Idaho Code.
[63-2521, added 2001, ch. 52, sec. 2, p. 94.]
Commencing March 1, 1987, and ending July 1, 1987, in addition to the tax imposed by section 63-2506, Idaho Code, there is hereby imposed a tax upon the purchase, storage, use, consumption, handling, distribution or wholesale sale of cigarettes at the rate of 89/200 of $.01 for each cigarette, which tax shall be paid by the wholesaler and collected by the state tax commission.
The moneys collected under this section shall be deposited into the general account.
[63-2522, added 1987, ch. 254, sec. 3, p. 518.]
It shall be unlawful for any person:
(1) To sell or distribute in this state; to acquire, hold, own, possess or transport, for sale or distribution in this state; or to bring into this state for sale or distribution in this state:
(a) Any cigarettes the package of which:
(i) Bears any statement, label, stamp, sticker or notice indicating that the manufacturer did not intend the cigarettes to be sold, distributed or used in the United States including, but not limited to, labels stating "For Export Only," "U.S. Tax-Exempt," "For Use Outside U.S." or similar wording; or
(ii) Does not comply with:
All requirements imposed by or pursuant to federal law regarding warnings and other information on packages of cigarettes manufactured, packaged or imported for sale, distribution or use in the United States including, but not limited to, the precise warning labels specified in the federal cigarette labeling and advertising act, 15 U.S.C. section 1333; and
All federal trademark and copyright laws;
(b) Any cigarettes imported into the United States in violation of section 5754 of the Internal Revenue Code as defined in section 63-3004, Idaho Code, or any other federal law, or implementing federal regulations;
(c) Any cigarettes that such person otherwise knows or has reason to know the manufacturer did not intend to be sold, distributed or used in the United States; or
(d) Any cigarettes for which there has not been submitted to the secretary of the U.S. department of health and human services the list or lists of the ingredients added to tobacco in the manufacture of such cigarettes required by the federal cigarette labeling and advertising act, 15 U.S.C. section 1335a;
(2) To alter the package of any cigarettes, prior to sale or distribution to the ultimate consumer, so as to remove, conceal or obscure:
(a) Any statement, label, stamp, sticker or notice described in subparagraph (1)(a)(i) of this section;
(b) Any health warning that is not specified in, or does not conform with the requirements of, the federal cigarette labeling and advertising act, 15 U.S.C. section 1333; or
(3) To affix any stamp required pursuant to chapter 25, title 63, Idaho Code, to the package of any cigarettes described in subsection (1) of this section or altered in violation of subsection (2) of this section.
[63-2523, added 2000, ch. 351, sec. 1, p. 1179; am. 2001, ch. 40, sec. 1, p. 76.]
Any person that violates or fails to comply with any of the provisions of this chapter or rules promulgated pursuant thereto shall be punishable by a fine of not to exceed one thousand dollars ($1,000), or imprisonment in the county jail for not more than one (1) year, or by both such fine and imprisonment.
[63-2525, added 2000, ch. 351, sec. 1, p. 1180.]
(1) The state tax commission may revoke or suspend the permit issued to any person pursuant to chapter 25, title 63, Idaho Code, in accordance with procedures set forth in the Idaho administrative procedure act. The state tax commission may, in addition to the suspension or revocation of such permit, assess a civil penalty to be paid by such permittee in an amount not to exceed the greater of five hundred percent (500%) of the retail value of the cigarettes involved or five thousand dollars ($5,000), upon finding a violation of any of the provisions of this chapter by such permittee. Assessment of a civil penalty hereunder shall be made in the same manner as provided in section 63-2516, Idaho Code, for assessing a tax under this chapter.
(2) Cigarettes that are acquired, held, owned, possessed, transported in, imported into, or sold or distributed in this state in violation of the provisions of this chapter, shall be deemed contraband under section 63-2513, Idaho Code, and shall be subject to seizure and forfeiture as provided therein. Provided however, notwithstanding the provisions of section 63-2515, Idaho Code, all such cigarettes so seized and forfeited shall be destroyed and shall not be subject to resale. Such cigarettes shall be deemed contraband whether the violation of this chapter is knowing or otherwise.
[63-2526, added 2000, ch. 351, sec. 1, p. 1180.]
(1) It shall be the duty of the state tax commission to administer the provisions of this chapter.
(2) For the purpose of administering the provisions of this chapter, the state tax commission may share information with, and request information from, any federal agency and any agency of any other state or any local agency thereof.
(3) In addition to any other remedy provided by law, any person may bring an action for appropriate injunctive or other equitable relief for a violation of this chapter; actual damages, if any, sustained by reason of the violation; and, as determined by the court, interest on the damages from the date of the complaint, taxable costs, and reasonable attorney’s fees. If the court finds that the violation is flagrant, it may increase recovery to an amount not in excess of three (3) times the actual damages sustained by reason of the violation.
[63-2527, added 2000, ch. 351, sec. 1, p. 1181.]
The definitions set forth in section 63-2502, Idaho Code, shall apply to the provisions of this chapter. In addition, as used in this act:
(1) "Commission" means the Idaho state tax commission.
(2) "Importer" means any person in the United States to whom nontaxpaid cigarettes manufactured in a foreign country, Puerto Rico, the Virgin Islands or a possession of the United States are shipped or consigned; any person who removes cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse; and any person who smuggles or otherwise unlawfully brings cigarettes into the United States.
(3) "Manufacturer" means any person who manufactures cigarettes by any method of preparing, processing or manipulating tobacco, except for his own personal consumption or use.
(4) "Person" means an individual, partnership, corporation or any other business or legal entity.
[63-2528, added 2000, ch. 351, sec. 1, p. 1181.]
(1) This act does not apply to:
(a) Cigarettes imported or brought into the United States for personal use; or
(b) Cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C. section 1555(b) and any implementing regulations. Provided however, that this chapter shall apply to any such cigarettes that are brought back into the customs territory for resale within the customs territory.
(2) The penalties provided in this chapter are in addition to any other penalties imposed under other law.
[63-2529, added 2000, ch. 351, sec. 1, p. 1181.]
As used in this act:
(1) "Tobacco products" shall mean any cigars, cheroots, stogies, smoking tobacco (including granulated, plug, cut, crimp cut, ready rubbed and any other kinds and forms of tobacco suitable for smoking in a pipe or cigarette), chewing tobacco (including cavendish, twist, plug, scrap and any other kinds and forms of tobacco suitable for chewing) and snuff, however prepared; and shall include any other articles or products made of tobacco except cigarettes;
(2) "Manufacturer" means a person who manufactures and sells tobacco products;
(3) "Distributor" means (a) any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from without the state any tobacco products for sale, (b) any person who makes, manufactures, or fabricates tobacco products in this state for sale in this state, (c) any person engaged in the business of selling tobacco products without this state who ships or transports tobacco products to retailers in this state, to be sold by those retailers;
(4) "Subjobber" means any person, other than a manufacturer or distributor, who buys tobacco products from a distributor and sells them to persons other than the ultimate consumers;
(5) "Retailer" means any person engaged in the business of selling tobacco products to ultimate consumers;
(6) "Sale" means any transfer, exchange, or barter, in any manner or by any means whatsoever, for a consideration, and includes and means all sales made by any person. It includes a gift by a person engaged in the business of selling tobacco products, for advertising, as a means of evading the provisions of this chapter, or for any other purposes whatsoever;
(7) "Wholesale sales price" means the established price for which a manufacturer or any person sells a tobacco product to a distributor that is not a related person as defined in section 267 of the Internal Revenue Code, exclusive of any discount or other reduction;
(8) "Business" means any trade, occupation, activity, or enterprise engaged in for the purpose of selling or distributing tobacco products in this state;
(9) "Place of business" means any place where tobacco products are manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane or train;
(10) "Retail outlet" means each place of business from which tobacco products are sold to consumers;
(11) "Commission" means the Idaho state tax commission.
[63-2551, added 1972, ch. 289, sec. 1, p. 725; am. 2008, ch. 20, sec. 2, p. 31; am. 2011, ch. 2, sec. 3, p. 5.]
There is levied and there shall be collected a tax upon the sale, use, consumption, handling, or distribution of all tobacco products in this state at the rate of thirty-five percent (35%) of the wholesale sales price of such tobacco products; provided, however, that the combined tax on a cigar imposed by this section and section 63-2552A, Idaho Code, shall not exceed fifty cents ($0.50) per cigar. Such tax shall be imposed at the time the distributor:
(1) Brings, or causes to be brought, into this state from without the state tobacco products for sale;
(2) Makes, manufactures, or fabricates tobacco products in this state for sale in this state; or
(3) Ships or transports tobacco products to retailers in this state, to be sold by those retailers.
[63-2552, added 1972, ch. 289, sec. 2, p. 725; am. 1974, ch. 173, sec. 1, p. 1432; am. 2023, ch. 291, sec. 1, p. 882.]
(1) In addition to the tax imposed in section 63-2552, Idaho Code, there is levied and there shall be collected an additional tax upon the sale, use, consumption, handling, or distribution of all tobacco products in this state at the rate of five percent (5%) of the wholesale sales price of such tobacco products; provided, however, that the combined tax on a cigar imposed by this section and section 63-2552, Idaho Code, shall not exceed fifty cents ($0.50) per cigar. Such tax shall be imposed at the time the distributor:
(a) Brings, or causes to be brought, into this state from without the state tobacco products for sale;
(b) Makes, manufactures, or fabricates tobacco products in this state for sale in this state; or
(c) Ships or transports tobacco products to retailers in this state to be sold by those retailers.
(2) Fifty percent (50%) of the tax collected pursuant to this section shall be subject to appropriation to the public school income fund to be utilized to develop and implement school safety improvements and to facilitate and provide substance abuse prevention programs in the public school system and the Idaho bureau of educational services for the deaf and the blind, less two hundred thousand dollars ($200,000) that shall be remitted annually to the Idaho state police to increase toxicology lab capacity in the bureau of forensic services for drug testing of juveniles, and less eighty thousand dollars ($80,000) that shall be remitted to the commission on Hispanic affairs to be used for substance abuse prevention efforts in collaboration with the state department of education. Fifty percent (50%) of the tax collected pursuant to this section shall be subject to appropriation to the department of juvenile corrections for distribution quarterly to the counties to be utilized for county juvenile probation services, based on the percentage the population of the county bears to the population of the state as a whole. The moneys remitted to the Idaho state police shall be reviewed annually and any money in excess to the operations needs of the laboratory for juvenile drug testing will be deposited in the public school income fund for substance abuse prevention programs in the public school system. The laboratory may utilize this increased toxicology capacity for adult drug testing to the extent that timely testing for juveniles is not adversely impacted.
[63-2552A, added 1994, ch. 447, sec. 3, p. 1432; am. 1995, ch. 160, sec. 2, p. 638; am. 1995, ch. 368, sec. 3, p. 1283; repealed 1995, ch. 368, sec. 4, p. 1283; new section added 1995, ch. 368, sec. 6, p. 1284; am. 1996, ch. 261, sec. 4, p. 861; am. 1996, ch. 261, sec. 5, p. 861; am. 1997, ch. 268, sec. 5, p. 771; am. 2000, ch. 469, sec. 131, p. 1593; am. 2014, ch. 325, sec. 2, p. 808; am. 2018, ch. 94, sec. 2, p. 202; am. 2023, ch. 291, sec. 2, p. 882.]
Any person who does not hold a tobacco products tax permit who possesses, purchases or consumes tobacco products upon which tax imposed by this chapter has not been paid, including tobacco products sold by internet, catalog, telephone and facsimile sellers, is liable for the taxes imposed by sections 63-2552 and 63-2552A, Idaho Code, to be reported and paid as required in section 63-2560, Idaho Code.
[63-2552B, added 2008, ch. 20, sec. 3, p. 32.]
It is the intent and purpose of this chapter to levy a tax on all tobacco products sold, used, consumed, handled, or distributed within this state and to collect the tax from the distributor as defined in section 63-2551. It is the further intent and purpose of this chapter to impose the tax only once but nothing in this chapter shall be construed to exempt any person taxable under any other law or under any other tax imposed by the state of Idaho.
[63-2553, added 1972, ch. 289, sec. 3, p. 725.]
No person shall engage in the business of a distributor or subjobber of tobacco products at any place of business without first having received from the commission a permit as provided in section 63-2503 or 63-2504, Idaho Code.
[63-2554, added 1972, ch. 289, sec. 4, p. 725; am. 1991, ch. 2, sec. 3, p. 14; am. 2007, ch. 19, sec. 1, p. 29.]
Every distributor shall keep at each registered place of business complete and accurate records for that place of business, including itemized invoices, of tobacco products held, purchased, manufactured, brought in or caused to be brought in from without the state, or shipped or transported to retailers in this state, and of all sales of tobacco products made, except sales to the ultimate consumer.
These records shall show the names and addresses of purchasers, the inventory of all tobacco products on hand on July 1, 1972, and other pertinent papers and documents relating to the purchase, sale or disposition of tobacco products.
When a registered distributor sells tobacco products exclusively to the ultimate consumer at the address given in the certificate, no invoice of those sales shall be required, but itemized invoices shall be made of all tobacco products transferred to other retail outlets owned or controlled by that registered distributor. All books, records, and other papers and documents required by this section to be kept shall be preserved for a period of at least five (5) years after the date of the documents, as aforesaid, or the date of the entries thereof appearing in the records, unless the commission, in writing, authorizes their destruction or disposal at an earlier date. At any time during usual business hours, the commission, or its duly authorized agents or employees, may enter any place of business of a distributor, without a search warrant, and inspect the premises, the records required to be kept under this chapter, and the tobacco products contained therein, to determine whether or not all the provisions of this chapter are being fully complied with. If the commission, or any of its agents or employees, is denied free access or is hindered or interfered with in making such examination, the permit of the distributor at such premises shall be subject to revocation by the commission.
[63-2555, added 1972, ch. 289, sec. 5, p. 725; am. 2017, ch. 17, sec. 1, p. 29.]
Every person who sells tobacco products to persons other than the ultimate consumer shall render with each sale itemized invoices showing the seller’s name and address, the purchaser’s name and address, the date of sale, and all prices and discounts. He shall preserve legible copies of all such invoices for five (5) years from the date of sale.
[63-2556, added 1972, ch. 289, sec. 6, p. 725.]
Every retailer and subjobber shall procure itemized invoices of all tobacco products purchased. The invoices shall show the name and address of the seller and the date of purchase. The retailer and subjobber shall preserve a legible copy of each such invoice for five (5) years from the date of purchase. Invoices shall be available for inspection by the commission or its authorized agents or employees at the retailer’s or subjobber’s place of business.
[63-2557, added 1972, ch. 289, sec. 7, p. 725.]
Records of all deliveries or shipments of tobacco products from any public warehouse of first destination in this state shall be kept by the warehouse and be available to the commission for inspection. They shall show the name and address of the consignee, the date, the quantity of tobacco products delivered, and such other information as the commission may require. These records shall be preserved for five (5) years from the date of delivery of the tobacco products.
[63-2558, added 1972, ch. 289, sec. 8, p. 725.]
(1) Where tobacco products upon which the tax imposed by this chapter has been reported and paid, are shipped or transported by the distributor to distributors or retailers outside the state, to be sold by those distributors or retailers, or are returned to the manufacturer by the distributor or destroyed by the distributor, credit of such tax may be made to the distributor in accordance with rules prescribed by the commission.
(2) Taxes paid on tobacco products sold on or after January 1, 2000, on accounts later found to be worthless and actually charged-off may be credited upon a subsequent payment of the tax on tobacco products or, if no such tax is due, refunded. If all or part of such an account is thereafter collected, the tax shall be paid based upon the proportion of the amount collected.
[63-2559, added 1972, ch. 289, sec. 9, p. 725; am. 2000, ch. 163, sec. 1, p. 412; am. 2007, ch. 19, sec. 2, p. 30.]
(1) The taxes imposed hereunder shall be due and payable in monthly installments and remittance therefor shall be made on or before the twentieth day of the month next succeeding the end of the monthly period in which tax accrued. The taxpayer, on or before said twentieth day of said month, shall make out a return, upon such forms and setting forth such information as the tax commission may require, showing the amount of the tax for which he is liable for the preceding monthly period, and shall sign and transmit the same to the commission, together with a remittance for such amount in the form required.
(2) The state tax commission may by rule provide returns for periods of time other than monthly periods. Returns for such reporting periods, together with payment of the required taxes, shall be due on or before the twentieth day of the month following the end of the period to which the return relates.
[63-2560, added 1972, ch. 289, sec. 10, p. 725; am. 1990, ch. 17, sec. 3, p. 29; am. 2007, ch. 19, sec. 3, p. 30.]
This act may be cited as the "Tobacco Products Tax Act."
[63-2561, added 1972, ch. 289, sec. 11, p. 725.]
The additions, penalties and requirements provided by the Idaho income tax act, sections 63-3046, 63-3075, 63-3076 and 63-3077, Idaho Code, shall apply in the same manner and to the same extent to this act as to the Idaho income tax act and shall cover acts, omissions, and delinquencies under the Idaho income tax act and such additions, penalties and requirements shall, for this purpose, be described and be for acts, omissions, delinquencies and requirements under the Idaho tobacco products tax act.
[I.C., sec. 63-2562, as added by 1974, ch. 173, sec. 2, p. 1432.]
The collection and enforcement procedures provided by the Idaho income tax act, sections 63-3038, 63-3039, 63-3040, 63-3042 through 63-3045B, 63-3047 through 63-3065A, 63-3068, 63-3071, 63-3075 and 63-3078, Idaho Code, shall apply and be available to the state tax commission for the enforcement of this act and collection of any amounts due under this act and said sections shall, for this purpose, be considered part of this act and wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under this act, be described as tobacco products tax liens and proceedings. Any reference to taxable year in the income tax act shall be, for the purposes of this act, considered a taxable period.
The state tax commission may be made a party defendant in an action at law or in equity by any person aggrieved by the unlawful seizure or sale of his property, or in any suit for refund or to recover an overpayment, but only the state of Idaho shall be responsible for any final judgment secured against the state tax commission, and said judgment shall be paid or satisfied out of the tobacco products tax refund fund.
[63-2563, added 1974, ch. 173, sec. 3, p. 1432; am. 2007, ch. 10, sec. 8, p. 19; am. 2014, ch. 230, sec. 3, p. 591; am. 2018, ch. 48, sec. 2, p. 124.]
(1) The revenues received from the taxes imposed by section 63-2552, Idaho Code, and any penalties, interest, or deficiency additions, shall be distributed by the tax commission as follows:
(a) An amount of money shall be distributed to the state refund account, sufficient to pay current refund claims. All refunds authorized by the commission shall be paid through the state refund account, and those moneys are continuously appropriated.
(b) From the balance remaining with the state treasurer after deducting the amounts in subsection (a) of this section, all remaining moneys shall be remitted directly to the general fund of the state of Idaho and shall be remitted to that fund periodically, but no less frequently than quarterly.
[63-2564, added 1974, ch. 173, sec. 4, p. 1432; am. 1976, ch. 51, sec. 16, p. 180; am. 1986, ch. 73, sec. 11, p. 211; am. 2000, ch. 60, sec. 3, p. 133.]
(a) Where there has been an overpayment of any tobacco products tax imposed by this act, the amount of such overpayment shall be credited against any tobacco products tax then due from the taxpayer, and any balance of such excess shall be refunded to the taxpayer.
(b) The state tax commission is authorized and the state board of tax appeals is authorized to order the tax commission in proper cases to credit or remit, refund, and pay back all taxes and penalties erroneously or illegally assessed or collected, regardless of whether the same have been paid under protest, which claims for refund shall be certified to the state board of examiners by the state tax commission.
(c) No such credit or refund of taxes, penalties or interest paid, shall be allowed or made after three (3) years from the time the return was filed, unless before the expiration of such period a claim therefor is filed by the taxpayer with the commission.
(d) Interest shall be allowed on the amount of such credits or refunds at the rate provided in section 63-3045, Idaho Code, from the date such tax was paid.
(e) Appeal of a tax commission decision denying in whole or part a claim for refund shall be made in accordance with and within the time limits prescribed in section 63-3049, Idaho Code.
[I.C., sec. 63-2565, as added by 1974, ch. 173, sec. 5, p. 1432; am. 1981, ch. 290, sec. 11, p. 605.]
(1) In addition to the licenses and taxes now provided by law, each and every individual, firm, partnership, common law trust, corporation, association or other organization, now engaged or hereafter to engage in the generation, manufacture or production of electricity and electrical energy in the state of Idaho, through and by means of water power, for barter, sale, or exchange, and hereinafter referred to as the "producer," shall on or before the last day of each calendar month, render a statement to the state tax commission of the state of Idaho of all such electricity and electrical energy so generated, manufactured or produced by him or it in the state of Idaho, during the preceding calendar month and therewith pay a license tax of one-half mill per kilowatt hour on all such electricity and electrical energy so generated, manufactured or produced, except electricity and electrical energy generated or sold for use in manufacturing, mining, milling, smelting, refining and processing, as shown on such statement in the manner and within the time hereinafter provided.
(2) The state tax commission may by regulation provide for the filing of statements required in this section on a quarterly basis, in which case the statement shall be due on or before the last day of the calendar month following the end of the quarter to which the statement relates.
[(63-2701) 1931, (E.S.), ch. 3, sec. 1, p. 57; I.C.A., sec. 61-2201; am. 1949, ch. 248, sec. 1, p. 506; am. 1970, ch. 224, sec. 2, p. 631; am. 1986, ch. 91, sec. 1, p. 268.]
(1) Said license tax shall be remitted with the statement required under section 63-2701, Idaho Code, and paid to the state tax commission, which shall distribute all moneys as follows:
(2) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the state tax commission to be paid shall be paid through the state refund account, and those moneys are hereby continuously appropriated for that purpose. Such refunds shall be authorized for the purpose of repaying overpayments made under this chapter, for the purpose of repaying any tax, penalty, or interest illegally assessed or collected, or for the purpose of paying any judgement rendered against the state tax commission under the provisions of this chapter.
(3) The balance shall be distributed to the general account.
(4) Taxes not paid on the due date shall become delinquent and shall bear interest from said due date at the rate provided in section 63-3045, Idaho Code.
[(63-2702) 1931 (E.S.), ch. 3, sec. 2, p. 57; I.C.A., sec. 61-2202; am. 1971, ch. 63, sec. 1, p. 142; am. 1981, ch. 290, sec. 7, p. 602; am. 1986, ch. 73, sec. 12, p. 211; am. 1986, ch. 91, sec. 2, p. 268; am. 1987, ch. 260, sec. 3, p. 548.]
(1) If the tax commission determines that any amount due under this act has been paid more than once or has been erroneously or illegally collected or computed, the tax commission shall set forth that fact in its records and the excess amount paid or collected may be credited on any amount then due and payable to the tax commission from that person and any balance refunded to the person by whom it was paid or to his successors, administrators or executors. The tax commission is authorized and the state board of tax appeals authorized to order the tax commission in proper cases to credit or refund such amounts whether or not such payments have been paid under protest and certify such refund to the state board of examiners.
(2) No such credit or refund shall be allowed or made after three (3) years from the time the payment was made, unless before the expiration of such period a claim therefor is filed by the taxpayer.
(3) Interest shall be allowed on the amount of such credits or refunds at the rate provided in section 63-3045, Idaho Code, from the date such tax was paid.
[63-2702A, added 1987, ch. 260, sec. 4, p. 548.]
Every producer referred to in section 63-2701 engaged in the production, generation or manufacture of electricity or electrical energy, shall make and file with the tax commission of the state of Idaho, on forms prescribed by the state tax commission, a duly acknowledged and verified certificate which shall contain: a, the name under which the producer is transacting business in the state of Idaho; b, his or its post-office address and principal place of business within the state; c, the address and location of his or its production plants or stations in Idaho; d, the name and address of the managing agent; e, the names and addresses of the several persons composing any firm or partnership constituting the producer, and, if a corporation, the corporate name under which it is authorized to transact business and the names and addresses of its officers, directors, resident general agent and attorney in fact; f, certified copies of any papers necessary to show that such producer has complied with the laws of the state of Idaho in order to transact business in Idaho.
[(63-2703) 1931 (E.S.), ch. 3, sec. 3, p. 57; I.C.A., sec. 61-2203; am. 1971, ch. 63, sec. 2, p. 142.]
Every such producer shall render to the state tax commission of the state of Idaho on forms prescribed, prepared and furnished by the state tax commission, the statement required under section 63-2701, Idaho Code, sworn to by the manager, president, secretary or treasurer of such producer, showing the number of kilowatt hours of electricity and electrical energy produced, generated or manufactured by him or it in the state of Idaho during the period to which the tax statement relates through and by means of water power, and the number of kilowatt hours subject to the tax imposed by this chapter. For the purpose of measuring such electricity and electrical energy such producer shall keep and maintain at the point or points of production, a recording watt hour meter or meters, or other suitable instrument for measuring the electricity or electrical energy produced, of a type to be approved by the state tax commission, and, subject to rules and regulations prescribed by the state tax commission under this chapter, shall compute the number of kilowatt hours subject to the tax imposed by this chapter during each monthly period, such recordings and computations to be kept on file at the principal place of business of such producer within the state of Idaho and same together with the books and records of such producer shall be subject to the inspection of the state tax commission, their deputies or assistants, during reasonable business hours.
[(63-2704) 1931 (E.S.), ch. 3, sec. 4, p. 57; I.C.A., sec. 61-2204; am. 1949, ch. 248, sec. 2, p. 506; am. 1971, ch. 63, sec. 3, p. 142; am. 1986, ch. 91, sec. 3, p. 269.]
All electricity and electrical energy used for pumping water for irrigation purposes to be used on lands in the state of Idaho or for pumping water for drainage purposes on or from land in the state of Idaho is exempt from the provisions of this chapter, except in cases where the water so pumped is sold or rented to such irrigated lands: provided, the exemption here given shall accrue to the benefit of the consumer of such electricity or electrical energy: provided further, that the full amount of such license tax which would have been due from such producers of electricity and electrical energy, if such exemptions had not been made, shall be credited annually for the year in which the exemptions are made on the power bill to the consumer by the producer of such electricity and electrical energy, furnishing such power, and such producer shall include a statement of the amount of electricity and electrical energy exempted by this section, furnished by it for the purpose of pumping water for irrigation purposes on lands in the state of Idaho, or for the purpose of pumping water for drainage purposes on or from lands in the state of Idaho to the tax commission of the state of Idaho as a part of the statement required by section 63-2701, together with a statement of the credits made on the power bills to the consumers of such electricity and electrical energy for the pumping of water for irrigation to be used on lands in the state of Idaho, or for pumping water for drainage purposes on or from lands in the state of Idaho.
[(63-2705) 1931 (E.S.), ch. 3, sec. 5, p. 57; I.C.A., sec. 61-2205; am. 1941, ch. 41, sec. 1, p. 88; am. 1971, ch. 63, sec. 4, p. 142.]
Any producer of electricity or electrical energy referred to in section 63-2701 who shall hereafter engage in the generation, production or manufacture of electricity or electrical energy shall immediately upon purchasing or acquiring the plant, or installing equipment therefor, comply with the requirements of section 63-2703.
[(63-2706) 1931 (E.S.), ch. 3, sec. 6, p. 57; I.C.A., sec. 61-2206.]
Any person, officer, partner, agent or representative of any producer referred to in section 63-2701, who shall make any false statement or affidavit in any certificate, report or statement herein required to be made to the state tax commission hereunder shall be deemed guilty of perjury and upon conviction shall be punished by imprisonment in the state penitentiary not less than one (1) nor more than fourteen (14) years.
[(63-2707) 1931 (E.S.), ch. 3, sec. 7, p. 57; I.C.A., sec. 61-2207; am. 1971, ch. 63, sec. 5, p. 142.]
(1) In addition to the enforcement and penalty provisions in this chapter, the deficiency in tax, notice of deficiency and collection and enforcement procedures provided by the Idaho income tax act, in sections 63-3030A, 63-3038, 63-3039, 63-3040, 63-3042, 63-3043, 63-3044, 63-3045, 63-3045A, 63-3045B, 63-3046, 63-3047, 63-3048 through 63-3065A, 63-3068, 63-3071, and 63-3075 through 63-3078, Idaho Code, shall apply and be available to the state tax commission for enforcement of the provisions of this chapter and for the assessment and collection of any amounts due under this chapter. Wherever liens or any other proceedings are defined as income tax liens or proceedings they shall, when applied in enforcement or collection under this chapter, be described as kilowatt hour tax liens and proceedings.
(2) The state tax commission may be made a party defendant in an action at law or in equity by any person aggrieved by the unlawful seizure or sale of his property, or in any suit for refund or to recover an overpayment, but only the state of Idaho shall be responsible for any final judgment secured against the state tax commission, and said judgment shall be paid as provided for payment of refunds under this chapter.
[63-2708, added 1997, ch. 55, sec. 2, p. 93.]
If any section or provision of this chapter be adjudged unconstitutional or invalid for any reason, such adjudication shall not affect the validity of this chapter as a whole or of any section or provision thereof which is not specifically so adjudged unconstitutional or invalid.
[(63-2711) 1931 (E.S.), ch. 3, sec. 11, p. 57; I.C.A., sec. 61-2211.]
All mines and mining claims, both placer and rock in place, containing or bearing gold, silver, copper, lead, coal or other valuable mineral or metal deposits, after purchase thereof from the United States, shall be taxed at the price paid the United States therefor, unless the surface ground, or some part thereof, of said mine or mining claim is used for other than mining purposes, and has a separate and independent value for such other purposes, in which case said surface ground or any part thereof so used for other than mining purposes, shall be taxed at its value for such other purposes, and all machinery used in mining, and all property and surface improvements upon mines or mining claims, which have a value separate and independent of such mines or mining claims and the net annual proceeds of all mines and mining claims shall be taxed: provided, that nothing in this chapter contained must be construed so as to exempt from taxation improvements, buildings, erections, structures or machinery placed upon any mining claims, or used in connection therewith: provided that all mineral rights reserved to any grantor, except the United States or the state of Idaho, by the terms of any conveyance of lands other than lands acquired under the mining laws of the United States shall be assessed for taxation purposes at the rate of not less than five dollars ($5.00) per acre of the mineral rights so reserved, to be assessed against the recorded owner thereof. When, in the opinion of the county assessor, the value of reserved mineral rights does not warrant the expenditure to appraise and assess such value, such de minimis values need not be appraised or assessed, but the failure to assess such values does not constitute a failure to pay such taxes on the part of the owner, and does not constitute a delinquency on the part of the owner.
[(63-2801) 1903, p. 4, sec. 1, and last sentence of sec. 8; compiled and reen. R.C., sec. 1863; reen. C.L., sec. 1863; I.C.A., sec. 61-2301; am. 1937, ch. 70, sec. 1, p. 94; am. 1941, ch. 159, sec. 1, p. 317; am. 1988, ch. 212, sec. 1, p. 402.]
The term "net profits," as employed in this chapter, means the amount of money received from the mining of said metals or minerals from said mine or mining claim, after the deduction of the actual expenditure of money and labor in and about extracting the metals and minerals from the mine or mining claim, and transporting the same to the mill, concentrator or reduction works, and the reduction thereof, and the conversion of the same into money, or its equivalent, and also the deduction of all moneys expended for necessary labor, machinery and supplies needed and used in the mining operations, for the improvements necessary in and about the mine or mining claim, for reducing ores, for the construction of the mills and reduction works used and operated in connection with the mine or mining claim, for transporting the ore, and for extracting the metals and minerals therefrom; but the money invested in the mine, or improvements made during any year except the year immediately preceding such statement, must not be included therein. Such expenditures do not include the salaries, or any portion thereof, of any person or officers not actually engaged in the working of the mine, or personally superintending the management thereof.
[(63-2802) 1903, p. 4, sec. 4; reen. R.C. & C.L., sec. 1864; C.S., sec. 3361; I.C.A., sec. 61-2302.]
Every person, corporation or association engaged in mining upon any quartz vein or lode, or placer mining claim, containing gold, silver, copper, lead, coal or other precious and valuable minerals or metals, or mineral or metal deposits, must, between the first day of January and the first day of May in each year, make out a statement of the net profits derived from the mining of said metals or minerals, from each mine or mining claim owned or worked by such person, or from each group of mines or mining claims worked by a common system of development, during the year preceding the first day of January. Such statement must be verified by the oath of such person, or superintendent or managing agent of such corporation or association, who must deliver the same to the assessor of the county in which such mines are situated.
[(63-2803) 1903, p. 4, sec. 2; reen. R.C. & C.L., sec. 1865; C.S., sec. 3362; I.C.A., sec. 61-2303.]
Where the same person or company or association is operating two (2) or more mining claims under one (1) general system of mining or development, the product of which group of mines is mingled and treated as one (1) mining operation, the statement of the owner provided herein to be made, and the assessment provided herein to be made by the assessor, shall be made as to such entire group, and need not be made as to each particular mining claim constituting said group.
[(63-2804) 1903, p. 4, sec. 5; reen. R.C. & C.L., sec. 1866; C.S., sec. 3363; I.C.A., sec. 61-2304.]
If any one herein required to make a statement shall knowingly and wilfully swear to any false statement contained therein, then such person shall be guilty of perjury, and shall be prosecuted and punished as provided for in other cases of perjury.
[(63-2805) 1903, p. 4, sec. 10; reen. R.C. & C.L., sec. 1867; C.S., sec. 3364; I.C.A., sec. 61-2305.]
The assessor, after such statement has been rendered, shall have the right to examine the books and accounts of any person, corporation or association engaged in mining as mentioned in this chapter, in order to verify the statement made by such person, corporation or association, and if from such examination he finds such statement false, he must assess the net proceeds in the same manner as if no statement had been made and delivered, by making an estimate from the best sources within his reach, and if satisfied that the false statement was intentionally so made, he shall add as a penalty therefor, to the amount of the net proceeds so found, fifty per cent (50%) thereof, which amount thus increased shall constitute the sum upon which the taxes must be levied and collected, and such assessment shall be binding, effectual and lawful, and the value so fixed by the assessor shall not be reduced by the county board of equalization.
[(63-2806) 1903, p. 4, sec. 8; reen. R.C., part of sec. 1868; reen. C.L., sec. 1868; C.S., sec. 3365; I.C.A., sec. 61-2306.]
All information derived from any examination of the books and accounts made pursuant to this chapter by the assessor, or anyone acting for him or representing him, shall be deemed to be and held as confidential communications not to be communicated to any other person by the person making such examination, or anyone to whom the knowledge of such examination or facts therein disclosed shall come, except when it becomes necessary as a part of the performance of the public duty of such person to disclose the same in any proceeding affecting the validity of said assessment or taxation, or for the prosecution for perjury of the person required to make the statement mentioned in this chapter. Any person or officer making such disclosure or violating such confidence, except as herein provided, shall be deemed guilty of a felony, and upon conviction thereof shall be removed from office and punished as in case of other felonies.
[(63-2807) 1903, p. 4, sec. 8; am. R.C., part of sec. 1868; reen. C.L., sec. 1868a; C.S., sec. 3366; I.C.A., sec. 61-2307.]
If any person, corporation or association, engaged in mining as mentioned in this chapter, refuses or neglects to make and deliver to the assessor of the county where the mines are located, the statement mentioned in this chapter, such assessor must list the property and assess, according to his knowledge and information, the amount of said tax in the manner provided by the law for the assessment of other property where no statement is furnished.
[(63-2808) 1903, p. 4, sec. 7; reen. R.C. & C.L., sec. 1869; C.S., sec. 3367; I.C.A., sec. 61-2308.]
The assessor must prepare at the time of the preparation of the general assessment book, another assessment book called the assessment book of the net profits of mines, alphabetically arranged, in which must be listed the net profits of all the mines in his county, and in which must be specified in separate columns and under appropriate heads:
The name of the owner or owners of the mines.
The name, description and location of the mine.
The number of tons extracted during the year.
The gross yield or value in dollars and cents.
The actual cost of extracting the same from the mine.
The actual cost of transportation to the place of reduction or sale.
The actual cost of reduction or sale.
The cost of construction of betterments and repair of mines and reduction works during the year.
The net profits in dollars.
The total amount of taxes.
[(63-2809) 1903, p. 4, sec. 3; reen. R.C. & C.L., sec. 1870; C.S., sec. 3368; I.C.A., sec. 61-2309.]
The duties of the assessor, tax collector, county auditor, state tax commission and the county board of equalization, as to the assessment of the net profits of mines, the statements and returns to be made, the equalization thereof, and other official acts, are the same as those provided by the laws of this state for the assessment of other property.
[(63-2810) 1903, p. 4, sec. 6; reen. R.C. & C.L., sec. 1871; C.S., sec. 3369; I.C.A., sec. 61-2310; am. 1969, ch. 455, sec. 81, p. 1205.]
The tax mentioned in the preceding sections must be collected, and payment thereof enforced, as the collection and enforcement of other taxes are provided for, and every such tax is a lien upon the mine or mining claim from which the ores or minerals are extracted, which lien attaches on the first day of January of each year, and the sale thereof for delinquent taxes may be made as provided for the sale of real estate for delinquent taxes.
[(63-2811) 1903, p. 4, sec. 9; reen. R.C. & C.L., sec. 1872; C.S., sec. 3370; I.C.A., sec. 61-2311; am. 1969, ch. 455, sec. 82, p. 1205.]
This act shall be known and may be cited as the "Idaho Income Tax Act."
[63-3001, added 1959, ch. 299, sec. 1, p. 613.]
It is the intent of the legislature by the adoption of this act, insofar as possible to make the provisions of the Idaho act identical to the provisions of the Federal Internal Revenue Code relating to the measurement of taxable income, to the end that the taxable income reported each taxable year by a taxpayer to the internal revenue service shall be the identical sum reported to this state, subject only to modifications contained in the Idaho law; to achieve this result by the application of the various provisions of the Federal Internal Revenue Code relating to the definition of income, exceptions therefrom, deductions (personal and otherwise), accounting methods, taxation of trusts, estates, partnerships and corporations, basis and other pertinent provisions to gross income as defined therein, resulting in an amount called "taxable income" in the Internal Revenue Code, and then to impose the provisions of this act thereon to derive a sum called "Idaho taxable income"; to impose a tax on residents of this state measured by Idaho taxable income wherever derived and on the Idaho taxable income of nonresidents which is the result of activity within or derived from sources within this state. All of the foregoing is subject to modifications in Idaho law including, without limitation, modifications applicable to unitary groups of corporations, which include corporations incorporated outside the United States.
[63-3002, added 1959, ch. 299, sec. 2, p. 613; am. 1969, ch. 319, sec. 1, p. 982; am. 1970, ch. 222, sec. 1, p. 621; am. 1993, ch. 284, sec. 1, p. 959; am. 1995, ch. 111, sec. 1, p. 349.]
When used in this act, the terms defined in this chapter shall have the meanings respectively ascribed to them.
[63-3003, added 1959, ch. 299, sec. 3, p. 613; am. 1992, ch. 11, sec. 1, p. 18.]
The term "Internal Revenue Code" means the Internal Revenue Code as amended and in effect on the first day of January 2026, except that:
(1) Internal Revenue Code section 85 is applied as in effect on January 1, 2020; and
(2) Specified research or experimental expenditures, as defined in section 174 of the Internal Revenue Code as in effect on December 31, 2024, incurred in taxable years beginning on or after January 1, 2022, and before January 1, 2025, shall continue to be expensed under the Internal Revenue Code provisions as in effect immediately before the enactment of section 70302 of P.L. 119-21, rather than under the provisions of section 70302 of P.L. 119-21.
[63-3004, added 1959, ch. 299, sec. 4, p. 613; am. 1961, ch. 328, sec. 1, p. 622; am. 1963, ch. 339, sec. 1, p. 971; am. 1965, ch. 316, sec. 1, p. 880; am. 1967, ch. 294, sec. 1, p. 828; am. 1969, ch. 319, sec. 2, p. 982; am. 1970, ch. 222, sec. 2, p. 621; am. 1971, ch. 302, sec. 1, p. 1242; am. 1972, ch. 398, sec. 1, p. 1149; am. 1973, ch. 44, sec. 1, p. 79; am. 1974, ch. 56, sec. 1, p. 1118; am. 1975, ch. 12, sec. 1, p. 17; am. 1976, ch. 3, sec. 1, p. 12; am. 1977, ch. 1, sec. 1, p. 3; am. 1978, ch. 138, sec. 1, p. 313; am. 1979, ch. 255, sec. 1, p. 678; am. 1981, ch. 80, sec. 1, p. 113; am. 1982, ch. 11, sec. 1, p. 16; am. 1983, ch. 97, sec. 1, p. 209; am. 1984, ch. 35, sec. 1, p. 55; am. 1985, ch. 131, sec. 1, p. 326; am. 1986, ch. 11, sec. 1, p. 53; am. 1987, ch. 93, sec. 1, p. 176; am. 1988, ch. 2, sec. 1, p. 3; am. 1988, ch. 373, sec. 1, p. 1107; am. 1989, ch. 7, sec. 1, p. 8; am. 1990, ch. 34, sec. 1, p. 49; am. 1991, ch. 7, sec. 1, p. 18; am. 1991, ch. 55, sec. 1, p. 99; am. 1992, ch. 5, sec. 1, p. 10; am. 1993, ch. 1, sec. 1, p. 3; am. 1994, ch. 38, sec. 1, p. 56; am. 1995, ch. 79, sec. 1, p. 209; am. 1996, ch. 24, sec. 1, p. 59; am. 1997, ch. 19, sec. 1, p. 29; am. 1998, ch. 52, sec. 1, p. 206; am. 1999, ch. 27, sec. 1, p. 39; am. 2000, ch. 16, sec. 1, p. 32; am. 2001, ch. 58, sec. 1, p. 110; am. 2002, ch. 59, sec. 1, p. 127; am. 2003, ch. 350, sec. 1, p. 937; am. 2004, ch. 20, sec. 1, p. 22; am. 2005, ch. 14, sec. 1, p. 41; am. 2006, ch. 242, sec. 1, p. 736; am. 2007, ch. 13, sec. 1, p. 24; am. 2008, ch. 6, sec. 1, p. 7; am. 2008, ch. 319, sec. 1, p. 882; am. 2009, ch. 35, sec. 1, p. 105; am. 2009, ch. 228, sec. 1, p. 711; am. 2011, ch. 1, sec. 1, p. 3; am. 2012, ch. 2, sec. 1, p. 4; am. 2013, ch. 1, sec. 1, p. 3; am. 2014, ch. 10, sec. 1, p. 13; am. 2015, ch. 13, sec. 1, p. 17; am. 2016, ch. 1, sec. 1, p. 3; am. 2017, ch. 5, sec. 1, p. 17; am. 2018, ch. 3, sec. 1, p. 7; am. 2018, ch. 46, sec. 1, p. 111; am. 2018, ch. 198, sec. 1, p. 445; am. 2019, ch. 2, sec. 1, p. 4; am. 2019, ch. 161, sec. 11, p. 543; am. 2020, ch. 17, sec. 1, p. 54; am. 2021, ch. 8, sec. 1, p. 9; am. 2022, ch. 7, sec. 1, p. 20; am. 2023, ch. 1, sec. 1, p. 3; am. 2024, ch. 1, sec. 1, p. 3; am. 2025, ch. 1, sec. 1, p. 3; am. 2026, ch. 1, sec. 1, p. 3.]
The term "person" means an individual, a trust or estate, a partnership, an association, a limited liability company or a corporation.
[63-3005, added 1959, ch. 299, sec. 5, p. 613; am. 1998, ch. 55, sec. 1, p. 209.]
The term "corporation" includes any corporation formed under the laws of any government, any common law trust and any association of whatever kind other than a partnership. "Corporation" also includes any entity classified or taxed as a corporation pursuant to section 7701 or 7704 of the Internal Revenue Code and the regulations of the U.S. department of the treasury issued thereunder.
[63-3006, added 1959, ch. 299, sec. 6, p. 613; am. 1998, ch. 55, sec. 2, p. 209; am. 1999, ch. 60, sec. 1, p. 156.]
Notwithstanding the provisions of section 63-3006, Idaho Code, for the purposes of chapter 30, title 63, Idaho Code, a limited liability company as defined in subsection (5) or (6) of section 53-601, Idaho Code, or as defined in section 30-6-102, Idaho Code, as appropriate pursuant to section 30-6-1104, Idaho Code, shall be classified as a partnership, corporation, unincorporated association or otherwise pursuant to the provisions of the internal revenue code. A limited liability company that is classified as a partnership pursuant to the internal revenue code shall be treated as a partnership for purposes of chapter 30, title 63, Idaho Code. A limited liability company that is classified other than a partnership pursuant to the internal revenue code shall be treated for purposes of chapter 30, title 63, Idaho Code, in accordance with its classification.
[63-3006A, added 1993, ch. 224, sec. 2, p. 790; am. 2008, ch. 176, sec. 3, p. 520.]
"Partnership" shall be as defined in section 7701 of the Internal Revenue Code and shall include any entity classified as a partnership pursuant to regulations of the U.S. department of the treasury issued under section 7701 of the Internal Revenue Code, but shall not include a publicly traded partnership taxed as a corporation under section 63-3006, Idaho Code.
[63-3006B, added 1998, ch. 55, sec. 3, p. 209; am. 1999, ch. 60, sec. 2, p. 156.]
The term "pass-through entity" as used in this chapter includes a partnership, as defined in section 63-3006B, Idaho Code, a limited liability company taxed as a partnership under section 63-3006A, Idaho Code, an S corporation required to file a return under section 63-3030(4), Idaho Code, or a trust or estate required to file a return under section 63-3030, Idaho Code. An "owner of an interest in a pass-through entity" includes the shareholders of a corporation, the members of a limited liability company and partners of a partnership.
[63-3006C, added 2010, ch. 37, sec. 1, p. 67.]
The term "fiduciary" means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in a position of trust or fiduciary capacity for any other person or group of persons.
[63-3007, added 1959, ch. 299, sec. 7, p. 613.]
The term "individual" means a natural person.
[63-3008, added 1959, ch. 299, sec. 8, p. 613.]
The term "taxpayer" means any person subject to a tax imposed by this act or required by the provisions of this act to file an income tax return, report income or pay a tax.
[63-3009, added 1959, ch. 299, sec. 9, p. 613; am. 1969, ch. 319, sec. 3, p. 982.]
The term "taxable year" with respect to any taxpayer means:
(1) The taxable year of such taxpayer required pursuant to the Internal Revenue Code; or
(2) Such other period as may be required by law; or
(3) The calendar year.
[63-3010, added 1959, ch. 299, sec. 10, p. 613; am. 1969, ch. 319, sec. 4, p. 982; am. 1997, ch. 57, sec. 1, p. 96.]
The term "gross income" means gross income as defined in section 61(a) of the Internal Revenue Code.
[63-3011, added 1995, ch. 111, sec. 2, p. 349.]
The term "adjusted gross income" means adjusted gross income as defined in section 62 of the Internal Revenue Code.
[63-3011A, added 1995, ch. 111, sec. 3, p. 349.]
The term "taxable income" means federal taxable income as determined under the Internal Revenue Code.
[63-3011B, added 1995, ch. 111, sec. 4, p. 350.]
The term "Idaho taxable income" means taxable income as modified pursuant to the Idaho adjustments specifically provided in this chapter.
[63-3011C, added 1995, ch. 111, sec. 5, p. 350.]
The terms "includes" and "including" when used in a definition contained in this act shall not be deemed to exclude other things otherwise within the meaning of the term defined.
[63-3012, added 1959, ch. 299, sec. 12, p. 613.]
(1) The term "resident," for income tax purposes, means any individual who:
(a) Is domiciled in the state of Idaho for the entire taxable year; or
(b) Maintains a place of abode in this state for the entire taxable year and spends in the aggregate more than two hundred seventy (270) days of the taxable year in this state. Presence within the state for any part of a calendar day shall constitute a day spent in the state unless the individual can show that his presence in the state for that day was for a temporary or transitory purpose.
(2) An individual shall not be considered a resident, but may be considered a part-year resident, during a period of absence from this state described as follows:
(a) The period begins with an individual leaving this state if the individual is absent from this state for at least four hundred forty-five (445) days in the first fifteen (15) months.
(b) During such period, but excluding the first fifteen (15) months, the individual was not present in this state for more than sixty (60) days in any calendar year.
(c) During such period, the individual did not maintain a permanent place of abode in this state at which his spouse (unless he and his spouse are legally separated) or minor or dependent children are present for more than sixty (60) days during any calendar year.
(d) The individual did not, during such period, hold an elective or appointive office of the government of the United States (other than the armed forces of the United States or career appointees in the United States foreign service).
(e) The individual was not, during such period, employed on the staff of an elective officer in the legislative branch of the government of the United States; and
(f) The individual did not, during such period, claim Idaho as his tax home for federal income tax purposes.
(g) The period ends with an individual returning to this state if such individual remains or resides in the state for more than sixty (60) days.
(3) Any individual who is a nonresident alien as defined in section 7701 of the Internal Revenue Code is not a resident within the meaning of this section.
[63-3013, added 1959, ch. 299, sec. 13, p. 613; am. 1961, ch. 328, sec. 2, p. 622; am. 1986, ch. 245, sec. 1, p. 664; am. 1995, ch. 83, sec. 1, p. 239; am. 1995, ch. 111, sec. 6, p. 350; am. 1996, ch. 40, sec. 1, p. 103; am. 1997, ch. 57, sec. 2, p. 96; am. 2006, ch. 90, sec. 1, p. 264.]
The term "part-year resident," for income tax purposes, means any individual who is not a resident and who:
(a) Has changed his domicile from Idaho or to Idaho during the taxable year; or
(b) Has resided in Idaho for more than one (1) day during the taxable year. An individual shall be deemed to reside within Idaho for any calendar day in which that individual has a place of abode in this state and is present in this state for more than a temporary or transitory purpose. Presence for any fraction of a calendar day shall be counted as a whole day.
[I.C., sec. 63-3013A, as added by 1961, ch. 328, sec. 3, p. 622; am. 1965, ch. 316, sec. 2, p. 880; am. 1969, ch. 319, sec. 6, p. 982; am. 1970, ch. 222, sec. 3, p. 621; am. 1979, ch. 3, sec. 1, p. 6; am. 1986, ch. 90, sec. 1, p. 262; am. 1995, ch. 111, sec. 7, p. 351.]
The term "nonresident" means any individual who is not a resident or part-year resident.
[63-3014, added 1959, ch. 299, sec. 14, p. 613; am. 1961, ch. 328, sec. 4, p. 622.]
(1) An estate is treated as a resident estate if the decedent was a resident of Idaho on the date of death.
(2) A trust, other than a qualified funeral trust, is treated as a resident trust if three (3) or more of the following conditions existed for the entire taxable year:
(a) The domicile or residency of the grantor is in Idaho;
(b) The trust is governed by Idaho law;
(c) The trust has real or tangible personal property located in Idaho;
(d) The domicile or residency of the trustee is in Idaho;
(e) The administration of the trust takes place in Idaho. Administration of the trust includes conducting trust business, investing trust assets, making administrative decisions, recordkeeping and preparation and filing of tax returns.
(3) A trust, other than a qualified funeral trust, is treated as a part-year resident trust each day of the taxable year during which three (3) or more of the conditions specified in subsection (2) of this section existed.
(4) A qualified funeral trust is treated as a resident trust if its trustee has elected treatment as a qualified funeral trust pursuant to section 685 of the Internal Revenue Code where, at the time of the initial funding of the trust, the trust is required to be established under the laws of this state or, in the absence of such a requirement, where a funeral home or cemetery located in this state is identified to provide the services or merchandise, or both, under the terms of a preneed contract requiring the establishment of the trust.
(5) Qualified funeral trusts having a single trustee may file a single, composite return pursuant to rules of the state tax commission. Each beneficiary’s interest in a qualified funeral trust included in the composite return under this section shall be taxed as a separate trust for the purposes of application of the tax imposed in section 63-3024, Idaho Code, and determination of the filing requirement in section 63-3030, Idaho Code. The composite return shall not be a return of a person under section 63-3082, Idaho Code.
(6) If the estate does not qualify as a resident estate, it is treated as a nonresident estate.
(7) If the trust does not qualify as a resident or part-year resident trust, it is treated as a nonresident trust.
(8) For purposes of determining residency status of a trust, no distinction is made between inter vivos trusts and testamentary trusts or between revocable trusts and irrevocable trusts.
[63-3015, added 2002, ch. 36, sec. 1, p. 82; am. 2014, ch. 25, sec. 1, p. 32; am. 2022, 1st E.S., ch. 1, sec. 10, p. 8.]
The terms "paid or incurred" and "paid or accrued" shall be defined as set forth in the Internal Revenue Code and shall be construed according to the method of accounting upon the basis of which the taxable income is computed.
[63-3016, added 1959, ch. 299, sec. 16, p. 613.]
The term "employer" means "employer" as defined in the Internal Revenue Code.
[63-3017, added 1959, ch. 299, sec. 17, p. 613.]
The term "employee" means "employee" as defined in the Internal Revenue Code.
[63-3018, added 1959, ch. 299, sec. 18, p. 613.]
The term "farmer" means any person over two-thirds (2/3) of whose gross income is derived from farming.
[63-3020, added 1959, ch. 299, sec. 20, p. 613.]
(a) The term "net operating loss" means the amount by which Idaho taxable income, after making the modifications specified in subsection (b) of this section, is less than zero (0).
(b) Add the following amounts:
(1) The amount of any net operating loss deduction included in Idaho taxable income.
(2) In the case of a taxpayer other than a corporation:
(i) Any amount deducted due to losses in excess of gains from sales or exchanges of capital assets; and
(ii) Any deduction for long-term capital gains provided by this chapter.
(3) Any deduction allowed under section 151 of the Internal Revenue Code (relating to personal exemption) or any deduction in lieu of any such deduction.
(4) Any deduction for the standard or itemized deductions provided for in section 63 of the Internal Revenue Code, or section 63-3022(j), Idaho Code, except for any deduction allowable under section 165(c)(3) of the Internal Revenue Code (relating to casualty losses) pertaining to property physically located inside Idaho at the time of the casualty.
(5) Any deduction allowed under section 199A of the Internal Revenue Code (relating to the deduction for qualified business income).
(c) Subject to the provisions of sections 381 and 382, Internal Revenue Code, Idaho net operating losses incurred by a corporation will survive a merger.
(1) Changes in the location of a loss corporation’s business or its key employees shall not be treated as a failure to satisfy the continuity of business requirements.
(2) If the premerger corporation conducted operations in Idaho and at least one (1) other state, the section 382, Internal Revenue Code, loss limitation is limited further by the premerger loss corporation’s Idaho apportionment factor for the last taxable year preceding the date of the merger.
[63-3021, added 1989, ch. 27, sec. 2, p. 32; am. 1992, ch. 11, sec. 2, p. 18; am. 1995, ch. 111, sec. 8, p. 351; am. 1998, ch. 42, sec. 1, p. 175; am. 2000, ch. 38, sec. 3, p. 72; am. 2010, ch. 11, sec. 1, p. 12; am. 2018, ch. 46, sec. 2, p. 112; am. 2019, ch. 9, sec. 1, p. 8.]
When, pursuant to section 63-3011B, Idaho Code, taxable income for any tax year is determined by the amount of excess inclusion income taxable as determined by Internal Revenue Code section 860E, and when the taxpayer would incur a net operating loss or would be entitled to carry forward a net operating loss pursuant to section 63-3022, Idaho Code, except for the effect of the excess inclusion income reported for that tax year, the net operating loss incurred in that tax year or carried forward from an earlier tax year may be taken as deductions in other tax years, subject to the provisions of subsections (b) and (c) of section 63-3022, Idaho Code. In computing the net operating loss that may be used in another tax year, the excess inclusion income recognized as taxable income shall be deducted from gross income or taxable income, as provided by treasury regulation 1.860E-1(a)(1).
[63-3021A, added 2014, ch. 74, sec. 1, p. 192.]
The additions and subtractions set forth in this section, and in sections 63-3022A through 63-3022U, Idaho Code, are to be applied to the extent allowed in computing Idaho taxable income:
(a) Add any state and local taxes, as defined in section 164 of the Internal Revenue Code that are measured by net income, or for which a credit is allowable under section 63-3029, Idaho Code, and paid or accrued during the taxable year adjusted for state or local tax refunds used in arriving at taxable income.
(b) Add the net operating loss deduction used in arriving at taxable income.
(c)(1) A net operating loss for any taxable year commencing on and after January 1, 2000, but before January 1, 2013, shall be a net operating loss carryback not to exceed a total of one hundred thousand dollars ($100,000) to the two (2) immediately preceding taxable years. At the election of the taxpayer, the two (2) year carryback may be forgone and the loss subtracted from income received in taxable years arising in the next twenty (20) years succeeding the taxable year in which the loss arises in order until exhausted.
(2) A net operating loss for any taxable year commencing on or after January 1, 2013, shall be a net operating loss carryback not to exceed a total of one hundred thousand dollars ($100,000) to the two (2) immediately preceding taxable years only if an amended return carrying the loss back is filed within one (1) year of the end of the taxable year of the net operating loss that results in such carryback.
(3) Any portion of the net operating loss not subtracted from income in the two (2) preceding years may be subtracted from income in the next twenty (20) years succeeding the taxable year in which the loss arises in order until exhausted. The sum of the deductions may not exceed the amount of the net operating loss deduction incurred. The carryback shall be limited to a total of fifty thousand dollars ($50,000) in the case of an individual filing as married filing separate in the year of the loss.
(4) Net operating losses incurred by a corporation during a year in which such corporation did not transact business in Idaho or was not included in a group of corporations combined under section 63-3027(22), Idaho Code, may not be subtracted. However, if at least one (1) corporation within a group of corporations combined under section 63-3027(22), Idaho Code, was transacting business in Idaho during the taxable year in which the loss was incurred, then the net operating loss may be subtracted. Net operating losses incurred by a person, other than a corporation, in activities not taxable by Idaho may not be subtracted.
(5) The term "income" as used in this subsection means Idaho taxable income as defined in this chapter as modified by section 63-3021(b)(2), (3) and (4), Idaho Code.
(d) In the case of a corporation, add the amount deducted under the provisions of sections 243(a) and (c), 244, 245, and 246A of the Internal Revenue Code (relating to dividends received by corporations and other special deductions) as limited by section 246(b)(1) of said code.
(e) In the case of a corporation, subtract an amount determined under section 78 of the Internal Revenue Code to be taxable as dividends.
(f) Subtract the amount of any income received or accrued during the taxable year that is exempt from taxation by this state, under the provisions of any other law of this state or a law of the United States, if not previously subtracted in arriving at taxable income.
(g) For the purpose of determining the Idaho taxable income of the beneficiary of a trust or of an estate:
(1) Distributable net income as defined for federal tax purposes shall be corrected for the other adjustments required by this section.
(2) Net operating losses attributable to a beneficiary of a trust or estate under section 642 of the Internal Revenue Code shall be a deduction for the beneficiary to the extent that income from the trust or estate would be attributable to this state under the provisions of this chapter.
(h) In the case of an individual who is on active duty as a full-time officer, enlistee, or draftee with the armed forces of the United States, which full-time duty is or will be continuous and uninterrupted for one hundred twenty (120) consecutive days or more, deduct compensation paid by the armed forces of the United States for services performed outside this state. The deduction is allowed only to the extent such income is included in taxable income.
(i) In the case of a corporation, including any corporation in a group of corporations combined under section 63-3027(22), Idaho Code, add any capital loss or passive loss deducted, which loss was incurred during any year in which such corporation did not transact business in Idaho. However, do not add any capital loss deducted if a corporation, including any corporation in a group of corporations combined under section 63-3027(22), Idaho Code, was transacting business in Idaho during the taxable year in which the loss was incurred. In the case of persons other than corporations, add any capital loss or passive loss deducted that was incurred in activities not taxable by Idaho at the time such loss was incurred. In computing the income taxable to an S corporation or partnership under this section, deduction shall not be allowed for a carryover or carryback of a net operating loss provided for in subsection (c) of this section, a passive loss, or a capital loss provided for in section 1212 of the Internal Revenue Code.
(j) In the case of an individual, there shall be allowed as a deduction from gross income either paragraph (1) or (2) of this subsection at the option of the taxpayer:
(1) The standard deduction as defined in section 63 of the Internal Revenue Code; or
(2) Itemized deductions as defined in section 63 of the Internal Revenue Code except state or local taxes measured by net income and general sales taxes as either is defined in section 164 of the Internal Revenue Code.
(k) Add the taxable amount of any lump sum distribution excluded from gross income for federal income tax purposes under the ten (10) year averaging method. The taxable amount will include the ordinary income portion and the amount eligible for the capital gain election.
(l) Deduct any amounts included in gross income under the provisions of section 86 of the Internal Revenue Code relating to certain social security and railroad benefits.
(m) In the case of a self-employed individual, deduct the actual cost of premiums paid to secure worker’s compensation insurance for coverage in Idaho, if such cost has not been deducted in arriving at taxable income.
(n) In the case of an individual for any tax period ending on or prior to December 31, 2016, deduct the amount contributed to a college savings program, but not more than four thousand dollars ($4,000) per tax year. In the case of an individual and for any tax period starting on or after January 1, 2017, deduct the amount contributed to a college savings program, but not more than six thousand dollars ($6,000) per tax year. For those married and filing jointly, deduct the amount contributed to a college savings program, but not more than twice of that allowed for an individual. To be qualified for this deduction, the contribution must be made during the taxable year and made to an Idaho college savings program account as described in chapter 54, title 33, Idaho Code.
(o) In the case of an individual, add the amount of a nonqualified withdrawal from an individual trust account or savings account established pursuant to chapter 54, title 33, Idaho Code, less any amount of such nonqualified withdrawal included in the individual’s federal gross income pursuant to section 529 of the Internal Revenue Code. The addition provided in this subsection is limited to contributions previously exempt from Idaho state income tax and earnings generated from the program as long as the earnings are not already included in federal adjusted gross income.
(p) In the case of an individual, add the amount of a withdrawal from an individual trust account or savings account established pursuant to chapter 54, title 33, Idaho Code, transferred to a qualified tuition program, as defined in section 529 of the Internal Revenue Code, that is operated by a state other than Idaho or to a qualified ABLE program as defined in section 529A of the Internal Revenue Code. The addition provided in this subsection is limited to the amount of the contributions to the Idaho individual trust account or savings account by the account owner that was deducted on the account owner’s Idaho income tax return for the year of the transfer and the prior taxable year.
(q) Deduct any amount disallowed under section 461(l)(1)(B) of the Internal Revenue Code (relating to excess business losses) that is treated as part of the taxpayer’s net operating loss carryforward for federal income tax purposes.
(r) Add the excess business losses under section 461(l) of the Internal Revenue Code, as required by section 63-3004, Idaho Code. The excess business losses may be carried forward and deducted as an Idaho net operating loss under section 63-3021, Idaho Code, successively over the next twenty (20) years succeeding the taxable year in which the loss arises until such losses are exhausted. Excess business losses shall not be carried back.
(s) Subtract any amounts included in taxable income for funds received or loans forgiven pursuant to the provisions of the coronavirus aid, relief, and economic security act, P.L. 116-136.
(t) Subtract any amounts included in taxable income for loans forgiven pursuant to the paycheck protection program and health care enhancement act, P.L. 116-139, including economic injury disaster loan advance funds, and the paycheck protection program flexibility act of 2020, P.L. 116-142.
(u) Add any amounts excluded from taxable income for funds received pursuant to the emergency rental assistance program established by section 501 of division N of the consolidated appropriations act, 2021, P.L. 116-260.
(v) Add or subtract the amount of net capital gains or losses that meets the definition of precious metal bullion or monetized bullion under section 63-3622V, Idaho Code, included in the taxpayer’s federal adjusted gross income.
[63-3022, added 1959, ch. 299, sec. 22, p. 613; am. 1961, ch. 328, sec. 5, p. 622; am. 1963, ch. 339, sec. 3, p. 971; am. 1965, ch. 316, sec. 3, p. 880; am. 1967, ch. 294, sec. 2, p. 828; am. 1969, ch. 319, sec. 7, p. 982; am. 1970, ch. 222, sec. 4, p. 621; am. 1971, ch. 64, sec. 1, p. 146; am. 1972, ch. 398, sec. 3, p. 1149; am. 1973, ch. 45, sec. 1, p. 80; am. 1975, ch. 33, sec. 1, p. 57; am. 1975, ch. 90, sec. 1, p. 184; am. 1976, ch. 271, sec. 1, p. 916; am. 1977, ch. 84, sec. 1, p. 170; am. 1978, ch. 139, sec. 1, p. 314; am. 1979, ch. 91, sec. 1, p. 218; am. 1980, ch. 2, sec. 1, p. 4; am. 1980, ch. 4, sec. 1, p. 7; am. 1980, ch. 90, sec. 1, p. 194; am. 1981, ch. 130, sec. 1, p. 217; am. 1981, ch. 201, sec. 2, p. 355; am. 1982, ch. 135, sec. 1, p. 384; am. 1983, ch. 161, sec. 1, p. 463; am. 1983, ch. 257, sec. 1, p. 680; am. 1983, ch. 258, sec. 1, p. 685; am. 1984, ch. 35, sec. 2, p. 55; am. 1986, ch. 90, sec. 2, p. 262; am. 1987, ch. 93, sec. 2, p. 177; am. 1987, ch. 149, sec. 1, p. 295; am. 1989, ch. 76, sec. 1, p. 135; am. 1989, ch. 181, sec. 1, p. 450; am. 1990, ch. 63, sec. 1, p. 138; am. 1990, ch. 223, sec. 1, p. 593; am. 1990, ch. 307, sec. 1, p. 844; am. 1990, ch. 326, sec. 8, p. 894; am. 1991, ch. 7, sec. 2, p. 19; am. 1991, ch. 55, sec. 2, p. 100; am. 1991, ch. 318, sec. 3, p. 826; am. 1992, ch. 11, sec. 3, p. 18; am. 1993, ch. 3, sec. 1, p. 6.; am. 1993, ch. 284, sec. 2, p. 959; am. 1994, ch. 39, sec. 1, p. 57; am. 1994, ch. 186, sec. 1, p. 607; am. 1994, ch. 247, sec. 1, p. 777; am. 1995, ch. 83, sec. 2, p. 240; am. 1995, ch. 111, sec. 9, p. 351; am. 1995, ch. 362, sec. 3, p. 1268; am. 1996, ch. 340, sec. 2, p. 1142; am. 1997, ch. 57, sec. 5, p. 97; am. 1998, ch. 20, sec. 1, p. 119; am. 1998, ch. 42; sec. 2, p. 176; am. 1999, ch. 70, sec. 1, p. 191; am. 2000, ch. 38, sec. 4, p. 72; am. 2000, ch. 213, sec. 2, p. 581; am. 2001, ch. 46, sec. 1, p. 85; am. 2001, ch. 270, sec. 1, p. 977; am. 2002, ch. 33, sec. 1, p. 63; am. 2003, ch. 6, sec. 1, p. 11; am. 2003, ch. 10, sec. 1, p. 22; am. 2004, ch. 30, sec. 2, p. 57; am. 2005, ch. 14, sec. 2, p. 42; am. 2006, ch. 63, sec. 1, p. 193; am. 2007, ch. 190, sec. 1, p. 559; am. 2008, ch. 261, sec. 1, p. 756; am. 2010, ch. 44, sec. 1, p. 78; am. 2012, ch. 10, sec. 1, p. 17; am. 2012, ch. 14, sec. 1, p. 25; am. 2013, ch. 2, sec. 2, p. 4; am. 2013, ch. 4, sec. 1, p. 7; am. 2013, ch. 112, sec. 1, p. 268; am. 2014, ch. 9, sec. 1, p. 9; am. 2017, ch. 20, sec. 1, p. 36; am. 2017, ch. 84, sec. 1, p. 228; am. 2018, ch. 3, sec. 2, p. 7; am. 2018, ch. 46, sec. 3, p. 112; am. 2018, ch. 109, sec. 1, p. 221; am. 2019, ch. 9, sec. 2, p. 8; am. 2019, ch. 294, sec. 1, p. 873; am. 2021, ch. 72, sec. 1, p. 254; am. 2021, ch. 86, sec. 1, p. 288; am. 2022, ch. 52, sec. 2, p. 165; am. 2022, ch. 111, sec. 31, p. 391; am. 2025, ch. 13, sec. 1, p. 39.]
(1) An amount specified by subsection (2) of this section of the following retirement benefits may be deducted by an individual from taxable income:
(a) If such individual has either attained age sixty-five (65) years or has attained age sixty-two (62) years and is classified as disabled:
(i) Retirement annuities paid to a retired employee or the unmarried widow or widower of a retired employee by the United States of America under the:
Civil service retirement system; or
Foreign service retirement and disability system; or
Offset program of the civil service retirement system or foreign service retirement and disability system.
(ii) Retirement benefits paid from the firefighters’ retirement fund of the state of Idaho to a retired firefighter or the unremarried widow or widower of a retired firefighter.
(iii) Retirement benefits paid to a retired Idaho city police officer:
By a city or its agent in regard to a police retirement fund that no longer admits new members and on January 1, 2012, was administered by a city in this state; or
In regard to a police retirement fund that no longer admits new members and on January 1, 2012, was administered by the public employee retirement system of Idaho; or
By the public employee retirement system of Idaho to a retired police officer in regard to Idaho employment not included in the federal social security retirement system; or
An unremarried widow or widower of a person described in 1., 2., or 3. of this subparagraph.
(b) Retirement benefits paid by the United States of America to a retired member of the military services of the United States, or the unremarried widow or widower of such member, who:
(i) Is classified as disabled, as defined in subsection (4) of this section;
(ii) Has attained the age of sixty-two (62) years by the end of the tax year; or
(iii) Was employed during the tax year and received sufficient income from such employment to be required to file a federal return under section 6012(a)(1) of the Internal Revenue Code.
(2) The amount of retirement benefits that may be deducted from taxable income shall be an amount not in excess of maximum retirement benefits under the social security act, as amended, on the date on which this act is passed and approved, including adjustments to be made based on consumer price index adjustments provided in section 215 of the social security act. The state tax commission shall ascertain benefit changes made in accordance with the social security act and publish the appropriate deduction amounts provided by this section reflecting such changes annually. Maximum retirement benefits under the social security act shall mean:
(a) In the case of a taxpayer who files a joint return with the taxpayer’s spouse for the tax year, an amount equal to the maximum social security benefits payable for the tax year to a person attaining full retirement age in the tax year who has earned the maximum earnings creditable under social security for the years used in the computation of his benefits and whose spouse has no social security benefits except those payable on his record of earnings.
(b) In the case of a taxpayer who is not married, an amount equal to maximum social security benefits payable for the tax year to a person attaining full retirement age in the tax year who has earned the maximum earnings creditable under social security for the years used in the computation of his benefits.
(c) In the case of an unremarried widow or widower, an amount equal to the maximum social security benefits payable for the tax year to a widow or widower attaining full retirement age in the tax year who has no social security benefits except those to which he or she is entitled on his or her deceased spouse’s record and whose spouse had received no reduced retirement benefits prior to his or her death and whose spouse had earned the maximum earnings creditable under social security for the years used in the computation of his or her benefits under social security.
(d) Maximum retirement benefits shall, in every case, take into consideration and be adjusted to reflect adjustments that would be made to such amounts had they been received as social security benefits as the result of the receipt of earnings in excess of earnings limitations. The terms in this paragraph are those defined in the social security act.
(e) Taxpayers not described in paragraphs (a), (b), (c), and (d) of this subsection may not deduct any amount of retirement benefits under this section. This includes retirement benefits paid by the federal employees retirement system or foreign service pension system.
(3) The total deduction under this section may not exceed the total amount of retirement benefits or annuities that are described in subsection (1) of this section and that are included in the taxpayer’s gross income in the tax year. If the taxpayer or the taxpayer’s spouse receives retirement benefits under the federal railroad retirement act or the federal social security act in the tax year, then the amount of any retirement annuities computed under subsection (2) of this section shall be reduced by the amount of such federal railroad retirement act and federal social security act retirement benefits received by either the taxpayer or the taxpayer’s spouse, and the lesser of the amount so computed or the total amount of retirement benefits or annuities that are described in subsection (1) of this section and that are included in the taxpayer’s gross income shall constitute the allowable deduction. Furthermore, the allowable deduction as calculated under this section may be subject to additional limitations under section 63-3026A(6), Idaho Code, and the rules promulgated thereunder.
(4) As used in this section, the word "disabled" shall mean an individual who is a disabled person described in section 63-701, Idaho Code, or an individual who qualifies as a person with a "permanent disability" under section 49-117(7)(b)(iv), Idaho Code.
[63-3022A, as added by 1973, ch. 278, sec. 2, p. 591; am. 1976, ch. 94, sec. 1, p. 312; am. 1979, ch. 86, sec. 3, p. 210; am. 1997, ch. 58, sec. 1, p. 108; am. 2000, ch. 26, sec. 3, p. 47; am. 2004, ch. 30, sec. 3, p. 59.; am. 2012, ch. 13, sec. 1, p. 23; am. 2013, ch. 4, sec. 2, p. 9; am. 2015, ch. 34, sec. 1, p. 71; am. 2025, ch. 13, sec. 2, p. 42; am. 2025, ch. 302, sec. 1, p. 1280.]
(1) An individual taxpayer may deduct from taxable income an amount actually paid or accrued by the individual taxpayer during the taxable year for the actual installation of energy efficiency upgrade measures within any existing residence. As used in this section, "existing residence" means any residence in the state of Idaho that serves as the primary place of residence of the individual taxpayer in being, under construction, or subject to an outstanding legal building permit on or before January 1, 2002.
(2) As used in this section:
(a) "Energy efficiency upgrade measure" means an energy efficiency improvement to the building envelope or duct system that meets or exceeds the minimum value for the improved component established by the version of the international energy conservation code (IECC) in effect in Idaho during the taxable year in which the improvement is made or accrued.
(b) "Energy efficiency upgrade measure" includes:
(i) Insulation that shall be added to existing insulation not in replacement of existing insulation;
(ii) Windows that may replace less efficient existing windows;
(iii) Storm windows;
(iv) Weather stripping and caulking; and
(v) Duct sealing and insulation. Duct sealing requires mechanical fastening of joints and mastic sealant.
[63-3022B, added 1976, ch. 212, sec. 2, p. 773; am. 1995, ch. 111, sec. 10, p. 356.; am. 2012, ch. 202, sec. 1, p. 542; am. 2013, ch. 4, sec. 3, p. 10.]
(1) An individual taxpayer who installs an alternative energy device to serve a place of residence of the individual taxpayer in the state of Idaho may deduct from taxable income the following amounts actually paid or accrued by the individual taxpayer: forty percent (40%) of the amount that is properly attributable to the construction, reconstruction, remodeling, installation or acquisition of the alternative energy device in the year when such device is completed or acquired and is placed in service by the taxpayer; and twenty percent (20%) per year thereafter for a period of three (3) succeeding years; provided, however, that said deduction shall not exceed five thousand dollars ($5,000) in any one (1) taxable year.
(2) An individual taxpayer who purchases a residence in the state of Idaho served by an alternative energy device for which none or less than all of the total deduction allowable under this section has been taken, may take the deduction specified in this section, or the unused balance of the deduction.
(3) As used in this section, "alternative energy device" means any system or mechanism or series of mechanisms using solar radiation, wind or geothermal resource as defined in section 42-4002, Idaho Code, primarily to provide heating, to provide cooling, to produce electrical power, or any combination thereof. Alternative energy device includes a fluid to air heat pump operating on a fluid reservoir heated by solar radiation or geothermal resource. Alternative energy device shall also include either a natural gas heating unit, or a propane heating unit, or a wood burning stove which meets the most current environmental protection agency certification, or a pellet stove which meets the most current industry and state standards, and which natural gas heating unit, or propane heating unit, or wood burning stove which meets the most current environmental protection agency certification, or pellet stove which meets the most current industry and state standards is used to replace during the same tax year a wood burning stove designed for residential heating and that does not meet environmental protection agency requirements for certification, provided the wood burning stove is surrendered to the department of environmental quality or its agent for destruction in accordance with applicable federal and state rules.
[63-3022C, added 1976, ch. 212, sec. 3, p. 774; am. 1994, ch. 355, sec. 1, p. 1114; am. 1995, ch. 91, sec. 1, p. 262; am. 1995, ch. 111, sec. 11, p. 356; am. 2001, ch. 103, sec. 97, p. 337; am. 2001, ch. 270, sec. 2, p. 979.]
There shall be allowed as a deduction, in the case of an individual who maintains a household that includes as a member one (1) or more qualifying individuals, as defined in section 21(b)(1) of the Internal Revenue Code, the employment-related expenses, as defined in section 21(b)(2) of the Internal Revenue Code and as further specified and limited by section 21 (d) and (e) of the Internal Revenue Code, paid by such individual during the taxable year, not to exceed twelve thousand dollars ($12,000).
[63-3022D, added 1977, ch. 83, sec. 1, p. 169; am. 1989, ch. 181, sec. 2, p. 454; am. 2004, ch. 30, sec. 4, p. 61.; am. 2023, ch. 290, sec. 1, p. 881.]
(1) An additional deduction from taxable income shall be allowed in the case of an individual who maintains a household, which includes as an immediate member of the family residing in that household, one (1) or more individuals sixty-five (65) years of age or older, or a person with developmental disabilities as defined in subsection (5) of section 66-402, Idaho Code, regardless of the age of the person when such developmental disability appeared, each of whom receives more than one-half (1/2) of his or her support for the year from the individual who maintains the household. The amount of the deduction shall be one thousand dollars ($1,000) for each individual sixty-five (65) years of age or older or with developmental disabilities.
(2) There shall not be allowed more than three (3) deductions of one thousand dollars ($1,000) under the provisions of this section on any one (1) return.
(3) No deductions shall be allowed under this section for the person(s) in whose name(s) the income tax return is filed except as set forth in subsection (4) of this section.
(4) A deduction of one thousand dollars ($1,000) shall be allowed under this section for a person with a developmental disability, as defined in subsection (5) of section 66-402, Idaho Code, who is filing his own return.
Household deduction for dependents sixty-five years of age or older or persons with developmental disabilities. [effective January 1, 2027]
(1) An additional deduction from taxable income shall be allowed in the case of an individual who maintains a household, which includes as an immediate member of the family residing in that household, one (1) or more individuals sixty-five (65) years of age or older, or a person with developmental disabilities as defined in section 66-402(4), Idaho Code, regardless of the age of the person when such developmental disability appeared, each of whom receives more than one-half (1/2) of his or her support for the year from the individual who maintains the household. The amount of the deduction shall be one thousand dollars ($1,000) for each individual sixty-five (65) years of age or older or with developmental disabilities.
(2) There shall not be allowed more than three (3) deductions of one thousand dollars ($1,000) under the provisions of this section on any one (1) return.
(3) No deductions shall be allowed under this section for the person(s) in whose name(s) the income tax return is filed except as set forth in subsection (4) of this section.
(4) A deduction of one thousand dollars ($1,000) shall be allowed under this section for a person with a developmental disability, as defined in section 66-402(4), Idaho Code, who is filing his own return.
[63-3022E, added 1981, ch. 201, sec. 3, p. 358; am. 1984, ch. 176, sec. 1, p. 423; am. 1994, ch. 104, sec. 1, p. 233; am. 1995, ch. 111, sec. 12, p. 357; am. 1999, ch. 293, sec. 6, p. 740.; am. 2026, ch. 79, sec. 29, p. 419.]
In the case of a taxpayer who is entitled to a reduction in federal tax due to the restoration of an item of gross income under section 1341 of the Internal Revenue Code (relating to the computation of tax where the taxpayer restores a substantial amount held under claim of right), there shall be allowed a deduction in determining Idaho taxable income as provided in section 1341(a)(4) of the Internal Revenue Code, if not otherwise deducted by the taxpayer for Idaho income tax purposes. In computing the deduction allowable under this section, no deduction shall be allowed if the item of gross income for a prior taxable year was not included in Idaho taxable income. If the taxpayer has claimed a credit for claim of right income repayment adjustment under section 63-3029F, Idaho Code, then there shall be added to federal taxable income any amount taken as a deduction under section 1341 of the Internal Revenue Code in computing federal taxable income for the tax year.
[63-3022F, added 2005, ch. 16, sec. 1, p. 47; am. 2015, ch. 21, sec. 1, p. 27.]
(1) Amounts paid to eligible individuals shall not be included as Idaho taxable income if the payment was made from the United States civil liberties public education fund which is created by public law 100-383 (102 Stat. 905).
(2) As used in this section, the term "eligible individual" means any living individual of Japanese ancestry who, during the evacuation, relocation and internment period was a United States citizen or a permanent resident alien, and who was confined, held in custody, relocated or otherwise deprived of liberty or property as a result of:
(a) Executive order number 9066 dated February 19, 1942;
(b) The act entitled "An act to provide a penalty for violation of restrictions or orders with respect to persons entering, remaining in, leaving or committing any act in military areas or zones" approved March 21, 1942 (56 Stat. 173); or
(c) Any other executive order, presidential proclamation, law of the United States, directive of the armed forces of the United States or other action made by or on behalf of the United States or its agents, representatives, officers or employees respecting the evacuation, relocation or internment of individuals solely on the basis of Japanese ancestry.
(3) As used in this section, the term "evacuation, relocation and internment period" means that period beginning on December 7, 1941, and ending on June 30, 1946.
(4) As used in this section the term "permanent resident alien" means an alien lawfully admitted into the United States for permanent residence.
[63-3022G, added 1989, ch. 246, sec. 1, p. 595; am. 1995, ch. 111, sec. 14, p. 358.]
(1) If an individual taxpayer reports capital gain net income in determining Idaho taxable income, eighty percent (80%) in taxable year 2001 and sixty percent (60%) in taxable years thereafter of the capital gain net income from the sale or exchange of qualified property shall be a deduction in determining Idaho taxable income.
(2) The deduction provided in this section is limited to the amount of the capital gain net income from all property included in taxable income. Gains treated as ordinary income by the Internal Revenue Code do not qualify for the deduction allowed in this section. The deduction otherwise allowable under this section shall be reduced by the amount of any federal capital gains deduction relating to such property, but not below zero.
(3) Property held by an estate, trust, S corporation, partnership, limited liability company or an individual is "qualified property" under this section if the property had an Idaho situs at the time of sale and is:
(a) Real property held at least twelve (12) months;
(b) Tangible personal property used in Idaho for at least twelve (12) months by a revenue-producing enterprise;
(c) Cattle or horses held for breeding, draft, dairy or sporting purposes for at least twenty-four (24) months in Idaho;
(d) Breeding livestock other than cattle or horses held at least twelve (12) months in Idaho;
(e) Timber grown in Idaho and held at least twenty-four (24) months;
(f) A partnership interest, other than a publicly traded partnership as defined by section 7704(b) of the Internal Revenue Code, held by an individual for at least twelve (12) months, but only to the extent the gain from sale or exchange of the interest is attributable to real property held by the partnership that is classified as a capital asset by section 1221 of the Internal Revenue Code and is qualified real property under paragraph (a) of this subsection. If the partnership holds property in addition to qualified real property, the portion of the capital gain attributable to qualified real property shall be determined under one (1) of the following methods at the option of the taxpayer:
(i) Fair market valuation. The capital gain from the sale or exchange of the interest attributable to qualified real property is the amount by which the fair market value of the qualified real property exceeds the adjusted basis of the qualified real property minus any gain taxable as ordinary income. For purposes of this section, fair market value must be established by:
A qualified appraisal as defined in 26 CFR 1.170A-13(c)(3);
A county assessor valuation; or
Other evidence acceptable to the state tax commission; or
(ii) Adjusted basis allocation. The capital gain from the sale or exchange of the interest attributable to qualified real property is the proportion of the capital gain included in Idaho taxable income that the adjusted basis of qualified real property held by the partnership on the date of sale or exchange of the partnership interest bears to the adjusted basis of all property held by the partnership at least twelve (12) months prior to the date of sale or exchange of the partnership interest. For this purpose, the adjusted basis shall be determined as provided in section 63-3022O, Idaho Code.
(4) In determining the period for which property subject to this section has been held by a taxpayer, the provisions of section 1223 of the Internal Revenue Code shall apply, except that the holding period shall not include the holding period of property given up in an exchange, when such property would not have constituted qualified property under this section without regard to meeting the holding period nor shall the holding period include any time period in which the property subject to this section was held by a corporation other than an S corporation. Notwithstanding the preceding sentence, the holding period of qualifying property that was distributed by an S corporation or an entity treated as a partnership to a person who was an owner, member or partner at the time of the distribution shall, for that person, include the amount of time that the S corporation or the entity held the property, regardless of whether the distribution was a liquidating distribution.
(5) As used in this section, "revenue-producing enterprise" means:
(a) The production, assembly, fabrication, manufacture, or processing of any agricultural, mineral or manufactured product;
(b) The storage, warehousing, distribution, or sale at wholesale of any products of agriculture, mining or manufacturing;
(c) The feeding of livestock at a feedlot;
(d) The operation of laboratories or other facilities for scientific, agricultural, animal husbandry, or industrial research, development, or testing.
(6) As used in this section, the term "real property" means land and includes the following:
(a) A "qualified conservation easement," as defined in section 2031(c)(8)(B) of the Internal Revenue Code, conveyed to a "qualified organization" as defined in section 170(h) of the Internal Revenue Code;
(b) Grazing permits or leases issued by the U.S. forest service, the bureau of land management or the Idaho department of lands, if such permit is transferred simultaneously with the transfer of the "base property"; and
(c) Any other property defined in section 1250(c) of the Internal Revenue Code as "section 1250 property" conveyed in perpetuity, the transfer of which would be required to be in writing by section 9-503, Idaho Code.
(7) Property that has been depreciated pursuant to section 1245 of the Internal Revenue Code is not eligible to be treated as real property for purposes of this deduction.
(8) Part-year resident and nonresident owners of multistate entities shall compute the allowable deduction as prescribed in the rules of the state tax commission.
[63-3022H, added 1987, ch. 324, sec. 1, p. 680; am. 1994, ch. 39, sec. 2, p. 62; am. 1995, ch. 83, sec. 3, p. 244; am. 1995, ch. 111, sec. 15, p. 359; am. 1996, ch. 41, sec. 2, p. 111; am. 1997, ch. 56, sec. 1, p. 94; am. 1998, ch. 414, sec. 1, p. 1306; am. 2001, ch. 321, sec. 1, p. 1136; am. 2001, ch. 323, sec. 1, p. 1138; am. 2002, ch. 35, sec. 2, p. 68; am. 2005, ch. 208, sec. 1, p. 624; am. 2008, ch. 314, sec. 1, p. 873; am. 2010, ch. 5, sec. 1, p. 6; am. 2015, ch. 41, sec. 1, p. 93; am. 2015, ch. 70, sec. 1, p. 188; am. 2015, ch. 269, sec. 1, p. 1122; am. 2016, ch. 188, sec. 1, p. 511; am. 2018, ch. 186, sec. 1, p. 409.]
For taxable years commencing on or after January 1, 2018, legal fees and costs and medical expenses and costs all related to the adoption of a child may be deducted from taxable income by adoptive parents. The deduction allowed pursuant to this section shall not exceed ten thousand dollars ($10,000) for the legal fees and costs and medical expenses and costs incurred in the adoption, or the actual costs of the legal fees and costs and medical expenses and costs incurred in the adoption, whichever amount is less, which amount may not include travel costs.
[63-3022I, added 1994, ch. 354, sec. 1, p. 1114; am. 2018, ch. 206, sec. 1, p. 459.]
(1) Any individual or corporation may deduct from taxable income an amount equal to the fair market value of technological equipment donated to public elementary or public secondary schools, private elementary or private secondary schools, public universities, private universities, public colleges, private colleges, public community colleges, private community colleges, public technical colleges or private technical colleges, or public libraries and library districts located within the state of Idaho, except that the amount of the deduction shall not exceed the amount of the taxpayer’s cost of the technological equipment donated nor reduce Idaho taxable income to less than zero. The deduction allowed pursuant to this section shall be in addition to any other deduction allowed pursuant to this chapter. In order to take the deduction pursuant to this section, the taxpayer shall receive a written statement from the donee in which the donee agrees to accept the technological equipment donated.
(2) For the purposes of this section, "technological equipment" means a computer, computer software, scientific equipment or apparatus to be used by the university, college, community college, technical college, school or library directly or indirectly in the education program of the university, college, community college, technical college, school or library and which is donated to the university, college, community college, technical college, school or library no later than five (5) years after its manufacture has been substantially completed.
(3) For the purposes of this section, a public elementary or public secondary school means one that is located within this state and receives funding pursuant to chapter 10, title 33, Idaho Code.
(4) For purposes of this section, a private elementary or private secondary school means one that is located within this state and is operated on a nonprofit basis.
(5) For the purposes of this section, a public library or library district means one that is located within this state and receives funding pursuant to chapters 26 and 27, title 33, Idaho Code.
(6) For purposes of this section, a public university, public college, public community college or public technical college means one that is located within this state and receives an appropriation from the legislature.
(7) For purposes of this section, a private university, private college, private community college or private technical college means one that is located within this state and is operated on a nonprofit basis.
(8) The state tax commission shall promulgate rules to administer the provisions of this section. The rules shall be promulgated in compliance with chapter 52, title 67, Idaho Code.
[63-3022J, added 1995, ch. 111, sec. 16, p. 359; am. 1996, ch. 40, sec. 2, p. 104; am. 2002, ch. 35, sec. 3, p. 69; am. 2009, ch. 40, sec. 1, p. 114; am. 2013, ch. 4, sec. 4, p. 11.]
(1) For taxable years commencing on and after January 1, 1995, annual contributions to a medical savings account not exceeding two thousand dollars ($2,000) for the account holder and interest earned on a medical savings account shall be deducted from taxable income by the account holder, if such amount has not been previously deducted or excluded in arriving at taxable income. For married individuals the maximum deduction shall be computed separately for each individual. Contributions to the account shall not exceed the amount deductible under this section.
(2) For taxable years beginning on or after January 1, 2014, the annual contributions to a medical savings account shall be limited to ten thousand dollars ($10,000). Both interest earned and all contributions to medical savings accounts shall be deducted from taxable income by the account holder, if such amount has not been previously deducted or excluded in arriving at taxable income.
(3) For the purpose of this section, the following terms have the following meanings unless the context clearly denotes otherwise:
(a) "Account holder" means an individual, in the case of married individuals each spouse, including a self-employed person, on whose behalf the medical savings account is established.
(b) "Dependent" means a person for whom a deduction is permitted under section 151(b) or (c) of the Internal Revenue Code if a deduction for the person is claimed for that person on the account holder’s Idaho income tax return.
(c) "Dependent child" means a child or grandchild of the account holder who is not a dependent if the account holder actually pays the eligible medical expenses of the child or grandchild and the child or grandchild is any of the following:
(i) Under twenty-one (21) years of age, or enrolled as a full-time student at an accredited college or university.
(ii) Legally entitled to the provision of proper or necessary subsistence, education, medical care or other care necessary for his or her health, guidance or well-being and not otherwise emancipated, self-supporting, married or a member of the armed forces of the United States.
(iii) Mentally or physically incapacitated to the extent that he or she is not self-sufficient.
(d) "Depository" means a state or national bank, savings and loan association, credit union or trust company authorized to act as a fiduciary or an insurance administrator or insurance company authorized to do business in this state, a broker or investment advisor regulated by the department of finance, a broker or insurance agent regulated by the department of insurance or a health maintenance organization, fraternal benefit society, hospital and professional service corporation as defined in section 41-3403, Idaho Code, or nonprofit mutual insurer regulated under title 41, Idaho Code.
(e) "Eligible medical expense" means an expense paid by the taxpayer for medical care described in section 213(d) of the Internal Revenue Code, and long-term care expenses of the account holder and the spouse, dependents and dependent children of the account holder.
(f) "Long-term care expenses" means expenses incurred in providing custodial care in a nursing facility as defined in section 39-1301, Idaho Code, and for insurance premiums relating to long-term care insurance under chapter 46, title 41, Idaho Code.
(g) "Medical savings account" means an account established with a depository to pay the eligible medical expenses of the account holder and the dependents and dependent children of the account holder. Medical savings accounts shall carry the name of the account holder, a designated beneficiary or beneficiaries of the account holder and shall be designated by the depository as a "medical savings account."
(4) Upon agreement between an employer and employee, an employer may establish and contribute to the employee’s medical savings account or contribute to an employee’s existing medical savings account. For taxable years beginning on or after January 1, 1995, but before January 1, 2014, the total combined annual contributions by an employer and the account holder shall not exceed two thousand dollars ($2,000) for the account holder. Employer contributions to an employee’s medical savings account shall be owned by the employee.
(5) Funds held in a medical savings account may be withdrawn by the account holder at any time. Withdrawals for the purpose of paying eligible medical expenses shall not be subject to the tax imposed in this chapter. Funds held in a medical savings account must be exhausted before the account holder, the account holder’s dependent or the account holder’s dependent child receives any state assistance for medical care. The burden of proving that a withdrawal from a medical savings account was made for an eligible medical expense is upon the account holder and not upon the depository or the employer of the account holder. Other withdrawals shall be subject to the following restrictions and penalties:
(a) There shall be a distribution penalty for withdrawal of funds by the account holder for purposes other than the payment of eligible medical expenses. The penalty shall be ten percent (10%) of the amount of withdrawal from the account and, in addition, the amount withdrawn shall be subject to the tax imposed in this chapter. The direct transfer of funds from a medical savings account to a medical savings account at a different depository shall not be considered a withdrawal for purposes of this section. Charges relating to the administration and maintenance of the account by the depository are not withdrawals for purposes of this section.
(b) After an account holder reaches fifty-nine and one-half (59 1/2) years of age, withdrawals may be made for eligible medical expenses or for any other reason without penalty, but subject to the tax imposed by this section.
(c) Upon the death of an account holder, the account principal, as well as any interest accumulated thereon, shall be distributed without penalty to the designated beneficiary or beneficiaries.
(d) Funds withdrawn which are later reimbursed shall be taxable unless redeposited into the account within sixty (60) days of the reimbursement. Deposits of reimbursed eligible medical expenses shall not be included in calculating the amount deductible.
(e) Funds deposited in a medical savings account which are deposited in error or unintentionally and which are withdrawn within thirty (30) days of being deposited shall be treated as if the amounts had not been deposited in the medical savings account. Funds withdrawn from a medical savings account which are withdrawn in error or unintentionally and which are redeposited within thirty (30) days of being withdrawn shall be treated as if the amounts had not been withdrawn from the medical savings account.
(f) Funds withdrawn which are, not later than the sixtieth day after the day of the withdrawal, deposited into another medical savings account for the benefit of the same account holder are not a withdrawal for purposes of this section and shall not be included in calculating the amount deductible.
(6) Reporting. Depositories, in the case of medical savings accounts, shall provide to the state tax commission, in the routine fashion used for all interest-bearing accounts, the same information that is provided for any interest-bearing bank account. So as to minimize the burden of reporting, the information shall be provided in the format in which information is provided for any interest-bearing bank account to the state tax commission. There shall be no other reporting requirements. Account holders shall provide on any state income tax form in which they take a deduction for a medical savings account the account number of their medical savings account and the depository at which the account is held.
(7) Any medical care savings account established pursuant to chapter 53, title 41, Idaho Code, as enacted by chapter 186, laws of 1994, may be continued pursuant to the provisions of this section and all duties, privileges and liabilities imposed in this section upon account holders of medical care savings accounts and the beneficiaries of those accounts shall apply to account holders of medical care savings accounts and their beneficiaries established pursuant to chapter 53, title 41, Idaho Code, as enacted by chapter 186, laws of 1994, as if the medical care savings account were a medical savings account established pursuant to this section.
(8) (a) If the account holder’s surviving spouse acquires the account holder’s interest in a medical savings account by reason of being the designated beneficiary of such account at the death of the account holder, the medical savings account shall be treated as if the spouse were the account holder.
(b) If, by reason of the death of the account holder, any person acquires the account holder’s interest in a medical savings account in a case to which subsection (8)(a) of this section does not apply:
(i) Such account shall cease to be a medical savings account as of the date of death; and
(ii) An amount equal to the fair market value of the assets in such account on such date shall be includable, if such person is not the estate of such holder, in such person’s Idaho taxable income for the taxable year which includes such date, or if such person is the estate of such holder, in such holder’s Idaho taxable income for the last taxable year of such holder.
(c) The amount includable in Idaho taxable income under subsection (8)(b) of this section by any person, other than the estate, shall be reduced by the amount of qualified medical expenses which were incurred by the decedent before the date of the decedent’s death and paid by such person within one (1) year after such date.
[(63-3022K) 63-3022J, added 1995, ch. 362, sec. 2, p. 1266; am. and redesig. 1996, ch. 60, sec. 1, p. 175; am. 1997, ch. 318, sec. 1, p. 940; am. 1998, ch. 398, sec. 1, p. 1245; am. 1999, ch. 31, sec. 1, p. 60; am. 2000, ch. 274, sec. 150, p. 885; am. 2001, ch. 270, sec. 3, p. 980; am. 2002, ch. 212, sec. 1, p. 584; am. 2007, ch. 148, sec. 7, p. 440; am. 2014, ch. 327, sec. 1, p. 810.]
(1) Individuals who are not a resident of Idaho as defined in section 63-3014, Idaho Code, but who are owners of an interest in a pass-through entity, as defined in section 63-3006C, Idaho Code, transacting business in Idaho or who are beneficiaries of a trust or estate with income taxable in Idaho may have Idaho tax relating to income described in subsection (2) of this section reported and paid by the pass-through entity on a return, referred to in this section as a "composite return." Income subject to this subsection shall be taxed at the rate applicable to corporations. The option to file a composite return and pay tax for nonresident owners is in lieu of the backup withholding requirements of section 63-3036B, Idaho Code.
(2) The provisions of subsection (1) of this section apply to the share of any income, loss, deduction or credit of a pass-through entity required to be included on such individual’s Idaho return.
(3) For purposes of subsection (2) of this section, deductions, loss and credits allowed in computing the tax liability and income attributable to the individual owner shall be prescribed in the rules of the state tax commission pursuant to section 63-3026A, Idaho Code.
(4) If a corporation, partnership, trust or estate transacting business in Idaho does not comply with the provisions of section 63-3036B, Idaho Code, and also fails to file an Idaho income tax return reporting all of the items described in subsection (2) of this section or fails to pay any tax due thereon, such corporation, partnership, trust or estate shall be liable for tax on such items at the rate applicable to corporations. An entity may rely upon information provided by the individual indicating state of residency, as prescribed in the rules of the state tax commission.
(5) A pass-through entity that files a composite return as described in subsection (1) of this section shall include a statement with the return showing, and report on the K-1 to each individual whose income is included in the return, each individual’s share of the income reported on the return and the tax paid by the pass-through entity on each individual’s share of the income reported on the return. The statement shall be made on a form prescribed by the state tax commission and shall contain any other information required by it. If the individual filed an Idaho return, the individual shall include the income shown on the K-1 to that individual and shall be entitled to a credit for the tax paid by the entity on such income shown on the K-1 to that individual.
(6) "Individual" for purposes of this section means a:
(a) Natural person;
(b) Grantor trust as described in sections 673 through 677 or section 678 of the Internal Revenue Code;
(c) Qualified subchapter S trust as described in section 1361(d)(3) of the Internal Revenue Code; or
(d) Single member limited liability company that has not elected to be classified as a corporation and is treated as a disregarded entity for federal income tax purposes.
[63-3022L, added 1996, ch. 340, sec. 1, p. 1141; am. 1997, ch. 57, sec. 6, p. 100; am. 1999, ch. 60, sec. 3, p. 157; am. 2000, ch. 38, sec. 1, p. 70; am. 2001, ch. 270, sec. 4, p. 983; am. 2010, ch. 37, sec. 2, p. 67; am. 2011, ch. 3, sec. 1, p. 6; am. 2012, ch. 187, sec. 1, p. 491; am. 2014, ch. 36, sec. 1, p. 61.]
For taxable years commencing on and after January 1, 1999:
(1) Add interest and dividends received or accrued during the taxable year from foreign securities and from securities issued by states and other political subdivisions exempt from federal income tax under the Internal Revenue Code, less applicable amortization.
(2) Subtract any expenses and interest not allowed under sections 265 and 291 of the Internal Revenue Code in computing taxable income, as defined in section 63-3011B, Idaho Code, for interest on indebtedness incurred or continued to purchase or to carry obligations the interest of which is not subject to the taxes imposed under the Internal Revenue Code.
(3) Subtract interest and dividends received or accrued during the taxable year from securities issued:
(a) By the federal government and its instrumentalities to the extent included in taxable income and not subject to taxation by this state, and
(b) By the state of Idaho, its cities and political subdivisions, exempt from federal income tax under the Internal Revenue Code.
(4) No deduction shall be allowed for interest on indebtedness incurred or continued to purchase or to carry obligations the interest of which is not subject to the taxes imposed under this chapter. The amount of interest on indebtedness thus incurred or continued shall be an amount which bears the same ratio to the aggregate amount allowable to the taxpayer as a deduction for interest for the taxable year as the taxpayer’s interest income from the obligations mentioned in the preceding sentence bears to the taxpayer’s total income for the taxable year. "Aggregate amount allowable" means the taxpayer’s total interest expense deducted in determining taxable income as defined in section 63-3011B, Idaho Code, plus interest expense disallowed under sections 265 and 291 of the Internal Revenue Code, plus interest expense from a pass-through entity, plus the interest expense of a foreign corporation that, pursuant to sections 63-3027 and 63-3027B through 63-3027E, Idaho Code, is included in a combined report with the taxpayer less interest expense of any corporation included with the taxpayer in a consolidated federal return but not a part of the combined report filed with the state tax commission for the same taxable year. The deduction under this subsection shall not exceed the amount of interest and dividend income added pursuant to subsection (1) of this section less interest and dividend income from the state of Idaho, its cities and political subdivisions, subtracted pursuant to subsection (3) of this section.
(5) No deduction shall be allowed for expenses (other than interest) attributable to interest or dividend income which is not subject to the taxes imposed under this chapter.
[63-3022M, added 1998, ch. 42, sec. 3, p. 179, am. 1999, ch. 28, sec. 1, p. 39.]
(1) To eliminate from the calculation of Idaho taxable income any marriage penalty that may exist in the basic standard deductions provided in the Internal Revenue Code, basic federal standard deductions shall be adjusted as provided in this section.
(2) As used in this section, "the marriage penalty" means the difference obtained by subtracting:
(a) The basic standard deduction for joint returns, from
(b) Two (2) times the basic standard deduction for an individual who is not married and who is not a surviving spouse or head of household.
(3) For each taxable year beginning on and after January 1, 2000, the standard deduction in section 63-3022(j)(1), Idaho Code, shall be: on a joint return, the basic federal joint standard deduction plus the marriage penalty, rounded to the nearest dollar, plus the amount of any additional standard deduction for the aged or blind for which a taxpayer may qualify under section 63 of the Internal Revenue Code.
(4) The basic federal standard deduction for an individual for whom a deduction under section 151 of the Internal Revenue Code is allowable to another taxpayer shall not be reduced below the minimum adjusted basic standard deduction provided by section 63 of the Internal Revenue Code.
[63-3022N, added 2000, ch. 479, sec. 4, p. 1654; am. 2004, ch. 30, sec. 5, p. 61.]
For taxable years commencing on and after January 1, 2001, in computing Idaho taxable income:
(1)(a) The adjusted basis of depreciable property, depreciation, and gains and losses from sale, exchange, or other disposition of depreciable property acquired after September 10, 2001, and before December 31, 2007, shall be computed without regard to the bonus depreciation available under subsections (k) and (n) of section 168 of the Internal Revenue Code and the adjusted basis of depreciable property, depreciation, and gains and losses from sale, exchange, or other disposition of depreciable property acquired after December 31, 2009, shall be computed without regard to subsections (k) and (n) of section 168 of the Internal Revenue Code, provided that to the extent a taxpayer cannot use the additional depreciation claimed under subsections (k) and (n) of section 168 of the Internal Revenue Code in the current year for federal income tax purposes because of loss limitations imposed by sections 465, 469, 704(d), and 1366(d) of the Internal Revenue Code, then such additional depreciation shall not be added back to federal taxable income in order to determine Idaho taxable income in the current year, and the current and subsequent year bonus depreciation adjustments shall be suspended and the add-back and subtractions shall be applied as provided in this subsection.
(b) In subsequent taxable years, the additional depreciation that was not added back to federal taxable income in the year it originated as provided in this subsection shall be added back when a prior loss that has been suspended under section 465, 469, 704(d), or 1366(d) of the Internal Revenue Code is deducted for federal income tax purposes in the following manner:
(i) Bonus depreciation deducted for federal income tax purposes shall be added back to Idaho taxable income as the losses suspended under sections 465, 469, 704(d), and 1366(d) of the Internal Revenue Code are utilized, after the utilization of all losses other than those attributable to bonus depreciation;
(ii) The amount of the bonus depreciation add-back shall be the full amount of the add-back less the cumulative allowable depreciation amounts for Idaho purposes. If, because of the limitations of sections 465, 469, 704(d), and 1366(d) of the Internal Revenue Code, there is a partial net add-back, then the net add-back amount for future periods will be adjusted to reflect the amount that was actually added back;
(iii) After the add-back or net add-back has been fully added back to Idaho taxable income, the taxpayer may take the remaining deductions over the life of the asset regardless of the limitations under sections 465, 469, 704(d), and 1366(d) of the Internal Revenue Code;
(iv) In the event of a disposition of a pass-through entity’s ownership interest, adjustments shall be made to the tax basis of the owner’s interest of the pass-through entity to ensure there is no double deduction of expense or double inclusion of income. The basis referred to in this subparagraph is the basis to the new owner in his ownership interest or the basis to the owner who disposed of this ownership interest, as applicable; and
(v) In the event of a disposition of a pass-through entity’s assets for which bonus depreciation was elected before the add-back was fully realized, adjustments shall be made to ensure there is no double deduction of expense or double inclusion of income.
(c) For determining the Idaho adjusted income for part-year residents or nonresidents:
(i) When a loss under section 465, 469, 704(d), or 1366(d) of the Internal Revenue Code is deducted for federal purposes and is sourced to Idaho, the additional depreciation that was not added back in the year it originated as provided in paragraph (a) of this subsection shall be added back in subsequent years based on the apportionment factor in the year the bonus depreciation originated; and
(ii) When a loss under section 465, 469, 704(d), or 1366(d) of the Internal Revenue Code is not sourced to Idaho, the add-back of additional depreciation shall be made in the current taxable year, notwithstanding the provisions of paragraph (a) of this subsection.
(2) The loss limitations imposed by sections 465, 469, 704(d), and 1366(d) of the Internal Revenue Code shall be calculated without regard to depreciation claimed for federal tax purposes pursuant to subsections (k) and (n) of section 168 of the Internal Revenue Code.
(3) Each partner, shareholder, member, or beneficiary shall include in Idaho taxable income his share of the adjustments required by this section in computing Idaho taxable income of any pass-through entity.
(4) In recognition of the fact that a taxpayer affected by this section may have a different tax basis in his pass-through entity interest and a different carryover of loss limitations and amount at risk for Idaho tax purposes than for federal tax purposes, each partner, shareholder, member, or beneficiary of any pass-through entity that claims the additional depreciation pursuant to subsections (k) and (n) of section 168 of the Internal Revenue Code shall keep records of the Idaho tax basis of his interest in the pass-through entity, the amount at risk, and the balance of his carryover of Idaho loss limitations in order to confirm that the partner, shareholder, member, or beneficiary, or any successor of his interest by purchase or other means, does not receive directly or indirectly any Idaho income tax benefit from the additional depreciation available under subsections (k) and (n) of section 168 of the Internal Revenue Code.
(5) Notwithstanding the provisions of sections 63-3068 and 63-3072, Idaho Code, the period of limitations for issuing a notice of deficiency determination or filing a claim for refund for any year for which an adjustment is required by this section shall not expire before three (3) years from the later of: (a) the due date of the return for the last taxable year an adjustment was required by this section; or (b) the date the return was filed for the last taxable year an adjustment was required by this section. Upon the expiration of the period of limitations as provided in subsections (a) and (m) of section 63-3068, Idaho Code, and subsections (b) and (h) of section 63-3072, Idaho Code, only those specific items of basis, deductions, gains, or losses that are computed without regard to subsections (k) and (n) of section 168 of the Internal Revenue Code, as required by this section, shall be subject to adjustment, as well as the effect of such adjustments on Idaho credits, net operating loss deductions, and capital loss carryovers.
[63-3022O, added 2003, ch. 350, sec. 2, p. 938; am. 2004, ch. 20, sec. 2, p. 23; am. 2007, ch. 11, sec. 1, p. 20; am. 2008, ch. 319, sec. 2, p. 882; am. 2011, ch. 1, sec. 2, p. 3; am. 2012, ch. 14, sec. 2, p. 28; am. 2012, ch. 59, sec. 1, p. 158; am. 2014, ch. 341, sec. 1, p. 859; am. 2018, ch. 7, sec. 1, p. 12; am. 2021, ch. 211, sec. 1, p. 580; am. 2022, ch. 186, sec. 1, p. 615; am. 2026, ch. 1, sec. 2, p. 3.]
With respect to an individual taxpayer, an amount equal to the amount paid by the taxpayer during the taxable year for insurance which constitutes medical care for the taxpayer, the spouse or dependents of the taxpayer which is not otherwise deducted or accounted for by the taxpayer for Idaho income tax purposes shall be allowed as a deduction for Idaho taxable income. As used in this section, "insurance which constitutes medical care" includes any hospital or medical policy or certificate, any subscriber contract, policies or certificates of insurance for specific disease, hospital confinement indemnity, accident-only, dental, vision, single employer self-funded coverage, meaning that portion of health insurance which is the retained risk of the employer, student health benefits only or coverage for medical care or treatment issued as a supplement to liability insurance. Employers shall provide to the employee a statement as to whether an employee’s contribution for health insurance has been excluded from taxable income.
[63-3022P, added 2001, ch. 386, sec. 9, p. 1359; am. 2003, ch. 10, sec. 2, p. 24.]
For taxable years commencing on or after January 1, 2004, premiums paid during the taxable year, by a taxpayer for long-term care insurance as that term is defined in section 41-4603, Idaho Code, which long-term care insurance is to be for the benefit of the taxpayer, a dependent of the taxpayer or an employee of the taxpayer, may be deducted from taxable income to the extent that the premium is not otherwise deducted or accounted for by the taxpayer for Idaho income tax purposes.
[(63-3022Q) 63-3022P, added 2001, ch. 384, sec. 1, p. 1347; am. and redesig. 2002, ch. 35, sec. 5, p. 70; am. 2004, ch. 358, sec. 1, p. 1066.]
If taxable income includes recovered amounts previously deducted from taxable income that were not allowed or allowable as a deduction from Idaho taxable income except as provided by this section, a deduction equal to the recovered amount shall be allowed in determining Idaho taxable income.
[63-3022R, added 2013, ch. 2, sec. 1, p. 3.]
(1) A taxpayer who is an enrolled member of a federally recognized Indian tribe who resides on the reservation of the Coeur d’Alene tribe, the Kootenai tribe of Idaho, the Nez Perce tribe, the Shoshone-Bannock tribes of the Fort Hall reservation or the Shoshone-Paiute tribes of the Duck Valley reservation may deduct from taxable income an amount equal to the taxpayer’s income earned on the reservation of a tribe enumerated in this section, without regard to whether the reservation is the reservation of the tribe of which the taxpayer is an enrolled member.
(2) An enrolled member of a federally recognized Indian tribe who resides outside of the state of Idaho shall treat income earned by such member outside the physical boundaries of an Indian reservation in Idaho as subject to Idaho taxes. Income earned by such member within the physical boundaries of an Indian reservation in Idaho shall not be subject to Idaho taxes.
[63-3022S, added 2014, ch. 18, sec. 1, p. 25; am. 2024, ch. 2, sec. 1, p. 3.]
A taxpayer may deduct from taxable income the amount by which the taxpayer must reduce a charitable contribution deduction under section 170(d)(1)(B) or 170(d)(2)(B) of the Internal Revenue Code. The amount allowed to a part-year resident or nonresident will be determined pursuant to section 63-3026A(6), Idaho Code. This deduction shall not apply to the calculation set forth in section 63-3022L, Idaho Code.
[63-3022U, added 2015, ch. 19, sec. 1, p. 25; am. 2018, ch. 5, sec. 1, p. 11.]
(1) As used in this section:
(a) "Account holder" means an individual who resides in Idaho, who has filed an income tax return in Idaho for the most recent taxable year, who is a first-time home buyer, and who establishes, individually or jointly, a first-time home buyer savings account. A married individual living in Idaho who is also a first-time home buyer, filing separately, may be an account holder if the account is established separately from the person’s spouse. Married individuals filing jointly are considered the account holder if they both reside in Idaho, if at least one (1) of them has filed an income tax return in Idaho for the most recent taxable year, and if at least one (1) of them is a first-time home buyer.
(b) "Commission" means the Idaho state tax commission.
(c) "Depository" means a state or national bank, a savings and loan association, a credit union, or a trust company authorized to act as a fiduciary, authorized to do business in Idaho.
(d) (i) "Eligible home costs" means:
The down payment for the purchase of a single-family residence in Idaho; or
A cost, fee, tax, or payment incurred by, charged to, or assigned to an account holder for the purchase of a single-family residence in Idaho and listed on the statement of receipts and disbursements for the sale, including any statement prescribed by 12 CFR 1026.38, as amended.
(ii) "Eligible home costs" also includes any United States veterans administration funding fee incurred by, charged to, or assigned to a designated beneficiary in connection with a veterans administration home loan guaranty program.
(e) "First-time home buyer" means an individual who resides in Idaho, who has filed an income tax return in Idaho for the most recent taxable year, and who does not own, either individually or jointly, a single-family or multifamily residence and who has never owned or purchased, either individually or jointly, a single-family residence in any location.
(f) "First-time home buyer savings account" means an account established in Idaho with a depository to pay the eligible home costs of the account holder or to reimburse the account holder’s eligible home costs in connection with a qualified home purchase.
(g) "Qualified home purchase" means, with respect to a first-time home buyer savings account, the purchase of a single-family residence in Idaho by the account holder on the date or after the date the account holder opened a first-time home buyer savings account.
(h) "Single-family residence" means a residential dwelling owned and occupied, or under contract to be constructed, by an account holder as the account holder’s principal residence, including but not limited to a manufactured home, mobile home, condominium unit, or townhome.
(2) For taxable years commencing on and after January 1, 2020, annual contributions and interest earned on a first-time home buyer savings account may be deducted from the taxable income of the account holder. Annual deductions shall not exceed fifteen thousand dollars ($15,000) per year for an individual or thirty thousand dollars ($30,000) per year for a married couple filing jointly. Annual contributions to a first-time home buyer savings account shall not exceed the amount deductible under this section. Interest earned on the account shall be tax deferred provided such funds are used for a qualified home purchase subject to this section.
(3) The account holder shall be the beneficiary of the first-time home buyer savings account. The designation shall be made on forms provided by the commission during the year following the date on which the account is established.
(4) No withdrawals may be made from a first-time home buyer savings account within the first thirty (30) days from the establishment of the account. Thereafter, funds held in a first-time home buyer savings account may be withdrawn by the account holder at any time. Deposits into a first-time home buyer savings account shall not exceed one hundred thousand dollars ($100,000) for the lifetime of the account. Withdrawals for the purpose of paying eligible home costs shall not be subject to the tax imposed in this chapter. The burden of proving that a withdrawal from a first-time home buyer savings account was made for an eligible home cost is solely upon the account holder. Other withdrawals shall be subject to the following:
(a) The withdrawal of funds by the account holder for purposes other than the payment of eligible home costs shall be subject to taxes otherwise due.
(b) The direct transfer of funds from a first-time home buyer savings account to another first-time home buyer savings account at a different depository shall not be considered a withdrawal for purposes of this section. Charges relating to the administration and maintenance of the account by the depository are not withdrawals for purposes of this section.
(c) Funds deposited in a first-time home buyer savings account that are deposited in error or unintentionally and that are withdrawn within fifteen (15) days of being deposited shall be treated as if the amounts had not been deposited in the first-time home buyer savings account.
(d) Funds withdrawn from a first-time home buyer savings account that are redeposited into a first-time home buyer savings account within fifteen (15) days of being withdrawn shall be treated as if the amounts had not been withdrawn from the first-time home buyer savings account.
(e) Upon the death of an account holder, the account principal, as well as any interest accumulated thereon, shall be distributed without penalty to a beneficiary or beneficiaries designated by the account holder. Any taxes that are owing on the funds shall be paid by the beneficiary or beneficiaries.
(5) In the case of first-time home buyer savings accounts, account holders shall provide to the state tax commission, in the routine fashion used for all interest-bearing accounts, the same information that is provided for any interest-bearing bank account and shall also include an attestation under the penalty of perjury that the account holder is a first-time home buyer as defined in this section. To minimize the burden of reporting, the information shall be provided in the format in which information is provided for any interest-bearing bank account to the state tax commission. Depositories shall report withdrawals within ninety (90) days on a form provided by the commission. Account holders shall provide on any state income tax form in which they take a deduction for a first-time home buyer savings account the account number of their first-time home buyer savings account and the depository at which the account is held.
(6) First-time home buyer savings accounts shall be nontransferable to any person who is not the account holder.
(7) The commission shall promulgate rules to administer the provisions of this section.
[63-3022V, added 2020, ch. 252, sec. 1, p. 736.]
Subject only to the limitations of the constitutions of the United States and of the state of Idaho, the term "transacting business" shall include owning or leasing, whether as lessor or lessee, of any property, including real and personal property, located in this state, or engaging in or the transacting of any activity in this state, for the purpose of or resulting in economic or pecuniary gain or profit.
[63-3023, added 1959, ch. 299, sec. 23, p. 613; am. 1961, ch. 328, sec. 6, p. 622; am. 1988, ch. 197, sec. 1, p. 375; am. 1995, ch. 111, sec. 17, p. 360; am. 2007, ch. 59, sec. 1, p. 141.]
(1) For each taxable year, a tax measured by Idaho taxable income as defined in this chapter is hereby imposed upon every individual, trust, or estate required by this chapter to file a return.
(2)(a) The tax imposed upon individuals, trusts, and estates shall be computed at the rate of five and three-tenths percent (5.3%) of taxable income over two thousand five hundred dollars ($2,500).
(b) For taxpayers filing a joint return pursuant to the provisions of section 63-3031, Idaho Code, the tax imposed shall be computed at the rate of five and three-tenths percent (5.3%) of taxable income over five thousand dollars ($5,000). For the purposes of this section, a return of a surviving spouse, as defined in section 2(a) of the Internal Revenue Code, and a head of household, as defined in section 2(b) of the Internal Revenue Code, shall be treated as a joint return.
(3) For taxable year 2000 and each year thereafter, the state tax commission shall prescribe a factor that shall be used to compute the Idaho income tax thresholds provided in subsection (2) of this section. The factor shall provide an adjustment to the Idaho tax thresholds so that inflation will not result in a tax increase. The Idaho tax thresholds shall be adjusted as follows: multiply the last threshold amount by the percentage (the consumer price index for the calendar year immediately preceding the calendar year to which the adjusted threshold amount will apply divided by the consumer price index for calendar year 1998). For the purpose of this computation, the consumer price index for any calendar year is the average of the consumer price index as of the close of the twelve (12) month period for the immediately preceding calendar year, without regard to any subsequent adjustments, as adopted by the state tax commission. This adoption shall be exempt from the provisions of chapter 52, title 67, Idaho Code. The consumer price index shall mean the consumer price index for all U.S. urban consumers published by the United States department of labor. The state tax commission shall annually include the factor as provided in this subsection to multiply against Idaho taxable income using the thresholds in this section to arrive at that year’s Idaho taxable income for tax threshold purposes.
(4) In the case of a trust that is an electing small business trust as defined in section 1361 of the Internal Revenue Code, the special rules for taxation of such trusts contained in section 641 of the Internal Revenue Code shall apply, except that the individual rate provided in subsection (2)(a) of this section shall apply in computing tax due under this chapter.
(5) The state tax commission may promulgate rules defining the conditions upon which such returns shall be filed.
[63-3024, added 2022, 1st E.S., ch. 1, sec. 5, p. 6; am. 2024, ch. 237, sec. 2, p. 824; am. 2025, ch. 13, sec. 3, p. 43.]
(1) Any resident individual who is required to file and who has filed an Idaho income tax return shall be allowed a credit against taxes due under the Idaho income tax act for the taxpayer, the taxpayer’s spouse, and each dependent, as defined in section 152 of the Internal Revenue Code, claimed on the taxpayer’s Idaho income tax return and awarded by the court under section 32-706, Idaho Code, if applicable. For tax year 2022, the credit is one hundred dollars ($100). For tax years 2023 and 2024, the credit is one hundred twenty dollars ($120). For tax year 2025 and each year thereafter, the credit is one hundred fifty-five dollars ($155). If taxes due are less than the total credit allowed, the taxpayer shall be paid a refund equal to the balance of the unused credit.
(2) A resident individual who is not required to file an Idaho income tax return and for whom no credit or refund is allowed under any other subsection of this section shall, subject to the limitations of subsections (3), (4), (5), (6), and (7) of this section, be entitled to a refund in the amount provided in subsection (1) of this section.
(3) Except as provided in subsection (8) of this section, a credit or refund under this section is available only if the individual for whom a personal exemption is claimed is a resident of the state of Idaho.
(4) In no event shall more than one (1) taxpayer be allowed a credit or refund for the same personal exemption or under more than one (1) subsection of this section.
(5) In the event that a credit or refund is attributable to any individual for whom assistance under the federal food stamp program was received for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which no assistance was received.
(6) In the event that a credit or refund is attributable to any individual who has been incarcerated for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which the individual was not incarcerated.
(7) No credit or refund shall be paid that is attributable to an individual residing illegally in the United States.
(8) Any part-year resident entitled to a credit under this section shall receive a proportionate credit reflecting the part of the year in which he was domiciled in this state.
(9) In lieu of the flat tax credit amounts provided in subsection (1) of this section, a resident taxpayer may elect for the taxpayer, the taxpayer’s spouse, and each dependent, as defined in section 152 of the Internal Revenue Code, claimed on such taxpayer’s Idaho income tax return, the actual amount of sales tax paid by such persons on food purchases that took place in Idaho during the taxable year, up to a maximum of two hundred fifty dollars ($250) per person. To make this election, the taxpayer shall indicate this choice on the taxpayer’s tax return or application and submit scanned copies of sales tax receipts of qualifying food purchases along with the tax return or application. If taxes due are less than the total credit allowed, the taxpayer shall be paid a refund equal to the balance of the unused credit. The provisions of section 63-3042A, Idaho Code, shall not apply to the credit provided in this section. If a taxpayer meets the qualifications under the provisions of subsection (5) of this section, such taxpayer shall not be eligible for the credit under this subsection. If a taxpayer misrepresents the amount of sales tax paid on food purchases on such taxpayer’s tax return or application, the amounts that were improperly claimed shall be subject to recovery by the state tax commission pursuant to section 63-3045, Idaho Code, and the taxpayer shall be subject to the penalties provided in sections 63-3046 and 63-3075(b), Idaho Code.
(a) For the purposes of this subsection, "food" means the sale of food sold for human consumption and shall have the same definition as provided in 7 U.S.C. 2012 as that section existed on January 1, 2025. The types and kinds of food products on which sales tax qualifies as credit by this section shall be the same types and kinds of food products that are eligible for purchase with benefits provided under the federal supplemental nutrition assistance program and shall not include candy, soda, restaurant sales of food, food sold in a heated state or heated by a retail seller, two (2) or more food ingredients mixed or combined by a retail seller for a single sale, or food sold with an eating utensil provided by the retail seller such as a plate, knife, fork, spoon, glass, cup, napkin, or straw.
(b) For the purposes of paragraph (a) of this subsection:
(i) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners combined with chocolate, fruits, nuts, or other ingredients or flavorings in the form of confections, bars, drops, or pieces. "Candy" does not include any item that contains more than ten percent (10%) flour by weight or requires refrigeration.
(ii) "Soda" means any nonalcoholic beverage that contains natural or artificial sweeteners. "Soda" does not include beverages that contain milk or milk substitutes, greater than fifty percent (50%) of vegetable or fruit juice by volume, or that require preparation before consumption, such as powders or concentrates.
(10) Any refund shall be paid to such individual only upon his making application therefor, at such time and in such manner as may be prescribed by the state tax commission. The state tax commission shall prescribe the method by which the refund is to be made to the taxpayer. The refunds authorized by this section shall be paid from the state refund fund in the same manner as the refunds authorized by section 63-3067, Idaho Code.
(11) An application for any refund that is due and payable under the provisions of this section must be filed with the state tax commission within three (3) years of:
(a) The due date, including extensions, of the return required under section 63-3030, Idaho Code, if the applicant is required to file a return; or
(b) The fifteenth day of April of the year following the year to which the application relates, if the applicant is not required to file a return.
(12) The state tax commission shall provide income tax payers with the irrevocable option of donating credited funds accruing pursuant to this section. Any funds so donated shall be remitted from the refund fund to the cooperative welfare fund, created pursuant to section 56-401, Idaho Code, and shall be used solely for the purpose of providing low-income Idahoans with assistance in paying home energy costs.
[63-3024A, added 2008, ch. 316, sec. 2, p. 876; am. 2017, ch. 16, sec. 1, p. 27; am. 2019, ch. 13, sec. 1, p. 15; am. 2020, ch. 271, sec. 2, p. 793; am. 2022, ch. 268, sec. 1, p. 858; am. 2025, ch. 56, sec. 1, p. 267.]
(1) There is hereby created in the state treasury the Idaho tax rebate fund for the purpose of implementing the provisions of this section.
(a) Up to two hundred twenty million dollars ($220,000,000), less administrative costs, shall be distributed by the state tax commission to pay rebates to individual taxpayers as provided in subsection (2) of this section, which moneys are continuously appropriated.
(b) For rebates authorized under subsection (3) of this section, up to three hundred fifty million dollars ($350,000,000), less administrative costs, shall be distributed by the state tax commission to pay rebates to individual taxpayers, which moneys are continuously appropriated.
(c) For rebates authorized under subsection (4) of this section, up to five hundred million dollars ($500,000,000), less administrative costs, shall be distributed by the state tax commission to pay rebates to individual taxpayers, which moneys are continuously appropriated.
(d) On June 1, 2023, of the moneys remaining following the distributions authorized pursuant to paragraphs (a), (b), and (c) of this subsection, anticipated to be approximately one hundred thirty million dollars ($130,000,000), fifty percent (50%) shall be transferred by the state controller to the homeowner property tax relief account established pursuant to section 63-724, Idaho Code, and fifty percent (50%) shall be transferred by the state controller to the school district facilities fund established pursuant to section 33-911, Idaho Code.
(2) After filing a 2020 Idaho individual income tax return or form 24 on or before December 31, 2021, any full-year resident taxpayer who also filed an individual income tax return or a form 24 for 2019 shall receive a onetime, nontaxable income tax rebate check in an amount approximately equal to nine percent (9%) of the tax amount, if any, reported on 2019 form 40, line 20, or for service members on 2019 form 43, line 42, or fifty dollars ($50.00) per taxpayer and each dependent, whichever is more. Any unexpended moneys remaining from the rebate authorized under this subsection shall be added by the state tax commission to the moneys designated for the rebate authorized under subsection (3) of this section.
(3) After filing a 2021 Idaho individual income tax return or form 24 on or before December 31, 2022, any full-year resident taxpayer who also filed a 2020 individual income tax return or form 24 on or before December 31, 2022, shall receive a onetime, nontaxable income tax rebate check in an amount approximately equal to twelve percent (12%) of the tax amount, if any, reported on 2020 form 40, line 20, or for service members on 2020 form 43, line 42, or seventy-five dollars ($75.00) per taxpayer and each dependent, whichever is more. The state tax commission shall issue such rebates during the 2022 fiscal year and 2023 fiscal year to the extent possible.
(4) In addition to the rebate granted under subsection (3) of this section, after filing a 2021 Idaho individual income tax return or form 24 on or before December 31, 2022, any full-year resident taxpayer who also filed a 2020 individual income tax return or a form 24 on or before December 31, 2022, shall receive a onetime nontaxable income tax rebate check in an amount approximately equal to ten percent (10%) of the tax amount, if any, reported on 2020 form 40, line 20, or for service members on 2020 form 43, line 42, or three hundred dollars ($300) per individual return or six hundred dollars ($600) per joint return, whichever is more. The state tax commission shall issue such rebates during the 2023 fiscal year to the extent possible.
[63-3024B, added 2021, ch. 342, sec. 2, p. 1041; am. 2022, ch. 1, sec. 2, p. 4; am. 2022, 1st E.S., ch. 1, sec. 2, p. 5; am. 2023, ch. 200, sec. 13, p. 551.]
(1) For each taxable year, a tax is hereby imposed on the Idaho taxable income of a corporation, other than an S corporation, that transacts or is authorized to transact business in this state or has income attributable to this state. The tax rate imposed by this section shall be as follows:
(a) For each taxable year, commencing on and after January 1, 2001, the tax imposed by this section shall be equal to seven and six-tenths percent (7.6%) of Idaho taxable income.
(b) For each taxable year, commencing on and after January 1, 2012, the tax imposed by this section is changed and shall be equal to seven and four-tenths percent (7.4%) of Idaho taxable income.
(c) For each taxable year, commencing on and after January 1, 2018, the tax imposed by this section is changed and shall be equal to six and nine hundred twenty-five thousandths percent (6.925%) of Idaho taxable income.
(d) For each taxable year, commencing on and after January 1, 2021, the tax imposed by this section is changed and shall be equal to six and five-tenths percent (6.5%) of Idaho taxable income.
(e) For each taxable year, commencing on and after January 1, 2022, the tax imposed by this section is changed and shall be equal to six percent (6%) of Idaho taxable income.
(f) For each taxable year, commencing on and after January 1, 2023, the tax imposed by this section is changed and shall be equal to five and eight-tenths percent (5.8%) of Idaho taxable income.
(g) For each taxable year, commencing on and after January 1, 2024, the tax imposed by this section is changed and shall be equal to five and six hundred ninety-five thousandths percent (5.695%) of Idaho taxable income.
(h) For each taxable year, commencing on and after January 1, 2025, the tax imposed by this section is changed and shall be equal to five and three-tenths percent (5.3%) of Idaho taxable income.
(2) In the case of an S corporation that is required to file a return under section 63-3030, Idaho Code, a tax is hereby imposed at the rate provided in subsection (1) of this section upon both:
(a) Net recognized built-in gain attributable to this state. The amount of net recognized built-in gain attributable to this state shall be computed in accordance with section 1374 of the Internal Revenue Code subject to the apportionment and allocation provisions of section 63-3027, Idaho Code; and
(b) Excess net passive income attributable to this state. The amount of excess net passive income attributable to this state shall be computed in accordance with section 1375 of the Internal Revenue Code subject to the apportionment and allocation provisions of section 63-3027, Idaho Code.
(3) The tax imposed by subsection (1) or (2) of this section shall not be less than twenty dollars ($20.00); provided that the twenty-dollar ($20.00) minimum payment shall not be collected from nonproductive mining corporations.
(4) The tax imposed by this section shall not apply to corporations taxed pursuant to the provisions of section 63-3025A, Idaho Code.
[63-3025, added 2022, 1st E.S., ch. 1, sec. 7, p. 7; am. 2024, ch. 237, sec. 3, p. 825; am. 2025, ch. 13, sec. 4, p. 44; am. 2025, ch. 302, sec. 2, p. 1282.]
(1) For taxable years commencing on and after January 1, 2001, a franchise tax shall be imposed upon any corporation, other than an S corporation, for the privilege of exercising its corporate franchise within the state during such taxable year including, but not limited to, corporations engaged in business in Idaho for the exclusive purpose of performing contracts with the United States department of energy at the Idaho national laboratory or any successor organization, which tax shall be measured by income which is attributable to this state under the provisions of this chapter and which tax shall be at the rate provided in section 63-3025, Idaho Code.
(2) In the case of an S corporation that is required to file a return under section 63-3030, Idaho Code, a tax is hereby imposed at the rate provided in subsection (1) of this section upon both:
(a) Net recognized built-in gain attributable to this state. The amount of net recognized built-in gain attributable to this state shall be computed in accordance with section 1374 of the Internal Revenue Code subject to the apportionment and allocation provisions of section 63-3027, Idaho Code.
(b) Excess net passive income attributable to this state. The amount of excess net passive income attributable to this state shall be computed in accordance with section 1375 of the Internal Revenue Code subject to the apportionment and allocation provisions of section 63-3027, Idaho Code.
(3) The tax imposed by subsection (1) or (2) of this section shall not be less than twenty dollars ($20.00); provided further that the twenty dollar ($20.00) minimum payment shall not be collected from nonproductive mining corporations; but the twenty dollar ($20.00) minimum tax shall apply to corporations qualified to file returns and actually filing returns under the provisions of subchapter "S" of the Internal Revenue Code.
[63-3025A, added 1982, ch. 203, sec. 8, p. 536; am. 1983, ch. 221, sec. 2, p. 617; am. 1987, ch. 342, sec. 3, p. 727; am. 1995, ch. 111, sec. 21, p. 362; am. 2001, ch. 386, sec. 4, p. 1352; am. 2007, ch. 10, sec. 1, p. 10; am. 2007, ch. 15, sec. 2, p. 26.]
(1) Except as provided in subsection (4) of this section, an organization described in section 501 of the Internal Revenue Code, and the additional organizations listed in this section shall be specifically exempt from taxation under this chapter unless such exemption is denied under section 502, 503, 504 or 6033j of the Internal Revenue Code:
(a) Fraternal beneficiary societies, orders or associations, operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system;
(b) Farmer’s or other mutual hail, cyclone, casualty or fire insurance companies or associations, including interinsurers and reciprocal underwriters of the same class, the income of which is used or held only for the purpose of paying losses or expenses;
(c) Federal land banks and national farm loan associations as provided in the farm credit act of 1971, as amended.
(2) Farmer’s cooperatives shall be exempt from taxation under this chapter to the extent exempted by section 521 of the Internal Revenue Code.
(3) Federal savings and loan associations shall not be exempt from taxation under this chapter.
(4) Unrelated business income as defined in the Internal Revenue Code shall be subject to taxation under this chapter.
[63-3025B, added 1995, ch. 111, sec. 23, p. 363; am. 1997, ch. 57, sec. 7, p. 101; am. 2014, ch. 9, sec. 2, p. 11.]
The minimum tax provisions of sections 63-3025 and 63-3025A Idaho Code, shall not apply to any corporation which is not organized for profit and is not required to pay any federal tax on unrelated business income under the provisions of section 511 of the internal revenue code.
[63-3025C, added 1986, ch. 18, sec. 1, p.59.]
(1) In lieu of the deduction from taxable income allowed by section 63-3022E, Idaho Code, a resident individual who maintains a household, which includes as an immediate member of the family residing in that household, one (1) or more individuals sixty-five (65) years of age or older or individuals with developmental disabilities, as defined in subsection (5) of section 66-402, Idaho Code, regardless of the age of the person when such developmental disability appeared, each of whom receives more than one-half (1/2) of his or her support for the year from the individual who maintains the household, shall be entitled to a payment from the refund account of one hundred dollars ($100) for each such elderly member of the family or family member with a developmental disability. Any such payment shall be paid to such individual only upon his making application therefor at such time and in such manner as may be prescribed by the state tax commission.
(2) No more than three (3) such payments shall be made under the provisions of this section to any one (1) individual in any calendar year.
(3) No payment may be claimed under the provisions of this section by the individual himself except as set forth in subsection (4) of this section.
(4) A credit of one hundred dollars ($100) shall be allowed under this section for a person with a developmental disability as defined in subsection (5) of section 66-402, Idaho Code, who is filing his own tax return.
Payment for dependents sixty-five years of age or older or persons with developmental disabilities. [effective January 1, 2027]
(1) In lieu of the deduction from taxable income allowed by section 63-3022E, Idaho Code, a resident individual who maintains a household, which includes as an immediate member of the family residing in that household, one (1) or more individuals sixty-five (65) years of age or older or individuals with developmental disabilities, as defined in section 66-402(4), Idaho Code, regardless of the age of the person when such developmental disability appeared, each of whom receives more than one-half (1/2) of his or her support for the year from the individual who maintains the household, shall be entitled to a payment from the refund account of one hundred dollars ($100) for each such elderly member of the family or family member with a developmental disability. Any such payment shall be paid to such individual only upon his making application therefor at such time and in such manner as may be prescribed by the state tax commission.
(2) No more than three (3) such payments shall be made under the provisions of this section to any one (1) individual in any calendar year.
(3) No payment may be claimed under the provisions of this section by the individual himself except as set forth in subsection (4) of this section.
(4) A credit of one hundred dollars ($100) shall be allowed under this section for a person with a developmental disability as defined in section 66-402(4), Idaho Code, who is filing his own tax return.
[63-3025D, added 1981, ch. 201, sec. 4, p. 358; am. 1994, ch. 104, sec. 2, p. 233; am. 1999, ch. 293, sec. 7, p. 741; am. 2002, ch. 35, sec. 7, p. 72.; am. 2026, ch. 79, sec. 30, p. 420.]
The Idaho taxable income of resident individuals, trusts or estates shall be computed by making appropriate adjustments under the provisions of section 63-3022, Idaho Code, to the taxable income of the taxpayer.
[63-3026, added 1995, ch. 111, sec. 25, p. 364]
(1) For nonresident individuals, trusts, or estates the term "Idaho taxable income" includes only those components of Idaho taxable income as computed for a resident which are derived from or related to sources within Idaho. This is to be computed without the deductions for either the standard deduction or itemized deductions or personal exemptions except as provided in subsection (4) of this section.
(2) For part-year resident individuals, trusts or estates the term "Idaho taxable income" includes the total of: (a) Idaho taxable income as computed for a resident for the portion of the tax period during which a taxpayer is domiciled in or is residing in Idaho, plus (b) those components of Idaho taxable income which are derived from or related to sources within Idaho for that portion of the tax period during which a taxpayer is not domiciled in and is not residing in Idaho. This is to be computed without the deductions for either the standard deduction or itemized deductions or personal exemptions except as provided in subsection (4) of this section.
(3) For the purposes of subsections (1) and (2) of this section:
(a) Income shall be considered derived from or relating to sources within Idaho when such income is attributable to or resulting from:
(i) Any business, trade, profession or occupation conducted or carried on in this state, including the distributive share of partnership income and deductions, and the pro rata share of S corporation income and deductions. Partnership income, including guaranteed payments pursuant to section 707 of the Internal Revenue Code, is sourced to Idaho based upon the Idaho apportionment factor of the partnership; excluding:
Guaranteed payment to a retired partner per 4 U.S.C. section 114(b)(1)(I) that is sourced to the recipient’s state of domicile;
Guaranteed payment to an individual partner up to two hundred fifty thousand dollars ($250,000) in any calendar year is sourced as compensation for services. The amount of the guaranteed payment in excess of two hundred fifty thousand dollars ($250,000) is sourced to Idaho based upon the partnership’s Idaho apportionment factor. The two hundred fifty thousand dollar ($250,000) amount will be adjusted annually by multiplying the amount by the percentage (the consumer price index for the calendar year immediately preceding the calendar year to which the adjusted amount will apply divided by the consumer price index for calendar year 2013) as defined in section 63-3024, Idaho Code;
(ii) The ownership or disposition of any interest in real or tangible personal property located in this state;
(iii) The ownership or disposition of any interest in intangible personal property only to the extent that such property is employed in a business, trade, profession or occupation conducted or carried on in this state. Provided however, that interest income from an installment sale of real or tangible personal property shall constitute income from sources within this state to the extent that the property sold was located within this state. Provided further, that interest income received by a partner or shareholder of a partnership or S corporation from such partnership or S corporation shall constitute income from sources within this state to the extent that the partnership or S corporation is transacting business within this state;
(iv) A resident estate or trust; provided however, that income distributed to beneficiaries of an estate or trust shall constitute income from sources within this state only to the extent the income would be Idaho source income if such income had been received directly by a nonresident individual;
(v) A nonresident estate or trust to the extent the income and deductions of the nonresident estate or trust were derived from or related to sources within this state;
(vi) The conduct of pari-mutuel wagering, charitable gaming or any other form of gambling taking place within this state, except as expressly limited in section 67-7439, Idaho Code;
(vii) Gains or losses realized from the sale or other disposition of a partnership interest or stock in an S corporation to the extent of the partnership’s or S corporation’s Idaho apportionment factor in the taxable year immediately preceding the year of sale. In the case of a nonresident individual who sells the nonresident’s interest in a publicly traded partnership defined in section 7704 of the Internal Revenue Code doing business in Idaho, the gains or losses shall be determined using the amount described in section 751 of the Internal Revenue Code, multiplied by the apportionment factor for the year in which the sale occurred.
(b) Notwithstanding the provisions of subsection (3)(a) of this section, transactions and investments made, placed or directed by Idaho resident registered broker-dealers and investment advisers or institutions exempt from registration under the Idaho securities act in securities listed with or through the New York Stock Exchange, the American Stock Exchange or any other stock exchange registered with the United States securities and exchange commission and approved by the director of the department of finance which generate dividends, interest, capital gains or similar profits or returns for nonresidents not otherwise subject to Idaho income taxation shall not result in the intangible property being deemed to have a situs outside the domicile of the owner.
(c) Nonresident individuals shall not be taxable on investment income from a qualified investment partnership. For purposes of this paragraph, a "qualified investment partnership" means a partnership, as defined in section 63-3006B, Idaho Code, that derives at least ninety percent (90%) of its gross income from investments that produce income that would not be taxable to a nonresident individual if the investment were held by that individual.
(d) Compensation paid by the United States for active service in the armed forces of the United States, performed by an individual not domiciled in this state, shall not constitute income derived from or related to sources within this state.
(e) The income of nonresident or part-year resident individuals, trusts or estates which is derived from or related to sources both within and without this state shall be attributable to this state in the manner prescribed in the rules of the state tax commission.
(4) In computing the Idaho taxable income of a part-year or nonresident individual, trust or estate, the standard deduction or itemized deductions, as defined in section 63-3022(j), Idaho Code, if applicable, and the exemptions, as defined in section 151 of the Internal Revenue Code or any allowance in lieu of such deduction, shall be allowed in the proportion that paragraph (a) of this subsection bears to paragraph (b) of this subsection:
(a) The Idaho taxable income of the taxpayer modified as follows:
(i) No allowance shall be made for either the standard deduction or itemized deductions;
(ii) No deduction shall be made for personal exemptions or any allowance in lieu of such deduction.
(b) The Idaho taxable income as would be calculated for a resident of Idaho modified as follows:
(i) No allowance shall be made for either a standard deduction or itemized deductions;
(ii) No deduction shall be made for personal exemptions or any allowance in lieu of such deduction;
(iii) Compensation for active military service in the armed forces shall not be deducted;
(iv) Income earned within the original exterior boundaries of any federally created Indian reservation by an enrolled Indian in a federally recognized Indian tribe on a federally recognized Indian reservation shall be added if not otherwise included.
(5) An adjustment may be made to eliminate distortions in the amount of net income attributable to a taxpayer’s activities within the state of Idaho. Such deductions shall be limited to circumstances involving itemized deductions as referred to in subsection (4) of this section and which reflect:
(a) A failure to reflect the net income or deduction after reimbursements have been received; or
(b) A failure to reflect the net amount of mortgage interest income or expense from activities within Idaho.
(6) For the purposes of subsections (1) and (2) of this section, deductions and adjustments allowed in computing the Idaho taxable income of nonresident and part-year resident individuals, trusts and estates shall be prescribed in the rules of the state tax commission. Such rules shall be based upon:
(a) Whether or not the deduction or adjustment is related to the production of income reportable to Idaho;
(b) Whether or not the deduction or adjustment is related to income received, expenses paid, or events of tax consequence which occurred during a portion of a taxable year that the taxpayer was domiciled in or residing in Idaho; or
(c) Any other appropriate basis for making the adjustment. An "appropriate basis" is one which the state tax commission finds is needed to insure that the amount of Idaho taxable income is fairly and reasonably related to a taxpayer’s activities in this state.
[63-3026A, added 1995, ch. 111, sec. 26, p. 364; am. 1996, ch. 40, sec. 3, p. 105; am. 1998, ch. 42, sec. 4, p. 180; am. 2000, ch. 38, sec. 5, p. 74; am. 2005, ch. 21, sec. 1, p. 57; am. 2005, ch. 405, sec. 1, p. 1380; am. 2007, ch. 12, sec. 1, p. 21; am. 2010, ch. 108, sec. 1, p. 219; am. 2011, ch. 3, sec. 2, p. 6; am. 2013, ch. 83, sec. 1, p. 203.]
(1) As used in this section:
(a) "Affected business entity" means any partnership or S corporation that elects to be subject to tax pursuant to this section.
(b) "Affected business entity income" means, in the case of an electing affected business entity, all items of income, gain, loss, or deduction derived from or connected with Idaho sources, except for that portion of such income, gain, loss, or deduction apportioned to an exempt entity that is a member of the affected business entity.
(c) "Exempt entity" means an entity that is exempt from taxation under this chapter.
(d) "Individual" means an individual, a trust, or an estate.
(e) "Member" means:
(i) A shareholder of an S corporation, except for exempt entities;
(ii) A partner in a general partnership, a limited partnership, or a limited liability partnership, except for exempt entities; or
(iii) A member of a limited liability company that is treated as a partnership or an S corporation for federal income tax purposes, except for exempt entities.
(f) "Partnership" has the meaning provided in section 63-3006B, Idaho Code. "Partnership" includes a limited liability company that is treated as a partnership for federal income tax purposes as described in section 63-3006A, Idaho Code.
(g) "S corporation" means a corporation or limited liability company that is treated as an S corporation for federal income tax purposes.
(h) "Taxable year" means the taxable year of a partnership or an S corporation for federal income tax purposes.
(2)(a) A partnership or an S corporation may elect in the manner set forth in this section to become an affected business entity required to pay the tax under this section in any taxable year. A separate election must be made for each taxable year.
(b) An election under this section must be made on a form and in the manner as the state tax commission prescribes by rule or instruction.
(c) An election under this section may be made for any taxable year by filing the election with a return for such taxable year. An election will also be valid if made by an amended return for the taxable year filed before the original due date of the fifteenth day of the fourth month following the taxable year.
(d) An election made under this section must be signed by:
(i) Each member of the electing entity who is a member at the time the election is filed; or
(ii) Any officer, manager, or member of the electing entity who is authorized under local law or by the entity’s organizational documents to make the election and who represents under penalty of perjury that he has such authorization.
(e) An affected business entity is required to pay the tax imposed by section 63-3082, Idaho Code, for each member that is not an Idaho resident.
(3) Each affected business entity that is a partnership or an S corporation transacting business in this state shall, on or before the fifteenth day of the fourth month following the close of each taxable year, pay a tax in an amount determined as follows:
(a) Add all of the affected business entity income derived from or connected with sources within this state, as determined under the provisions of this chapter;
(b) Increase or decrease the sum from paragraph (a) of this subsection according to the modifications permitted or required under this chapter for computing Idaho taxable income, to the extent they are attributable to members subject to tax under this chapter;
(c) Multiply the result from paragraph (b) of this subsection by the tax rate applicable to corporations provided in section 63-3025, Idaho Code; and
(d) Apply any allowable credits earned by the affected business entity, adjusted by the recapture provisions of section 63-3029B, Idaho Code. All credits, including the allowable credits under this section from another affected business entity as adjusted for the recapture provisions of section 63-3029B, Idaho Code, shall flow through to the members as otherwise permitted under this chapter. Any unused credits that are allowed by law to be carried forward to succeeding taxable years may be claimed in succeeding taxable years for which the affected business entity elects to be subject to tax pursuant to this section. If the affected business entity does not make the election under this section in any succeeding taxable year, the unused credits will flow through to the members as otherwise permitted under this chapter.
(4) If the amount calculated under subsection (3)(b) of this section results in a net operating loss, such net operating loss may not be passed through to the members of the affected business entity that makes the election under this section but may be carried forward to succeeding taxable years for which the affected business entity elects to be subject to tax pursuant to this section until fully used. If the affected business entity does not make the election under this section in any succeeding taxable year, the unused net operating loss will flow through to the members as otherwise permitted under this chapter.
(5) A nonresident individual who is a member is not required to file an income tax return under section 63-3030, Idaho Code, for any taxable year in which the only source of income derived from or connected with sources within this state for such member, or the member and the member’s spouse if a joint federal income tax return is or shall be filed, is from one (1) or more affected business entities and such affected business entity or entities file and pay the tax due under this section.
(6) Each partnership and S corporation shall report to each of its members, for each taxable year, such member’s pro rata share of the tax imposed under this section on such partnership or S corporation if it is an affected business entity. Such pro rata share of the tax shall be calculated by excluding the share of any member that is an exempt entity.
(7)(a) Each individual who is a member and is not an exempt entity is entitled to a credit against such tax. The credit will be in an amount equal to the individual’s pro rata share of the tax paid under this section by any affected business entity of which the individual is a member. If the amount of the credit allowed pursuant to this paragraph exceeds the individual’s tax liability for the tax imposed under this chapter, the individual will be paid a refund equal to the balance of the unused credit. Such pro rata share of the tax credit shall be calculated by excluding the share of any member that is an exempt entity.
(b) Each individual who is a member and is not an exempt entity, as a resident or a part-year resident of this state, is entitled to a credit against such tax for the individual’s pro rata share of taxes paid to another state of the United States or the District of Columbia on income of any partnership or S corporation of which the individual is a member that is derived therefrom. Any such credit will be calculated in the manner prescribed by the state tax commission and shall be consistent with the provisions of section 63-3029, Idaho Code. Such pro rata share of the tax credit shall be calculated by excluding the share of any member that is an exempt entity.
(8) Each corporation that is a member and is subject to the tax imposed under section 63-3025 or 63-3025A, Idaho Code, is entitled to a credit against such tax. The credit will be in an amount equal to the corporation’s pro rata share of the tax paid under this section by any affected business entity of which the corporation is a member. Such credit will be applied after all other applicable credits have been applied. Any balance of the credit not used in the taxable year during which the corporation reports the net income from such affected business entities will be paid as a refund to the corporation. Such pro rata share of the tax credit shall be calculated by excluding the share of any member that is an exempt entity.
(9) Each affected business entity that is a member of another affected business entity and elects to be subject to the tax imposed under this section is entitled to a credit against such tax. The credit will be in an amount equal to the affected business entity’s pro rata share of the tax paid under this section by any affected business entity of which the affected business entity is a member. Such credit will be applied after all other applicable credits have been applied. Any balance of the credit not used in the taxable year during which the affected business entity reports net income will be paid as a refund to the affected business entity. Such pro rata share of the tax credit shall be calculated by excluding the share of any member that is an exempt entity.
(10) Each pass-through entity, as defined in section 63-3006C, Idaho Code, that is a member of an affected business entity and does not elect to be subject to the tax imposed under this section is entitled to a credit. The credit will be in an amount equal to the pass-through entity’s pro rata share of the tax paid under this section by any affected business entity of which the pass-through entity is a member. Such credit will be applied after all other applicable taxes and credits have been applied. Any balance of the credit not used in the taxable year will be paid as a refund to the pass-through entity.
(11) For trusts and estates that distribute their income to their beneficiaries to be reported by and taxed to said beneficiaries, the credit provided in subsection (7)(a) of this section shall be apportioned between the trust or estate and the beneficiaries in the same proportion as the income is allocated to and reported by the trust or estate and the beneficiaries.
(12) The interest and penalty provisions and the collection and enforcement procedures provided by sections 63-3038 through 63-3040, 63-3042 through 63-3065A, 63-3071, 63-3075, and 63-3078, Idaho Code, shall apply and be available to the state tax commission for enforcement of the provisions of this section and collection of any amounts due under this section. Said sections shall, for this purpose, be considered part of this section, and wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under this section, be described as affected business entity tax liens and proceedings.
[63-3026B, added 2021, ch. 239, sec. 1, p. 730; am. 2022, ch. 185, sec. 1, p. 611; am. 2026, ch. 81, sec. 1, p. 425.]
The Idaho taxable income of any multistate or unitary corporation transacting business both within and without this state shall be computed in accordance with the provisions of this section:
(1) As used in this section, unless the context otherwise requires:
(a) "Apportionable income" means income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income arising from tangible and intangible property if the acquisition, management, employment, development, or disposition of the property constitutes integral or necessary parts of the taxpayer’s trade or business operations.
(b) "Broadcast customer" means a person, corporation, partnership, limited liability company, or other entity that has a direct connection or contractual relationship with the broadcaster under which revenue is derived by the broadcaster, such as an advertiser or a platform distribution company.
(c) "Broadcaster" means a taxpayer that is a television broadcast network, a cable program network, or a television distribution company.
(d) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.
(e) "Communications company" means any person or any related person described in section 267 of the Internal Revenue Code, whether individually or in the aggregate, that:
(i) Is:
A telecommunications carrier as defined in section 62-610B, Idaho Code;
A communications company that provides the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point or between or among points and includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as a voice over internet protocol service or is classified by the federal communications commission as enhanced or value added. The company may also provide video programming provided by or generally considered comparable to programming provided by a television broadcast station, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Video programming includes but is not limited to cable service as defined in 47 U.S.C. 522 and video programming services delivered by providers of commercial mobile radio service as defined in 47 CFR 20.3; or
A broadcast company that provides an over-the-air broadcast radio station or over-the-air broadcast television station; and
(ii) Owns, operates, manages, or controls any plant or equipment used to furnish telecommunications service, communication services, broadband services, internet service, or broadcast services directly or indirectly to the general public at large and derives at least seventy percent (70%) of its gross sales for the current taxable year from the provision of these services. For purposes of the seventy percent (70%) test, "gross sales" does not include interest, dividends, rents, royalties, capital gains, or ordinary gains from asset dispositions, other than in the normal course of business.
(f) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.
(g) "Film programming" means one (1) or more performances, events, or productions, or segments of performances, events, or productions, intended to be distributed for visual and auditory perception, including but not limited to news, entertainment, sporting events, plays, stories, or other literary, commercial, educational, or artistic works.
(h) "Nonapportionable income" means all income other than apportionable income.
(i) "Sales" or "receipts" means all gross receipts of the taxpayer not allocated under this section and that are received from transactions and activities in the regular course of the taxpayer’s trade or business or otherwise required to be included as apportionable income.
(j) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.
(2) Any taxpayer having income from business activity that is taxable both within and without this state shall allocate and apportion such net income as provided in this section.
(3) In any case in which the provisions of section 63-3701, Idaho Code, are inconsistent with the provisions of this section, the provisions of this section shall control.
(4) For purposes of allocation and apportionment of income under this section, a taxpayer is taxable in another state if:
(a) In that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or
(b) That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
(5) Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonapportionable income, shall be allocated as provided in subsections (6) through (9) of this section. Allocable nonapportionable income shall be limited to the total nonapportionable income received in excess of any related expenses that have been allowed as a deduction during the taxable year. In the case of allocable nonapportionable interest or dividends, related expenses include interest on indebtedness incurred or continued to purchase or carry assets on which the interest or dividends are nonapportionable income.
(6)(a) Net rents and royalties from real property located in this state are allocable to this state.
(b) Net rents and royalties from tangible personal property are allocable to this state:
(i) If and to the extent that the property is utilized in this state; or
(ii) In their entirety if the taxpayer’s commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
(7)(a) Capital gains and losses from sales of real property located in this state are allocable to this state.
(b) Capital gains and losses from sales of tangible personal property are allocable to this state if:
(i) The property had a situs in this state at the time of the sale; or
(ii) The taxpayer’s commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer’s commercial domicile is in this state, unless such gains and losses constitute apportionable income as defined in this section.
(8) Interest and dividends are allocable to this state if the taxpayer’s commercial domicile is in this state, unless such interest or dividends constitute apportionable income as defined in this section.
(9)(a) Patent and copyright royalties are allocable to this state:
(i) If and to the extent that the patent or copyright is utilized by the payer in this state; or
(ii) If and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer’s commercial domicile is in this state.
(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patent product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer’s commercial domicile is located.
(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer’s commercial domicile is located.
(10)(a) All apportionable income shall be apportioned to this state under subsection (11) of this section by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in Idaho during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
(b) An electrical corporation as defined in section 61-119, Idaho Code, a telephone corporation as defined in section 62-603, Idaho Code, a communications company as defined in this section, or a taxpayer subject to a special industry regulation pursuant to subsection (18) of this section may elect to apportion all apportionable income of the taxpayer to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor and the denominator of which is three (3). Where a taxpayer makes an election to use a special industry regulation under this paragraph, if the property, payroll, or sales factors are defined in a special industry regulation pursuant to subsection (18) of this section, those definitions or terms will be controlling to the extent they are in conflict with the definitions provided in subsections (12) through (16) of this section.
(11)(a) In the case of a corporation or group of corporations combined under subsection (22) of this section, Idaho taxable income or loss of the corporation or combined group shall be determined as follows:
(i) From the income or loss of the corporation or combined group of corporations, subtract any nonapportionable income and subtract any nonapportionable loss included in the total; and
(ii) Multiply the amounts determined under subparagraph (i) of this paragraph by the Idaho apportionment percentage defined in subsection (10) of this section, taking into account, where applicable, the property, payroll, and sales of all corporations, wherever incorporated, that are included in the combined group. The resulting product shall be the amount of income or loss apportioned to Idaho.
(b) To the amount determined as apportionable income or loss under paragraph (a)(ii) of this subsection, add nonapportionable income allocable entirely to Idaho under the provisions of this section or subtract nonapportionable loss allocable entirely to Idaho under this section. The resulting sum is the Idaho taxable income or loss of the corporation.
(c) In the case of a corporation not subject to subsection (22) of this section, the income or loss referred to in paragraph (a)(i) of this subsection shall be the taxable income of the corporation after making appropriate adjustments under the provisions of section 63-3022, Idaho Code.
(12) Sales of tangible personal property, including gross receipts from leases and other uses of tangible personal property, are in this state if:
(a) The property is delivered or shipped to a purchaser, other than the United States government, within this state, regardless of the free on board (f.o.b.) point or other conditions of the sale; or
(b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state; and
(i) The purchaser is the United States government; or
(ii) The taxpayer is not taxable in the state of the purchaser.
(13) Sales, other than sales of tangible property, are in this state if the taxpayer’s market for the sales is in this state. The taxpayer’s market for sales is in this state:
(a) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
(b) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
(c) In the case of a service, if and to the extent the service is delivered to a location in this state;
(d) In the case of intangible property that is:
(i) Rented, leased, or licensed, if and to the extent the property is used in this state, provided that intangible property utilized in marketing a good or service to a consumer is "used in this state" if that good or service is purchased by a consumer who is in this state; and
(ii) Sold, if and to the extent the property is used in this state, provided that:
A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is "used in this state" if the geographic area includes all or part of this state; and
Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subparagraph (i) of this paragraph; and
(e) In the case of sales of a broadcaster from advertising or licensing income that arises from the broadcast or other distribution of film programming by any means, if the commercial domicile of the broadcast customer, as defined in this section, is in this state. Other sales of a broadcaster shall be apportioned in a manner consistent with the rules that apply to such sales.
(14) If the state or states of assignment under subsection (13) of this section cannot be determined, the state or states of assignment shall be reasonably approximated.
(15) A communications company, as defined in this section, may elect to use this subsection for purposes of sourcing sales other than the sales of tangible personal property. If such an election is made, sales other than sales of tangible personal property are in this state if:
(a) All the income-producing activity is performed in this state; or
(b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.
(16) If a taxpayer makes the election in subsection (10)(b) of this section or is using an alternative method pursuant to subsection (17) of this section that requires the use of a property or payroll factor, the property and payroll factor definitions in this subsection apply.
(a) The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in this state during the tax period, and the denominator of which is the average value of all the taxpayer’s real and tangible personal property owned or rented and used during the tax period.
(b) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
(c) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the state tax commission may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer’s property.
(d) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period.
(e) Compensation is paid in this state if:
(i) The individual’s service is performed entirely within the state; or
(ii) The individual’s service is performed both within and without the state, but the service performed without the state is incidental to the individual’s service within the state; or
(iii) Some of the service is performed in the state and:
The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or
The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in this state.
(17) If the allocation and apportionment provisions of this section do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for or the state tax commission may require, in respect to all or any part of the taxpayer’s business activity, if reasonable:
(a) Separate accounting;
(b) The exclusion of any one (1) or more of the factors;
(c) The inclusion of one (1) or more additional factors that will fairly represent the taxpayer’s business activity in this state; or
(d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.
(18) If the allocation and apportionment provisions of this section do not fairly represent the extent of business activity in Idaho of taxpayers engaged in a particular industry or in a particular transaction or activity, the state tax commission may, in addition to the authority in subsection (17) of this section, establish appropriate rules for determining alternative allocation and apportionment methods for such taxpayers. A rule adopted pursuant to this subsection shall be applied uniformly, except that, with respect to any taxpayer to whom such rule applies, the taxpayer may petition for, or the state tax commission may require, adjustment pursuant to subsection (17) of this section.
(19)(a) The party petitioning for, or the state tax commission requiring, the use of any method to effectuate an equitable allocation or apportionment of the taxpayer’s income pursuant to subsection (17) of this section must prove by a preponderance of the evidence:
(i) That the allocation and apportionment provisions of this section do not fairly represent the extent of the taxpayer’s business activity in Idaho; and
(ii) That the alternative to such provision is reasonable.
(b) The same burden of proof shall apply, whether the taxpayer is petitioning for, or the state tax commission is requiring, the use of any reasonable method to effectuate an equitable allocation and apportionment of the taxpayer’s income. However, if the state tax commission can show that in any two (2) of the prior five (5) years the taxpayer had used an allocation or apportionment method at variance with its allocation or apportionment method or methods used for such other tax years, then the state tax commission shall not bear the burden of proof in imposing a different method pursuant to subsection (17) of this section.
(20) If the state tax commission requires any method to effectuate an equitable allocation and apportionment of the taxpayer’s income, the state tax commission cannot impose any civil or criminal penalty with reference to the tax due that is attributable to the taxpayer’s reasonable reliance solely on the allocation and apportionment provisions of this section.
(21) A taxpayer that has received written permission from the state tax commission to use a reasonable method to effectuate an equitable allocation and apportionment of the taxpayer’s income shall not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in, or a material misrepresentation of, the facts provided by the taxpayer upon which the state tax commission reasonably relied.
(22) For purposes of this section and sections 63-3027B through 63-3027E, Idaho Code, the income of two (2) or more corporations, wherever incorporated, the voting stock of which is more than fifty percent (50%) owned directly or indirectly by a common owner or owners, when necessary to accurately reflect income, shall be allocated or apportioned as if the group of corporations were a single corporation, in which event:
(a) The Idaho taxable income of any corporation subject to taxation in this state shall be determined by use of a combined report that includes the income, determined under paragraph (b) of this subsection, of all corporations that are members of a unitary business, allocated and apportioned using apportionment factors for all corporations included in the combined report and methods set out in this section. The use of a combined report does not disregard the separate corporate identities of the members of the unitary group. Each corporation transacting business in this state is responsible for its apportioned share of the combined apportionable income plus its nonapportionable income or loss allocated to Idaho, minus its net operating loss carryover or carryback.
(b) The income of a corporation to be included in a combined report shall be determined as follows:
(i) For a corporation incorporated in the United States or included in a consolidated federal corporation income tax return, the income to be included in the combined report shall be the taxable income for the corporation after making appropriate adjustments under the provisions of section 63-3022, Idaho Code;
(ii) For a corporation incorporated outside the United States but not included in subparagraph (i) of this paragraph, the income to be included in the combined report shall be the net income before income taxes of such corporation stated on the profit and loss statements of such corporation which are included within the consolidated profit and loss statement prepared for the group of related corporations of which the corporation is a member, which statement is prepared for filing with the United States securities and exchange commission. If the group of related companies is not required to file such profit and loss statement with the United States securities and exchange commission, the profit and loss statement prepared for reporting to shareholders and subject to review by an independent auditor may be used to obtain net income before income taxes. In the alternative, and subject to reasonable substantiation and consistent application by the group of related companies, adjustments may be made to the profit and loss statements of the corporation incorporated outside the United States, if necessary, to conform such statements to tax accounting standards as required by the Internal Revenue Code as if such corporation were incorporated in the United States and required to file a federal income tax return, subject to appropriate adjustments under the provisions of section 63-3022, Idaho Code;
(iii) If the income computation for a group under subparagraphs (i) and (ii) of this paragraph results in a loss, such loss shall be taken into account in other years, subject to the provisions of subsections (b) and (c) of section 63-3022, Idaho Code; and
(iv) When one (1) or more corporations included in a combined report have excess inclusion income for a tax year that is taxable to those corporations pursuant to section 63-3011B, Idaho Code, the amount of such excess inclusion income shall be reported as the taxable income for those members of the combined group as provided by section 63-3011B, Idaho Code, and any net operating loss for that tax year or carried forward from an earlier tax year may be taken as deductions in other tax years, subject to the provisions of subsections (b) and (c) of section 63-3022, Idaho Code. In computing the net operating loss that may be used in another tax year for that corporation or other member of the combined return group, the excess inclusion income recognized as taxable income shall be deducted from gross income, as provided by treasury regulation 1.860E-1(a)(1).
(23) If compensation is paid in the form of a reasonable cash fee for the performance of management services directly for the United States government at the Idaho national laboratory or any successor organization, separate accounting for that part of the business activity without regard to other activity of the taxpayer in the state of Idaho or elsewhere shall be required; provided that only that portion of general expenses clearly identifiable with Idaho business operations of that activity shall be allowed as a deduction.
(24) The state tax commission shall promulgate rules as necessary or appropriate to carry out the purposes of this section.
[63-3027, added 1959, ch. 299, sec. 27, p. 613; am. 1961, ch. 328, sec. 10, p. 622; am. 1965, ch. 254, sec. 1, p. 639; am. 1969, ch. 319, sec. 9, p. 982; am. 1972, ch. 398, sec. 5, p. 1149; am. 1975, ch. 32, sec. 1, p. 52; am. 1979, ch. 250, sec. 1, p. 654; am. 1985, ch. 114, sec. 2, p. 233; am. 1993, ch. 284, sec. 3, p. 964; am. 1994, ch. 247, sec. 2, p. 782; am. 1994, ch. 301, sec. 1, p. 948; am. 1995, ch. 111, sec. 27, p. 366; am. 1998, ch. 42, sec. 5, p. 182; am. 2007, ch. 10, sec. 2, p. 10; am. 2014, ch. 74, sec. 2, p. 192; am. 2022, ch. 52, sec. 1, p. 157.]
The Idaho taxable income of any corporation transacting business in this state which is not subject to the provisions of section 63-3027, Idaho Code, shall be computed by making appropriate adjustments under the provisions of section 63-3022, Idaho Code, to the taxable income of the taxpayer.
[63-3027A, added 1995, ch. 111, sec. 29, p. 372.]
(a) A qualified taxpayer, as defined in paragraph (3) of subsection (b) of this section whose income is subject to the tax imposed under this chapter, may elect to determine its income derived from or attributable to sources within this state pursuant to a water’s-edge election in accordance with the provisions of this chapter, as modified by sections 63-3027B through 63-3027E, Idaho Code. A taxpayer who makes a water’s-edge election shall take into account the income and apportionment factors of all affiliated corporations in a unitary relationship with the taxpayer, other than corporations filing elections under section 936 of the Internal Revenue Code, and which either file a federal income tax return under the Internal Revenue Code or are included in a federal consolidated return.
(b) For purposes of this section:
(1) The phrase "over fifty percent (50%) of the voting stock directly or indirectly owned or controlled" shall be substituted for the phrase "at least eighty percent (80%)" each place it appears in section 1504 of the Internal Revenue Code.
(2) Any combined return shall include only corporations the voting stock of which is more than fifty percent (50%) owned directly or indirectly by a common owner or owners.
(3) A "qualified taxpayer" is a corporation which files, with the state income tax return on which the water’s-edge election is made, a consent to the reasonable production of documents within the taxing jurisdiction. The consent shall remain in effect so long as the water’s-edge election is in effect.
(4) "Water’s-edge combined group" shall mean all corporations or entities properly includable in the election of a taxpayer in subsection (a) of this section.
(5) The only income of a foreign sales corporation to be taken into account shall be the income subject to federal taxation, taking into account the provisions of section 921 of the Internal Revenue Code.
(6) For each corporation within the combined group subject to tax by this chapter, a water’s-edge election will be deemed to have been filed and consent given under paragraph (3) of this subsection upon the filing of a valid water’s-edge election by any qualified taxpayer of the combined group. If during the period a water’s-edge election is in effect, another corporation subject to tax by this state becomes a part of the combined group, the corporation is deemed to have made a water’s-edge election and given consent under paragraph (3) of this subsection.
(c) A water’s-edge election may be disregarded, and the income of the taxpayer determined without regard to the provisions of this section pursuant to those conditions which may be required by the state tax commission under subsection (b) of section 63-3027C, Idaho Code, if any corporation fails to comply with:
(1) The domestic disclosure spreadsheet filing requirements defined in section 63-3027E, Idaho Code; or
(2) This state’s legal and procedural requirements.
[63-3027B, added 1986, ch. 342, sec. 1, p. 846; am. 1993, ch. 284, sec. 4, p. 969; am. 1994, ch. 247, sec. 3, p. 787; am. 2000, ch. 26, sec. 4, p. 48; am. 2009, ch. 2, sec. 1, p. 3.]
(a) A water’s-edge election shall be made in the original return for a year and shall be binding for all years thereafter, except as follows:
(1) If, in the future, the United States supreme court or the supreme court of the state of Idaho rules that there is a state or federal constitutional right for a group of corporations to use the worldwide unitary method, a water’s-edge combined group of corporations may, without permission of the tax commission, change its future filing to the worldwide unitary method.
(2) Any changes to use of the water’s-edge method or any other changes beyond those described in paragraph (1) of this subsection may only occur with the written permission of the tax commission.
(3) No water’s-edge election shall be made for an income year beginning prior to the operative date of sections 63-3027B through 63-3027E, Idaho Code.
(b) When disregarding an election or granting a change of election, the tax commission shall impose conditions which are necessary to prevent the avoidance of tax or to clearly reflect income for the period the election was made.
(c) For purposes of this section:
(1) Dividends received from payors incorporated outside the fifty (50) states and District of Columbia, to the extent taxable, shall be treated as income subject to apportionment.
(2) The income of corporations filing elections under section 936 of the Internal Revenue Code shall be deemed dividends received from payors incorporated outside the fifty (50) states and District of Columbia.
(3) Eighty-five per cent (85%) of all dividends described in subsection (c)(1) or (c)(2) of this section shall be excluded from income subject to apportionment.
(4) The dividends subject to apportionment shall be in lieu of any expenses attributable to such dividend income.
(5) Any actual dividend received from a corporation filing an election under section 936 of the Internal Revenue Code shall be eliminated from income.
(d) Any dividend from any payor required to be combined under the water’s-edge election shall be eliminated from the calculation of apportionable income. Dividends received from a corporation described in section 922 of the Internal Revenue Code (defining "FSC") will be treated as follows:
(1) Dividends received from an FSC will be eliminated in the proportion that FSC federal taxable income for the year, out of which the dividend was paid, bears to the total FSC income before taxes for such year.
(2) The portion of FSC dividend not eliminated under paragraph (1) of this subsection will be subject to the eighty-five per cent (85%) exclusion provided for in subsection (c)(3) of this section.
(e) For purposes of this section:
(1) Amounts included in income by reference to subpart F of part III of subchapter N of chapter 1 of the Internal Revenue Code shall constitute dividends from payors outside the fifty (50) states and District of Columbia;
(2) Amounts included in income under part VI of subchapter P of chapter 1 of the Internal Revenue Code shall constitute dividends from payors outside the fifty (50) states and the District of Columbia; and
(3) Deemed distributions defined by Section 78 of the Internal Revenue Code shall be excluded from the income of the water’s-edge combined group.
[63-3027C, added 1986, ch. 342, sec. 1, p. 848; am. 1993, ch. 284, sec. 5, p. 971; am. 1994, ch. 247, sec. 4, p. 788; am. 1997, ch. 59, sec. 1, p. 110.]
(a) A qualified taxpayer and its affiliates shall be presumed to be a part of a unitary business and all income of that business shall be presumed to be apportionable business income if a valid water’s-edge election has been made, except as provided in subsections (c) and (d) of section 63-3027C, Idaho Code.
(b) A taxpayer shall have the burden of proof regarding the issue of whether or not a corporation is a member of a water’s-edge combined group.
[63-3027D, added 1986, ch. 342, sec. 1, p. 849.]
(a) Sections 63-3027B through 63-3027E, Idaho Code, shall be operative for the computation of taxes for the earlier of either of the following:
(1) Taxable years beginning on or after January 1, 1988.
(2) Taxable years beginning on or after January 1 of the year after the year in which the board of examiners, upon advice of the attorney general, certifies to the tax commission that action has been taken by the United States, whether by statute, regulation, executive order, or any other means as may be appropriate, to comply substantially with the following:
(A) A requirement that any corporation required to file a United States tax return or which could be included in a consolidated federal tax return be required to file with the Internal Revenue Service a domestic disclosure spreadsheet if its payroll, property, or sales in a foreign country exceeds one million dollars ($1,000,000). The spreadsheet shall provide for full disclosure as to the income reported to each state, the state tax liability, and the method used for apportioning or allocating income to the states, and any other information as provided for by regulations as may be necessary to determine properly the amount of taxes due to each state and to identify the water’s-edge corporate group and those of its affiliates of which more than twenty per cent (20%) of the voting stock is directly or indirectly owned or controlled by a common owner or owners.
(B) That the information filed pursuant to paragraph (2)(A) of this subsection will be available to qualified states. A "qualified state" is any state that does not require the use of the worldwide unitary method of taxation except in circumstances substantially similar to those authorized in subsection (c) of section 63-3027B, Idaho Code.
(C) That qualified states are authorized access to all material developed by the Internal Revenue Service in its examination of multinational operations.
(b) If sections 63-3027B through 63-3027E, Idaho Code, become operative pursuant to paragraph (1) of subsection (a) of this section, the tax commission may require, and taxpayers described in this subsection must file, no later than six months after filing the Idaho income tax return, a spreadsheet to provide disclosure as to the income reported for the year to the other states that require unitary combined reporting, the tax liability for each such state, the method used for allocating or apportioning income to such states, the property, payroll, and destination sales of the water’s-edge corporate group in each state, and to identify the water’s-edge corporate group and those of its affiliates of which more than twenty per cent (20%) of the voting stock is directly or indirectly owned or controlled by a common owner or owners. The provisions of this subsection shall apply only to corporations which both make a water’s-edge election and have during the taxable year, payroll, property or sales in a foreign country which exceeds one million dollars ($1,000,000). Notwithstanding the requirement to file a spreadsheet in any tax year, a taxpayer may forego filing such a spreadsheet by submitting to the state tax commission a written declaration of its intention to forego filing such spreadsheet for such year. In the event such declaration is filed in any tax year, no spreadsheet shall be required of such taxpayer and the percentage to be applied under section 63-3027C(c)(3) for such year shall be eighty per cent (80%) rather than eighty-five per cent (85%).
[63-3027E, added 1986, ch. 342, sec. 1, p. 849; am. 1993, ch. 284, sec. 6, p. 972; am. 1994, ch. 247, sec. 5, p. 789; am. 1997, ch. 243, sec. 1, p. 706.]
(1) A resident individual shall be allowed a credit against the tax otherwise due under this chapter for the amount of any income tax imposed on the individual, an S corporation, partnership, limited liability company, estate or trust of which the individual is a shareholder, partner, member, or beneficiary (to the extent attributable to the individual as a result of the individual’s share of the S corporation’s, partnership’s, limited liability company’s, estate’s or trust’s taxable income in another state), for the taxable year by another state on income derived from sources therein while domiciled in Idaho and that is also subject to tax under this chapter.
(2) For purposes of this section:
(a) "State" shall include any state of the United States, the District of Columbia, or any possession or territory of the United States.
(b) Except as provided in subsection (3)(a)(i) of this section, "individual" shall include estates and trusts.
(c) References to "domiciled in" shall mean "a resident of" for purposes of computing the credit for trusts and estates.
(3) (a) Except as provided in subsection (3)(b) of this section:
(i) The credit provided under this section to an individual shall not exceed the proportion of the tax otherwise due under this chapter that the amount of the adjusted gross income of the taxpayer derived from sources in the other state as modified by this chapter bears to the adjusted gross income of the taxpayer as modified by this chapter.
(ii) The credit provided under this section to an estate or trust shall not exceed the proportion of the tax otherwise due under this chapter that the amount of the federal total income of the estate or trust derived from sources in the other state and taxed by that state bears to the federal total income of the estate or trust. "Federal total income of the estate or trust derived from sources in the other state" shall be determined as provided under section 63-3026A, Idaho Code, as if the estate or trust was a nonresident.
(b) When tax is paid to another state on income of an S corporation, partnership, limited liability company, estate or trust, the limitation calculated in subsection (3)(a) of this section with respect to that income shall be based on the proportion that the individual taxpayer’s share of the entity’s taxable income correctly reported to the other state under the laws of the other state bears to the individual’s adjusted gross income, as modified by this chapter. This limitation shall apply whether the tax is paid to the other state by the individual or by the S corporation, partnership, limited liability company, estate or trust.
(c) The credit provided under this section shall further be limited to the tax paid to the other state.
(4) To substantiate the credit allowed under this section, the state tax commission may require a copy of any receipt showing payment of income taxes to the other state or a copy of any return or returns filed with such other state, or both.
(5) No credit allowed under this section shall be applied in calculating tax due under this chapter if the tax upon which the credit is based has been claimed as a deduction, unless the tax is restored to income on the Idaho return.
(6) The credit shall not be allowed if such other state allows a credit against taxes imposed by such state for taxes paid or payable under this chapter.
(7) For purposes of this section an income tax imposed on an S corporation, partnership, limited liability company, estate or trust includes:
(a) A direct tax imposed upon the income for the taxable year of the S corporation, partnership, limited liability company, estate or trust; and
(b) An excise or franchise tax that is measured by the income for the taxable year of the S corporation, partnership, limited liability company, estate or trust.
(8) For purposes of subsection (7) of this section, an excise or franchise tax is "measured by income" only if the statute imposing the excise or franchise tax provides that the base for the tax:
(a) Includes:
(i) Revenue from sales;
(ii) Revenue from services rendered; and
(iii) Income from investments; and
(b) Permits a deduction for one (1) or both of the following:
(i) The cost of goods, inventory or products with respect to revenue from sales; and
(ii) The cost of services rendered with respect to revenue from services rendered.
(9) A part-year resident is entitled to a credit, determined in the manner prescribed by the state tax commission, for income taxes paid to another state in regard to income which is:
(a) Earned while the taxpayer is domiciled or residing in this state; and
(b) Subject to tax in such other state.
(10) If the interest in an S corporation, partnership, limited liability company, estate or trust was held for less than the entire taxable year, the share attributable to the individual shall be allocated in the same manner as for federal purposes.
[63-3029, added 1959, ch. 299, sec. 29, p. 613; am. 1961, ch. 328, sec. 12, p. 622; am. 1970, ch. 222, sec. 6, p. 621; am. 1975, ch. 106, sec. 1, p. 216; am. 1980, ch. 12, sec. 1, p. 25; am. 1982, ch. 8, sec. 1, p. 11; am. 1995, ch. 111, sec. 30, p. 372; am. 1996, ch. 422, sec. 1, p. 1446; am. 1998, ch. 10, sec. 1, p. 108; am. 2007, ch. 191, sec. 1, p. 562; am. 2008, ch. 315, sec. 1, p. 874; am. 2009, ch. 216, sec. 1, p. 675; am. 2012, ch. 222, sec. 1, p. 607.]
At the election of the taxpayer, there shall be allowed, subject to the applicable limitations provided herein, as a credit against the income tax imposed by chapter 30, title 63, Idaho Code, an amount equal to fifty percent (50%) of the aggregate amount of charitable contributions made by such taxpayer during the year to a nonprofit corporation, fund, foundation, trust, or association organized and operated exclusively for the benefit of institutions of higher learning located within the state of Idaho, including a university-related research park, to nonprofit private or public institutions of elementary, secondary, or higher education or their foundations located within the state of Idaho, to Idaho education public broadcast system foundations within the state of Idaho, to the Idaho state historical society or its foundation, to the council for the deaf and hard of hearing, to the developmental disabilities council, to the commission for the blind and visually impaired, to the commission on Hispanic affairs, to the state independent living council, to the Idaho commission for libraries and to public libraries or their foundations and library districts or their foundations located within the state of Idaho, to nonprofit public or private museums or their foundations located within the state of Idaho, to residency programs accredited by the accreditation council for graduate medical education or the American osteopathic association or their designated nonprofit support organizations based in Idaho and devoted to training residents in Idaho and to dedicated accounts within the Idaho community foundation inc. that exclusively support the charitable purposes otherwise qualifying for the tax credit authorized under the provisions of this section.
(1) In the case of a taxpayer other than a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed fifty percent (50%) of such taxpayer’s total income tax liability imposed by section 63-3024, Idaho Code, for the year, or five hundred dollars ($500), whichever is less.
(2) In the case of a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed ten percent (10%) of such corporation’s total income or franchise tax liability imposed by sections 63-3025 and 63-3025A, Idaho Code, for the year, or five thousand dollars ($5,000), whichever is less.
For the purposes of this section, "contribution" means monetary donations reduced by the value of any benefit received in return such as food, entertainment, or merchandise.
For the purposes of this section, "institution of higher learning" means only an educational institution located within this state meeting all of the following requirements:
(a) It maintains a regular faculty and curriculum and has a regularly enrolled body of students in attendance at the place where its educational activities are carried on.
(b) It regularly offers education above the twelfth grade.
(c) It is accredited by the northwest commission on colleges and universities.
For the purposes of this section, a "nonprofit institution of secondary or higher education" means a private nonprofit secondary or higher educational institution located within the state of Idaho that is accredited by the northwest commission on colleges and universities or accredited by a body approved by the state board of education. A "nonprofit private institution of elementary education" means a private nonprofit elementary educational institution located within the state of Idaho and accredited by the state board of education pursuant to section 33-119, Idaho Code.
For the purposes of this section, a nonprofit corporation, fund, foundation, trust, or association that invests contributions in an endowment or otherwise shall be subject to the standards of care imposed under section 33-5003, Idaho Code.
[63-3029A, added 1976, ch. 58, sec. 1, p. 198; am. 1977, ch. 249, sec. 1, p. 730; am. 1978, ch. 177, sec. 1, p. 406; am. 1984, ch. 286, sec. 14, p. 660; am. 1986, ch. 219, sec. 1, p. 557; am. 1987, ch. 304, sec. 1, p. 644; am. 1992, ch. 10, sec. 1, p. 16; am. 1994, ch. 211, sec. 1, p. 667; am. 1998, ch. 59, sec. 1, p. 216; am. 1999, ch. 361, sec. 1, p. 956; am. 2001, ch. 370, sec. 1, p. 1294; am. 2006, ch. 235, sec. 31, p. 718; am. 2010, ch. 274, sec. 1, p. 711; am. 2010, ch. 354, sec. 2, p. 930; am. 2013, ch. 40, sec. 1, p. 82; am. 2013, ch. 40, sec. 2, p. 84; am. 2015, ch. 209, sec. 1, p. 656; am. 2015, ch. 209, sec. 5, p. 658; am. 2016, ch. 78, sec. 1, p. 255; am. 2016, ch. 78, sec. 3, p. 256; am. 2018, ch. 33, sec. 1, p. 61; am. 2018, ch. 33, sec. 2, p. 63; am. 2026, ch. 184, sec. 3, p. 830.]
(1) At the election of the taxpayer, there shall be allowed, subject to the applicable limitations provided herein as a credit against the income tax imposed by chapter 30, title 63, Idaho Code, an amount equal to the sum of:
(a) The tax credit carryovers; and
(b) The tax credit for the taxable year.
(2) The maximum allowable amount of the credit for the current taxable year shall be three percent (3%) of the amount of qualified investments made during the taxable year.
(3) As used in this section, "qualified investment" means certain property that:
(a)(i) Is eligible for the federal investment tax credit, as defined in sections 46(c) and 48 of the Internal Revenue Code, subject to the limitations provided for certain regulated companies in section 46(f) of the Internal Revenue Code, and is not a motor vehicle under eight thousand (8,000) pounds gross weight; or
(ii) Is qualified broadband equipment, as defined in section 63-3029I, Idaho Code;
(b) Is acquired, constructed, reconstructed, erected or placed into service after December 31, 1981; and
(c) Has a situs in Idaho, as determined pursuant to subsection (9) of this section.
(4)(a) For qualified investments placed in service in 2003 and thereafter, a taxpayer, other than a person whose rate of charge or rate of return or both is regulated or limited according to federal or state law, may elect, in lieu of the credit provided by this section, a two (2) year exemption from all taxes on personal property on the qualified investment. The exemption from personal property tax shall apply to the year the election is filed as provided in this section and the immediately following year. The election provided by this paragraph is available only to a taxpayer whose Idaho taxable income, before application of net operating losses carried back or forward, in the second preceding taxable year in which the investment is placed in service is negative.
(b) The election shall be made in the form prescribed by the state tax commission and shall include a specific description and location of all qualified investments placed into service and located in the jurisdiction of the assessing authority, a designation of the specific assets for which the exemption is claimed, and such other information as the state tax commission may require. The election must be made by including the election form with the listing of personal property required by section 63-302, Idaho Code, or, in the case of operating property assessed under chapter 4, title 63, Idaho Code, with the operator’s statement required by section 63-404, Idaho Code. Once made, the election is irrevocable. If no election is made, the election is not otherwise available. A copy of the election form must also be attached to the original income tax return due for the taxable year in which the claim was made.
(c) The state tax commission and the various county assessors are authorized to exchange information as necessary to properly coordinate the exemption provided in this subsection. Information disclosed to county officials under this subsection may be used only to determine the validity or amount of a taxpayer’s entitlement to the exemption provided in this section and is not otherwise subject to public disclosure as provided in section 74-107, Idaho Code.
(d) In the event that an investment in regard to which the election under this subsection was made is determined by the state tax commission:
(i) To not be a qualified investment;
(ii) To have ceased to qualify during the recapture period; or
(iii) To be otherwise not qualified for the election;
the taxpayer shall be subject to recapture of the property tax benefit.
(e) The benefit to be recaptured in paragraph (d) of this subsection shall be computed in the manner required in subsection (7) of this section, and such recapture amount shall be subject to assessment in the same manner as a deficiency in tax under this chapter. For purposes of calculating the recapture, the property tax benefit shall be:
(i) In the case of locally assessed property located in a single county or nonapportioned centrally assessed property, the market value of exempted property times the average property tax levy for that county in the year or years for which the exemption was claimed; or
(ii) In the case of other centrally assessed property and property located in more than one (1) county, the market value of exempted property times the average urban property tax levy of the state as determined by the state tax commission in each of the years for which the exemption was claimed.
(f) In the event that a recapture of the exemption is required under this subsection, the person claiming the exemption shall report the event to the state tax commission in the manner the state tax commission may by rule require. The report shall be due no later than the due date of that person’s income tax return under this chapter for the taxable year in which the event occurs. The recapture amount is due and payable with the report. Any amount of recapture not paid is a deficiency within the meaning of section 63-3044, Idaho Code.
(g) All moneys collected by the state tax commission pursuant to this subsection, which amounts are continuously appropriated for this purpose, shall be deposited with the state treasurer and placed in the state refund account, as provided by section 63-3067, Idaho Code, to be remitted to the county within which the property was located that was not a qualified investment or ceased to qualify during the recapture period. The county shall distribute this remittance to all appropriate taxing districts based on the proportion each appropriate taxing district’s levy is to the total of all the levies of the taxing districts for the tax code area where the property was located for each year the exemption was granted. If any taxing district is dissolved or disincorporated, the proportionate share of the remittance to be distributed to that taxing district shall be deposited in the county current expense fund.
(h) For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this subsection shall be treated as property tax revenue by taxing districts.
(5) Notwithstanding the provisions of subsections (1) and (2) of this section, the amount of the credit allowed shall not exceed fifty percent (50%) of the tax liability of the taxpayer. The tax liability of the taxpayer shall be the tax after deducting the credit allowed by section 63-3029, Idaho Code.
(6) If the sum of credit carryovers from the credit allowed by subsection (2) of this section and the amount of credit for the taxable year from the credit allowed by subsection (2) of this section exceed the limitation imposed by subsection (5) of this section for the current taxable year, the excess attributable to the current taxable year’s credit shall be an investment credit carryover to the fourteen (14) succeeding taxable years as long as the qualified investment property for which the unused credit was granted otherwise remains a qualified investment as determined under subsection (3) of this section in each of the taxable years during the recapture period. In the case of a group of corporations filing a combined report under section 63-3027, Idaho Code, or sections 63-3027B through 63-3027E, Idaho Code, credit earned by one (1) member of the group but not used by that member may be used by another member of the group, subject to the provisions of subsection (5) of this section, instead of carried over. The entire amount of unused credit shall be carried forward to the earliest of the succeeding years, wherein the oldest available unused credit shall be used first. For a combined group of corporations, credit carried forward may be claimed by any member of the group, unless the member who earned the credit is no longer included in the combined group.
(7) Any recapture of the credit allowed by subsection (2) of this section on property disposed of or ceasing to qualify, prior to the close of the recapture period, shall be determined according to the applicable recapture provisions of the Internal Revenue Code. In the case of a unitary group of corporations, the increase in tax due to the recapture of investment tax credit must be reported by the member of the group who earned the credit regardless of which member claimed the credit against tax.
(8) For the purpose of determining whether property placed in service is a "qualified investment" as defined in subsection (3) of this section, the provisions of section 49 of the Internal Revenue Code shall be disregarded. "Qualified investment" shall not include any amount for which a deduction is allowed under section 168(k) or section 179 of the Internal Revenue Code in computing Idaho taxable income.
(9) For purposes of this section, property has a situs in Idaho during a taxable year if it is used in Idaho at any time during the taxable year. Property not used in Idaho during a taxable year does not have a situs in Idaho in the taxable year during which the property is not used in Idaho or in any subsequent taxable year. The Idaho situs of property must be established by records maintained by the taxpayer that are created reasonably contemporaneously with the use of the property.
(10) In the case of property used both in and outside Idaho, the taxpayer electing to claim the credit provided in this section must elect to compute the qualified investment in property with a situs in Idaho for all such investments first qualifying during that year in one (1), but only one (1), of the following ways:
(a) The amount of each qualified investment in a specific asset shall be separately computed based on the percentage of the actual use of the property in Idaho by using a measure of the use, such as total miles or total machine hours, that most accurately reflects the beneficial use during the taxable year in which it is first acquired, constructed, reconstructed, erected, or placed into service; provided that the asset is placed in service more than ninety (90) days before the end of the taxable year. In the case of assets acquired, constructed, reconstructed, erected, or placed into service within ninety (90) days prior to the end of the taxable year in which the investment first qualifies, the measure of the use of that asset within Idaho for that year shall be based on the percentage of use in Idaho during the first ninety (90) days of use of the asset; or
(b) The investment in qualified property used both inside and outside Idaho during the taxable year in which it is first acquired, constructed, reconstructed, erected, or placed into service shall be multiplied by the percent of the investment that would be included in the numerator of the Idaho property factor determined pursuant to section 63-3027, Idaho Code, for the same year; provided that the asset is placed in service more than ninety (90) days before the end of the taxable year. In the case of assets acquired, constructed, reconstructed, erected, or placed into service within ninety (90) days prior to the end of the taxable year in which the investment first qualifies, the investment in qualified property used both inside and outside Idaho shall be multiplied by the percent of the investment that would be included in the numerator of the Idaho property factor determined pursuant to section 63-3027, Idaho Code, during the first ninety (90) days of use of the asset.
(11) References to sections 46, 48 and 49 of the Internal Revenue Code mean those sections as they existed in the Internal Revenue Code of 1986 prior to November 5, 1990.
[63-3029B, added 1982, ch. 48, sec. 1, p. 72; am. 1987, ch. 319, sec. 1, p. 671; am. 1992, ch. 153, sec. 1, p. 459; am. 1993, ch. 2, sec. 1, p. 4; am. 1994, ch. 247, sec. 6, p. 790; am. 1995, ch. 94, sec. 1, p. 270; am. 1996, ch. 40, sec. 4, p. 107; am. 2000, ch. 457, sec. 1, p. 1430; am. 2000, ch. 479, sec. 5, p. 1655; am. 2001, ch. 270, sec. 6, p. 984; am. 2001, ch. 386, sec. 5, p. 1353; am. 2003, ch. 345, sec. 1, p. 923; am. 2004, ch. 204, sec. 1, p. 621; am. 2005, ch. 23, sec. 1, p. 61; am. 2006, ch. 195, sec. 2, p. 600; am. 2008, ch. 319, sec. 3, p. 883; am. 2011, ch. 271, sec. 1, p. 738; am. 2012, ch. 40, sec. 1, p. 123; am. 2015, ch. 141, sec. 160, p. 504; am. 2023, ch. 33, sec. 1, p. 165.]
At the election of the taxpayer, there shall be allowed, subject to the applicable limitations provided herein, as a credit against the income tax imposed by chapter 30, title 63, Idaho Code, an amount equal to fifty percent (50%) of the aggregate amount of charitable contributions made by such taxpayer during the year to the anchor house or its foundation, to the children’s home society of Idaho, inc., to the Idaho youth ranch or its foundation, to kinderhaven or its foundation, to the women’s and children’s alliance or its foundation, to children’s village, inc. or its foundation, to Idaho drug free youth, inc. or its foundation, to gem youth services or its foundation, to the hope house, inc. or its foundation, to the north Idaho children’s home or its foundation, to the shepherd’s home, inc. or its foundation, to a project safe place located within the state of Idaho, to the learning lab, inc. or its foundation, to a center for independent living located within the state of Idaho, to project P.A.T.C.H., planned assistance for troubled children, to a nonprofit substance abuse center licensed by the department of health and welfare, or to a nonprofit rehabilitation facility located within the state of Idaho or its foundation.
(1) In the case of a taxpayer other than a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed twenty percent (20%) of such taxpayer’s total income tax liability imposed by section 63-3024, Idaho Code, for the year, or one hundred dollars ($100), whichever is less.
(2) In the case of a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed ten percent (10%) of such corporation’s total income or franchise tax liability imposed by sections 63-3025 and 63-3025A, Idaho Code, for the year, or five hundred dollars ($500), whichever is less.
(3) For the purposes of this section, "center for independent living" shall mean a private, nonprofit, nonresidential organization in which at least fifty-one percent (51%) of the principal governing board, management and staff are individuals with disabilities and that:
(a) Is designed and operated within a local community by individuals with disabilities;
(b) Provides an array of independent living services and programs; and
(c) Is cross-disability.
(4) For the purposes of this section, "nonprofit rehabilitation facility" means only a facility that is accredited by the commission on accreditation of rehabilitation facilities or another accreditation organization recognized by the state of Idaho.
[63-3029C, added 1982, ch. 84, sec. 1, p. 157; am. 1986, ch. 141, sec. 1, p. 398; am. 1998, ch. 131, sec. 1, p. 485; am. 1998 ch. 133, sec. 1, p. 490; am. 1998, ch. 183, sec. 1, p. 672; am. 1999, ch. 257, sec. 1, p. 662; am. 2000, ch. 216, sec. 1, p. 604; am. 2001, ch. 157, sec. 1, p. 564; am. 2001, ch. 382, sec. 1, p. 1339; am. 2002, ch. 269, sec. 1, p. 799; am. 2004, ch. 80, sec. 1, p. 305; am. 2004, ch. 193, sec. 1, p. 603; am. 2006, ch. 69, sec. 1, p. 212; am. 2006, ch. 209, sec. 1, p. 638; am. 2006, ch. 307, sec. 1, p. 946; am. 2006, ch. 309, sec. 1, p. 952; am. 2006, ch. 320, sec. 1, p. 1018.]
(1) For income tax years commencing on and after January 1, 1994, there shall be allowed a credit against the tax imposed pursuant to this chapter for each taxpayer who purchases qualified equipment on and after January 1, 1994.
(2) The credit provided pursuant to the provisions of subsection (1) of this section shall be an amount equal to twenty percent (20%) of the costs incurred by the taxpayer for purchases of qualified equipment and shall be claimed in the income tax year in which at least ninety percent (90%) of the total production of such qualified equipment is used by the taxpayer to manufacture products utilizing postconsumer waste or postindustrial waste. In no event shall the tax credit be more than thirty thousand dollars ($30,000) per tax year.
(3) If the amount of the credit provided pursuant to the provisions of subsection (2) of this section exceeds the amount of income taxes otherwise due on the income of the taxpayer in the income tax year for which the credit is being claimed, the amount of the credit not used as an offset against income taxes in such income tax year may be carried forward as a credit against subsequent years’ income tax liability for a period not exceeding seven (7) years and shall be applied first to the earliest income tax years possible. Any amount of the credit which is not used after such period shall not be refundable to the taxpayer.
(4) As used in this section:
(a) "Collection" means:
(i) The acquisition of materials from businesses or the general public through purchase or donation, including the organization of systems for such acquisitions;
(ii) The preparation of materials for over-the-road transportation through cleaning, densification by shredding, baling, or any other method, or coalescence, including the organization of systems for such preparation; or
(iii) The transportation of postconsumer waste or postindustrial waste between separate geographical locations.
(b) "Costs" means the amount of the purchase price or the amount of the annual lease payment.
(c) "Postconsumer waste" or "postindustrial waste" means only those products and materials consisting of paper, glass or plastic generated by businesses or consumers which have served their intended end use or usefulness and either have been or would normally be disposed of as solid waste except for the fact that they are separated from solid waste for purposes of collection, recycling or reuse. "Postconsumer waste" or "postindustrial waste" shall not include radioactive waste, as defined in this section, or hazardous waste, as defined in chapter 44, title 39, Idaho Code.
(d) "Product" means any material resulting from a manufacturing process and offered for sale to the private or public sector which is composed of at least fifty percent (50%) postconsumer waste or postindustrial waste. "Product" does not include any shredded material unless such shredded material is incorporated directly into the manufacturing process.
(e) "Purchase" means:
(i) Any transaction under which title to qualified equipment is transferred for consideration; or
(ii) Any lease contract for qualified equipment for a period of at least three (3) years regardless of whether title to qualified equipment is transferred at the end of such period.
(f) "Qualified equipment" means machinery or equipment located within Idaho which has at least an estimated three (3) years’ useful life and of which at least ninety percent (90%) of the total production thereof is used by the taxpayer to manufacture products utilizing postconsumer waste or postindustrial waste. "Qualified equipment" shall not include any machinery or equipment which is used for the collection of postconsumer waste or postindustrial waste.
(g) "Radioactive waste" or "nuclear waste" means a waste or combination of wastes of a solid, liquid, semisolid or contained gaseous form which contains radiation.
(5) Any recomputation of the credit allowed in subsection (2) of this section on property disposed of or ceasing to qualify, prior to the close of its useful life, shall be determined according to section 47 of the Internal Revenue Code, as such existed on November 5, 1990.
[63-3029D, added 1994, ch. 342, sec. 1, p. 1077; am. 2007, ch. 83, sec. 10, p. 233.]
(1) Subject to the provisions of this section, a credit against the taxes otherwise due shall be allowed to a taxpayer for a claim of right income repayment adjustment.
(2) The credit under this section shall be allowed only if the taxpayer’s federal tax liability is determined under section 1341(a) of the Internal Revenue Code.
(3) The amount of the credit shall equal the difference between:
(a) The taxpayer’s actual Idaho state income tax liability for the tax year for which the claim of right was included in gross income for federal tax purposes; and
(b) The taxpayer’s Idaho state income tax liability for that tax year, had the claim of right income not been included in gross income for federal tax purposes.
(4) A credit under this section shall be allowed only for the tax year for which the taxpayer’s federal tax liability is determined under section 1341 of the Internal Revenue Code for federal tax purposes.
(5) If the amount allowable as a credit under this section, when added to the sum of other amounts allowable as a payment of tax and other refundable credit amounts, exceeds the taxes imposed (reduced by any nonrefundable credits allowed for the tax year), then the excess shall be treated as an overpayment of tax and shall be refunded or applied in the same manner as other tax overpayments.
(6) As used in this section, "claim of right income" means:
(a) An item included in federal gross income for a prior tax year because it appeared that the taxpayer had an unrestricted right to the item; and
(b) An item for which the taxpayer’s federal tax liability is adjusted under section 1341 of the Internal Revenue Code because the taxpayer did not have an unrestricted right to the item of gross income.
[63-3029F, added 2015, ch. 21, sec. 2, p. 27.]
(1)(a) Subject to the limitations of this section, there shall be allowed to a taxpayer a nonrefundable credit against taxes imposed by sections 63-3024, 63-3025, and 63-3025A, Idaho Code, for increasing research activities in Idaho.
(b) The credit allowed by paragraph (a) of this subsection shall be the sum of:
(i) Five percent (5%) of the excess of qualified research expenses for research conducted in Idaho over the base amount; and
(ii) Five percent (5%) basic research payments allowable under section 41(e) of the Internal Revenue Code for basic research conducted in Idaho.
(c) The credit allowed by paragraph (a) of this subsection shall be computed without regard to the calculation of the alternative incremental credit provided for in section 41(c)(4) of the Internal Revenue Code or the alternative simplified credit provided for in section 41(c)(5) of the Internal Revenue Code.
(2) As used in this section:
(a) The terms "qualified research expenses," "qualified research," "basic research payments" and "basic research" shall be as defined in section 41 of the Internal Revenue Code, except that the research must be conducted in Idaho.
(b) The term "base amount" shall mean an amount calculated as provided in section 41(c) and (h) of the Internal Revenue Code, except that:
(i) A taxpayer’s gross receipts include only those gross receipts attributable to sources within this state as provided in subsections (12) and (13) of section 63-3027, Idaho Code; and
(ii) Notwithstanding section 41(c) of the Internal Revenue Code, for purposes of calculating the base amount, a taxpayer:
(A) May elect to be treated as a start-up company as provided in section 41(c)(3)(B) of the Internal Revenue Code, regardless of whether the taxpayer meets the requirements of section 41(c)(3)(B)(i)(I) or (II) of the Internal Revenue Code; and
(B) May not revoke an election to be treated as a start-up company.
(3) The credit allowed by subsection (1)(a) of this section together with any credits carried forward under subsection (5) of this section shall not exceed the amount of tax due under sections 63-3024, 63-3025, and 63-3025A, Idaho Code, after allowance for all other credits permitted by this chapter. When credits earned in more than one (1) taxable year are available, the oldest credits shall be applied first.
(4) In the case of a group of corporations filing a combined report under section 63-3027(22), Idaho Code, credit earned by one (1) member of the group but not used by that member may be used by another member of the group. For a combined group of corporations, any member of the group may claim credit carried forward unless the member who earned the credit is no longer included in the combined group.
(5) The credit allowed by subsection (1)(a) of this section shall be claimed for the taxable year during which the taxpayer qualifies for the credit. If the credit exceeds the limitation under subsection (3) of this section, the excess amount may be carried forward for a period that does not exceed the next fourteen (14) taxable years. Any amounts deducted or amortized by a taxpayer pursuant to section 174 or 174A of the Internal Revenue Code that constitute qualified research expenses, qualified research, basic research payments, or basic research, as those terms are defined in subsection (2) of this section, shall not be eligible for the credit provided in this section.
(6) In addition to other needed rules, the state tax commission may promulgate rules prescribing, in the case of S corporations, partnerships, trusts, or estates, a method of attributing the credit under this section to the shareholders, partners, or beneficiaries in proportion to their share of the income from the S corporation, partnership, trust, or estate.
[63-3029G, added 2001, ch. 386, sec. 6, p. 1355; am. 2002, ch. 35, sec. 1, p. 67; am. 2004, ch. 345, sec. 1, p. 1025; am. 2010, ch. 44, sec. 2, p. 80; am. 2022, ch. 52, sec. 3, p. 168; am. 2026, ch. 1, sec. 3, p. 5.]
(1) Subject to the limitations of this section, for taxable years beginning after January 1, 2001, there shall be allowed to a taxpayer a nonrefundable credit against taxes imposed by sections 63-3024, 63-3025, and 63-3025A, Idaho Code, for qualified expenditures in qualified broadband equipment in Idaho.
(2) The credit permitted in subsection (1) of this section shall be three percent (3%) of the qualified investment in qualified broadband equipment in Idaho and shall be in addition to the credit for capital investment permitted by section 63-3029B, Idaho Code.
(3) As used in this section, the term:
(a) "Qualified investment" shall be as defined in section 63-3029B, Idaho Code.
(b) "Qualified broadband equipment" means equipment that qualifies for the credit for capital investment permitted by section 63-3029B, Idaho Code, and is capable of transmitting signals at a rate of at least two hundred thousand (200,000) bits per second to a subscriber and at least one hundred twenty-five thousand (125,000) bits per second from a subscriber, and:
(i) In the case of a telecommunications carrier, such qualifying equipment shall be necessary to the provision of broadband service and an integral part of a broadband network. "Telecommunications carrier" has the meaning given such term by 47 U.S.C. 153 but does not include a commercial mobile service provider.
(ii) In the case of a commercial mobile service carrier, such qualifying equipment shall extend from the subscriber side of the mobile telecommunications switching office to a transmitting/receiving antenna, including such antenna, on the outside of the structure in which the subscriber is located. "Commercial mobile service carrier" means any person authorized to provide commercial mobile radio service to subscribers as defined in 47 CFR 20.3 (10-1-99 ed.), as amended.
(iii) In the case of a cable or open video system operator, such qualifying equipment shall extend from the subscriber’s side of the headend to the outside of the structure in which the subscriber is located. The terms "cable operator" and "open video system operator" have the meanings given such terms by sections 602(5) and 653, respectively, of the communications act of 1934, as amended.
(iv) In the case of a satellite carrier or a wireless carrier other than listed above, such qualifying equipment is only that equipment that extends from a transmitting/receiving antenna, including such antenna, which transmits and receives signals to or from multiple subscribers to a transmitting/receiving antenna on the outside of the structure in which the subscriber is located. "Satellite carrier" means any person using the facilities of a satellite or satellite services licensed by the federal communications commission and operating a fixed-satellite service or direct broadcast satellite services to provide point-to-multipoint distribution of signals. "Other wireless carrier" means any person, other than a telecommunications carrier, commercial mobile service carrier, cable operator, open video operator, or satellite carrier, providing broadband services to subscribers through the radio transmission of energy.
(v) In the case of packet switching equipment, such packet equipment installed in connection with other qualifying equipment listed in subsection (3)(b)(i) through (iv) of this section, provided it is the last in a series of equipment that transmits signals to a subscriber or the first in a series of equipment that transmits signals from a subscriber. "Packet switching" means controlling or routing the path of a digital transmission signal assembled into packets or cells.
(vi) In the case of multiplexing and demultiplexing equipment, such equipment only to the extent that it is deployed in connection with providing broadband services in locations between packet switching equipment and the structure in which the subscriber is located. "Multiplexing" means the transmission of two (2) or more signals over a communications circuit without regard to the communications technology.
(vii) Any property not primarily used to provide services in Idaho to public subscribers is not qualified broadband equipment.
(4) No equipment described in subsection (3)(b)(i) through (vi) of this section shall qualify for the credit provided in subsection (1) of this section until the taxpayer applies to and obtains from the Idaho public utilities commission an order confirming that the installed equipment is qualified broadband equipment. Applications submitted to the commission shall be governed by the commission’s rules of procedure. The commission may issue procedural orders necessary to implement this section.
(5) The credit allowed by subsection (1) of this section together with any credits carried forward under subsection (7) of this section shall not, in any one (1) taxable year, exceed the lesser of:
(a) The amount of tax due under sections 63-3024, 63-3025, and 63-3025A, Idaho Code, after allowance for all other credits permitted by this chapter; or
(b) Seven hundred fifty thousand dollars ($750,000).
When credits earned in more than one (1) taxable year are available, the oldest credits shall be applied first.
(6) In the case of a group of corporations filing a combined report under section 63-3027(22), Idaho Code, credit earned by one (1) member of the group but not used by that member may be used by another member of the group, subject to the provisions of subsection (7) of this section, instead of carried over. For a combined group of corporations, credit carried forward may be claimed by any member of the group unless the member who earned the credit is no longer included in the combined group.
(7) If the credit allowed by subsection (1) of this section exceeds the limitation under subsection (5) of this section, the excess amount may be carried forward for a period that does not exceed the next fourteen (14) taxable years.
(8) In the event that qualified broadband equipment upon which the credit allowed by this section has been used ceases to qualify for the credit allowed by section 63-3029B, Idaho Code, or is subject to recapture of that credit, the recapture of credit under this section shall be in the same proportion and subject to the same provisions as the amount of credit required to be recaptured under section 63-3029B, Idaho Code.
(9)(a) Subject to the requirements of this subsection, a taxpayer who earns and is entitled to the credit or to an unused portion of the credit allowed by this section may transfer all or a portion of the unused credit to:
(i) Another taxpayer required to file a return under this chapter; or
(ii) To an intermediary for its use or for resale to a taxpayer required to file a return under this chapter.
In the event of either such a transfer, the transferee may claim the credit on the transferee’s income tax return originally filed during the calendar year in which the transfer takes place and, in the case of carryover of the credit, on the transferee’s returns for the number of years of carryover available to the transferor at the time of the transfer unless earlier exhausted.
(b) Before completing a transfer under this subsection, the transferor shall notify the state tax commission of its intention to transfer the credit and the identity of the transferee. The state tax commission shall provide the transferor with a written statement of the amount of credit available under this section as then appearing in the commission’s records and the number of years the credit may be carried over. The transferee shall attach a copy of the statement to any return in regard to which the transferred credit is claimed.
(c) In the event that after the transfer the state tax commission determines that the amount of credit properly available under this section is less than the amount claimed by the transferor of the credit or that the credit is subject to recapture, the commission shall assess the amount of overstated or recaptured credit as taxes due from the transferor and not the transferee. The assessment shall be made in the manner provided for a deficiency in taxes under this chapter.
(10) In addition to other needed rules, the state tax commission may promulgate rules prescribing, in the case of S corporations, partnerships, trusts, or estates, a method of attributing the credit under this section to the shareholders, partners, or beneficiaries in proportion to their share of the income from the S corporation, partnership, trust, or estate.
[63-3029I, added 2001, ch. 386, sec. 8, p. 1356; am. 2002, ch. 35, sec. 9, p. 73; am. 2003, ch. 89, sec. 1, p. 270; am. 2004, ch. 345, sec. 2, p. 1027; am. 2005, ch. 23, sec. 4, p. 66; am. 2012, ch. 14, sec. 3, p. 28; am. 2022, ch. 52, sec. 4, p. 169.]
(1) As used in this section:
(a) "Human organ" means human bone marrow or any part of a human including the intestine, kidney, liver, lung or pancreas.
(b) "Live organ donation" means that an individual who is living donates one (1) or more of that individual’s human organs to another human to be transplanted using a medical procedure to the body of the other human.
(c) "Live organ donation expenses" means the total amount of expenses incurred by a taxpayer that are not reimbursed to that taxpayer by any person, are directly related to a live organ donation by the taxpayer or another individual that the taxpayer is allowed to claim as a dependent in accordance with section 151 of the Internal Revenue Code and include travel, lodging or lost wages as defined by rule by the state tax commission.
(2) For taxable years beginning on or after January 1, 2007, a taxpayer may claim a nonrefundable credit against taxes imposed by this chapter for live organ donation expenses incurred during the taxable year for which the live organ donation occurs in an amount equal to the lesser of the actual amount of the live organ donation expenses or five thousand dollars ($5,000).
(3) If the amount of a tax credit under this section exceeds a taxpayer’s tax liability under this chapter for a taxable year, the amount of the tax credit that exceeds the taxpayer’s income tax liability may be carried forward for a period that does not exceed the next five (5) taxable years.
[63-3029K, added 2006, ch. 312, sec. 1, p. 968.]
(1) For taxable years beginning on or after January 1, 2018, and before January 1, 2026, there shall be allowed to a taxpayer a nonrefundable credit against the tax imposed by this chapter in the amount of two hundred five dollars ($205) with respect to each qualifying child of the taxpayer. For purposes of this section, the term "qualifying child" has the meaning as defined in section 24(c) of the Internal Revenue Code. In no event shall more than one (1) taxpayer be allowed this credit for the same qualifying child. This credit is available only to Idaho residents. Any part-year resident entitled to a credit under this section shall receive a proportional credit reflecting the part of the year in which the part-year resident was domiciled in Idaho.
(2) In the case of divorced parents or parents who do not live together, if the qualifying child is in the custody of one or both of the child’s parents for more than one-half of a calendar year, such child is the qualifying child of the custodial parent for the taxable year beginning during such calendar year. However, the child may be the qualifying child of the noncustodial parent if either of the following requirements are met:
(a) A court of competent jurisdiction has unconditionally awarded, in writing, to the noncustodial parent the tax benefits associated with the child pursuant to section 32-706, Idaho Code, and the noncustodial parent attaches a copy of the court order to the noncustodial parent’s income tax return for the taxable year; or
(b) The custodial parent signs a written declaration that such custodial parent will not claim the credit of this section with respect to such child for any taxable year beginning in such calendar year and the noncustodial parent attaches such written declaration to the noncustodial parent’s income tax return for the taxable year beginning during such calendar year.
[63-3029L, added 2018, ch. 46, sec. 6, p. 117; am. 2018, ch. 351, sec. 2, p. 842; am. 2019, ch. 14, sec. 1, p. 17; am. 2020, ch. 271, sec. 3, p. 795.]
(1) Subject to the limitations of this section, for taxable years beginning on and after January 1, 2020, there shall be allowed to an employer a nonrefundable credit against taxes imposed by this chapter for each of the employer’s contributions to an employee’s Idaho college savings program account established pursuant to chapter 54, title 33, Idaho Code.
(2) The credit allowed by this section shall be in the amount of twenty percent (20%) of the total contributions per employee, but may not exceed five hundred dollars ($500) per employee, per taxable year.
(3) If the amount of a tax credit under this section exceeds a taxpayer’s tax liability under this chapter for a taxable year, the amount of the tax credit that exceeds the taxpayer’s income tax liability may be carried forward for a period that does not exceed the next five (5) taxable years.
(4) As used in this section, the term "employee" means a person who, during the taxable year for which the credit is allowed, is subject to Idaho income tax withholding, whether or not any amounts are required to be withheld, and who is covered by the employer for unemployment insurance purposes under chapter 13, title 72, Idaho Code.
[63-3029M, added 2020, ch. 244, sec. 1, p. 715.]
(1) There is hereby established the Idaho parental choice tax credit.
(2) For the purpose of this section:
(a) "Academic instruction" means kindergarten through grade 12 instruction that includes, at a minimum, English language arts, mathematics, science, and social studies.
(b) "Eligible student" means:
(i) A full-time resident of Idaho who is five (5) to eighteen (18) years of age at any time within the tax year; or
(ii) A child with disabilities requiring ancillary personnel as defined in section 33-2001, Idaho Code, who is five (5) to twenty-one (21) years of age at any time within the tax year.
(c) "Federal poverty level" means the federal poverty guidelines published and updated annually by the United States department of health and human services.
(d) "Nonpublic school" means a private school, microschool, or learning pod that provides academic instruction to eligible students, which academic instruction may be provided in person, online, virtually, or through any combination thereof, and such academic instruction is:
(i) Provided by an accredited school; or
(ii) Documented in a portfolio of evidence or learning record that indicates the student’s growth. Records of the instruction shall be retained sufficient to establish that the instruction meets the requirements of paragraph (a) of this subsection and shall be available in the case of any audit by the state tax commission.
(e) "Parent" means an eligible student’s parent, legal guardian, or foster parent, if such foster parent is licensed and in good standing pursuant to chapter 12, title 39, Idaho Code.
(f) "Qualified expenses" means kindergarten through grade 12 tuition or fees for attending a nonpublic school, tutoring of academic instruction, nationally standardized assessments, assessments used to determine college admission, advance placement examinations, industry-recognized certification exams, and preparatory courses for nationally standardized assessments. "Qualified expenses" also means costs for textbooks, curricula provided by one (1) or more vendors as long as the total curriculum provided to the eligible student and claimed for the credit encompasses no more than kindergarten through grade 12 academic instruction, and transportation costs to and from a facility incurred for the purposes of receiving kindergarten through grade 12 academic instruction, including public transportation, ridesharing, and the use of privately owned vehicles, for which reimbursement shall use the mileage rate applicable to state employee travel in effect at the time the travel occurs. "Qualified expenses" shall not include expenses paid with funds received from a grant under section 33-1031, Idaho Code, or any reimbursement pursuant to section 33-4603, Idaho Code.
(3) The Idaho parental choice tax credit shall be administered as provided in this section. For tax year 2025 and subsequent tax years, there shall be allowed a refundable tax credit up to five thousand dollars ($5,000) per eligible student against the tax imposed by this chapter for any parent:
(a) Who incurs qualified expenses of up to five thousand dollars ($5,000) per eligible student during the tax year, if each eligible student is a dependent and is properly claimed on the parent’s full-time Idaho resident individual income tax return; and
(b) Who timely and properly files an application.
(4) The state tax commission shall prescribe forms for the purpose of applying for and claiming the credit authorized by this section. The forms shall identify the civil and criminal penalties provided in sections 63-3046 and 63-3075, Idaho Code, for providing false and fraudulent tax information and shall require the parents to affirm under oath that the information submitted in the form is true and accurate. The forms shall also require any parent who has previously received a credit authorized by this section to certify and attach evidence that the parent completed the satisfaction and engagement survey required under subsection (14) of this section. Beginning in January 2026, and each year thereafter, the application period shall open on January 15 and shall remain open for a period of sixty (60) days. The state tax commission shall notify parents whether they will receive a credit award. Such notification must be within thirty (30) days of the close of the application period.
(5) The state tax commission shall calculate the total amount of credits claimed in completed applications that qualify under subsection (3) of this section. If the total amount does not exceed the annual maximum limit provided in subsection (12) of this section, the state tax commission shall re-open the application period to receive new applications. Such applications shall be accepted until August 15 or until the annual maximum limit is reached, whichever is first.
(6) Credits shall be issued on a yearly basis. For applications received in 2026, the state tax commission shall give priority to parents whose modified adjusted gross income as indicated on their most recently filed tax return does not exceed three hundred percent (300%) of the federal poverty level. Starting in the 2027 application period, the state tax commission shall give priority status to applications from parents who received a credit in the prior year, followed by parents whose taxable income as indicated on their most recently filed tax return does not exceed three hundred percent (300%) of the federal poverty level.
(7) The refundable tax credit limit under subsection (3) of this section shall be increased to seven thousand five hundred dollars ($7,500) for each eligible student up to twenty-one (21) years of age who is also considered a child with disabilities requiring ancillary personnel as defined in section 33-2001, Idaho Code. Parents claiming an increased credit under this subsection shall document the student’s diagnosis or other determination made by an Idaho licensed health care provider or the student’s eligibility for services under an individualized education program in accordance with the federal individuals with disabilities education act.
(8) The refundable tax credit provided in this section, including the advance payment, shall not constitute Idaho taxable income.
(9) The application forms pursuant to subsection (4) of this section shall permit parents to elect a onetime advance payment of the credit for each eligible student if a tax credit pursuant to this section has not been claimed in the previous year. When a parent elects to receive an advance payment pursuant to this subsection, the credit shall be issued in one (1) installment, to be paid within sixty (60) days of notifying a parent of such credit award but not later than August 30. The state tax commission shall approve advance payments only for eligible students whose parents’ modified adjusted gross income as indicated on their most recently filed tax return does not exceed three hundred percent (300%) of the federal poverty level. Advance payments made under this subsection may be spent only on qualified expenses for which the parent may claim a credit under the provisions of this section. In order to enable parents whose modified adjusted gross income does not exceed three hundred percent (300%) of the federal poverty level to pay for a student’s education, an advance payment that is expended on qualified expenses for an eligible student may be claimed for such expenditure in that year and a parental choice tax credit shall be allowed on a parent’s tax return for that year, subject to the remaining requirements of this chapter. Notwithstanding any other provisions of law to the contrary, the state refund account pursuant to section 63-3067, Idaho Code, shall be used for the payment of advance payments of the tax credit pursuant to this subsection, and the provisions of section 63-3068, Idaho Code, shall apply to the advance payment of the tax credit issued pursuant to this subsection.
(10) Parents claiming the Idaho parental choice tax credit shall:
(a) Claim the credit for only qualified expenses incurred on behalf of an eligible student;
(b) Not claim the credit for any semester in which a student was enrolled full-time or part-time in a public school, public charter school, public virtual charter school, public magnet school, or part-time public kindergarten. A student participating in activities or instruction for which no academic credit is awarded, participating in public school sports or other extracurricular activities, transferring to and from nonpublic schools during the tax year, home schooling, or purchasing and taking Idaho digital learning academy (IDLA) courses that are offered for a fee and are not included in IDLA enrollment funding by the state pursuant to section 33-1020, Idaho Code, shall not be considered so enrolled pursuant to the provisions of this paragraph.
(c) Not claim the credit for any tuition or fees related to academic instruction provided by the parent to such parent’s eligible student;
(d) Ensure no other parent claims a credit for an eligible student. In the event more than one (1) parent claims a credit under this section for the same eligible student in the same year, the provisions of section 63-3029L(2), Idaho Code, shall be used to determine which parent is entitled to receive the credit; and
(e) Fill out and submit the satisfaction and engagement survey provided for in subsection (14) of this section. No parent shall be eligible to receive a credit under the provisions of this section in a subsequent year if such parent has not submitted such survey for the last year that such parent received the credit.
(11) If the credit exceeds the tax imposed by this chapter, the excess credit amount shall be refunded to the taxpayer. The state tax commission shall design the tax return forms to account for advance payment of the credit when calculating the tax imposed by this chapter.
(12) The total amount of tax credits authorized for all taxpayers under this section shall not exceed fifty million dollars ($50,000,000) each tax year. In the event the total amount of claims for tax credits allowed by this section exceeds fifty million dollars ($50,000,000), the credits shall be allowed in full to parents whose applications were properly and timely filed and who have priority status under subsection (6) of this section, followed by the remaining parents who filed complete applications on a first-come, first-served basis, until the annual maximum limit is reached. The state tax commission shall create and maintain a waiting list demonstrating who would be eligible on a first-come, first-served basis if the annual maximum limit for credits allowed under this section is increased.
(13)(a) Beginning with the first regular session of the sixty-ninth Idaho legislature in 2027, the state tax commission shall provide an annual report to the governor, the senate local government and taxation committee, the house revenue and taxation committee, and the joint finance-appropriations committee that shall include:
(i) The total amount of tax credits provided each year under this section;
(ii) The number of parents who applied each year for the Idaho parental choice tax credit;
(iii) The amount of the average tax credit allowed;
(iv) The number of credits distributed to parents with an adjusted gross income below three hundred percent (300%) of the federal poverty level;
(v) The number of parents who applied each year for the advance payment pursuant to subsection (9) of this section, the number of advance payments awarded, and the median amount of the advance payments awarded;
(vi) The geographic area of parents applying for the credit;
(vii) The number of eligible students on the waiting list for each year; and
(viii) A list of the categories of qualified expenses for which recipients used the tax credit, which shall include the dollar amounts for each category listed in subsection (2)(f) of this section.
(b) The report shall not include any personally identifying information of eligible students, their parents, or their households.
(14) Beginning in 2026, and each year thereafter, the legislative services office shall deliver to each parent who has received a tax credit under the provisions of this section a parent satisfaction and engagement survey to evaluate the performance of the nonpublic school that the eligible student attended. The survey shall include but not be limited to the quality of school leadership, school safety, student engagement, quality of academic instruction, and quality of learning outcomes. The state tax commission shall provide the legislative services office with contact information to identify each parent receiving a credit and any other information required for the legislative services office to properly deliver the surveys required under this subsection, and shall deliver the surveys to the parents no later than January 15 each year. Each parent shall complete the survey and submit the completed survey to the legislative services office no later than March 15. Beginning in 2027, the legislative services office shall submit a report to the governor, the senate local government and taxation committee, the house revenue and taxation committee, and the joint finance-appropriations committee that shall include a summary of the survey results.
(15) Any taxpayer receiving an advance payment or claiming a tax credit without submission of a timely and properly prescribed form shall be ineligible to receive such payment or claim such credit. The state tax commission shall deny or recapture credits claimed by a parent for expenditures not authorized by the provisions of this section. If a parent has received an advance payment for an eligible student in a previous year, the parent shall not claim the credit for qualified expenses incurred in a year that a student ceases to qualify as an eligible student, except for any portion of the credit that exceeds the amount of the advance payment received. If a student ceases to qualify as an eligible student and the parent has already received the credit for that year, an amount of the credit, not exceeding the amount of the advance payment received, shall be repaid to or recovered by the state tax commission and deposited into the general fund.
(16) Parents who claim the credit on a tax return without receiving prior approval of an application may not receive a credit, and the state shall have no liability to such parent.
(17) The state tax commission shall, in as close to real time as practicable, make available on its website the annual maximum limit, the cumulative amount of credits claimed in applications under this section, and the cumulative amount of advance payments issued under this section until the annual maximum limit is reached.
(18) The state tax commission shall also keep records of the total applications for credits and total claim of credits that exceed the annual maximum limit.
(19) The state tax commission shall ensure that parents of eligible students receive notice in the application that participation in the program is a parental placement under 20 U.S.C. 1412 of the federal individuals with disabilities education act, along with an explanation of the rights that parentally placed students possess under the federal individuals with disabilities education act, including eligibility for equitable services, and any applicable state laws and regulations.
(20) The provisions of this section shall not be construed to permit any government agency to exercise control or supervision over any nonpublic school or to give the state authority to regulate the education of nonpublic school students. A nonpublic school that enrolls a student whose parent directs a refundable tax credit to the school pursuant to this section is not an agent of the state or federal government. A nonpublic school shall not be required to alter its creed, practices, admissions policy, or curriculum in order to accept students whose payment of tuition or fees stems from a refundable tax credit under this section.
[63-3029N, added 2025, ch. 9, sec. 2, p. 29; am. 2026, ch. 302, sec. 1, p. 1236.]
When a taxpayer subject to any taxes imposed under this chapter is entitled to two (2) or more credits against such taxes, the priority of credits shall be determined in the following order:
(a) Nonrefundable credits. Nonrefundable credits shall be applied to the tax liability before application of refundable credits. If a taxpayer is entitled to more than one (1) nonrefundable credit, the credits shall be applied in the order in which the statutes authorizing the credits were enacted by the legislature.
(b) Refundable credits. Refundable credits shall be applied to the tax liability after application of any nonrefundable credits.
[(63-3029P) 63-3029H, added 1983, ch. 21, sec. 2, p. 61; am. and redesig. 2001, ch. 386, sec. 7, p. 1356.]
(a) Returns with respect to taxes measured by income in this chapter shall be made by the following:
(1) Every resident individual required to file a federal return under section 6012(a)(1) of the Internal Revenue Code.
(2) Any nonresident individual having for the current taxable year a gross income from Idaho sources in excess of two thousand five hundred dollars ($2,500), or any part-year resident individual having for the current taxable year a gross income from all sources while domiciled in or residing in Idaho, and from Idaho sources while not domiciled in and not residing in Idaho, which in total are in excess of two thousand five hundred dollars ($2,500);
(3) Every corporation which is transacting business in this state, authorized to transact business in this state or having income attributable to this state, unless exempt from the tax imposed in this chapter;
(4) Every corporation reporting as an S corporation pursuant to Internal Revenue Code sections 1361 through 1379 to the federal government, which is transacting business in this state, or is authorized to transact business in this state. A corporation which is reporting as an S corporation to the federal government must report to the state of Idaho as an S corporation for and during the same period or periods in which its election to report as such a corporation is effective for federal tax purposes and must identify itself as an S corporation on its income tax return filed with this state;
(5) Every estate, the residence of which estate is in Idaho, having a gross income of six hundred dollars ($600) or more for the current taxable year;
(6) Every estate, the residence of which is in a state other than Idaho, having a gross income from Idaho sources in excess of six hundred dollars ($600);
(7) Every trust required to file a federal return under the Internal Revenue Code, the residence of which trust is in Idaho, having gross income of one hundred dollars ($100) or more for the current taxable year;
(8) Every trust required to file a federal return under the Internal Revenue Code, the residence of which is in a state other than Idaho, having a gross income from Idaho sources in excess of one hundred dollars ($100);
(9) Every partnership which transacts business in this state. Such return shall be a supplemental information return and shall include the names and addresses of the persons who would be entitled to share in the net income of the partnership if distributed and the amount of the distributive share of each person. Such return shall be signed by one (1) of the partners.
(b) Returns of fiduciaries and receivers:
(1) Fiduciaries and receivers shall file returns with the state tax commission in accordance with the provisions of section 6012(b) of the Internal Revenue Code.
[63-3030, added 1959, ch. 299, sec. 30, p. 613; am. 1961, ch. 328, sec. 13, p. 622; am. 1967, ch. 294, sec. 5, p. 828; am. 1970, ch. 222, sec. 7, p. 621; am. 1971, ch. 302, sec. 3, p. 1242; am. 1973, ch. 100, sec. 1, p. 168; am. 1977, ch. 85, sec. 1, p. 174; am. 1981. ch. 291, sec. 1, p. 610; am. 1987, ch. 93, sec. 6, p. 184; am. 1987, ch. 315, sec. 1, p. 658; am. 1989, ch. 181, sec. 4, p. 455; am. 1993, ch. 3, sec. 3, p. 12; am. 1994, ch. 39, sec. 3, p. 62; am. 1995, ch. 111, sec. 31, p. 373; am. 1996, ch. 37, sec. 1, p. 100; am. 1998, ch. 51, sec. 1, p. 202; am. 2000, ch. 26, sec. 5, p. 49.]
(a) If a taxpayer fails to file a return within sixty (60) days of the time prescribed by this chapter, a district judge of the county within which the taxpayer resides or has its principal place of business or of Ada county in the case of a nonresident taxpayer or one having its principal place of business outside the state, upon petition of the state tax commission, shall issue a writ of mandate requiring the person to file a return. The petition shall be returnable not later than twenty-eight (28) days after the filing of the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case, consistent with the rights of the parties. The judgment shall include costs in favor of the prevailing party. Proceedings upon such suits shall be in accordance with chapter 3, title 7, Idaho Code.
(b) Nothing in this section shall limit the remedies otherwise available to the state tax commission under this chapter or any other laws of this state.
[63-3030A, added 1982, ch. 279, sec. 1, p. 711; am. 1993, ch. 3, sec. 4, p. 14.]
(a) A husband and wife may make a single return jointly even though one of the spouses has neither gross income nor deductions, except as provided below:
(1) No joint return shall be made if, during the current taxable year, either the husband or the wife is a nonresident alien of the United States, unless they elect to file a joint return for federal purposes pursuant to sections 6013(g) and (h) of the Internal Revenue Code.
(2) No joint return shall be made if husband and wife have different taxable years, unless the difference in taxable years is the result of the death of either or both of them; except that if either spouse changes his annual accounting period during the taxable year, or if the surviving spouse remarries within the taxable year no such return shall be filed.
(3) For the purpose of subsection (2) of this section, the joint return, if permitted, shall be treated as if the taxable years of both spouses ended on the date of the closing of the surviving spouse’s taxable year.
(4) In the case of death of one spouse or both spouses the joint return with respect to the decedent may be made only by his executor or administrator; except that in the case of the death of one spouse the joint return may be made by the surviving spouse with respect to both himself and the decedent if no return for the taxable year has been made by the decedent, no executor or administrator has been appointed, and no executor or administrator is appointed before the last day prescribed by law for filing the return of the surviving spouse. If an executor or administrator of the decedent is appointed after the making of the joint return by the surviving spouse, the executor or administrator may disaffirm such joint return by making, within one (1) year after the last day prescribed by law for filing the return of the surviving spouse, a separate return for the taxable year of the decedent with respect to which the joint return was made, in which case the return made by the survivor shall constitute his separate return.
(b) Definitions. For purposes of this section–
(1) The status as husband and wife of two (2) individuals having taxable years beginning on the same day shall be determined
(A) if both have the same taxable year — as of the close of such year; and
(B) if one dies before the close of the taxable year of the other — as of the time of such death; and
(2) An individual who is legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married; and
(3) If a joint return is made, the tax shall be computed on the aggregate income and the liability with respect to the tax shall be joint and several.
(c) Husbands and wives shall, if they elect to file a joint return for federal purposes, be required to file a joint return for state purposes.
[63-3031, added 1959, ch. 299, sec. 31, p. 613; am. 1961, ch. 328, sec. 14, p. 622; am. 1969, ch. 319, sec. 10, p. 982; am. 1980, ch. 53, sec. 1, p. 109; am. 1982, ch. 111, sec. 1, p. 313.]
(1) Except as provided in section 63-3033, Idaho Code:
(a) Returns made on the basis of the calendar year shall be filed in the office of the Idaho state tax commission on or before the fifteenth day of April following the close of the calendar year and returns made on the basis of a fiscal year shall be filed in the office of the Idaho state tax commission on or before the fifteenth day of the fourth month following the close of the fiscal year.
(b) In the case of a return for any period of less than one (1) year, the return shall be filed on or before the date required in this section, or on or before such date as required for such tax period by the Internal Revenue Code, whichever is later.
(2) Returns made by farmer’s cooperatives to the extent the cooperative is taxable under section 63-3025B, Idaho Code, shall be due on or before September 15 following the close of the calendar year or on or before the fifteenth day of the ninth month following the close of the fiscal year. The provisions of section 63-3033, Idaho Code, shall not apply to returns due under this subsection.
[63-3032, added 1959, ch. 299, sec. 32, p. 613; am. 1988, ch. 149, sec. 1, p. 270; am. 1997, ch. 57, sec. 9, p. 102; am. 2000, ch. 26, sec. 6, p. 50.]
(a) Taxpayers shall have an automatic extension of time for filing any return, declaration, statement or other document required by this chapter for a period of six (6) months if on or before the unextended due date the taxpayer has paid at least eighty percent (80%) of the total tax due on the income tax return when it is filed, or the total tax due on the income tax return for the prior year if a return was filed for the prior year.
(b) If, on the unextended due date, the payment required to meet the provisions of subsection (a) of this section, after consideration of any previous credits or payments applicable to the return, is fifty dollars ($50.00) or less, such payment shall not be required in order to qualify for the extension. However, interest shall accrue as provided in subsection (g) of this section. Payment of any balance of tax is due on the earlier of the extended due date or the date the return is filed.
(c) Taxpayers residing outside any of the United States and Puerto Rico (including persons in military or naval service) shall have an automatic extension of time within which to file income tax returns with this state for a period which shall expire on the fifteenth day of the sixth month following the close of their taxable year.
(d) Individuals who are entitled to extensions for filing federal income tax returns as a result of the application of the provisions of sections 911 and 7508 of the Internal Revenue Code, shall be entitled to extensions of time for the same period for filing income tax returns with the state of Idaho subject to the requirements imposed in implementation of the indicated sections.
(e) Any taxpayer entitled to an extension under subsection (c) or (d) of this section shall attach a statement to his return claiming his right to the extension.
(f) If the amount of payment made under subsection (a) of this section is less than eighty percent (80%) of the total tax due under the provisions of this chapter and is less than the amount of the total tax due on the income tax return for the prior year, except as permitted by subsection (b) of this section, a penalty may be applied to the total of the balance due unless reasonable cause can be established. The penalty shall be:
(1) If the taxes for the taxable year are paid on or before the extended due date, two percent (2%) per month from the original due date to the date of payment.
(2) If the taxes for the taxable year are not paid on or before the extended due date, the penalty provided in section 63-3046(c), Idaho Code, from the original due date.
(g) In all cases of an extension of time in which to file any return, except for those related to section 7508 of the Internal Revenue Code, interest shall be paid on any tax due from the original due date to date of payment at the rate provided in section 63-3045, Idaho Code. For an individual entitled to an extension of time allowed by subsection (d) of this section and section 7508 of the Internal Revenue Code, interest shall be paid on any tax due from the extended due date allowed in subsection (d) of this section to the date of payment.
[63-3033, added 1959, ch. 299, sec. 33, p. 613; am. 1965, ch. 316, sec. 5, p. 880; am. 1969, ch. 319, sec. 11, p. 982; am. 1976, ch. 77, sec. 1, p. 249; am. 1976, ch. 270, sec. 1, p. 913; am. 1980, ch. 5, sec. 1, p. 10; am. 1981. ch. 290, sec. 3, p. 598; am. 1992, ch. 49, sec. 2, p. 151; am. 1993, ch. 3, sec. 5, p. 14; am. 1997, ch. 57, sec. 10, p. 102; am. 1998, ch. 54, sec. 1, p. 207; am. 1999, ch. 34, sec. 1, p. 71; am. 2001, ch. 53, sec. 1, p. 95; am. 2005, ch. 23, sec. 5, p. 69; am. 2006, ch. 56, sec. 1, p. 166; am. 2011, ch. 45, sec. 1, p. 102; am. 2014, ch. 9, sec. 3, p. 12.]
(a) The entire tax imposed by this chapter shall be paid to the state tax commission on or before the date, including any extensions of the due date, upon which the return must be filed with the state tax commission, provided that payments made before the termination of the year for which taxes are paid shall be (1) based upon the taxpayer’s estimate of total state tax liability or (2) when the estimated gross income of any such taxpayer is more than six hundred dollars ($600) and the state tax commission deems it necessary to insure compliance with this chapter, the commission may require any persons subject to this chapter to place with the commission such security as the commission may determine.
(b) The amount of the security shall be fixed by the tax commission but shall not be greater than twice the amount of tax estimated to be due, or twenty thousand dollars ($20,000), whichever is less. The amount of the security may be increased or decreased by the tax commission at any time within the limitations set forth in this subsection.
(c) If the tax commission finds that a taxpayer of whom security is required fails to furnish the security, the tax commission may issue a jeopardy assessment as prescribed by section 63-3065, Idaho Code, and take appropriate action to effect collection of the required security.
(d) The tax commission may sell the security at public auction or, in the case of security in the form of bearer bonds issued by the United States or the state of Idaho which have a prevailing market price, at a private sale at a price not lower than the prevailing market price if it becomes necessary to make such sale in order to recover any tax, interest or penalties due on any amount required to be collected. Notice of the sale must be given to the person who deposited the security at least ten (10) days before the sale; such notice may be given personally or by mail addressed to the person at the address furnished to the tax commission and as it appears in the records of the tax commission. Upon such sale, any surplus above the amounts due shall be returned to the person who placed the security.
[63-3034, added 1959, ch. 299, sec. 34, p. 613; am. 1961, ch. 328, sec. 15, p. 622; am. 1965, ch. 316, sec. 6, p. 880; am. 1976, ch. 284, sec. 1, p. 983; am. 1997, ch. 57, sec. 11, p. 103.]
(a) Every employer who is required under the provisions of the Internal Revenue Code to withhold, collect and pay income tax on wages or salaries paid by such employer to any employee (other than employees specified in Internal Revenue Code section 3401(a)(2)) shall, at the time of such payment of wages, salary, bonus or other emolument to such employee, deduct and retain therefrom an amount substantially equivalent to the tax reasonably calculated by the state tax commission to be due from the employee under this chapter. The state tax commission shall prepare tables showing amounts to be withheld, and shall supply same to each employer subject to this section. In the event that an employer can demonstrate administrative inconvenience in complying with the exact requirements set forth in these tables, he may, with the consent of the state tax commission and upon application to it, use a different method which will produce substantially the same amount of taxes withheld. Every employer making payments of wages or salaries earned in Idaho, regardless of the place where such payment is made:
(1) Shall be liable to the state of Idaho for the payment of the tax required to be deducted and withheld under this section and shall not be liable to any individual for the amount deducted from his wages and paid over in compliance or intended compliance with this section;
(2) Must pay to the state tax commission monthly on or before the twentieth day of the succeeding month, or at such other times as the state tax commission may allow, an amount of tax which, under the provisions of this chapter, he is required to deduct and withhold;
(3) Shall register with the state tax commission, in the manner prescribed by it, to establish an employer’s withholding account number. The account number will be used to report all amounts withheld for the annual reconciliation required in this section, and for such other purposes relating to withholding as the state tax commission may require; and
(4) Must, notwithstanding the provisions of paragraphs (1) and (2) of this subsection, if the amount of withholding of such employer for the preceding twelve (12) month period equals or exceeds two hundred forty thousand dollars ($240,000) per annum or an average of twenty thousand dollars ($20,000) per month per annum, pay to the state tax commission on the basis of two (2) withholding periods. The first period shall begin on the first day of the month and end on the fifteenth day of the same month, and payment shall be made not later than the twentieth day of the same month. The second period shall begin on the sixteenth day of the same month and end on the last day of the same month, and payment shall be made not later than the fifth day of the following month. An employer meeting the withholding threshold requirements of this subsection, but only having one (1) pay period per month, may, upon request to and approval by the state tax commission, pay in accordance with paragraph (2) of this subsection.
(5) If a payment required pursuant to paragraph (2) or (4) of this subsection is not made or is made delinquently or if made is not equal to the withholding required under this section, the state tax commission may treat the failure as a failure to file a return and may take administrative and judicial actions as authorized by this chapter in the case of a failure to file a return. Interest, at the rate provided by section 63-3045, Idaho Code, shall apply to any such underpayment.
(6) Commencing in 2006, the state tax commission shall determine whether the threshold amounts established by paragraph (4) of this subsection must be adjusted to reflect fluctuations in the cost of living. The state tax commission shall base its determination on the cumulative effect of the annual cost-of-living percentage modifications determined by the United States secretary of health and human services pursuant to 42 U.S.C. 415(i). When the cumulative percentage applied to the monthly threshold amount equals or exceeds five thousand dollars ($5,000), the commission shall promulgate a rule adjusting the monthly threshold amount by five thousand dollars ($5,000) and making the necessary proportional adjustment to the annual threshold amount. The rule shall be effective for the next succeeding calendar year and each year thereafter until again adjusted by the commission. The tax commission shall determine subsequent adjustments in the same manner, in each case using the year of the last adjustment as the base year.
(b) (1) In addition to the payments required pursuant to subsection (a)(2) and (4) of this section, every employer shall file a return upon such form as shall be prescribed by the state tax commission, but not more frequently than annually, or as required pursuant to any agreement between the state tax commission and the department of labor under section 63-3035B, Idaho Code, unless a shorter filing period and due date is prescribed by the state tax commission. The return shall be due on the last day of the first month following the end of the period to which the return relates. The return shall:
(i) Show, for the period to which it relates, the total amount of wages, salary, bonus or other emolument paid to his employees, the amount deducted therefrom in accordance with the provisions of the Internal Revenue Code, the amount deducted therefrom in accordance with the provisions of this section, the amount of any previous payments made pursuant to this section, the amount of any deficiency due from the employer or refund payable by the state tax commission and such pertinent and necessary information as the state tax commission may require.
(ii) Include a copy of the declaration of withholding provided to employees pursuant to paragraph (2) of this subsection.
(2) Every employer making a declaration of withholding as provided herein shall furnish to the employees annually, but not later than thirty (30) days after the end of the calendar year, a record of the amount of tax withheld from such employee on forms to be prescribed, prepared and furnished by the state tax commission.
(3) Every employer who is required, under Internal Revenue Code section 6011, to file returns on magnetic media, machine readable form or electronic means, as defined in the Idaho uniform electronic transactions act, may be required by rules of the state tax commission to file corresponding state returns on similar magnetic media, machine readable form or electronic means. Such rules may provide a different due date for such returns, which shall be no later than the date employers are required to file such returns with the internal revenue service or the social security administration and shall provide a five (5) business day period for an employer to correct errors in the electronic file received by the due date.
(c) All moneys deducted and withheld by every employer shall immediately upon such deduction be state money and every employer who deducts and retains any amount of money under the provisions of this chapter shall hold the same in trust for the state of Idaho and for the payment thereof to the state tax commission in the manner and at the times in this chapter provided. Any employer who does not possess real property situated within the state of Idaho, which, in the opinion of the state tax commission, is of sufficient value to cover his probable tax liability, may be required to post a surety bond in such sum as the state tax commission shall deem adequate to protect the state.
(d) The provisions of this chapter relating to additions to tax in case of delinquency, and penalties, shall apply to employers subject to the provisions of this section and for these purposes any amount deducted, or required to be deducted and remitted to the state tax commission under this section, shall be considered to be the tax of the employer and with respect to such amount he shall be considered the taxpayer.
(e) Amounts deducted from wages of an employee during any calendar year in accordance with the provisions of this section shall be considered to be in part payment of the tax imposed on such employee for his tax year, which begins within such calendar year, and the return made by the employer under this subsection shall be accepted by the state tax commission as evidence in favor of the employee of the amount so deducted from his wages. Where the total amount so deducted exceeds the amount of tax on the employee, based on his Idaho taxable income, or where his income is not taxable under this chapter, the state tax commission shall, after examining the annual return filed by the employee in accordance with this chapter, but not later than sixty (60) days after the filing of each return, refund the amount of the excess deducted.
(f) This section shall in no way relieve any taxpayer from his obligation of filing a return at the time required under this chapter, and, should the amount withheld under the provisions of this section be insufficient to pay the total tax of such taxpayer, such unpaid tax shall be paid at the time prescribed by section 63-3034, Idaho Code.
(g) An employee receiving wages shall on any day be entitled to not more than, but may claim fewer than, the number of withholding allowances to which he is entitled under the Internal Revenue Code for federal income tax withholding purposes.
(h) An employer shall use the allowance certificate filed by the employee with the employer under the withholding allowance provisions of the Internal Revenue Code in determining the amount of tax to be withheld from the employee’s wages or salary under this chapter. The state tax commission may redetermine the number of withholding allowances to which an employee is entitled under subsection (g) of this section, and the state tax commission may require such allowance certificate to be filed on a form prescribed by the commission in any circumstance where the commission finds that the allowance certificate filed for Internal Revenue Code purposes does not properly reflect the number of withholding allowances to which the employee is entitled under this chapter. In no event shall any employee give an allowance certificate which claims a higher number of withholding allowances than the number to which the employee is entitled by subsection (g) of this section.
[63-3035, added 1959, ch. 299, sec. 35, p. 613; am. 1963, ch. 352, sec. 1, p. 1013; am. 1965, ch. 316, sec. 7, p. 880; am. 1967, ch. 294, sec. 6, p. 828; am. 1969, ch. 319, sec. 12, p. 982; am. 1971, ch. 38, sec. 1, p. 84; am. 1982, ch. 219, sec. 1, p. 594; am. 1983, ch. 4, sec. 13, p. 13; am. 1983, ch. 20, sec. 2, p. 58; am. 1986, ch. 132, sec. 1, p. 339; am. 1987, ch. 33, sec. 1, p. 55; am. 1989, ch. 180, sec. 1, p. 447; am. 1990, ch. 34, sec. 2, p. 49; am. 1993, ch. 5, sec. 1, p. 16; am. 1994, ch. 40, sec. 1, p. 66; am. 1995, ch. 83, sec. 4, p. 245; am. 1995, ch. 111, sec. 32, p. 375; am. 1998, ch. 230, sec. 2, p. 783; am. 1999, ch. 41, sec. 1, p. 80; am. 2001, ch. 56, sec. 1, p. 101; am. 2003, ch. 296, sec. 1, p. 802; am. 2004, ch. 103, sec. 1, p. 364; am. 2004, ch. 103, sec. 2, p. 366; am. 2006, ch. 195, sec. 3, p. 604; am. 2008, ch. 9, sec. 1, p. 10; am. 2013, ch. 9, sec. 1, p. 17; am. 2016, ch. 12, sec. 1, p. 12; am. 2016, ch. 31, sec. 1, p. 74; am. 2019, ch. 12, sec. 1, p. 12.]
(1) Whenever the Idaho state lottery is required by the Internal Revenue Code to withhold, collect and pay over income tax on any prize, proceeds or winnings it shall, at the time of payment of such prize, proceeds or winnings to the recipient, withhold from the payment an amount equal to the maximum percentage applicable to individuals under section 63-3024, Idaho Code, of the prize, proceeds or winnings to be applied to Idaho income taxes due from the recipient.
(2) The state tax commission shall accept amounts withheld according to this section as payment by the recipient of the amount so withheld of income taxes imposed on the recipient for the taxable year in which the prize, proceeds or winnings are includable in the recipient’s Idaho taxable income.
(3) When the total amount withheld (along with other credits due, withholding or payments attributable to the taxpayer) exceeds the taxes due from the recipient, the state tax commission shall, after examining the state income tax return filed by the recipient, refund the amount of the excess withheld in the manner provided for refunds of withholding under section 63-3035, Idaho Code.
(4) The Idaho state lottery shall remit the amounts withheld to the state tax commission on or before the date similar payments and reports are due to the internal revenue service.
(5) The Idaho state lottery shall furnish to the recipient, not later than thirty (30) days after the end of the calendar year, a record of the tax withheld during that year and shall, not later than the last day of the following February, file a copy of the record with the state tax commission.
(6) The Idaho state lottery and the state tax commission may agree to different times and procedures for making the remittances or reports required in this section.
(7) Nothing in this section relieves any taxpayer from an obligation to file a return or pay taxes at the time and in the manner required by this chapter.
[63-3035A, added 1997, ch. 382, sec. 3, p. 1238; am. 2001, ch. 56, sec. 2, p. 103; am. 2004, ch. 30, sec. 6, p. 61.]
The state tax commission may, pursuant to sections 67-2326 through 67-2333, Idaho Code, enter into an agreement with the department of labor providing for the joint administration of employment security taxes and income tax withholding through common registration of employers, common tax reporting forms, centralized filing of returns and receipting of revenue and effective exchange of information.
[63-3035B, added 1998, ch. 230, sec. 3, p. 786.]
(1) An income tax withholding account issued under section 63-3035, Idaho Code, shall be held only by persons actively engaged in activities requiring such an account under this chapter. Any person not so engaged shall forthwith cancel his account number by notifying the state tax commission.
(2) Whenever any person fails to comply with any provision of this chapter relating to the withholding, reporting or payment of income tax withholding or any rules of the commission relating to such withholding prescribed and adopted under this chapter, the state tax commission may revoke or suspend any withholding account held by the person or may deny a new account to such person.
(3) The state tax commission may revoke the withholding account of a person not actively engaged in activities requiring an account under section 63-3035, Idaho Code.
(4) Notice of revocation shall be given in the manner provided for deficiencies in taxes in section 63-3045, Idaho Code, which shall be subject to review as provided in that section.
(5) A withholding account, held by a person who for a period of twelve (12) consecutive months reports no income tax withholding due under this chapter, shall expire automatically upon the state tax commission providing notice of the expiration to the last known address of the person to whom the account was issued.
(6) A person who engages in activities requiring a withholding account under this chapter without such an account or after an account has been revoked or suspended, and any person who is a responsible person, as defined in section 63-3078, Idaho Code, of such a business shall, after receiving written notice from the state tax commission, be subject to a civil penalty not in excess of one hundred dollars ($100), and each day shall constitute a separate offense, which the state tax commission may assess as a deficiency pursuant to section 63-3045, Idaho Code.
[63-3035C, added 2006, ch. 60, sec. 5, p. 188.]
(1) Every farmer who is an employer required by the provisions of the Internal Revenue Code to withhold, collect, and pay income tax on wages paid by such employer to any employee shall at the time of the payment of wages, salaries, bonuses or other emoluments to an employee, deduct and retain therefrom an amount determined in accordance with section 63-3035, Idaho Code, and the amount so withheld and deducted shall be held by said farmer-employer in trust for the state of Idaho and for the payment thereof to the state tax commission. Provided, that no tax need be withheld from an employee whose wages, salaries, bonuses and other emoluments total less than one thousand dollars ($1,000) for the tax year.
(2) The tax so withheld by a farmer-employer subject to this section shall be paid to the state tax commission on or before the date required by subsection (b)(1) of section 63-3035, Idaho Code.
(3) The farmer-employer shall deliver to the state tax commission a return upon such form as shall be prescribed by said state tax commission showing the amounts of wages, salaries, bonuses or other emoluments paid to his employee, the amount deducted therefrom in accordance with this section, and such other pertinent and necessary information as the state tax commission may require on or before the date payments required by this section are due.
(4) The farmer-employer making such a deduction as provided for in this section shall furnish to the employee annually, but not later than thirty (30) days after the end of the calendar year, a record of the amount of the tax withheld from such employee on forms to be prescribed, prepared and furnished by the state tax commission and at the same time every employer shall file a copy thereof with the state tax commission. The provisions of subsections (d), (e), (f), (g) and (h) of section 63-3035, Idaho Code, shall be applicable to the tax withheld by the farmer-employer under this section.
[63-3036, added 1959, ch. 299, sec. 36, p. 613; am. 1965, ch. 316, sec. 8, p. 880; am. 1967, ch. 294, sec. 7, p. 828; am. 1969, ch. 319, sec. 13, p. 982; am. 1990, ch. 34, sec. 3, p. 52; am. 1991, ch. 7, sec. 3, p. 23; am. 1993, ch. 5, sec. 2, p. 19; am. 1994, ch. 39, sec. 4, p. 64; am. 1998, ch. 230, sec. 4, p. 786; am. 1999, ch. 41, sec. 2, p. 83; am. 2000, ch. 26, sec. 7, p. 51; am. 2005, ch. 23, sec. 6, p. 70.]
(a) Any corporation subject to this chapter which is required to make a payment of estimated taxes to the internal revenue service and will have an Idaho income tax liability of five hundred dollars ($500) or more shall pay to the state tax commission estimated taxes due under this chapter.
(b) The provisions of the Internal Revenue Code relating to determination of reporting periods and the due dates of payments of estimated tax shall apply to the estimated payments due under this section.
(c) The amount of estimated tax due shall be determined as follows:
(1) Commencing with the calendar quarter that begins July 1, 1987, in the case of any corporation which was required to pay tax under this chapter for its immediately preceding taxable year, the amount of each quarterly payment for its current taxable year shall be twenty-five percent (25%) of the lesser of:
(i) The tax amount required to be reported on the return for the immediately preceding taxable year; or
(ii) Ninety percent (90%) of the tax required to be paid with the current year’s return.
(2) Any corporation required to make estimated payments under this section and who makes annualized estimated payments under the Internal Revenue Code shall be permitted to annualize its estimated payments under this section in the manner prescribed by regulation of the state tax commission. Such regulations shall, to the extent practicable, follow the provisions of the Internal Revenue Code and the regulations thereunder relating to annualization of estimated payments.
(d) The amounts paid as estimated taxes pursuant to subsection (c) of this section shall be considered to be in part payment of the tax imposed by this chapter on the person reporting such estimated tax. The part payment shall apply to such tax for the tax year during which the reporting period for which the estimate is made occurs. In the event that such part payments, together with all other part payments, estimated payments, withheld taxes or other credits allowable against the taxes imposed by this chapter shall exceed the amount of tax due, the state tax commission shall refund such excess within the time and in the manner prescribed in section 63-3072(c), Idaho Code, relating to refund of taxes withheld by employers.
(e) The provisions of this section shall in no way relieve any person from any obligation to file a return under any provision of this chapter at the time such return may be due. In the event that the estimated payments required under this section, together with any other part payments, estimated payments, withheld taxes or other credits applicable to the same taxable year are less than the amount of taxes imposed by this chapter, the unpaid tax shall be paid at the time prescribed in section 63-3034, Idaho Code.
(f) The payment due for the first full reporting period occurring after the effective date of this act, and the payment due for each of the next three (3) succeeding reporting periods shall be one-half (1/2) of the amount otherwise due under this section.
[63-3036A, added 1987, ch. 342, sec. 4, p. 728; am. 1991, ch. 7, sec. 4, p. 24; am. 2001, ch. 56, sec. 3, p. 104.]
(1) A pass-through entity, as defined in section 63-3006C, Idaho Code, that is transacting business in Idaho during a taxable year shall withhold tax as prescribed in this section.
(2) For each nonresident individual who has income described in subsection (2) of section 63-3022L, Idaho Code, the pass-through entity shall withhold tax on the individual’s share of income from the pass-through entity required to be included in Idaho taxable income of the individual, at the rate applicable for the taxable year under section 63-3024, Idaho Code.
(3) A pass-through entity is not required to withhold taxes under this section:
(a) In regard to an individual who is a resident of Idaho as defined in section 63-3013, Idaho Code; or
(b) If the pass-through entity is a publicly traded partnership, as defined in section 7704(b) of the Internal Revenue Code, that is treated as a partnership for purposes of the Internal Revenue Code and that has agreed to file an annual information return reporting the name, address, taxpayer identification number and other information requested by the state tax commission concerning each unitholder whose distributive share of partnership income from Idaho sources is more than five hundred dollars ($500); or
(c) If withholding is not required pursuant to a rule adopted under this section; or
(d) In regard to an individual who is not a resident of Idaho as defined in section 63-3013, Idaho Code, but for whom the pass-through entity has reported and paid the tax relating to said individual on a composite return pursuant to section 63-3022L, Idaho Code. An entity may rely upon information provided by the individual indicating state of residency as prescribed in the rules of the state tax commission.
(4) A pass-through entity that is required to withhold tax under this section shall file a withholding return with the state tax commission setting forth the amount of income described in subsection (2) of section 63-3022L, Idaho Code, the amount of tax withheld under this section and any other information required by the state tax commission. The return shall be filed with the state tax commission on the form and taxes withheld under this section shall be paid to the state tax commission in the time and manner prescribed by rules of the state tax commission. To the extent the state tax commission finds practicable, the rules shall generally conform to the requirements of section 63-3035, Idaho Code.
(5) A pass-through entity that is required to withhold tax under the provisions of this section shall furnish a statement to each individual on whose behalf tax is withheld. The statement shall state the amount of tax withheld on behalf of the individual for the taxable year of the pass-through entity. The statement shall be made on a form prescribed by the state tax commission and shall contain any other information required by it.
(6) A pass-through entity is liable to this state for amounts of tax required to be withheld and paid under the provisions of this section. A pass-through entity is not liable to an officer, director, or individual owner of an interest in the pass-through entity for amounts required to be withheld under the provisions of this section that were paid to the state tax commission as prescribed in this section. Amounts required to be withheld and paid over to the state tax commission under this section that are not withheld or paid over at the time and in the manner required by the provisions of this section shall be a deficiency in tax as defined in section 63-3044, Idaho Code.
(7) For purposes of this section, "individual" shall have the same meaning as in subsection (6) of section 63-3022L, Idaho Code.
[63-3036B, added 2010, ch. 37, sec. 3, p. 68; am. 2011, ch. 3, sec. 3, p. 9; am. 2012, ch. 187, sec. 2, p. 492; am. 2014, ch. 36, sec. 2, p. 62; am. 2022, 1st E.S., ch. 1, sec. 11, p. 8.]
(a) All persons, in whatever capacity, including lessees or mortgagors of real or personal property, fiduciaries and employers, making payment to another person of interest, rent, salaries, wages, except as provided by subsection (b) of section 63-3035, Idaho Code, and section 63-3036, Idaho Code, premiums, annuities, compensation, remunerations, emoluments, payments to subcontractors, other fixed or determinable gains, profits and income, or corporate liquidation distributions shall make returns to the state tax commission setting forth the amount of such gains, profits and income, and the name and address of the recipient of such payment. Such returns shall correspond to the requirements of the Internal Revenue Code, but shall be filed with the state tax commission on or before the last day of February of the year following the year to which the return relates.
(b) The state tax commission may, by rule:
(1) Excuse the filing of any returns required by subsection (a) of this section when it finds that the returns required of any class or group of persons do not contribute to the efficient administration of the taxes imposed by this chapter.
(2) When necessary for the efficient administration of this section, set a different due date for the returns required by this section, provided however, such date shall not be earlier than the date required by the Internal Revenue Code for filing equivalent federal returns in a nonelectronic format.
(c) The commission may prescribe rules providing standards consistent with section 63-115, Idaho Code, for determining which returns must be transmitted electronically. The commission may not require any person to transmit returns electronically unless such person is required to report on the return at least two hundred fifty (250) annual information returns. In promulgating such rules, the commission shall take into account, among other relevant factors, the ability of the taxpayer to comply, at a reasonable cost, with the requirements of such rules.
[63-3037, added 1959, ch. 299, sec. 37, p. 613; am. 1961, ch. 328, sec. 16, p. 622; am. 1972, ch. 287, sec. 1, p. 723; am. 1990, ch. 77, sec. 1, p. 160; am. 2009, ch. 3, sec. 2, p. 5; am. 2010, ch. 10, sec. 1, p. 11.]
It shall be the duty of the state tax commission of the state of Idaho as established in chapter 1 of title 63, Idaho Code, to administer and enforce the provision of this title. The state tax commission is authorized to designate deputies and employees to specifically administer the provisions of this title and such deputies and employees may be authorized to act in the name of the state tax commission and in its place and stead, provided, however, that such designation shall be made in writing.
[63-3038, added 1959, ch. 299, sec. 38, p. 613; am. 1998, ch. 53, sec. 1, p. 207.]
(1) The state tax commission shall prescribe all needful rules and regulations for the enforcement of this act, which shall be deemed to include all interpretations and constructions of this act, which must be uniformly made by the state tax commission, and shall prepare all forms which may be required of taxpayers. All rules or regulations and forms shall be printed for general distribution and the state tax commission is hereby authorized to contract for such printing. The state tax commission may make a charge for each copy of rules and regulations, which charge shall not exceed the actual cost of printing the same plus the actual expense of the state tax commission for postage or other handling costs but no charge shall be made for any form required of taxpayers. No rule or regulation shall become effective until thirty (30) days after the rule or regulation as published is made available to the public and each rule or regulation requiring compliance by a taxpayer shall have an effective date. The state tax commission is authorized to establish an annual charge for all rules, regulations and other publications of the commission and to receive subscriptions therefor which shall entitle the subscriber to delivery of such publications by mail as soon as the same are published.
(2) The state tax commission shall as soon as practicable after the effective date of this act adopt rules and regulations as provided herein. Such rules and regulations shall conform wherever practicable to the regulations promulgated by the commissioner for the Internal Revenue Code.
(3) Any law to the contrary notwithstanding, the state tax commission shall prepare and publish annually such statistics as are reasonably available with respect to the operation of the commission including pertinent statistics of the income reported, taxes collected, and such other matters as may be deemed valuable information for the public and also such information and statistics as the governor and/or the legislature may require from time to time.
(4) The state tax commission shall cause this act to be published in pamphlet form together with such amendments as may from time to time be made, which pamphlet shall include any rules or regulations then in effect and shall provide for the sale of the same to the public at a uniform price not to exceed the cost of printing plus the actual cost for postage and other handling charges incurred by the state tax commission.
(5) The publication and printing requirements set forth in this section for the act, amendments to the act, and rules or regulations are satisfied if the information is made available to the public in electronic form.
[63-3039, added 1959, ch. 299, sec. 39, p. 613; am. 1961, ch. 328, sec. 17, p. 622; am. 1983, ch. 104, sec. 1, p. 223; am. 2015, ch. 16, sec. 1, p. 23.]
As soon as practicable after the return is filed, the state tax commission shall examine it and shall determine the correct amount of the tax.
[63-3040, added 1959, ch. 299, sec. 40, p. 613.]
If the taxpayer has paid more than the amount determined to be the correct amount of the tax, the excess shall be credited or refunded as provided in section 63-3072, Idaho Code, as amended. In the event a joint return has been filed and one (1) spouse dies prior to issuance of credit or refund, the credit or refund may be granted the surviving spouse. In the event a joint return has been filed by a couple separated after filing of the return, the credit or refund may be equally divided between such persons unless a joint claim has theretofore been properly executed.
[63-3041, added 1959, ch. 299, sec. 41, p. 613; am. 1961, ch. 328, sec. 18, p. 622.]
For the purpose of ascertaining the correctness of any return, making a return where none has been made, determining the liability of any person for any tax payable under this act or the liability at law or in equity of any person in respect to any tax provided in this act or collecting any such liability, the state tax commission or its duly authorized deputy is authorized–
(a) To examine any books, papers, records, or other data which may be relevant or material to such inquiry;
(b) To summon the person liable for tax or required to perform the act, or any officer or employee of such person, or any person having possession, custody or care of books of account containing entries relating to the business of the person liable for tax or required to perform the act, or any other person the commission or its deputy may deem proper, to appear before the commission or its delegate at a time and place named in the summons and to produce such books, papers, records or other data and/or give such testimony, under oath, as may be relevant or material to such inquiry; and taxpayers whose pertinent records are kept outside of the state must bring such records to Idaho for examination by the state tax commission upon request by it or a deputy, or, by agreement with the state tax commission, permit an auditor designated by the state tax commission to visit the place where the records are kept and there audit such records; and
(c) To take such testimony of the person concerned or summoned, under oath, as may be relevant or material to such inquiry.
A summons issued under the provisions of this section may be served by the state tax commission or its deputy or by any other person authorized to serve process under the laws of this state by a copy delivered in and to a person to whom it is directed; and the certificate of service signed by the person serving the summons shall be evidence of the facts it states on the hearing of an application for the enforcement of the summons. When the summons requires the production of books, papers, records, or other data, it shall be sufficient if such books, papers, records, or other data are described with reasonable certainty.
The time and place of examination pursuant to the provisions of this section shall be such time and place as may be fixed by the state tax commission or its deputy and as are reasonable under the circumstances, provided that in the case of a summons the date fixed for appearance before the state tax commission or its deputy shall not be less than twenty (20) days from the time of service of the summons.
No taxpayer shall be subjected to unreasonable or unnecessary examinations or investigations.
[63-3042, added 1959, ch. 299, sec. 42, p. 613; am. 1963, ch. 339, sec. 6, p. 971; am. 1967, ch. 294, sec. 8, p. 828; am. 2003, ch. 10, sec. 6, p. 27.]
For the purpose of documenting an expenditure as a deduction or credit under this chapter, absent clear and convincing evidence of fraud, a taxpayer’s statement or invoice from a credit card company or other financial institution reflecting the expenditure shall conclusively establish that the expenditure was made by the taxpayer, and the taxpayer’s sworn statement that the expenditure was made for an identified deductible purpose shall conclusively establish a taxpayer’s right to a deduction or credit. In any audit, assertion of deficiency or other proceeding in which substantiation of a deductible expense paid by credit card, debit card, or other electronic means is in question, the state tax commission shall notify a taxpayer in writing of the provisions of this section and retain proof that such notice has been provided as required by this section.
[63-3042A, added 2021, ch. 206, sec. 1, p. 561; am. 2023, ch. 34, sec. 1, p. 168; am. 2024, ch. 30, sec. 1, p. 224; am. 2025, ch. 224, sec. 1, p. 1047.]
In case any person refuses to comply with any subpoena or order under this act or to produce or permit the examination or inspection of any books, papers or documents pertinent to any investigation or inquiry hereunder, or to testify to any matter regarding which he may lawfully be interrogated, such fact shall be reported by the state tax commission or a deputy commissioner, to the district court or the judge thereof of any district wherein such person resides or may be found, and such court or judge shall order such witness to attend and testify, or otherwise compel obedience to the lawful demands and requests of any of said officials; and on failure or refusal of any person to obey such order, he shall be dealt with as for contempt of court under the applicable provisions of chapter 6 of title 7, Idaho Code.
[63-3043, added 1959, ch. 299, sec. 43, p. 613; am. 1961, ch. 328, sec. 19, p. 622.]
As used in this act in respect of a tax imposed by this act the term "deficiency" means:
(1) The amount by which the tax imposed by this act exceeds the amount shown as the tax by the taxpayer upon his return; but the amount so shown on the return shall first be increased by the amounts previously assessed (or collected without assessment) as a deficiency, and decreased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax; or,
(2) If no amount is shown as the tax by the taxpayer upon his return, or if no return is made by the taxpayer, then the amount by which the tax exceeds the amounts previously assessed (or collected without assessment) as a deficiency; but such amounts previously assessed, or collected without assessment, shall first be decreased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax; or,
(3) Any amount of tax which is due and unpaid.
[63-3044, added 1959, ch. 299, sec. 44, p. 613; am. 1993, ch. 94, sec. 2, p. 229; am. 1994, ch. 172, sec. 1, p. 388; am. 2006, ch. 195, sec. 4, p. 607.]
(1)(a) If, in the case of any taxpayer, the state tax commission determines that there is a deficiency in respect of the tax imposed by this title, the state tax commission shall, immediately upon discovery thereof, send notice of such deficiency to the taxpayer by first class mail, by other commercial delivery service providing proof of delivery, or by secure electronic communication, whichever is the most cost-efficient. The notice shall be sent to the taxpayer’s last address known to the state tax commission. The notice of deficiency shall be accompanied by an explanation of the specific reason for the determination and an explanation of the taxpayer’s right to appeal. Within sixty-three (63) days after such notice is sent, the taxpayer may, at his option, file a protest in writing with the state tax commission and obtain redetermination of the deficiency.
(b) If the taxpayer files a protest with the state tax commission within the period set forth in paragraph (a) of this subsection, and such protest does not comply with the rules of the state tax commission and is therefore inadequate to perfect the taxpayer’s right to a redetermination of the deficiency determination, then the state tax commission shall notify the taxpayer, in the same manner as set forth in paragraph (a) of this subsection, of such inadequacies, setting forth in said notice the corrective action to be taken by the taxpayer to perfect his protest. The taxpayer shall thereafter have twenty-eight (28) days from the date of said notice to perfect his protest.
(c) No assessment of a deficiency in respect to the tax imposed by this chapter, and no distraint or proceedings in court for its collection, shall be made, begun, or prosecuted until such notice has been sent to the taxpayer, nor until all appeal rights relating to the deficiency have become final.
(2)(a) Following a perfected protest, the taxpayer has the right to an independent administrative redetermination of the originating division’s determination before the state tax commission, including a hearing. The purpose of the hearing is to discuss the deficiency determination and the taxpayer’s protest with a commissioner or duly authorized representative of the commission. The meeting shall be held informally and evidence shall be freely admitted regardless of the rules of evidence.
(b) Tax commission staff assigned to the administrative redetermination may not engage in communications relating to the taxpayer’s protest with employees of the originating division without first providing the taxpayer the opportunity to participate, except for questions that involve ministerial, administrative or procedural matters that do not address the substance of the issues or positions taken in the case or as otherwise allowed under title 63, Idaho Code, and the rules promulgated thereunder. The state tax commission shall promulgate rules governing communications with the originating division to ensure an independent review process. The provisions of this subsection do not create a substantive right affecting the taxpayer’s tax liability or the state tax commission’s ability to determine, assess or collect that tax liability, including statutory interest and any penalties, if applicable.
(3) Any hearing conducted under the provisions of this section may be conducted, in whole or in part, by telephone, television, or other electronic means if each participant in the hearing has an opportunity to participate in the entire proceeding while it is taking place.
(4) A taxpayer has the right to be represented by, or be accompanied by, any person of his choice in any proceeding before the tax commission. If the taxpayer is not present at a proceeding, the representative of that taxpayer must be designated in writing by the taxpayer as shall be prescribed in administrative rules or in any manner acceptable to the tax commission.
(5) Following a perfected protest, the taxpayer may submit additional evidence or documentation during the redetermination process subject to the provisions of section 63-3045B(3)(a), Idaho Code.
(6) If the taxpayer does not file a protest with the state tax commission within the time prescribed in subsection (1)(a) of this section, the deficiency shall be assessed and shall become due and payable upon notice and demand from the state tax commission.
(7)(a) Interest shall apply to deficiencies in tax and refunds of tax. Interest shall not apply to any penalty or to unpaid accrued interest. Interest relating to deficiencies or refunds accruing after the original due date of the return, but not including extensions of the due date, shall be computed on the net of any underpayments and overpayments of a tax liability required to be shown as due on the same return. Interest on deficiencies shall not accrue for any period beginning on the date on which the state tax commission identifies a return for possible audit until the date of the issuance of a notice of deficiency determination. Nor shall interest on deficiencies accrue for any period between the issuance of a notice of deficiency determination that is subject to a perfected protest and the final determination of the deficiency by the state tax commission following the state tax commission’s disposition of the protest.
(b) Interest upon any deficiency shall be assessed at the same time as the deficiency, shall be due and payable upon notice and demand from the state tax commission and shall be collected as a part of the tax at the rate per annum determined under the provisions of paragraph (c) of this subsection from the date prescribed for the payment of the tax. In the event any of the deficiency is reduced by reason of a carryback of a net operating loss or a capital loss carryback, such reduction in deficiency shall not affect the computation of interest under this subsection for the period ending with the last day of the taxable year in which the net operating loss or capital loss arises.
(c) The rate of interest accruing during any calendar year, or portion thereof, upon any deficiency, or payable upon an overpayment or refund, shall be two percent (2%) plus the rate determined under section 1274(d), Internal Revenue Code, by the secretary of the treasury of the United States as the midterm federal rate as it applies on September 15 of the immediately preceding calendar year rounded to the nearest whole number.
(8) When the time provisions contained in this section conflict with the provisions of section 63-4208, Idaho Code, relating to the assessment of taxes on illegal possession of controlled substances, the provisions of section 63-4208, Idaho Code, shall prevail.
[63-3045, added 2012, ch. 6, sec. 1, p. 9; am. 2017, ch. 18, sec. 1, p. 30; am. 2017, ch. 19, sec. 1, p. 33; am. 2024, ch. 116, sec. 1, p. 499; am. 2025, ch. 302, sec. 4, p. 1284; am. 2026, ch. 153, sec. 5, p. 699.]
(1) Except as provided in subsection (2) of this section, no tax commission activities to enforce collection of tax may be conducted, nor may a proceeding to collect a tax be instituted, until taxes are assessed in accordance with the provisions of this section.
(a) Taxes and related interest, including revisions for mathematical errors, are assessed immediately upon receipt of a tax return, amended return or other consent signed by the taxpayer or the taxpayer’s authorized representative showing the taxes due. The tax commission may presume that the signature is the signature of the taxpayer or the taxpayer’s authorized representative until the contrary is established by a preponderance of the evidence.
(b) In the event that the amount of tax is understated on the taxpayer’s return due to a mathematical error, the state tax commission shall notify the taxpayer that an amount of tax in excess of that shown on the return is due and has been asserted. Such a notice of additional tax due shall not be considered a notice of a deficiency nor shall the taxpayer have any right of protest or appeal as in the case of a deficiency based on such notice, and the assessment and collection of the amount of tax erroneously omitted in the return is not prohibited by any provision of this chapter.
(c) Any amount paid as a tax or in respect of a tax, other than amounts withheld at the source or paid as estimated income tax, shall be deemed to be assessed upon the date of receipt of payment, notwithstanding any other provisions of this chapter.
(d) For all other purposes of this chapter, a tax is deemed assessed when:
(i) A taxpayer fails to file a protest with the state tax commission within the time prescribed in section 63-3045, Idaho Code, or an action in district court or the board of tax appeals within the time prescribed in subsection (a) of section 63-3049, Idaho Code; or
(ii) Upon conclusion of any such proceeding for any amount upheld at that conclusion of such proceeding.
(2) An assessment is not required before the tax commission may conduct audits and investigations or make inquiries of taxpayers or other persons relating to matters within the tax commission’s jurisdiction. The making of an assessment is not required before the tax commission may file a judicial action under section 63-3030A or 63-3064, Idaho Code, or actions for injunctive or declaratory relief.
(3) When taxes and related interest have been assessed, the state tax commission shall create a record of assessment by recording the liability of the taxpayer along with an identification of the taxpayer, the character of the liability assessed, the taxable period, if applicable, and the amount of the assessment. The record of an assessment shall be kept and maintained in a record in the office of the state tax commission in accordance with rules prescribed by the state tax commission. Upon request of the taxpayer, the state tax commission shall furnish the taxpayer a copy of the record of assessment.
(4) Penalties and additions to tax in the case of a deficiency shall be assessed in the same manner as the taxes and related interest.
[63-3045A, added 1970, ch. 222, sec. 8, p. 621; am. 1987, ch. 86, sec. 1, p. 162; am. 1999, ch. 34, sec. 2, p. 72; am. 2006, ch. 195, sec. 5, p. 607.]
(1) If a taxpayer does not file a protest within the sixty-three (63) day period allowed, the notice of deficiency of the tax commission becomes final on the day following the end of the protest period.
(2) If a taxpayer files a protest, but does not perfect the protest, the notice of deficiency of the tax commission becomes final on the twenty-ninth day following the date the tax commission notified the taxpayer that the protest was not perfected, except that the tax commission may reduce the amount of the deficiency during the twenty-nine (29) day period.
(3) When a perfected protest has been filed, the state tax commission shall, within fourteen (14) days thereof, provide the taxpayer with a written acknowledgment of the protest. After the acknowledgment, a final decision of the tax commission must be rendered within one hundred eighty (180) days from either:
(a) A request in writing, in a form prescribed by rules of the tax commission, from the taxpayer for a final decision on that issue; if the taxpayer requests such a decision, the tax commission may refuse to accept additional evidence or documentation or refuse to allow an appearance at any proceeding with the commission or any representative of the commission during such one hundred eighty (180) day period; or
(b) The conclusion of any hearing pursuant to section 63-3045(2)(a), Idaho Code, and the taxpayer has not requested or received any extension of time to present additional evidence or testimony.
(4) A final decision may be held in abeyance, notwithstanding the requirements of subsection (3) of this section, with the prior approval in writing of the taxpayer.
(5) If a final decision of the tax commission is not rendered or the protest is not resolved by compromise, consent or withdrawal of the notice of deficiency determination within the time limits established by subsection (3) of this section, the notice of deficiency shall be null and void ab initio, with prejudice.
(6) A final decision of the tax commission shall be issued in writing and mailed, delivered through secure electronic communication, or served upon the taxpayer within the time limits set forth herein. The final written decision of the tax commission shall, one hundred twenty (120) days after the date of the final written decision, be available for public inspection and copying pursuant to the provisions of section 74-102, Idaho Code, except:
(a) The taxpayer’s name, address, taxpayer identification number, social security number, permit number, or other identifying information shall be removed from the final written decision of the tax commission that is made available to the public; and
(b) Any proprietary or other identifying information contained in the written decision that the taxpayer requests be excised shall be excised by the tax commission in the final written decision made available to the public. The taxpayer must make such request in writing before ninety-one (91) days have elapsed after the date of the final decision.
(7) The tax commission shall label each written decision with a unique identification number and shall keep a list containing each decision number and the date of issuance, as excised in accordance with the provisions of this section. A decision shall serve as precedent for the tax commission in future protest determinations unless information excised, court decisions, changes in the Idaho Code, or changes in applicable administrative rules overrule, supersede, modify, distinguish, or otherwise make inapplicable the written decision of the tax commission.
[63-3045B, added 1993, ch. 94, sec. 4, p. 231; am. 1994, ch. 172, sec. 3, p. 391; am. 2015, ch. 141, sec. 161, p. 507; am. 2017, ch. 18, sec. 2, p. 31; am. 2017, ch. 19, sec. 2, p. 34; am. 2026, ch. 153, sec. 6, p. 701.]
(a) If any part of any deficiency is due to negligence or disregard of rules but without intent to defraud, five percent (5%) of the total amount of the deficiency (in addition to such deficiency) shall be assessed, collected and paid in the same manner as if it were a deficiency.
(b) If any part of any deficiency is due to fraud with intent to evade tax, then fifty percent (50%) of the total amount of the deficiency (in addition to such deficiency) shall be so assessed, collected and paid.
(c) (1) In the event the return required by this chapter is not filed on or before the due date (including extensions) of the return, there may be collected a penalty of five percent (5%) of the tax due on such returns for each month elapsing after the due date (including extensions) of such returns until the return is filed.
(2) In the event the return required by this chapter is filed but the tax shown thereon to be due is not paid, there may be collected a penalty of one-half percent (0.5%) of the tax due on such return for each month elapsing after the later of the due date of such return or the date the return was filed until the tax is paid.
(d) (1) If there is a substantial understatement of tax for any taxable year, there shall be added to the tax an amount equal to ten percent (10%) of the amount of any underpayment attributable to such understatement.
(2) For purposes of this subsection, there is a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the greater of:
(i) Ten percent (10%) of the tax required to be shown on the return for the taxable year, or
(ii) Five thousand dollars ($5,000).
(3) In the case of a corporation, paragraph (d)(2)(ii) of this section shall be applied by substituting ten thousand dollars ($10,000) for five thousand dollars ($5,000).
(4) For purposes of paragraph (d)(2) of this section, the term "understatement" means the excess of:
(i) The amount of tax required to be shown on the return for the taxable year, over
(ii) The amount of the tax imposed which is shown on the return.
(5) The amount of the understatement under paragraph (4) shall be reduced by that portion of the understatement which is attributable to:
(i) The tax treatment of any item by the taxpayer if there is or was substantial authority for such treatment, or
(ii) Any item with respect to which the relevant facts affecting the item’s tax treatment are adequately disclosed in the return or in a statement attached to the return.
(6) In the case of any item attributable to a tax shelter as defined in section 6661 of the Internal Revenue Code:
(i) Paragraph (5)(ii) shall not apply, and
(ii) Paragraph (5)(i) shall not apply unless (in addition to meeting the requirements of such paragraph) the taxpayer reasonably believed that the tax treatment of such item by the taxpayer was more likely than not the proper treatment.
(7) The state tax commission may waive all or any part of the addition to tax provided by this section on a showing by the taxpayer that there was reasonable cause for the understatement (or part thereof) and that the taxpayer acted in good faith.
(e) (1) Any person who fails to file a statement of payment to another person required by this chapter, including the duplicate statement of tax withheld on wages, on the date prescribed therefor (including any extension of time for filing) shall, be subject to a penalty of two dollars ($2.00) for each month or part of a month each statement is not so filed, but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed two thousand dollars ($2,000).
(2) Any employer required to register under the provisions of section 63-3035, Idaho Code, who fails to register after receiving written notice from the state tax commission of the requirement to register shall be subject to a penalty of one hundred dollars ($100) for each month or part of a month after the date of the notice during which the failure occurs.
(3) The penalties provided in this subsection shall not apply if the person shows that the failure to register is due to reasonable cause and not to willful neglect.
(f) If the penalty to be added to the tax by subsection (a), (b), (c)(1), (d) or (e) of this section or by section 63-3033, Idaho Code, is less than ten dollars ($10.00), the penalty to be added to the tax shall be a minimum of ten dollars ($10.00).
(g) Total penalties imposed under subsections (a), (c) and (d) of this section and under section 63-3033, Idaho Code, shall not exceed twenty-five percent (25%) of the tax due on the return.
(h) A processing charge to be determined and established annually by the state tax commission shall be collected from any person who draws or delivers a check, draft or order for the payment of money in complete or partial satisfaction of the tax imposed by this chapter if that person does not have sufficient funds in or credit with the bank or depository upon which the check, draft or order is drawn. Money collected under this subsection shall be paid to the state tax commission to defer costs of handling such checks, drafts or orders.
[63-3046, added 1959, ch. 299, sec. 46, p. 613; am. 1969, ch. 319, sec. 15, p. 982; am. 1981, ch. 176, sec. 1, p. 310; am. 1982, ch. 278, sec. 1, p. 710; am. 1983, ch. 211, sec. 1, p. 586; am. 1993, ch. 5, sec. 3, p. 20; am. 1997, ch. 57, sec. 13, p. 105; am. 1997, ch. 61, sec. 1, p. 119; am. 2000, ch. 19, sec. 1, p. 36; am. 2001, ch. 270, sec. 8, p. 986; am. 2002, ch. 35, sec. 10, p. 76.]
(a) In the event that a person required to pay estimated taxes under section 63-3036A, Idaho Code, fails to pay such estimated taxes or fails to pay the full amount of estimated taxes due, the state tax commission shall assess interest on such unpaid or underpaid estimated taxes at the rate of interest set in section 63-3045, Idaho Code, as the interest to be assessed on a deficiency in taxes.
(b) Interest shall be computed on the difference between the amount of estimated payment required to be made on each quarterly report and the amount of quarterly payment actually made. Interest shall apply from the due date of the quarterly report until the required amount is paid, or until, excluding extensions, the due date of the return, whichever is first.
[63-3046A, added 1987, ch. 342, sec. 5, p. 729.]
(a) Penalty. In addition to the penalty imposed by section 63-3075, Idaho Code, if any partnership required to file a return under section 63-3030, Idaho Code, for any taxable year:
(1) Fails to file such return at the time prescribed therefor by section 63-3030, Idaho Code, (determined with regard to any extension of time for filing); or
(2) Files a return which fails to show the information required under section 63-3030, Idaho Code, such partnership shall be liable for a penalty determined under subsection (b) of this section for each month (or fraction thereof) during which such failure continues (but not to exceed five (5) months), unless it is shown that such failure is due to reasonable cause.
(b) Amount per month. For purposes of subsection (a) of this section, the amount determined under this subsection for any month is the product of:
(1) Ten dollars ($10.00), multiplied by
(2) the number of persons who are partners in the partnership during any part of the taxable year, except that in the case of partnerships with no business activity in Idaho during the taxable year but with partners who are Idaho residents, multiply the amount in subsection (b)(1) of this section by the number of partners who are either Idaho residents or are persons other than individuals who are transacting business in Idaho.
(c) Assessment of penalty. The penalty imposed in subsection (a) of this section shall be assessed against the partnership.
[63-3046B, added 1989, ch. 182, sec. 1, p. 457; am. 1994, ch. 39, sec. 5, p. 65; am. 1995, ch. 111, sec. 33, p. 378.]
The state tax commission or its delegate may compromise any taxes, penalties or interest arising under the provisions of this chapter instead of commencing suit thereon and may settle any such case with the consent of the attorney general after suit thereon has been commenced.
[63-3047, added 1959, ch. 299, sec. 47, p. 613; am. 2009, ch. 120, sec. 2, p. 384.]
(a) The state tax commission or its delegate is authorized to enter into an agreement in writing with any person relating to the liability of such person, or of the person for whom he is acting, in respect of any tax under this chapter for any taxable period ending prior to the date of the agreement.
(b) Where the amount in issue relating to the tax liability of any taxpayer is equal to or exceeds fifty thousand dollars ($50,000) and the commission has delegated the authority to enter into a settlement or closing agreement for such liability to an individual commissioner, the following minimum standards of procedure shall apply:
(1) In addition to the individual commissioner delegated the principal responsibility to negotiate on behalf of the commission, a second commissioner shall be present for a final review of the negotiated settlement or closing agreement. Both commissioners shall be required to sign the settlement or closing agreement to make it binding and complete.
(2) In addition to the two (2) commissioners present at the final review, a representative of the office of the attorney general shall be present as well as tax commission staff, which shall include a tax policy specialist and either a representative from the audit division or other division where the case originated.
(3) The tax policy specialist or deputy attorney general assigned to a settlement or closing agreement shall prepare and submit to the commission a written summary for the final review explaining the terms of the settlement or closing agreement. The summary shall include any recommendations of agency staff including audit staff.
(4) The tax commission shall retain a copy of all settlement and closing agreements and, in addition, all summaries prepared pursuant to subsection (b)(3) of this section.
(c) The tax commission shall submit an annual report to the governor and the legislature by March 1 of each year summarizing all settlement and closing agreements entered into during the previous calendar year as defined by subsection (b) of this section.
(d) The tax commission shall promulgate administrative rules in compliance with chapter 52, title 67, Idaho Code, to implement the provisions of this section.
(e) Such agreement shall be final and conclusive and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact:
(1) The case shall not be reopened as to matters agreed upon or the agreement modified by any officer, employee, or agent of the state.
(2) In any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.
[63-3048, added 1959, ch. 299, sec. 48, p. 613; am. 2009, ch. 120, sec. 3, p. 385.]
(a) Redetermination by the state tax commission may be reviewed in the district court for Ada county or the county in which the taxpayer resides or has his principal office or place of business by a complaint filed by the taxpayer against the state tax commission within ninety-one (91) days after the receipt of notice of the decision of the state tax commission denying, in whole or in part, any protest of the taxpayer or, within the same period, by filing an appeal with the board of tax appeals. Upon the serving of summons upon the state tax commission the case shall proceed as other civil cases but may be heard by the judge in chambers. If the case is appealed to the board of tax appeals, the hearing before that body shall proceed as set forth in the act creating such board. If the court finds that any tax is due, it shall enter judgment for such tax, including any interest or penalties that may also be due and owing, against the taxpayer. Any taxes, penalties or interest paid, found by the court to be in excess of that which can be legally assessed, shall be ordered refunded to the taxpayer with interest from the time of payment. In the case of sales or use tax and corporate income tax decisions by the state tax commission, when the amount asserted exceeds twenty-five thousand dollars ($25,000), no appeal to the board of tax appeals shall be allowed.
(b) Before a taxpayer may seek review by the district court or the board of tax appeals, the taxpayer shall secure the payment of the tax or deficiency as assessed by depositing cash with the tax commission in an amount equal to twenty percent (20%) of the amount asserted. In lieu of the cash deposit, the taxpayer may deposit any other type of security acceptable to the tax commission.
No act, order or proceeding of the tax commission shall be valid until after the time allowed for taking such court action has expired or such court action is finally determined. As used in this section, the term "amount asserted" shall mean the total amount due, as set forth in the decision of the state tax commission.
(c) Any party to the proceedings may appeal to the supreme court from the judgment of the district court under the rules and regulations prescribed for appeals. If the appeal be taken by the state tax commission, it shall not be required to give any undertaking or to make any deposits to secure the cost of such appeal or to secure the payment of any amounts ordered refunded by the court.
(d) Whenever it appears to the court that:
(1) Proceedings before it have been instituted or maintained by a party primarily for delay; or
(2) A party’s position in such proceeding is frivolous or groundless; or
(3) A party unreasonably failed to pursue available administrative remedies;
the court, in its discretion, may require the party which did not prevail to pay to the prevailing party costs, expenses and attorney’s fees.
[63-3049, added 1959, ch. 299, sec. 49, p. 613; am. 1965, ch. 316, sec. 10, p. 880; am. 1967, ch. 294, sec. 9, p. 828; am. 1969, ch. 453, sec. 16, p. 1195; am. 1983, ch. 229, sec. 1, p. 631; am. 1993, ch. 94, sec. 5, p. 233; am. 2005, ch. 17, sec. 1, p. 47.]
Any tax owed the state tax commission, any interest, penalty, additional amount, or addition to such tax, and any tax or any interest, penalty, additional amount, or addition to such tax which has been erroneously refunded and any deficiency shall constitute a debt to the state of Idaho and may be collected by lien foreclosure or sued for and recovered in any proper form of action, in the name of the state of Idaho, in any court having jurisdiction over the taxpayer or property owned by or in which the taxpayer has an interest. The remedy herein shall be in addition to any and all other existing remedies.
[63-3050, added 1959, ch. 299, sec. 50, p. 613; am. 1996, ch. 42, sec. 1, p. 113.]
(1) An individual who has filed a joint return and who has been granted relief from joint and several liability by the internal revenue service shall have such relief recognized, granted and honored by the state tax commission for state income tax purposes.
(2) The state tax commission shall promulgate such rules as are necessary to carry out the provisions of this section.
[63-3050A, added 2017, ch. 20, sec. 3, p. 39.]
If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount of such tax, including any interest, penalty, additional amount, or addition to such tax, together with any costs that may accrue in addition thereto, shall be a lien in favor of the state of Idaho upon all property and rights to property, whether real or personal, belonging to such person or acquired afterwards and before the lien expires. Such lien shall not be valid as against any mortgagee or other lienholder, pledgee, secured party, purchaser, or judgment lienor until notice thereof has been filed in the office of the secretary of state in the form and manner provided in chapter 19, title 45, Idaho Code.
[63-3051, added 1959, ch. 299, sec. 51, p. 613; am. 1987, ch. 86, sec. 2, p. 162; am. 1994, ch. 42, sec. 1, p. 70; am. 1997, ch. 205, sec. 4, p. 615.]
(1) The state tax commission may at any time release all or any portion of the property subject to the lien from the lien, or it may subordinate the lien to other liens if it determines:
(a) That the taxes, penalties or interests are sufficiently secured by a lien on other property of the taxpayer; or
(b) That the release or subordination of the lien will not endanger or jeopardize the collection of such taxes, penalties or interest; or
(c) That a surety bond or securities satisfactory to secure deposits of public funds have been posted, deposited or pledged with the state tax commission in an amount sufficient to secure the payment of such taxes, penalties, or interest; or
(d) All or a part of such taxes, penalties or interest have been paid.
A certificate by the state tax commission to the effect that any property has been released from the lien herein provided for, or that such lien has been subordinated to other liens, shall be conclusive evidence that the property has been released or that the lien has been subordinated, as provided in the certificate.
(2) If the tax commission determines that the filing of the notice of any lien was erroneous, the tax commission shall expeditiously, and, to the extent practicable, within fourteen (14) days after such determination, issue a certificate of release of such lien and shall include in such certificate a statement that such filing was erroneous. A lien is not an erroneous lien if it is accurate at the time the lien is filed.
(3) Where an officer or employee of the tax commission knowingly or negligently fails to release a notice of lien, a taxpayer may bring an action against the tax commission pursuant to section 63-3074, Idaho Code, in district court seeking direct economic damages and costs. A taxpayer must first notify the tax commission that a release was not issued timely.
[63-3055, added 1959, ch. 299, sec. 55, p. 613; am. 1993, ch. 94, sec. 6, p. 234; am. 1994, ch. 172, sec. 4, p. 392.]
In any case where there has been a refusal or neglect to pay any tax, including interest, penalty, additional amount or addition to such tax, together with any costs that may accrue in addition thereto, the attorney general of the state, at the request of the state tax commission, may file an action in the district court for Idaho in the county where the property encumbered by the lien is located to enforce the lien of the state for such tax upon any property and rights to property, whether real or personal, or to subject any such property and rights to property owned by the delinquent, or in which he has any right, title, or interest, to the payment of such tax. Such action shall be commenced and pursued in like manner as is now provided by law for the foreclosure of mortgages and other liens in chapter 1, title 6, Idaho Code, which is hereby made applicable to the tax liens arising under this chapter to the extent that such provisions are not inconsistent with other provisions of this chapter, provided, however, that the redemption period may be fixed by the judge of the court wherein the proceeding was filed, but in no event shall the period of redemption exceed the time prescribed by sections 11-402 and 11-403, Idaho Code. Such action may be commenced at any time within five (5) years following the date such lien was filed, or was last extended.
[63-3056, added 1959, ch. 299, sec. 56, p. 613; am. 1969, ch. 319, sec. 16, p. 982; am. 2004, ch. 28, sec. 3, p. 47.]
(1) In addition to all other remedies or actions provided by this act, it shall be lawful for the tax commission, or any of its agents or deputies, to collect any taxes (the word "taxes," as used in this section including any deficiencies in respect of such taxes) with such interest, penalties, and other additional amounts as are permitted by law, by distraint and sale, in the manner provided herein, of the property of any person liable to pay any taxes, interest, penalties, or other additional amounts, who neglects or refuses to pay the same within thirty (30) days from the mailing of notice and demand for payment thereof, and who has not appealed from the assessment of such taxes, interest, penalties and other additional amounts pursuant to the provisions of the act or who has not satisfied or discharged any lien filed under this act. The term "property" as used herein shall be construed to mean personal property, both tangible and intangible, any right, title, and interest to such personal property and shall include, without limitation, stocks, securities, bank accounts, and evidences of debt.
(2) In conjunction with the remedy provided in subsection (1) of this section, the state tax commission may file an action in the district court where a taxpayer resides or has his principal place of business or in which the property subject to distraint under this section is located for a writ of possession under chapter 3, title 8, Idaho Code. In such an action, the sheriff shall designate the state tax commission as the keeper of the property under section 8-305, Idaho Code, and after expiration of the five (5) day period provided in section 8-308, Idaho Code, shall relinquish all custody and responsibility for such property to the state tax commission. The state tax commission may proceed in regard to such property as provided for property seized under a warrant issued by the commission under this chapter.
[63-3057, added 1959, ch. 299, sec. 57, p. 613; am. 1975, ch. 86, sec. 1, p. 178; am. 2003, ch. 81, sec. 1, p. 257.]
Property exempt from distraint shall be the same property as is exempt from execution under the provisions of chapter 6, title 11, Idaho Code.
[63-3058, added 1959, ch. 299, sec. 58, p. 613; am. 1982, ch. 2, sec. 1, p. 5.]
(1) In case of neglect or refusal to pay taxes or deficiencies as hereinabove provided, the state tax commission may levy, or, by warrant issued under its own hand, authorize its agents or employees or a sheriff or deputy, to levy upon, seize and sell all property, except such as is exempt by the preceding section, belonging to such person, for the payment of the amount due or for the enforcement of any lien authorized and filed pursuant to this chapter.
(2) Any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made who, upon demand by the state tax commission or by a sheriff or deputy, surrenders such property or rights to property, or discharges such obligation, to the state tax commission shall be discharged from any obligation or liability to the delinquent taxpayer and any other person with respect to such property or rights to property arising from such surrender or payment.
(3) Any person who fails or refuses to surrender any property or rights to property, subject to levy, shall be liable to the state of Idaho in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which such levy has been made, together with costs and interest on such sum at the rate established under section 63-3045, Idaho Code, from the date of such levy.
(4) Any amount, other than costs, recovered under this section shall be credited against the tax liability for the collection of which such levy was made.
[63-3059, added 1959, ch. 299, sec. 59, p. 613; am. 1961, ch. 328, sec. 20, p. 622; am. 2000, ch. 149, sec. 1, p. 386.]
When a warrant is issued by the state tax commission for the collection of any tax, interest, penalty, additional amount or addition to such tax, imposed by this chapter or for the enforcement of any lien authorized by this chapter, it shall be directed to any sheriff or agent of the state tax commission, and any such warrant shall have the same force and effect as a writ of execution. It may and shall be levied and sale made pursuant to it in the same manner and with the same force and effect as a levy and sale pursuant to a writ of execution. The sheriff or agent of the state tax commission, shall receive upon the completion of his services pursuant to said warrant, and the state tax commission is authorized to pay to said sheriff or agent of the state tax commission, the same fees, commissions and expenses pursuant to said warrant as are provided by law for similar services pursuant to a writ of execution, except that fees for publication in a newspaper shall be subject to approval by the state tax commission rather than by the court; said fees, commissions and expenses shall be an obligation of the taxpayer and may be collected from the taxpayer by virtue of the warrant. Any such warrant issued by the state tax commission shall show the name and last known address of the taxpayer liable for the amount, and shall show the year for which such tax, interest, penalty, additional amount, or addition to such tax, is due and the amount thereof, and the fact that the state tax commission has complied with all provisions of this chapter in the determination of the amount required to be paid, and that the tax, interest, penalty, additional amount, or addition to such tax, is due and payable according to law.
[63-3060, added 1959, ch. 299, sec. 60, p. 613; am. 1961, ch. 328, sec. 21, p. 622; am. 2004, ch. 28, sec. 4, p. 48.]
Where an execution or garnishment against earnings for a state tax liability is served upon any person or upon the state of Idaho, and there is in possession of such person or the state of Idaho any such earnings of the individual debtor, the execution and the garnishment shall operate continuously and shall require such person or the state of Idaho to withhold the nonexempt portion of earnings at each succeeding earnings disbursement interval until released by the state tax commission or until the dollar amount specifically set forth on the record of assessment, identified in section 63-3045A, Idaho Code, and subject to garnishment as of the date the tax warrant is issued, is discharged or satisfied in full. The proportion of earnings subject to garnishment pursuant to this section, as compared to total gross taxable earnings, shall be limited to twenty-five percent (25%), except if the federal government is also garnishing the earnings of such person then the garnishment shall be limited to ten percent (10%). All garnishment or execution against earnings for the payments of any tax owed to the state of Idaho shall be governed by this section. For purposes of this section, earnings are gross taxable earnings from sources identified in section 11-206(1), Idaho Code.
[63-3060A, added 2013, ch. 244, sec. 1, p. 590.]
Whenever any property which is seized and sold by virtue of the foregoing provisions is not sufficient to satisfy the claim of the state for which distraint or seizure is made, the sheriff or agent of the state tax commission, may thereafter, and as often as the same may be necessary, proceed to seize and sell in like manner any other property liable to seizure of the taxpayer against whom such claim exists, until the amount due from such taxpayer, together with all expenses, is fully paid.
[63-3061, added 1959, ch. 299, sec. 61, p. 613; am. 1961, ch. 328, sec. 22, p. 622; am. 2004, ch. 28, sec. 5, p. 48.]
The state tax commission shall, at the time of levy, provide to the taxpayer and to any person in possession of the property subject to distraint, written notice of levy and distraint. The written notice of levy and distraint may be:
(1) Given in person;
(2) Left at the dwelling place or usual place of business of such person;
(3) Sent by first class mail to such person’s last known address; or
(4) Delivered through secure electronic communication.
[63-3061A, added 2012, ch. 6, sec. 2, p. 10; am. 2026, ch. 153, sec. 7, p. 702.]
All persons, and officers of companies or corporations, are required on demand of a sheriff or agent of the state tax commission, about to distrain, or having distrained on any property or rights of property, to exhibit all books containing evidence or statements relating to the subject of distraint, or the property or rights of property liable to distraint for the tax due.
[63-3062, added 1959, ch. 299, sec. 61, p. 613; am. 1961, ch. 328, sec. 23, p. 622; am. 2004, ch. 28, sec. 6, p. 49.]
The distraint provisions of this act shall not be deemed exclusive but shall be in addition to any and all other existing remedies provided by law for the enforcement of the revenue laws of the state of Idaho.
[63-3063, added 1959, ch. 299, sec. 63, p. 613.]
(a) Nothing in the act shall be construed so as to prohibit the commencing of any action at law by the state tax commission to collect any tax, interest, penalty, additional amount, or addition to such tax, due under the provisions of this act, whenever in the opinion of the state tax commission or the attorney general the commencement of such action is a more appropriate method of collecting such tax, interest, penalty, additional amount, or addition to such tax.
(b) The state tax commission is authorized to apply for and the court to grant a temporary or permanent injunction enjoining any person from violating or continuing to violate any of the provisions of this act or regulations promulgated under this act notwithstanding the existence of other remedies at law.
[63-3064, added 1959, ch. 299, sec. 64, p. 613; am. 1987, ch. 86, sec. 4, p. 163.]
(a) If the tax commission finds that a taxpayer is about to depart from the state of Idaho or to remove his property therefrom, or to conceal himself or his property therein, or to do any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect the tax for the taxable year then last past or the taxable year then current unless such proceedings be brought without delay, the tax commission shall declare the taxable period for such taxpayer immediately terminated and shall cause notice of such findings and declaration to be given the taxpayer, together with a demand for immediate payment of the tax for the taxable period so declared terminated and of the tax for the preceding taxable year or so much of said taxes as is unpaid, whether or not the time otherwise allowed by law for filing returns and paying the tax has expired; and such taxes shall thereupon become immediately due and payable. The provisions of section 63-4003(1)(a), Idaho Code, shall not apply to a notice under this section and communications related thereto. In any proceedings in court brought to enforce payment of taxes made due and payable by virtue of the provisions of this section the finding of the tax commission, made as herein provided, whether made after notice to the taxpayer or not, shall be for all purposes prima facie evidence of the taxpayer’s design.
(b) Collection procedures may be instituted immediately; however, any taxpayer deeming himself aggrieved by any act of the tax commission pursuant to the provisions of this section may, within sixty-three (63) days of receipt of said notice, petition the tax commission for a redetermination or commence action for refund or redetermination upon payment of the tax together with interest and penalty or upon filing a bond in the amount of the assessment.
(c) A taxpayer who is not in default in making any return or paying any taxes assessed under this chapter may furnish to the state of Idaho under regulations to be prescribed by the tax commission, security approved by the tax commission that he will duly make the return next thereafter required to be filed and pay the tax next thereafter required to be paid. The tax commission may approve and accept in like manner security for return and payment of taxes made due and payable by virtue of the provisions of this section.
(d) If security is approved and accepted pursuant to the provisions of this section and such further or other security with respect to the tax or taxes covered thereby is given as the tax commission shall from time to time find necessary and require, payment of such taxes shall not be enforced by any proceedings under the provisions of this section prior to the expiration of the time otherwise allowed for paying such respective taxes.
(e) In the case of a bona fide resident of the state of Idaho about to depart from the state of Idaho the tax commission may, at its discretion, waive any or all of the requirements placed upon the taxpayer by this section.
(f) If a taxpayer violates or attempts to violate this section there shall, in addition to all other penalties, be added as part of the tax twenty-five percent (25%) of the total amount of the tax or deficiency in the tax.
[63-3065, added 1959, ch. 299, sec. 65, p. 613; am. 1961, ch. 328, sec. 24, p. 622; am. 1967, ch. 294, sec. 10, p. 828; am. 1975, ch. 86, sec. 2, p. 178; am. 1987, ch. 86, sec. 5, p. 163; am. 1993, ch. 94, sec. 7, p. 234; am. 1994, ch. 172, sec. 5, p. 393; am. 2005, ch. 30, sec. 2, p. 142.]
A deficiency assessed and due and payable by a person not within the state may be prosecuted against such person by an action in any court having jurisdiction of the subject matter or in personam jurisdiction of such person in any action for taxes, penalty and interest owed the state tax commission. Notice shall be given and the action shall proceed in accordance with the applicable rules and statutes regulating civil procedure. In the event such notice shall be by publication, notice shall also be mailed by certified mail or secure electronic communication to such person at his last known address.
[I.C., sec. 63-3065A, as added by 1961, ch. 328, sec. 25, p. 622; am. 1996, ch. 42, sec. 2, p. 113; am. 2026, ch. 153, sec. 8, p. 702.]
The attorney general of the state shall be the legal counselor and adviser of the tax commission.
[63-3066, added 1959, ch. 299, sec. 66, p. 613; am. 1974, ch. 19, sec. 9, p. 524.]
(1) A sum equal to the amount withheld under section 63-3035A, Idaho Code, shall be distributed fifty percent (50%) to the public school income fund to be utilized to facilitate and provide substance abuse programs in the public school system, and fifty percent (50%) shall be distributed to the counties to be utilized for county juvenile probation services. These funds shall be distributed quarterly to the counties based upon the percentage the population of the county bears to the population of the state as a whole.
(2) Except as may otherwise be provided by law, all moneys received by the state of Idaho under this chapter shall be deposited by the state tax commission, as received by it, with the state treasurer and shall be placed in and become a part of the general fund under the custody of the state treasurer. Provided, however, that an amount equal to twenty percent (20%) of the amount deposited with the state treasurer shall be placed in the state refund account, which is hereby created for the purpose of repaying overpayments and for the purpose of paying any other erroneous receipts illegally assessed or collected, penalties collected without authority, and taxes and licenses unjustly assessed or collected or that are excessive in amount. Whenever necessary for the purpose of making prompt payment of refunds, the board of examiners, upon request from the state tax commission and after review, may authorize the state tax commission to transfer any additional specific amount from income tax collections to the state refund account. There is appropriated out of the state refund account so much thereof as may be necessary for the payment of the refunds provided in this section. Claims for and payment of refunds under the provisions of this section shall be made in the same manner as other claims against the state of Idaho.
(3) Any unencumbered balance remaining in the state refund account on June 30 of each and every year in excess of the sum of five million dollars ($5,000,000) shall be transferred to the general fund, and the state controller is hereby authorized and directed on such dates to make such transfers unless the board of examiners, which is hereby authorized to do so, changes the date of transfer or sum to be transferred.
[63-3067, added 2022, 1st E.S., ch. 1, sec. 9, p. 7.]
(1) Every individual who:
(a) Has a refund due and payable for overpayment of taxes under this chapter may designate all or any portion thereof to be deposited in a trust account specified in subsection (3) of this section; or
(b) Has an income tax liability may, in addition to his tax obligation, include a donation to be deposited in a trust account specified in subsection (3) of this section.
(2) A designation under subsection (1) of this section may be made in any taxable year in such manner and form as prescribed by the state tax commission. The manner and form so prescribed shall be a conspicuous portion of the principal form provided for the purpose of individual taxation.
(3) The trust accounts authorized to receive moneys designated under subsection (1) of this section are:
(a) The fish and game set-aside account created in section 36-111, Idaho Code;
(b) The children’s trust fund created in section 39-6007, Idaho Code;
(c) The special olympics Idaho fund created in section 57-823, Idaho Code;
(d) The Idaho guard and reserve family support fund created in section 57-820, Idaho Code;
(e) The Idaho food bank fund created in section 57-824, Idaho Code;
(f) The veterans support fund created in section 65-209, Idaho Code; and
(g) The American red cross of greater Idaho fund created in section 57-821, Idaho Code.
(4) Prior to the distribution of funds into any of the trust accounts specified in subsection (3) of this section from the refund account, the state tax commission shall retain funds for the commission’s costs for collecting and administering the moneys in the accounts as follows: three thousand dollars ($3,000) from each account for start-up costs during the first year of collections, and three thousand dollars ($3,000) or twenty percent (20%) of the moneys remitted to each account during the fiscal year, whichever is less, from each account during each fiscal year thereafter, which amounts are hereby appropriated to the state tax commission.
[63-3067A, added 2019, ch. 116, sec. 3, p. 441.]
(1) The designations referred to in section 63-3067A, Idaho Code, shall expire and no longer appear on the income tax return form when:
(a) For each of two (2) consecutive calendar years, the amount received by the state tax commission that is designated for a particular trust fund named in section 63-3067A, Idaho Code, fails to equal or exceed twenty thousand dollars ($20,000); and
(b) After one (1) year when collections fail to equal or exceed twenty thousand dollars ($20,000), the state tax commission has notified the appropriate agency that:
(i) The amount received by the state tax commission that is designated for that particular trust fund failed to equal or exceed twenty thousand dollars ($20,000); and
(ii) The amount received by the state tax commission that is designated for the particular trust fund in the next subsequent year fails to equal or exceed twenty thousand dollars ($20,000).
(2) As used in this section, "appropriate agency" means the agency of the state of Idaho that is responsible for administering the programs benefiting from the fund to which amounts designated under section 63-3067A, Idaho Code, are distributed. If no agency of the state of Idaho has such responsibility, the term means such other private or public entity that is the principal beneficiary of the funds.
(3) The state tax commission shall report annually to the house revenue and taxation committee on the trust funds that have failed to meet the necessary monetary threshold for collections for the prior two (2) years.
[(63-3067B) 63-3067C, added 1997, ch. 177, sec. 1, p. 495; am. and redesig. 2019, ch. 116, sec. 4, p. 442.]
(1) Every taxpayer who has a refund due and payable for overpayment of taxes under the provisions of this chapter may designate any portion of such refund to be remitted to the state board of education or the board of regents of the university of Idaho for the purpose of awarding opportunity scholarships pursuant to chapter 56, title 33, Idaho Code. Every taxpayer who has an income tax liability may, in addition to his tax obligation, include a donation of any amount to be remitted to the state board of education for the purpose of awarding opportunity scholarships pursuant to section 33-4303, Idaho Code. Such moneys shall be deposited into the opportunity scholarship program account pursuant to section 33-4303, Idaho Code.
(2) A designation under subsection (1) of this section may be made in any taxable year in such manner and form as prescribed by the state tax commission. The manner and form so prescribed shall be a conspicuous portion of the principal form provided for the purpose of individual taxation.
(3) Prior to the distribution of funds into the opportunity scholarship program account as provided in subsection (1) of this section from the refund account, the state tax commission shall retain funds for the commission’s costs for collecting and administering the moneys in the account as follows: three thousand dollars ($3,000) from the opportunity scholarship program account for start-up costs during the first year of collections, and three thousand dollars ($3,000) or twenty percent (20%) of the moneys remitted to the opportunity scholarship program account pursuant to this section during the fiscal year, whichever is less, from the opportunity scholarship program account during each fiscal year thereafter, which amounts are hereby appropriated to the state tax commission.
[63-3067D, added 2010, ch. 281, sec. 1, p. 758; am. 2016, ch. 32, sec. 3, p. 81.]
(a) Except as otherwise provided in this section, a notice of deficiency, as provided in section 63-3045, Idaho Code, for the tax imposed in this chapter shall be issued within three (3) years from either the due date of the return, without regard to extensions, or from the date the return was filed, whichever is later.
(b) If an assessment has been made as provided in this chapter, then such tax shall be collected either by levy, or by a proceeding brought in court, within a period of twelve (12) years from the date of entry of the record of assessment required by section 63-3045A, Idaho Code, of the tax and provided, further, that this shall not be in derogation of any of the remedies elsewhere provided in this chapter.
(c) In the case of a fraudulent return or a false return with the intent to evade the tax imposed in this chapter, or a willful attempt in any manner to defeat or evade the tax imposed in this chapter, a notice of deficiency may be issued, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time.
(d) In the case of a failure to file a return, for any reason, a notice of deficiency may be issued, the tax imposed in this chapter may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time, unless the taxpayer had a reasonable belief that no return was required to be filed under this chapter, in which case any deficiency, assessment, or proceeding for collection of such tax shall be commenced within three (3) years of the time the return was due.
(e) In the case of income received during the lifetime of a decedent, or by his estate during the period of administration, a notice of deficiency shall be issued, a claim shall be made, the tax shall be assessed or any proceeding in court without assessment for the collection of such tax shall be begun, within twelve (12) months after written request for prompt action is filed with the state tax commission by the executor, administrator, or other fiduciary representing the estate of such decedent. This subsection shall not apply if the return for which the request for prompt action relates has not been filed with the state tax commission.
(f) When Idaho taxable income or tax credits for any taxable year have been adjusted as a result of a final federal adjustment, the period of limitation for issuing a notice of deficiency shall be reopened and shall not expire until the later of one (1) year from the final determination date, three (3) years from the due date of the return, without regard to extensions, or three (3) years from the date the return was filed. For purposes of this section the term "final federal adjustment" shall have the same meaning as that term is defined in section 63-3070(2)(i), Idaho Code, and "final determination date" shall have the same meaning as that term is defined in section 63-3070(2)(h), Idaho Code. When the final federal adjustment is submitted, the taxpayer shall also submit copies of all schedules and written explanations provided by the internal revenue service. Upon the expiration of the period of limitations as provided in subsections (a) and (m) of this section, only those specific items of income, deductions, gains, losses, or credits which were adjusted in the final federal adjustment shall be subject to adjustment for purposes of recomputing Idaho income, deductions, gains, losses, credits, and the effect of such adjustments on Idaho allocations and apportionments.
(g) If an adjustment, which was made within the period of limitations as provided in this section, affects the amount of tax credit, net operating loss, or capital loss, claimed in a taxable year other than the tax year in which the adjustment is made, then adjustments to the credit, net operating loss, or capital loss claimed in such other tax year may be made and a resulting notice of deficiency may be issued even though such notice of deficiency would otherwise be barred under the provisions of this section.
(h) Notwithstanding any other provisions of this section, when an amended Idaho return is filed within the period of limitations as provided in subsections (a) and (m) of this section, the period of limitations for issuing a notice of deficiency shall be three (3) years from the date the amended return was filed. However, upon the expiration of the period of limitations as provided in subsections (a) and (m) of this section, only those specific items of income, deductions, gains, losses, or credits, which were adjusted in the amended Idaho return shall be subject to adjustment for purposes of recomputing Idaho income, deductions, gains, losses, credits, and the effect of such adjustments on Idaho allocations and apportionments.
(i) If a taxpayer has filed an amended federal return, and no corresponding Idaho amended return has been filed with the state tax commission, then the period of limitations for issuing a notice of deficiency shall be reopened and shall not expire until three (3) years from the date of delivery to the tax commission by the taxpayer of the amended federal return. However, upon the expiration of the period of limitations as provided in subsections (a) and (m) of this section, then only those specific items of income, deductions, gains, losses, or credits, which were adjusted in the amended federal return shall be subject to adjustment for purposes of recomputing Idaho income, deductions, gains, losses, credits, and the effect of such adjustments on Idaho allocations and apportionments.
(j) Notwithstanding any other provisions of this section, a notice of deficiency, related to items on the return of any pass-through entity, as defined in this section, which other taxpayers are required by law to report, shall be issued to such other taxpayers within the later of three (3) years from the due date of the other taxpayers’ return, without regard to extensions, three (3) years from the date the other taxpayers’ returns were filed, or three (3) years from the date of filing of the pass-through entity’s return. If the pass-through entity files an amended return, notices of deficiency may be issued to the other taxpayers within three (3) years from the date the amended return for the pass-through entity was filed with the state tax commission. If the pass-through entity files an amended return with the internal revenue service, or the internal revenue service issues a final determination to the pass-through entity, then the period of limitations for issuing a notice of deficiency to the other taxpayers shall be reopened and shall not expire until three (3) years from the date of delivery to the tax commission by the pass-through entity of the amended federal return or the later of one (1) year from the date of delivery to the state tax commission by the pass-through entity of the final federal adjustment, three (3) years from the due date of the pass-through entity’s return, without regard to extensions, or three (3) years from the date the pass-through entity’s return was filed.
(k) For purposes of this section, "pass-through entity" means a partnership, S corporation, trust, limited liability company or any other entity whose items of income, deductions, gains, losses and credits must be reported by other taxpayer(s). For further purposes of this section, the term "other taxpayer" shall include, by way of unlimiting example, such taxpayers as partners, shareholders, beneficiaries, joint venturers or investors.
(l) In the case of a duplicate return filed under section 63-217(1)(b), Idaho Code, the limitation under this section shall be the later of one (1) year from the filing of the duplicate return or the date otherwise applicable under this section.
(m) Prior to the expiration of the time prescribed in this section for the issuance of a notice of deficiency for the tax imposed in this chapter, both the state tax commission, its delegate or deputy, and the taxpayer may consent in writing to extend the period of time within which a notice of deficiency may be issued. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. When a pass-through entity extends the period of limitations in accordance with this subsection, the period of limitations for the other taxpayers is automatically extended for the same period for the purpose of issuing a notice of deficiency to the other taxpayers reflecting the adjustments to the pass-through entity’s return.
(n) The expiration of the period of limitations as provided in this section shall be suspended for the time period during which the state tax commission is prohibited from issuing a notice of deficiency, making the assessment, or from collecting by levy or a proceeding in court, and for thirty (30) days thereafter.
(o) For the purposes of this section, "return" includes a notice of deficiency determination issued by the state tax commission when no return was filed by the taxpayer. Such a return is deemed filed on the date the taxes determined by the state tax commission are assessed.
[63-3068, added 1993, ch. 47, sec. 2, p. 119; am. 1995, ch. 111, sec. 34, p. 378; am. 1996, ch. 44, sec. 1, p. 114; am. 1997, ch. 113, sec. 4, p. 280; am. 2002, ch. 35, sec. 11, p. 78; am. 2005, ch. 23, sec. 7, p. 71; am. 2008, ch. 10, sec. 1, p. 13; am. 2013, ch. 244, sec. 2, p. 591; am. 2025, ch. 302, sec. 5, p. 1285; am. 2026, ch. 81, sec. 2, p. 428.]
(1) Upon final determination of any deficiency or refund of federal taxes, the taxpayer is required to send written notice to the state tax commission within one hundred eighty (180) days of the final determination date.
(2) Upon final determination of any deficiency or refund of income tax due to another state or territory to which the credit for taxes paid another state or territory applies, as provided in section 63-3029, Idaho Code, the taxpayer is required to send written notice to the state tax commission within one hundred eighty (180) days of the final determination date.
(3) If the notice required by this section is not sent by the taxpayer to the state tax commission within one hundred eighty (180) days of the final determination date, the taxpayer will be subject to the negligence penalty provided by section 63-3046, Idaho Code.
(4) As used in this section, "final determination date" has the same meaning as that term is defined in section 63-3070(2)(h), Idaho Code.
(5) A taxpayer subject to a federal audit is eligible to make estimated payments to the state tax commission in the same manner as provided in section 63-3070(6), Idaho Code.
[63-3069, added 1959, ch. 299, sec. 69, p. 613; am. 2000, ch. 18, sec. 1, p. 35; am. 2018, ch. 6, sec. 1, p. 11; am. 2026, ch. 81, sec. 3, p. 430.]
When a final determination of any income tax due to another state or territory changes the amount of the credit for taxes paid to another state or territory as provided in section 63-3029, Idaho Code:
(1) A claim for any credit or refund resulting from the change shall be filed within the later of:
(a) The time required by section 63-3072, Idaho Code; or
(b) One (1) year of the date the adjustment became final under the laws of the other state or territory.
(2) The period of limitation for issuing a notice of deficiency shall not expire until the later of:
(a) The time provided by section 63-3068, Idaho Code; or
(b) One (1) year from the date of delivery to the state tax commission by the taxpayer of the notice required by section 63-3069, Idaho Code.
[63-3069A, added 2000, ch. 18, sec. 2, p. 35.]
(1) The definitions set forth in this chapter shall apply to this section unless modified in this section or unless the context clearly requires another definition.
(2) As used in this section:
(a) "Administrative adjustment request" means a request for an administrative adjustment filed by a partnership under section 6227 of the Internal Revenue Code.
(b) "Audited partnership" means a partnership subject to a partnership-level audit resulting in a federal adjustment.
(c) "Corporate partner" means a partner subject to tax under section 63-3025 or 63-3025A, Idaho Code.
(d) "Direct partner" means a partner that holds an interest directly in a partnership or pass-through entity.
(e) "Exempt partner" means a partner that is exempt from taxation under this chapter except on unrelated business taxable income.
(f) "Federal adjustment" means a change to an item or amount determined by the Internal Revenue Code that is used by a taxpayer to compute Idaho state income tax owed, whether that change results from action by the internal revenue service, including a partnership-level audit, or from the filing of an amended federal return, a federal refund claim, or an administrative adjustment request by the taxpayer.
(g) "Federal partnership representative" means the person the partnership designates for the taxable year as the partnership’s representative or the person the internal revenue service has appointed to act as the federal partnership representative pursuant to section 6223(a) of the Internal Revenue Code.
(h) "Final determination date" means the following:
(i) Except as provided in subparagraphs (ii) and (iii) of this paragraph, if the federal adjustment arises from an internal revenue service audit or other action by the internal revenue service, the final determination date is the first day on which no federal adjustments arising from that audit or other action remain to be finally determined, whether by internal revenue service decision with respect to which all rights of appeal have been waived or exhausted, by agreement, or, if appealed or contested, by a final decision with respect to which all rights of appeal have been waived or exhausted. For agreements required to be signed by a representative of the internal revenue service and the taxpayer, the final determination date is the date on which the last party signed the agreement.
(ii) For federal adjustments arising from an internal revenue service audit or other action by the internal revenue service, if the taxpayer filed as a member of a combined report or consolidated return under Idaho law, the final determination date is the first day on which no related federal adjustments arising from such audit remain to be finally determined, as described in subparagraph (i) of this paragraph for the entire group.
(iii) If the federal adjustment results from filing an amended federal return, a federal refund claim, or an administrative adjustment request, or if it is a federal adjustment reported on an amended federal return or other similar report filed pursuant to section 6225 (c) of the Internal Revenue Code, the final determination date is the day on which the amended return, refund claim, administrative adjustment request, or other similar report was filed.
(i) "Final federal adjustment" means a federal adjustment that can no longer be modified because the final determination date for that federal adjustment has passed.
(j) "Indirect partner" means a partner in a partnership or pass-through entity that itself holds an interest directly or through another indirect partner in a partnership or pass-through entity.
(k) "Nonresident partner" means an individual, trust, or estate partner that is not a resident partner.
(l) "Partner" means a person that holds an interest directly or indirectly in a partnership or other pass-through entity.
(m) "Partnership-level audit" means an examination by the internal revenue service at the partnership level pursuant to sections 6221 through 6241 of the Internal Revenue Code, as amended by P.L. 114-74 and as in effect on November 2, 2015, that results in federal adjustments.
(n) "Reallocation adjustment" means a federal adjustment resulting from a partnership-level audit or an administrative adjustment request that changes the share of one (1) or more items of partnership income, gain, loss, expense, or credit allocated to direct partners.
(o) "Report of federal adjustments" means the taxpayer’s report of final federal adjustments to the Idaho state tax commission, including an amended Idaho income tax return, information return, or a uniform multistate report.
(p) "Resident partner" means an individual, trust, or estate partner that is a resident in Idaho under section 63-3013, Idaho Code, for the relevant tax period.
(q) "Reviewed year" means the taxable year of a partnership that is subject to a partnership-level audit from which federal adjustments arise.
(r) "Tiered partner" means any partner that is a partnership or pass-through entity.
(s) "Unrelated business taxable income" has the same meaning as provided in section 512(a) of the Internal Revenue Code.
(3) Unless an election has been made pursuant to section 63-3026B, Idaho Code, a taxpayer shall report and pay any Idaho tax due with respect to final federal adjustments arising from an audit or other action by the internal revenue service or reported by the taxpayer on a timely filed amended federal income tax return, including a return or other similar report filed pursuant to section 6225(c)(2) of the Internal Revenue Code, or a federal claim for refund, by filing a report of federal adjustments with the state tax commission for the reviewed year and, if applicable, paying the additional Idaho tax owed by the taxpayer no later than one hundred eighty (180) days after the final determination date. This requirement shall not apply in the case of final federal adjustments required to be reported by a partnership and its partners using the procedures set forth in subsection (4) of this section and final federal adjustments required to be reported for federal purposes pursuant to section 6225(a)(2) of the Internal Revenue Code. If an election has been made pursuant to section 63-3026B, Idaho Code, the procedures and time frames set forth in this section shall apply to the electing partnership rather than the individual partners.
(4) Except for adjustments required to be reported for federal purposes pursuant to section 6225(a)(2) of the Internal Revenue Code and the distributive share of adjustments that has been reported as required under subsection (3) of this section, partnerships and partners shall report final federal adjustments arising from a partnership-level audit or an administrative adjustment request and make payments as follows:
(a) A state partnership representative shall act on behalf of the partnership as follows:
(i) With respect to an action required or permitted to be taken by a partnership under this subsection, and a proceeding under section 63-3048, Idaho Code, with respect to that action, the state partnership representative for the reviewed year shall have the sole authority to act on behalf of the partnership. The partnership’s direct partners and indirect partners shall be bound by those actions.
(ii) The state partnership representative for the reviewed year is the partnership’s federal partnership representative unless the partnership designates in writing another person as its state partnership representative.
(iii) The state tax commission may establish reasonable qualifications and procedures for designating a person other than the federal partnership representative to be the state partnership representative.
(b) Final federal adjustments subject to the requirements of this subsection, except for those subject to a properly made election pursuant to paragraph (c) of this subsection, shall be reported as follows:
(i) No later than ninety (90) days after the final determination date, the partnership shall:
File a completed report of federal adjustments, including information required by Idaho law, with the state tax commission;
Notify each of its direct partners of their distributive share of the final federal adjustments, including information required by the state tax commission; and
File an amended composite return for direct partners as required pursuant to section 63-3022L, Idaho Code, or an amended withholding return for direct partners as required pursuant to section 63-3035, Idaho Code, and pay the additional amount pursuant to sections 63-3024 and 63-3025, Idaho Code, that would have been due had the final federal adjustments been reported properly as required.
(ii) Except as provided under section 63-3025, Idaho Code, no later than one hundred eighty (180) days after the final determination date, each direct partner taxed pursuant to section 63-3025, Idaho Code, shall:
File a report of federal adjustments reporting its distributive share of the adjustments reported under subparagraph (i)2. of this paragraph, as required under section 63-3069, Idaho Code; and
Pay any additional amount of tax due as if the report of federal adjustments had been properly reported, plus any interest and penalty due under sections 63-3045, 63-3046, and 63-3075, Idaho Code, and less any credit for related amounts paid or withheld and remitted on behalf of the direct partner under subparagraph (i)3. of this paragraph.
(c)(i) Subject to the limitations provided in subparagraph (iii) of this paragraph, an audited partnership making an election under this paragraph shall, no later than ninety (90) days after the final determination date, file a completed report of federal adjustments, including the information required by section 63-3069, Idaho Code, and notify the state tax commission that it is making the election under this subsection.
(ii) Subject to the limitations provided in subparagraph (iii) of this paragraph, an audited partnership making an election under this paragraph shall, no later than one hundred eighty (180) days after the final determination date, pay, in lieu of taxes owed by its direct and indirect partners, an amount determined according to this subparagraph as follows:
Exclude from final federal adjustments the distributive share of these adjustments reported to a direct exempt partner not subject to tax under section 63-3025, Idaho Code;
For the total distributive shares of the remaining final federal adjustments reported to direct corporate partners subject to tax under section 63-3025, Idaho Code, and to direct exempt partners subject to tax under section 63-3025, Idaho Code, apportion and allocate such adjustments as provided in section 63-3027, Idaho Code, and multiply the resulting amount by the highest tax rate under section 63-3024, Idaho Code;
For the total distributive shares of the remaining final federal adjustments reported to nonresident direct partners subject to tax under section 63-3024, Idaho Code, determine the amount of the adjustments that is Idaho source income under section 63-3026A, Idaho Code, and multiply the resulting amount by the highest tax rate under section 63-3024, Idaho Code;
For the total distributive shares of the remaining final federal adjustments reported to tiered partners:
(A) Determine the amount of the adjustments of a type subject to sourcing to Idaho under section 63-3026A, Idaho Code, then determine the portion of this amount that would be sourced to Idaho by applying rules promulgated by the state tax commission;
(B) Determine the amount of the adjustments of a type not subject to sourcing to Idaho by a nonresident partner under section 63-3026A, Idaho Code;
(C) Of the amount determined in subparagraph (ii)4.(A) and (B) of this paragraph, determine the portion that, pursuant to rules promulgated by the state tax commission, is properly allocable to nonresident indirect partners or other partners not subject to tax on the adjustments or the portion that can be excluded under procedures for alternative reporting and payment method allowed under paragraph (e) of this subsection;
Multiply the total of the amounts determined in subparagraph (ii)4.(A) and (B) of this paragraph reduced by the amount determined in subparagraph (ii)4.(C) of this paragraph by the highest tax rate under section 63-3024, Idaho Code;
For the total distributive shares of the remaining final federal adjustments reported to resident direct partners subject to tax under section 63-3024, Idaho Code, multiply that amount by the highest tax rate under section 63-3024, Idaho Code; and
Add the amounts determined in subparagraph (ii)2., 3., 5., and 6. of this paragraph, along with interest and penalty as provided in sections 63-3045, 63-3046, and 63-3075, Idaho Code.
(iii) Final federal adjustments subject to this election exclude:
The distributive share of final audit adjustments that under section 63-3027, Idaho Code, and rules promulgated by the state tax commission, must be included in the unitary business income of any direct or indirect corporate partner, provided it can be reasonably determined by the audited partnership; and
Any final federal adjustments resulting from an administrative adjustment request.
(iv) An audited partnership not otherwise subject to any reporting or payment obligation to the state of Idaho that makes an election under this subsection consents to be subject to Idaho laws relating to reporting, assessment, payment, and collection of Idaho tax calculated under the election.
(d) The direct and indirect partners of an audited partnership that are tiered partners, and all of the partners of those tiered partners that are subject to tax under sections 63-3024 and 63-3025, Idaho Code, are subject to the reporting and payment requirements of paragraph (b) of this subsection, and the tiered partners are entitled to make the elections provided in paragraphs (c) and (e) of this subsection. The tiered partners or their partners shall make the required reports and payments no later than ninety (90) days after the time for filing and furnishing statements to tiered partners and their partners as established under section 6226 of the Internal Revenue Code and the federal regulations thereunder. The state tax commission may promulgate rules to establish procedures and interim time periods for the reports and payments required by tiered partners and their partners and for making the elections under this subsection.
(e) Under procedures adopted by the state tax commission, an audited partnership or tiered partner may enter into an agreement with the state tax commission to use an alternative reporting and payment method, including applicable time requirements or any other provision of this subsection, if the audited partnership or tiered partner demonstrates that the requested method will reasonably provide for the reporting and payment of taxes, penalties, and interest due under the provisions of this subsection. Application for approval of an alternative reporting and payment method must be made by the audited partnership or tiered partner within the time for election as provided in this paragraph or paragraph (c) of this subsection, as appropriate.
(f)(i) The election made pursuant to paragraph (c) or (e) of this subsection is irrevocable unless the state tax commission, in its discretion, determines otherwise.
(ii) If properly reported and paid by the audited partnership or tiered partner, or by a partnership that has filed an election under section 63-3026B, Idaho Code, the amount determined in paragraph (c)(ii) of this subsection, or similarly under an optional election under paragraph (e) of this subsection, will be treated as paid in lieu of taxes owed by its direct and indirect partners, to the extent applicable, on the same final federal adjustments. The direct partners or indirect partners may not take any deduction or credit for this amount or claim a refund of the amount in this state. Nothing in this paragraph precludes a direct resident partner from claiming a credit against taxes paid to this state pursuant to section 63-3029, Idaho Code, for any amounts paid by the audited partnership or tiered partner on the resident partner’s behalf to another state or local tax jurisdiction in accordance with the provisions of section 63-3029, Idaho Code.
(g) Nothing in this section shall be construed to prevent the state tax commission from assessing direct partners or indirect partners for taxes they owe, using the best information available, in the event that a partnership or tiered partner fails for any reason to timely make any report or payment required by this section or by section 63-3026B, Idaho Code.
(5) The state tax commission shall make adjustments as needed for any additional tax, interest, and penalties arising from final federal adjustments arising from an audit by the internal revenue service, including a partnership-level audit, or reported by the taxpayer on an amended federal income tax return or as part of an administrative adjustment request by the dates provided in this subsection.
(a) If a taxpayer files with the state tax commission a report of federal adjustments or an amended Idaho tax return as required within the period specified in subsection (3) or (4) of this section, the state tax commission may adjust any amounts, including in-lieu-of amounts, taxes, interest, and penalties arising from those federal adjustments if the state tax commission issues a notice of deficiency determination to the taxpayer no later than:
(i) The expiration of the limitations period specified in section 63-3068 or 63-3072, Idaho Code; or
(ii) The expiration of the one (1) year period following the date of the filing with the state tax commission of the report of federal adjustments.
(b) If the taxpayer fails to file the report of federal adjustments within the period specified in subsection (3) or (4) of this section, as appropriate, or the report of federal adjustments filed by the taxpayer omits final federal adjustments or understates the correct amount of tax owed, the state tax commission may assess amounts or additional amounts, taxes, interest, and penalties arising from the report of federal adjustments if it mails a notice of deficiency determination to the taxpayer by a date that is the latest of the following:
(i) The expiration of the limitations period specified in section 63-3068, Idaho Code;
(ii) The expiration of the one (1) year period following the date the report of federal adjustments was filed with the state tax commission; or
(iii) Absent fraud, the expiration of the six (6) year period following the final federal determination date.
(6) A taxpayer may make estimated payments to the state tax commission, following the process prescribed by the state tax commission, of Idaho tax expected to result from a pending internal revenue service audit prior to the due date of the report of federal adjustments without having to file the report with the state tax commission. The estimated tax payments shall be credited against any tax liability ultimately found to be due to Idaho and shall limit the accrual of further statutory interest on that amount. If the estimated tax payments exceed the final tax liability and statutory interest ultimately determined to be due, the taxpayer is entitled to a refund or credit for the excess, provided the taxpayer files a report of federal adjustments claiming a refund or credit of tax pursuant to section 63-3072, Idaho Code, no later than one (1) year following the final federal determination.
(7)(a) Except for final federal adjustments required to be reported for federal purposes under section 6225(a)(2) of the Internal Revenue Code, a taxpayer may file a claim for refund or credit of tax arising from federal adjustments made by the internal revenue service on or before the later of:
(i) The expiration of the last day for filing a claim for refund or credit of Idaho tax pursuant to section 63-3072, Idaho Code, including any extensions; or
(ii) One (1) year from the date a report of federal adjustments prescribed in subsection (3) or (4) of this section, as applicable, was due to the state tax commission, including any extensions pursuant to subsection (8) of this section.
(b) The report of federal adjustments shall serve as the means for the taxpayer to report additional tax due, report a claim for refund or credit of tax, and make other adjustments, including to its net operating losses, resulting from adjustments to the taxpayer’s federal taxable income.
(8)(a) Unless otherwise agreed in writing by the taxpayer and the state tax commission, any adjustments by the state tax commission or by the taxpayer made after the expiration of the time period set forth in section 63-3068, Idaho Code, shall be limited to changes to the taxpayer’s tax liability arising from federal adjustments.
(b) The time periods provided for in section 63-3069, Idaho Code, may be extended:
(i) Automatically, upon written notice to the state tax commission, by sixty (60) days for an audited partnership or tiered partner that has ten thousand (10,000) or more direct partners; or
(ii) By written agreement between the taxpayer and the state tax commission pursuant to section 63-3068(m), Idaho Code.
(c) Any extension granted under this subsection for filing the report of federal adjustments extends the last day prescribed by law for assessing any additional tax arising from the adjustments to federal taxable income and the period for filing a claim for refund or credit of taxes pursuant to section 63-3068, Idaho Code.
[63-3070, added 2026, ch. 81, sec. 4, p. 430.]
After the expiration of the period of limitations fixed in section 63-3068, Idaho Code, the state tax commission may destroy old returns unless an earlier destruction is authorized in section 63-218, Idaho Code.
[63-3071, added 1959, ch. 299, sec. 71, p. 613; am. 2008, ch. 5, sec. 2, p. 7.]
(a) Subject to the provisions of subsections (b), (c) and (h) of this section, where there has been an overpayment of the tax imposed by the provisions of this chapter, the amount of such overpayment shall be credited against any tax administered by the state tax commission which tax is then due from the taxpayer, and any balance of such excess shall be refunded to the taxpayer.
(b) Except in regard to amounts withheld as provided in section 63-3035, 63-3035A or 63-3036, Idaho Code, or amounts paid as estimated payments under section 63-3036A, Idaho Code, or amounts paid as backup withholding under section 63-3036B, Idaho Code, a claim for refund of tax, penalties, or interest paid shall be made within the later of three (3) years of the due date of the return, without regard to extensions, or three (3) years from the date the return was filed, and a claim for credit of tax, penalties, or interest paid shall be made within the later of ten (10) years of the due date of the return, without regard to extensions, or ten (10) years from the date the return was filed. However, with regard to remittances received with an extension of time to file, or a tentative return, a claim for credit or refund of such remittances shall be made within three (3) years from the due date of the return without regard to extensions.
(c) With regard to amounts withheld as provided in section 63-3035, 63-3035A or 63-3036, Idaho Code, or amounts paid as estimated payments under section 63-3036A, Idaho Code, or amounts paid as backup withholding under section 63-3036B, Idaho Code, a claim for refund shall be made within three (3) years from the due date of the return, without regard to extensions, for the taxable year in respect to which the tax was withheld or paid, and a claim for credit shall be made within ten (10) years from the due date of the return, without regard to extensions, for the taxable year with respect to which the tax was withheld or paid. However, with regard to an individual who is entitled to an extension of time as provided in section 7508 of the Internal Revenue Code, the three (3) year period provided in this subsection for claiming a credit or refund shall be extended by the number of days disregarded under section 7508 of the Internal Revenue Code.
(d) Notwithstanding any other provisions of this section, when Idaho taxable income and/or tax credits for any taxable year have been adjusted as a result of a final federal adjustment, the period of limitations for claiming a refund or credit of tax, penalties, or interest shall be reopened and shall not expire until the later of one (1) year from the final determination date, three (3) years from the due date of the return, without regard to extensions, or three (3) years from the date the return was filed. For purposes of this subsection, the term "final federal adjustment" shall have the same meaning as that term is defined in section 63-3070(2)(i), Idaho Code, and "final determination rate" shall have the same meaning as that term is defined in section 63-3070(2)(h), Idaho Code. When the final federal adjustment is submitted, the taxpayer shall also submit copies of all schedules and written explanations provided by the internal revenue service. Upon the expiration of the period of limitations as provided in subsections (b) and (h) of this section, only those specific items of income, deductions, gains, losses or credits which were adjusted in the final federal adjustment shall be subject to adjustment for purposes of recomputing Idaho income, deductions, gains, losses, credits, and the effect of such adjustments on Idaho allocations and apportionments.
(e) If a claim for credit or refund relates to an overpayment attributable to a net operating loss carryback incurred in a taxable year commencing in 2012 or earlier, or a capital loss carryback, in lieu of the period of limitations prescribed in subsection (b) of this section, the period shall be that period which ends with the expiration of the fifteenth day of the fortieth month following the end of the taxable year of the net operating loss or capital loss which results in such carryback. Claims for net operating losses carried back from taxable years commencing after 2012 shall be made pursuant to section 63-3022, Idaho Code.
(f) If an adjustment, which was made within the period of limitations as provided in this section, affects the amount of tax credit, net operating loss, or capital loss, claimed in a taxable year other than the tax year in which the adjustment is made, then adjustments to the credit, net operating loss, or capital loss, claimed in such other tax year may be made and a claim for credit or refund of tax, penalties or interest may be made even though such claim would otherwise be barred under the provisions of this section.
(g) In the case of a duplicate return filed under section 63-217(1)(b), Idaho Code, the limitations under this section shall be the later of one (1) year from the filing of the duplicate return or the date otherwise applicable under this section.
(h) Prior to the expiration of the time prescribed in this section for credit or refund of any tax imposed by the provisions of this chapter, both the state tax commission or its delegate or deputy and the taxpayer may consent in writing to extend such period of time. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. When a pass-through entity extends the period of limitations in accordance with the provisions of this subsection the period of limitations for the other taxpayers is automatically extended for the same period for the purpose of claiming a credit or refund of tax, penalties or interest by the other taxpayers reflecting the pass-through entity adjustments.
(i) The expiration of the period of limitations as provided in this section shall be suspended for the time period between the issuance by the state tax commission of a notice under either section 63-3045 or 63-3065, Idaho Code, and the final resolution of any proceeding resulting from the notice.
(j) Appeal of a state tax commission decision denying in whole or in part a claim for credit or refund shall be made in accordance with and within the time limits prescribed in section 63-3049, Idaho Code.
(k) For purposes of this section, "return" includes a notice of deficiency determination issued by the state tax commission when no return was filed by the taxpayer. Such a return is deemed filed on the date the taxes determined by the state tax commission are assessed.
[63-3072, added 1993, ch. 47, sec. 3, p. 122; am. 1996, ch. 44, sec. 2, p. 117; am. 2001, ch. 56, sec. 4, p. 105; am. 2002, ch. 35, sec. 12, p. 80; am. 2007, ch. 10, sec. 4, p. 16; am. 2011, ch. 45, sec. 2, p. 103; am. 2013, ch. 4, sec. 5, p. 11; am. 2013, ch. 112, sec. 2, p. 271; am. 2022, ch. 311, sec. 1, p. 1002; am. 2026, ch. 81, sec. 5, p. 437.]
Upon the allowance of a credit or refund of any tax erroneously or illegally assessed or collected, or of any penalty collected without authority, or of any sum which was excessive or in any manner wrongfully collected, interest shall be allowed and paid on the amount of such credit or refund at the rate provided in section 63-3045, Idaho Code, from the date such tax, penalty, or sum was paid or from the date the return was required to be filed, whichever date is the later, to the date of the allowance of the refund, or in the case of a credit, to the due date of the amount against which the credit is taken; provided, however, that in case of a voluntary and unrequested payment in excess of actual tax liability, no interest shall be allowed when such excess is refunded or credited.
Interest on refunds resulting from net operating loss carryback claims or from capital loss carryback claims shall be computed from the last day of the taxable year in which the net operating loss or capital loss arises.
[63-3073, added 1959, ch. 299, sec. 73, p. 613; am. 1969, ch. 319, sec. 19, p. 982; am. 1976, ch. 270, sec. 3, p. 915; am. 1981, ch. 290, sec. 2, p. 598; am. 1997, ch. 57, sec. 14, p. 107; am. 1998, ch. 51, sec. 3, p. 205.]
The state tax commission may be made a party defendant in a civil action by any person aggrieved under this chapter or any other chapter in which this section is expressly incorporated by reference by the unlawful seizure or sale of his property, or in any suit for refund or to recover an overpayment, but only the state of Idaho shall be responsible for any final money judgment secured against the state tax commission, and said judgment shall be paid or satisfied out of the state refund fund created by section 63-3067, Idaho Code. No seizure or sale shall be considered unlawful if it occurs in the collection of any deficiency which was included in the person’s tax return or asserted in a notice of deficiency determination pursuant to section 63-3045 or 63-3629, Idaho Code, or in a jeopardy assessment pursuant to the provisions of section 63-3629 or 63-3065, Idaho Code.
[63-3074, added 1959, ch. 299, sec. 74, p. 613; am. 1971, ch. 214, sec. 3, p. 936; am. 1993, ch. 3, sec. 6, p. 15.]
(a) Any person required under this act to pay any tax, or required by law or regulations made under authority thereof to make a return, keep any records, or supply any information, for the purposes of the computation, assessment, or collection of any tax imposed by this act, who wilfully fails to pay such tax, make such returns, keep such records, or supply such information at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, be fined not more than three hundred dollars ($300), or imprisoned for not more than six (6) months or both.
(b) Any person required under this act to collect, account for and pay over any tax imposed by this act, who wilfully fails to collect or truthfully account for and pay over such tax, and any person who wilfully attempts in any manner to evade or defeat any tax imposed by this act or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, be fined not more than ten thousand dollars ($10,000), or imprisoned for not more than five (5) years or both.
(c) Any person who wilfully aids or assists in, or procures, counsels, or advises, the preparation or presentation under, or in connection with any matter arising under, this act, of a false or fraudulent return, affidavit, claim, or document, shall (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document) be guilty of a felony and, upon conviction thereof, be fined not more than ten thousand dollars ($10,000), or imprisoned for not more than five (5) years, or both.
(d) Notwithstanding the provisions of sections 19-402 and 19-403, Idaho Code, no person shall be prosecuted, tried, or punished for any of the offenses contained in subsections (a), (b), or (c) of this section, unless the complaint or indictment is filed within six (6) years from the commission of the offense.
[63-3075, added 1959, ch. 299, sec. 75, p. 613; am. 1989, ch. 363, sec. 1, p. 909.]
In regard to the administration of the taxes imposed by this chapter or by any other statute to which this section and section 63-3077, Idaho Code, expressly apply:
(1) No state tax commissioner, deputy, or any clerk, agent, contractor or employee, or any centralized state computer facility employee or any person formerly employed in any such position shall knowingly divulge or make known to any person in any manner any tax return or tax information whatsoever obtained directly or indirectly by him in the discharge of his duties, except as provided by statute, court order or rules of the state tax commission promulgated under this section or section 63-3077, Idaho Code.
(2) In any action or proceeding brought for the collection, remission, cancellation or refund of the whole or any part of a tax imposed under the provisions of this chapter, or for enforcing the penalties prescribed for making false or fraudulent returns, any and all information contained in such returns and tax information may be furnished or made accessible to the officers or representatives of the state or county charged with the duty of investigating, prosecuting or defending the same; and all such returns and tax information and the statements and correspondence relating thereto may be produced in evidence in any action or proceeding, civil or criminal, directly pertaining to such returns or the tax imposed on the basis of such return. In addition, the state tax commission may provide information in its possession to a law enforcement agency or prosecutor pursuant to the investigation or prosecution of an offense under section 18-915, 18-1353, 18-1353A, 18-1354, 18-1355 or 18-6710, Idaho Code, when the victim of such an offense is, or at the time of the action was, a member, employee or agent of the state tax commission.
(3) A copy of all or any portion of a federal return, or information reflected on such federal return, which may be attached to an Idaho return, or otherwise come into the possession of any commissioner, deputy, clerk, agent, contractor or employee, or any employee of a centralized state computer facility, shall not be disclosed in any manner whatsoever other than as authorized by this section.
(4) Any officer, agent, clerk, contractor or employee who knowingly violates any of the provisions of this section shall be guilty of a felony and, upon conviction thereof, be punished by a fine of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000), or by imprisonment for not more than five (5) years. Such officer, agent, clerk, contractor or employee upon such conviction shall also forfeit his office, employment or contract and shall be incapable of holding any public office in this state for a period of two (2) years thereafter. Nothing in this subsection shall limit the state tax commission’s ability to take disciplinary actions authorized in chapter 53, title 67, Idaho Code.
(5) As used in this section and section 63-3077, Idaho Code, the term:
(a) "Return" means any of the following whether required, provided for, or permitted by any statute administered by the state tax commission that is filed with the state tax commission by, for, or with respect to any person:
(i) Any tax or information return;
(ii) Declaration of estimated tax;
(iii) Claim for refund;
(iv) Any amendment or supplement thereto, including supporting schedules, attachments or lists that are supplemental to, or part of, the return.
(b) "Tax information" means:
(i) A taxpayer’s identity;
(ii) The nature, source or amount of a taxpayer’s income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments or tax payments;
(iii) The status of the processing or investigation of the taxpayer’s liability;
(iv) Any other data received by, recorded by, prepared by, furnished to or collected by the state tax commission with respect to a return or with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of any person pursuant to the laws administered by the state tax commission for any tax, penalty, interest, fine, forfeiture, other imposition or offense;
(v) Any part of a written determination, or documents relating to a written determination, that is not open to public inspection; and
(vi) Information filed with, or furnished to, the state tax commission by or for the taxpayer to whom the information relates that is not otherwise public information.
[63-3076, added 1959, ch. 299, sec. 76, p. 613; am. 1969, ch. 319, sec. 20, p. 982, am. 1978, chl. 108, sec. 1, p. 225; am. 1979, ch. 48, sec. 1, p. 137; am. 1993, ch. 94, sec. 8, p. 235; am. 2000, ch. 297, sec. 1, p. 1025.]
(1) The state tax commission, under such rules as it may prescribe, may disclose tax returns or tax information to:
(a) The commissioner of internal revenue of the United States or his delegate or the financial management services of the department of the treasury of the United States; or
(b) The proper officer of any state imposing a tax similar to a tax to which this section applies or the multistate tax commission or its delegate or the governing entity of the international fuels tax agreement or its delegate;
of any taxpayer making or who may be required to make returns, with the state tax commission or may furnish to such officer or his authorized representative an abstract or copy of any tax return or tax information or any information disclosed by the report of any audit or investigation relating to any taxpayer; but such permission shall be granted or information furnished to such officer or his representatives only if the statutes of the United States or such other state, as the case may be, grant substantially similar privileges to the state tax commission.
(2) Notwithstanding the provisions of this chapter as to secrecy, any duly constituted committee of either branch of the state legislature shall have the right to inspect returns upon request.
(3) Nothing in this chapter shall prohibit a taxpayer, or his authorized representative, upon proper identification, from inspecting or obtaining a copy of his own tax returns or tax information or authorizing, in writing, the disclosure of information to a third party.
(4) Any resident or part-year resident individual taxpayer making an income tax return shall furnish the state tax commission with the location of any residential property owned by the taxpayer and occupied by the taxpayer as his primary dwelling place on the first day of January of the year following the year to which the tax return relates. The state tax commission is hereby authorized and empowered to deliver to the county assessor of any county of the state of Idaho and the Idaho secretary of state information relating to a taxpayer’s place of residence or domicile. The information may be used by county assessors and boards of equalization to assist in determining the validity of any homeowner’s entitlement to the exemption provided in section 63-602G, Idaho Code. Each county assessor shall deliver to the state tax commission all information such assessor has received from a taxpayer pursuant to the provisions of section 63-602G(3), Idaho Code. All information relating to a taxpayer that is furnished to the Idaho secretary of state may be used by the Idaho secretary of state to assist in determining a person’s residence for voting purposes as provided in section 34-107(2), Idaho Code, and for candidate qualifications as provided in section 34-701(3), Idaho Code. Information disclosed to county officials under this subsection may be used only for purposes described in this subsection and is not otherwise subject to public disclosure.
(5) The state tax commission additionally is authorized to utilize any centralized state computer facility.
(6) Nothing in this section or section 63-3076, Idaho Code, shall require the state tax commission to disclose information not required to be disclosed under the provisions of chapter 1, title 74, Idaho Code, or prevent the state tax commission from disclosing the current validity of any permit or license issued by the state tax commission or information that is otherwise publicly available.
[63-3077, added 1959, ch. 299, sec. 77, p. 613; am. 1961, ch. 328, sec. 28, p. 622; am. 1969, ch. 319, sec. 21, p. 982; am. 1972, ch. 398, sec. 6, p. 1149; am. 1992, ch. 9, sec. 1, p. 15; am. 1996, ch. 322, sec. 63, p. 1091; am. 2000, ch. 297, sec. 2, p. 1027; am. 2015, ch. 141, sec. 162, p. 508; am. 2024, ch. 168, sec. 2, p. 646.]
(a) The state tax commission and the department of labor may enter into a written agreement for exchange of information relating to tax laws administered by the state tax commission and the employment security law administered by the department of labor. Any information so exchanged shall be confidential information in the hands of the recipient thereof and may be used only for the following:
(1) Determining whether the person to whom the information relates may have an undischarged duty or liability under the employment security law or the tax laws administered by the state tax commission, the amount of such liability, the person’s whereabouts, social security number, and information helpful in collecting any liability due.
(2) Administering any joint agreement between the department of labor and the state tax commission relating to employment security taxes and income tax withholding for the common registration of employers, common tax reporting forms, centralized filing and processing of forms.
(3) Administration of the state directory of new hires provided in chapter 16, title 72, Idaho Code.
(b) No such information shall be public information unless it is used in the course of a judicial proceeding arising under the employment security law or the tax laws administered by the state tax commission.
(c) An agreement made pursuant to this section may provide for the offset of any refunds owed to any person by either party to the agreement against any tax liability, overpayment of benefits liability, and any penalties and interest thereon owed to either party to the agreement. No offset may be made unless the liability against which it is applied is final, without any further right on the part of the person owing the liability to either administrative or judicial review.
[63-3077A, added 1985, ch. 23, sec. 1, p. 40; am. 1998, ch. 230, sec. 5, p. 787; am. 2006, ch. 38, sec. 4, p. 115; am. 2007, ch. 360, sec. 23, p. 1085.]
The state tax commission and the industrial commission may enter into a written agreement for exchange of information relating to persons, firms, corporations, partnerships or associations who are or may be conducting business operations in this state. Such information shall be confidential to the recipient and may be used only for purposes of determining whether the person to whom the information relates may have an undischarged duty or obligation under the tax laws administered by the tax commission or may have an obligation to secure worker’s compensation insurance coverage under the laws administered by the industrial commission. No such information shall be public information unless it is used in the course of a judicial proceeding arising under the laws of this state. The information provided by the tax commission shall be limited to the following:
(1) Names of individuals operating the business.
(2) The business name.
(3) The mailing address.
(4) The physical location of the business.
(5) The effective date of the withholding tax permit.
(6) The contact person.
(7) The telephone number of the contact person.
[63-3077B, added 1990, ch. 334, sec. 1, p. 911.]
The state tax commission and the department of fish and game may enter into a written agreement for exchange of information relating to an individual’s place of residence or domicile. Such information shall be confidential to the recipient and may be used by the department of fish and game only for purposes of determining whether a person who has purchased a resident fish and game license and to whom the information relates is entitled to purchase a resident fish and game license, or by the state tax commission for determining if the individual is complying with laws relating to taxation. No such information shall be public information unless it is used in the course of a judicial proceeding arising under the laws of this state. The information provided by the state tax commission shall be limited to the following:
(1) Identification of an individual.
(2) An individual’s home address.
(3) An individual’s residency status.
[63-3077C, added 2002, ch. 79, sec. 1, p. 178.]
(1) The state tax commission may enter into agreements with the United States secretary of the treasury through the internal revenue service or the financial management service of the department of the treasury of the United States providing for the mutual offset of any refunds or other amount payable by either party against liabilities owed to the other party to the agreement. Any such agreement shall require that no offset may be made unless the liability against which it applies is final, without any further right on the part of the person owing the liability to either administrative review or judicial review.
(2) No refunds from this state shall be available for offset against any federal debt:
(a) Until any debts subject to offset that are owed to this state or agency thereof have been satisfied; or
(b) During any time when a reciprocal program for offset from federal refunds for tax debts owing to this state is not in effect.
[63-3077D, added 2006, ch. 55, sec. 1, p. 165.]
The state tax commission and the state treasurer may enter into a written agreement for exchange of information relating to persons, firms, corporations, partnerships or associations who are or may be conducting business operations in this state or who may be the owners of unclaimed property reported to the state treasurer. Such information shall be confidential to the recipient and may be used only for purposes of administering the provisions of the revised unclaimed property act in chapter 5, title 14, Idaho Code. No such information shall be public information unless it is used in the course of a judicial proceeding arising under the laws of this state. The information provided by the tax commission may include the following:
(1) Names and addresses of businesses within this state.
(2) The names and addresses of individuals or entities identified as owners or potential owners of unclaimed property in the custody of the state treasurer.
(3) Taxpayer identifying numbers.
[63-3077E, added 2010, ch. 202, sec. 6, p. 440; am. 2012, ch. 333, sec. 1, p. 926; am. 2024, ch. 27, sec. 9, p. 220.]
In the case of suspected identity theft involving the use of a social security number or other tax identification number, the state tax commission may disclose to the true owner of a social security number or other tax identification number any tax return or tax return information that identifies the individual using the true owner’s stolen social security number or other tax identification number.
A disclosure shall be made only after receipt of a valid written information request from the victim of identity theft and would include only information to allow the victim to identify the individual using the stolen social security number or other tax identification number. Any disclosure to the true owner shall not include financial information on the tax returns or other tax information.
[63-3077F, added 2013, ch. 3, sec. 1, p. 6.]
The state tax commission and the Idaho department of correction shall enter into a written agreement for exchange of information relating to an individual’s incarceration status and whether that individual has claimed the Idaho food tax credit pursuant to section 63-3024A, Idaho Code. Such information shall be confidential to the recipient and may be used by the Idaho department of correction and the state tax commission only for purposes of determining whether an incarcerated person erroneously claimed the food tax credit in violation of section 63-3024A(6), Idaho Code. No such information shall be public unless it is used in the course of a judicial proceeding arising under the laws of this state. The information provided by the state tax commission shall be limited to name, date of birth, social security number, an indication as to whether the food tax credit was claimed under that person’s name or social security number for a particular taxable year and incarceration status during the year at issue.
[63-3077G, added 2015, ch. 210, sec. 1, p. 660; am. 2025, ch. 56, sec. 2, p. 269.]
The state tax commission and the Idaho department of health and welfare shall enter into a written agreement for exchange of information relating to an individual’s receipt of federal food stamp benefits and whether that individual has claimed the Idaho food tax credit pursuant to section 63-3024A, Idaho Code. Such information shall be confidential to the recipient and may be used by the Idaho department of health and welfare and the state tax commission only for purposes of determining whether a person who was receiving federal food stamp benefits erroneously claimed the food tax credit in violation of section 63-3024A(5), Idaho Code. No such information shall be public unless it is used in the course of a judicial proceeding arising under the laws of this state. Any information disclosed by the Idaho department of health and welfare pursuant to the provisions of this section must be disclosed in compliance with the privacy act of 1974, 5 U.S.C. 552a, applicable federal law or regulations regarding public assistance programs and any applicable state law or regulation.
[63-3077H, added 2015, ch. 210, sec. 2, p. 660; am. 2025, ch. 56, sec. 3, p. 270.]
Any person required to collect, truthfully account for and pay over any tax imposed by this title who wilfully fails to collect such tax, or truthfully account for and pay over such tax, or wilfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for or paid over. No penalty shall be imposed under this or other Idaho Code sections for any offense to which this section is applicable except and to the extent that such would be imposed when this section is interpreted in a manner similar to the interpretation given to section 6672(a) of the internal revenue code.
[63-3078, added 1959, ch. 299, sec. 78, p. 613; am. 1967, ch. 294, sec. 11, p. 828; am. 1997, ch. 380, sec. 1, p. 1212.]
Nothing in this act shall be construed as repealing any law requiring corporations and other forms of associations to pay an annual franchise tax based on their income or on premiums collected or according to the amount of business transacted.
[63-3079, added 1959, ch. 299, sec. 79, p. 613; am. 1981, ch. 132, sec. 1, p. 221.]
For the purpose of raising revenue the taxable income required to be shown on returns under this act and taken as a basis for determining the tax hereunder shall not be classified or held or construed to be property.
[63-3080, added 1959, ch. 299, sec. 80, p. 613.]
(1) Every person required to file an income tax return shall pay a tax of ten dollars ($10.00). For this purpose, a husband and wife filing a joint return shall be deemed a single person. This tax shall be in the nature of an excise tax upon the receipt of the income which requires the filing of such return.
(2) A pass-through entity as defined in section 63-3006C, Idaho Code, shall also pay the tax imposed in subsection (1) of this section for each individual included within section 63-3022L, Idaho Code, on the composite return.
(3) For purposes of this section, a husband and wife filing a joint federal return may be deemed a single individual.
[63-3082, added 1959, ch. 303, sec. 1, p. 654; am. 1982, ch. 203, sec. 9, p. 537; am. 1983, ch. 221, sec. 3, p. 617; am. 1998, ch. 51, sec. 4, p. 205; am. 1999, ch. 60, sec. 4, p. 157; am. 2000, ch. 38, sec. 2, p. 71; am. 2012, ch. 187, sec. 3, p. 494; am. 2014, ch. 36, sec. 3, p. 63.]
"Person" as used in sections 63-3082 through 63-3087, Idaho Code, means any individual, or entity required to file a return under section 63-3030, Idaho Code, unless all of the income or loss is distributed or otherwise reportable as a part of the taxable income of another taxpayer and the entity does not have any Idaho taxable income.
[63-3083, added 1959, ch. 303, sec. 2, p. 654; am. 1969, ch. 319, sec. 22, p. 982; am. 2008, ch. 8, sec. 1, p. 9.]
The tax imposed by this act shall be in addition to any other income taxes imposed by the laws of this state.
[63-3084, added 1959, ch. 303, sec. 3, p. 654.]
The tax herein imposed shall become due and payable to the state tax commission of the state of Idaho on or before the 15th day of April following the close of a calendar year or on or before the fifteenth day of the fourth month following the close of a fiscal year.
[63-3085, added 1959, ch. 303, sec. 4, p. 654.]
This act shall not apply to any person who on the last day of his taxable year is blind or lawfully receiving public assistance payments from the state under title 56, Idaho Code.
[63-3086, added 1959, ch. 303, sec. 5, p. 654.]
The collection and enforcement procedures provided by the Idaho Income Tax Act, sections 63-3038 through 63-3040, 63-3042 through 63-3065A, 63-3071, 63-3075 and 63-3078, Idaho Code, shall apply and be available to the state tax commission for enforcement of the provisions of this act and collection of any amounts due under this act, and said sections shall, for this purpose, be considered part of this act and wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under this act, be described as permanent building fund tax liens and proceedings.
[63-3087, as added by 1969, ch. 319, sec. 24, p. 982; am. 1974, ch. 63, sec. 1, p. 1141; am. 2007, ch. 10, sec. 6, p. 18.]
A taxing district within the meaning of this act is any county, any political subdivision of the state, any municipal corporation, including specially chartered cities, any school districts, including specially chartered school districts, any quasi-municipal corporation, or any other public corporation authorized by law to levy taxes, now or hereafter organized.
[63-3101, added 1933, ch. 160, sec. 1, p. 266.]
Any taxing district shall have power from time to time by resolution to borrow money and issue revenue anticipation bonds or notes, bearing interest at such rate as may be determined by the governing board, and maturing not more than one (1) year from the date thereof, for the purpose of providing funds in anticipation of the collection of taxes of the current fiscal year, in anticipation of the distribution of state appropriated funds, and in anticipation of other revenues of any nature, for the year in which said revenue anticipation bonds or notes are issued, exclusive of taxes required to be raised to pay the principal of outstanding bonded indebtedness of the taxing district, the proceeds of such bonds or notes to be used for the purpose for which said taxes are levied or such funds or other revenues are appropriated. The amount authorized to be borrowed by means of such revenue anticipation bonds or notes shall not exceed seventy-five per cent (75%) of the taxes levied for the current fiscal year and not yet collected by said taxing district, seventy-five per cent (75%) of the anticipated distribution from the public school income fund not yet collected for the current fiscal year, and seventy-five per cent (75%) of other revenues anticipated, as shown by the budget duly adopted by the taxing district and certified in accordance with section 63-804, Idaho Code, and not yet collected for the fiscal year. If the tax levy or budget for any fiscal year has not been completed, then the amount of revenue anticipation bonds or notes issued in anticipation of taxes, state funds, or other revenues to be levied for such fiscal year shall not exceed seventy-five per cent (75%) of the taxes levied or state funds or other revenues received by said taxing district in the previous fiscal year. In determining the amount of revenue anticipation bonds or notes which may be issued, the governing body shall declare in the resolution providing for the issuance of such bonds or notes the amount of taxes levied or state funds or other revenues anticipated for the current fiscal year and the amount of such taxes or state funds or other revenues anticipated not yet collected by said taxing district, or in the event that the tax levy or budget for the fiscal year has not been completed, the governing authority shall declare in the resolution providing for the issuance of such revenue anticipation bonds or notes the amount of taxes levied or state funds or other revenues received by said taxing district in the previous fiscal year. In each instance, taxes raised or to be raised to pay the principal of outstanding bonded indebtedness of the taxing district shall not be included in the amount of taxes or state funds or other revenues anticipated against which such revenue anticipation bonds or notes are authorized to be issued. Such revenue anticipation bonds or notes shall be negotiable instruments, and the full faith, credit and resources of the taxing district shall be pledged for the payment of the same. Such bonds or notes shall be issued in such form and detail as shall be determined by the governing authority of the taxing district by resolution duly adopted.
[63-3102, added 1933, ch. 160, sec. 2, p. 266; am. 1980, ch. 61, sec. 11, p. 124; am. 1986, ch. 33, sec. 1, p. 104; am. 1988, ch. 116, sec. 1, p. 212; am. 1996, ch. 322, sec. 64, p. 1092.]
Such revenue anticipation bonds or notes may be sold at public or private sale at such times, in such amounts and on such terms as may be determined by the governing body.
[63-3103, added 1933, ch. 160, sec. 3, p. 266; am. 1988, ch. 116, sec. 2, p. 213.]
To provide for the payment of said revenue anticipation bonds or notes at maturity, there shall be created by the resolution providing for the issuance of said revenue anticipation bonds or notes a special fund to be known as the "Revenue Anticipation Bond or Note Redemption Fund." Whenever any revenue anticipation bonds or notes have been issued in anticipation of the collection of taxes, or of state appropriated funds or other revenues, all such moneys thereafter collected or received, the collection of which has been so anticipated, shall be placed in the "Revenue Anticipation Bond or Note Redemption Fund" until such time as the funds accumulated therein shall be sufficient to pay all such revenue anticipation bonds or notes outstanding, together with interest thereon at maturity, and the funds so accumulated in the "Revenue Anticipation Bond or Note Redemption Fund" are hereby appropriated and set apart for such purpose only, and shall be used for no other purpose; provided, however, that nothing in this section shall be construed to limit the payment of the principal of and interest on said revenue anticipation bonds or notes solely to the taxes or other funds or revenues, in anticipation of which said bonds or notes were issued, but such bonds or notes shall be the direct and general obligation of the taxing district.
[63-3104, added 1933, ch. 160, sec. 4, p. 266; am. 1986, ch. 33, sec. 2, p. 105; am. 1988, ch. 116, sec. 3, p. 213.]
In the event that the taxes collected for any fiscal year prior to date on which final installment of such taxes becomes delinquent, or other anticipated funds or revenues, shall not be sufficient to pay the revenue anticipation bonds or notes issued in anticipation of the collection of taxes or other funds or revenues of such fiscal year, the taxing district shall, in providing for the levy of taxes for the succeeding fiscal year, include in such tax levy for the succeeding fiscal year the amount necessary to cover such deficiency in the collection of such taxes or other funds or revenues, such levy in the succeeding year to be in an amount which, together with the amount of taxes then in such "Revenue Anticipation Bond or Note Redemption Fund" shall be sufficient to provide for the payment of principal of and interest on the revenue anticipation bonds or notes issued in anticipation of such taxes, funds, or other revenues and payable out of such fund.
[63-3105, added 1933, ch. 160, sec. 5, p. 266; am. 1988, ch. 116, sec. 4, p. 214.]
A taxing district shall have power to issue refunding bonds or notes, with like limitations upon interest and maturity, and shall issue refunding bonds or notes where such refunding bonds or notes shall be necessary to provide for the payment of any revenue anticipation bonds or notes at maturity, or to provide for the payment of any revenue anticipation notes or bonds heretofore issued by any taxing district where such revenue anticipation notes or bonds are outstanding and unpaid after their maturity date. Said refunding bonds or notes shall be authorized by resolution and shall be issued, sold and paid as herein provided for the issuance, sale and payment of revenue anticipation bonds or notes. At no time shall the total amount outstanding of such revenue anticipation bonds or notes and such refunding bonds or notes exceed seventy-five per cent (75%) of the amount of taxes levied or state funds or other revenues anticipated for the current fiscal year and not yet collected by said taxing district, or if such refunding bonds or notes are issued before the tax levy or budget for any fiscal year has been completed, then the total amount outstanding of such revenue anticipation bonds or notes and such refunding bonds or notes shall not exceed seventy-five per cent (75%) of the amount of taxes levied or state funds or other revenues received by said taxing district in the previous fiscal year; provided that where refunding bonds or notes have been issued or the issuance thereof has been provided for by the adoption of a resolution for the purpose of refunding any revenue anticipation bonds or notes, the said revenue anticipation bonds or notes to be refunded by said refunding bonds or notes shall not be included in determining the total amount of revenue anticipation bonds and notes outstanding, but for that purpose shall be treated as having been refunded and retired by such refunding bonds or notes.
[63-3106, added 1933, ch. 160, sec. 6, p. 266; am. 1988, ch. 116, sec. 5, p. 214.]
This act shall be construed as full authority for the issuance of such revenue anticipation bonds or notes, and it shall not be necessary to comply with the requirements or provisions of any other statute relative to the issuance or sale of bonds or notes of any taxing district, in connection with the issuance of revenue anticipation bonds or notes issued under the authority of this act.
[63-3107, added 1933, ch. 160, sec. 7, p. 266; am. 1988, ch. 116, sec. 6, p. 215.]
In order to carry out the provisions of this act, all necessary actions are hereby authorized and directed.
[63-3108, added 1933, ch. 160, sec. 8, p. 266.]
The state treasurer, on approval of the state board of examiners, is hereby authorized and directed to borrow money from time to time for the state of Idaho, in anticipation of income or revenue from taxes, whether such taxes are specific, ad valorem, excise, income, franchise or license, for the current fiscal year, or that portion of such taxes not collected or previously anticipated at the time of borrowing, in a principal sum not greater than seventy-five per cent (75%) of income or revenue from such taxes which the state tax commission or any other tax collection agency certifies to the state treasurer are to be reasonably anticipated to be collected during the current fiscal year. the provision of section 67-1212, Idaho Code, shall not limit the authority of the state treasurer to issue and sell tax anticipation notes under the authority of this chapter. Said loan shall be evidenced by the issuance and sale of tax anticipation notes of the state of Idaho, for fixed periods, not greater than twelve (12) months or the end of the current fiscal year, whichever is shorter.
[63-3201, added 1983, ch. 102, sec. 2, p. 220.]
(1) Whenever the state treasurer shall deem it to the best interests of the state of Idaho to issue state of Idaho tax anticipation notes, as provided in section 63-3201, Idaho Code, the state treasurer shall make written application to the state board of examiners, stating the amount of state of Idaho tax anticipation notes the state treasurer deems advisable to issue. Upon approval of the state board of examiners by order or resolution duly entered on the minutes of the state board of examiners, the state treasurer shall issue the tax anticipation notes in accordance with the provisions of this chapter.
(2) Prior to the public issuance and public sale of any tax anticipation note, the state treasurer shall prepare a written plan of financing which shall be filed in the office of the governor. The plan of financing shall provide for the terms and conditions under which the tax anticipation notes shall be issued, sold and delivered, the taxes to be anticipated, the maximum amount of tax anticipation notes which may be outstanding at any one time under the plan of financing, the sources of payment of the tax anticipation notes issued pursuant to the plan of financing, which may include the proceeds of sale of notes issued to refund outstanding tax anticipation notes and to pay accrued interest thereon, and all other details necessary in connection with the issuance, sale and delivery of the tax anticipation notes. The plan of financing shall specify a method pursuant to which the interest rate or rates on the tax anticipation notes may be determined during the time the tax anticipation notes are outstanding and shall also set forth the maximum interest rate which the tax anticipation notes may bear.
(3) The tax anticipation notes shall bear interest, shall be in the form, shall be executed in the manner, shall be payable, shall be sold in the manner and at prices, either at, in excess of, or below the face value thereof, and generally shall be issued in the manner and with the details as shall be set forth in an order of the state treasurer, all in conformity with any applicable plan of financing and with this chapter.
(4) Each tax anticipation note shall recite that it is a valid and binding obligation of the state of Idaho and that the faith and credit of the state of Idaho is solemnly pledged for the payment of the principal of and interest thereon in accordance with its terms and the constitution and laws of the state of Idaho.
(5) Each tax anticipation note shall be recorded in the office of the state controller.
(6) Immediately upon the completion of any sale, the state treasurer shall make a verified return of said sale to the state controller, specifying the amount of notes sold, the person or persons to whom said notes were sold and the price, terms and conditions of the sale. Immediately upon the sale of any tax anticipation notes, the state treasurer shall credit the proceeds of sale, other than accrued interest, to the general fund of the state.
[63-3202, added 1983, ch. 102, sec. 2, p. 220; am. 1994, ch. 180, sec. 157, p. 523; am. 2003, ch. 32, sec. 33, p. 137.]
To provide for the payment of the principal of and interest on tax anticipation notes there is hereby created a special fund to be known as the "Tax Anticipation Note Redemption Fund." Whenever any tax anticipation notes have been issued in anticipation of income or revenue from taxes as authorized and directed by this chapter, all income or revenue realized from the taxes which were specified in the approved plan of financing to be anticipated shall be placed in the tax anticipation note redemption fund until such time as the funds accumulated therein shall be sufficient to pay the principal amount of all such notes outstanding, together with interest thereon until paid; and the funds so accumulated in the redemption fund are hereby appropriated and set aside solely for such purposes; provided, however, except as otherwise provided in the constitution of the state of Idaho nothing in this chapter shall be construed to limit the payment of the principal and interest of tax anticipation notes solely to the income and revenues from the specific taxes in anticipation of which the notes were issued. Accrued interest received upon the sale of the tax anticipation notes shall be deposited by the state treasurer in the redemption fund. The state treasurer is authorized to invest all moneys from time to time in the redemption fund in any authorized investment of the state treasurer maturing at a time or times which will permit payment of the principal of and interest on the tax anticipation notes in a timely manner when due. The state treasurer is authorized to covenant with the purchasers of the tax anticipation notes as to the manner of holding moneys in the redemption fund, the investments of moneys in the redemption fund and the disposition of any investment income therefrom either by retaining investment income in the redemption fund to be used to pay principal of and interest on tax anticipation notes when due or by paying the investment income to the state treasurer for deposit into the general account in the operating fund of the state; provided, however, whenever there is sufficient money in the redemption fund to pay all principal of and interest on all outstanding tax anticipation notes payable therefrom, all investment income thereon must be paid to the state treasurer for deposit into the general account in the state operating fund of the state.
[63-3203, added 1983, ch. 102, sec. 2, p. 221.]
Any and all expenses incident to the issuance of tax anticipation notes authorized and directed by this chapter, shall be paid from the proceeds of sale of the tax anticipation notes credited to the general account in the state operating fund of the state and there is hereby appropriated all sums necessary for the payment of the expenses of issuance when due.
[63-3204, added 1983, ch. 102, sec. 2, p. 222.]
The attorney general or an appropriate official of any political subdivision of this state may bring suits in the courts of other states to collect taxes legally due this state or any political subdivision thereof. The officials of other states which extend a like comity to this state are empowered to sue for the collection of such taxes in the courts of this state. A certificate by the secretary of state under the Great Seal of the State that such officers have authority to collect the tax is conclusive evidence of such authority.
[63-3408, added 1963, ch. 32, sec. 1, p. 175.]
The attorney general of this state is empowered to sue and collect, for and on behalf of any other political subdivision or state of the United States taxes legally due such political subdivision or state provided that the law of such state contains a reciprocal provision by which that state will enforce and collect taxes due this state or its political subdivision.
[63-3409, added 1963, ch. 32, sec. 2, p. 175.]
For the purposes of this chapter:
(a) The term "cooperative electrical association" means any nonprofit, cooperative association organized and maintained by its members, whether incorporated or unincorporated, for the purpose of transmitting, distributing or delivering electric power to its members.
(b) The term "cooperative natural gas association" means any nonprofit cooperative association organized and maintained by its members, whether incorporated or unincorporated, for the purpose of transmitting, distributing or delivering natural gas to its members.
(c) The term "cost of power" means the cost of power purchases and generation included in reports to, and in accordance with applicable requirements of, the rural electrification administration, United States department of agriculture, by cooperative electrical associations which are borrowers from the rural electrification administration, and for cooperative electrical associations which are not borrowers from the rural electrification administration, such costs which could have been included by such cooperative electrical associations using equivalent reporting and accounting requirements. The state tax commission shall prescribe necessary rules for the purpose of providing a uniform method of reporting cost of power purchases and generation by cooperative electrical associations, consistent with the reporting and accounting requirements of the rural electrification administration.
(d) The term "cost of gas" means the cost of natural gas purchased by cooperative natural gas associations from wholesale or other suppliers of natural gas for delivery to members of the cooperative natural gas association.
(e) The term "gross electrical earnings" means the gross receipts of a cooperative electrical association from the distribution, delivery and sale of electric power within the state of Idaho, but shall not include any earnings or receipts from the distribution, delivery or sale of electric power consumed in pumping water for irrigation or drainage purposes within the state of Idaho, upon the land of such consumer and for the use and benefit of his own land, and where such consumer has received from the association a refund, rebate, or credit of three and one-half percent (3 1/2%) of the cost to him of the electric power so used and consumed.
(f) The term "gross natural gas earnings" means the gross receipts of a cooperative natural gas association from the distribution, delivery and sale of natural gas within the state of Idaho.
(g) The term "gross wind, solar or geothermal energy earnings" means the gross receipts of a wind energy generator, solar energy generator or a geothermal energy generator from the distribution, delivery and sale to a customer for the direct use or resale of electrical energy generated, manufactured or produced by means of wind energy, solar energy or geothermal energy within the state of Idaho.
(h) The term "taxing unit" shall include any of the following that had property taxes levied in the prior year: the separate taxing districts of the county as well as the county itself and any such taxing district’s fund having a different geographical boundary than such taxing district itself.
(i) The term "tax levy" means the total tax levies fixed by each taxing district, as defined herein, in the prior calendar year.
(j) The term "WPPSS 4 and 5 costs" means, for a cooperative electrical association which is a participant under the Washington public power supply system nuclear projects numbers 4 and 5 participants’ agreement, dated July 14, 1976, all of its costs in connection with Washington public power supply system nuclear projects numbers 4 and 5.
(k) The term "weighted wire mileage factor" means a figure which is arrived at by multiplying the tax levy of each taxing unit by the number of wire miles of transmission and distribution lines of such cooperative electrical association situated in such taxing unit.
(l) The term "gas line mileage factor" means a figure which is arrived at by multiplying the tax levy of each taxing unit by the number of miles of natural gas transmission and distribution lines of such cooperative natural gas association situated in such taxing unit.
[63-3501, added 1959, ch. 237, sec. 1, p. 507; am. 1961, ch. 301, sec. 1, p. 560; am. 1983, ch. 164, sec. 1, p. 470; am. 1998, ch. 132, sec. 1, p. 486; am. 2007, ch. 143, sec. 1, p. 415; am. 2008, ch. 227, sec. 1, p. 693; am. 2016, ch. 189, sec. 5, p. 517.]
There shall be levied against every cooperative electrical association in this state a tax of three and one-half percent (3 1/2%) of its annual gross earnings, after first reducing such gross earnings by its cost of power and WPPSS 4 and 5 costs in such sum as the amount of its gross earnings bear to its gross receipts from the distribution, delivery and sale of electric power within the state of Idaho. This tax shall be in lieu of all other taxes on the property of such association exempted pursuant to section 63-602JJ, Idaho Code, for the tax year next preceding the filing of the statement hereinafter provided for, and which shall be paid in the manner and at the time prescribed herein.
[63-3502, added 1959, ch. 237, sec. 2, p. 507; am. 1983, ch. 164, sec. 2, p. 471; am. 1998, ch. 132, sec. 2, p. 488; am. 2016, ch. 189, sec. 6, p. 518.]
There shall be levied against every cooperative natural gas association in this state a tax of three and one-half percent (3 1/2%) of its annual gross earnings, after first reducing such gross earnings by its cost of natural gas. This tax shall be in lieu of all other taxes on the property of such association exempted pursuant to section 63-602JJ, Idaho Code, of the tax year next preceding the filing of the statement hereinafter provided for, and which shall be paid in the manner and at the time prescribed herein.
[63-3502A, added 1998, ch. 132, sec. 3, p. 488; am. 2016, ch. 189, sec. 7, p. 519.]
(1) A wind energy tax or a geothermal energy tax shall be levied against every producer of electricity by means of wind energy or geothermal energy in the amount of three percent (3%) of such producer’s gross wind energy earnings or geothermal energy earnings.
(2) A solar energy tax shall be levied against every producer of electricity by means of solar energy in the amount of three and one-half percent (3.5%) of the producer’s gross solar energy earnings.
(3) A kilowatt-hour tax shall be levied against every rate-regulated electric utility company operating in Idaho on all such electricity and electrical energy sold to retail customers in Idaho, as reported by such company to the Idaho public utilities commission; however, if such a report contains kilowatt-hour sales data for another state, the kilowatt-hour tax established under this section shall not be applied to those out-of-state sales. The kilowatt-hour tax shall be nine hundred twenty-three millionths of a dollar ($0.000923) per kilowatt-hour sold.
(4)(a) A thermal energy tax shall be levied against every rate-regulated affiliated gas company on all natural gas sold to retail customers in Idaho at a rate of ten thousand eight hundred two millionths of a dollar ($0.010802) per therm of natural gas sold.
(b) A thermal energy tax shall be levied against every rate-regulated gas company on all natural gas sold to retail customers in Idaho at a rate of three hundred twenty-nine hundred-thousandths of a dollar ($0.00329) per therm of natural gas sold. A separate thermal energy tax shall be levied against every rate-regulated gas company on all natural gas delivered to a transport gas customer at a rate of forty-one hundred-thousandths of a dollar ($0.00041) per therm of natural gas delivered to a transport gas customer by a rate-regulated gas company. For the purposes of this subsection, "transport gas customer" means an entity that purchases gas from a supplier other than a rate-regulated gas company but that contracts with a rate-regulated gas company to deliver gas to its meter.
(5) The wind energy tax, solar energy tax, geothermal energy tax, kilowatt-hour tax, and thermal energy tax provided in this section shall be in lieu of all other taxes on the property of such wind energy producer, solar energy producer, geothermal energy producer, rate-regulated electric utility company, rate-regulated affiliated gas company, or rate-regulated gas company exempted pursuant to section 63-602JJ, Idaho Code.
(6) For purposes of the certification required by section 63-803, Idaho Code, and the limitations provided by section 63-802, Idaho Code, the taxes levied pursuant to subsection (2) of this section shall reduce the property tax to be levied to finance an annual budget and shall not be included in the amount of property tax revenues to finance an annual budget for purposes of limitations on increases in the annual budget as provided in section 63-802, Idaho Code. Estimated kilowatt-hour taxes and estimated thermal energy taxes apportioned to each taxing district pursuant to section 63-3503C, Idaho Code, shall be treated as property tax revenue for the purposes of the limitations provided in section 63-802, Idaho Code.
(7) By January 1, 2027, rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies shall include the kilowatt-hour and thermal energy tax on the billings to its Idaho customers. The public utilities commission shall adjust the base tariff rates for customers to the extent those rates included a recovery of property taxes on operating property or the kilowatt-hour taxes or thermal energy taxes assessed pursuant to this section.
[63-3502B, added 2007, ch. 143, sec. 2, p. 417; am. 2008, ch. 227, sec. 2, p. 695; am. 2016, ch. 189, sec. 8, p. 519; am. 2025, ch. 188, sec. 6, p. 877; am. 2026, ch. 187, sec. 2, p. 840.]
(1)(a) The kilowatt-hour tax payable by rate-regulated electric utility companies shall be reduced and shall be exempt from taxation to the extent of kilowatt-hours used for furnishing power for pumping water for irrigation or drainage purposes on lands in the state of Idaho. The reduction shall be in the amount of nine hundred twenty-three millionths of a dollar ($0.000923) per kilowatt-hour billed to each user of power using pumping water for irrigation or drainage purposes. The utility shall determine the credit to which each consumer is entitled by virtue of this exemption and shall refund that amount or credit the amount against the consumer’s bills.
(b) The exemption provided for in this section shall accrue to the benefit of the consumer of such power, except in cases where the water so pumped is sold or rented to irrigate lands, in which event the kilowatt-hour taxes associated with generating or delivering power shall be subject to taxation to the extent that such water is sold or rented.
(c) If the consumer is not a customer of the deliverer of electrical power, the kilowatt-hour taxes that would have been due from such utility related to the exemption, if such exemption had not been applied, shall be paid annually for each year in which the exemption is applied directly to the consumer by the utility delivering such electricity for irrigation purposes. To qualify for credit or direct payment, the person or organization at the point of delivery must also be the person or organization pumping water for irrigation purposes and not a distributor or redistributor of electrical power. To receive the benefit of the exemption under this section, each consumer who is not a customer of the deliverer of electrical power must file an application with the state tax commission on or before April 30 each year. The state tax commission shall prescribe by rule the form and information necessary for such application. The procedures described in this section shall be used in determining the benefit to which each consumer is entitled by virtue of this exemption.
(2) The rate-regulated electric utility shall include in its statement filed pursuant to section 63-3503C, Idaho Code, a schedule showing the kilowatt-hours relied on by the utility to provide the exemption provided in this section and a certification that the credits or refunds related to the exemption have been paid or credited. The public utilities commission shall have jurisdiction under the public utilities law to ensure utility compliance with the provisions of this section.
[63-3502C, added 2025, ch. 188, sec. 7, p. 878.]
Every cooperative electrical association in this state shall file with the state tax commission of the state of Idaho the operators’ statement provided for in section 63-404, Idaho Code, and shall include thereon a statement of the amount of its gross earnings for the calendar year next preceding. Upon examining and verifying said statement, the state tax commission shall compute the amount of the tax measured by the gross earnings and shall allot to each county in which the property of such association is situated, and otherwise exempted from taxation by section 63-602JJ, Idaho Code, that proportion of the total tax of such association shown to be due as the number of wire miles of transmission and distribution lines of such association situated in such county bears to the total wire miles of transmission and distribution lines of such association. The state tax commission shall then, for each county, apportion the tax so allotted to the county among the several taxing units thereof within which any property of such association is situated, and otherwise exempted from taxation by section 63-602JJ, Idaho Code, by apportioning to each such taxing unit that proportion of the tax so allotted to the county as the weighted wire mileage factor for each such taxing unit bears to the total of the weighted wire mileage factors of all such taxing units in the county. No later than the third Monday of May each year, the state tax commission shall notify the state superintendent of public instruction and the county treasurer of such allotment and apportionment and the amounts thereof.
[63-3503, added 1959, ch. 237, sec. 3, p. 507; am. 1961, ch. 301, sec. 2, p. 560; am. 1994, ch. 316, sec. 4, p. 1014; am. 1996, ch. 322, sec. 66, p. 1093; am. 1998, ch. 132, sec. 4, p. 488; am. 2016, ch. 189, sec. 9, p. 519; am. 2018, ch. 31, sec. 1, p. 57.]
Every cooperative natural gas association in this state shall file with the state tax commission of the state of Idaho the operators’ statement provided for in section 63-404, Idaho Code, and shall include thereon a statement of the amount of its gross earnings for the calendar year next preceding. Upon examining and verifying said statement, the state tax commission shall compute the amount of the tax measured by the gross earnings and shall allot to each county in which the property of such association is situated, and otherwise exempted from taxation by section 63-602JJ, Idaho Code, that proportion of the total tax of such association shown to be due as the number of gas line miles of transmission and distribution lines of such association situated in such county bears to the total wire miles of transmission and distribution lines of such association. The state tax commission shall then, for each county, apportion the tax so allotted to the county among the several taxing units thereof within which any property of such association is situated, and otherwise exempted from taxation by section 63-602JJ, Idaho Code, by apportioning to each such taxing unit that proportion of the tax so allotted to the county as the gas line mileage factor for each such taxing unit bears to the total of the gas line mileage factors of all such taxing units in the county. No later than the third Monday of May each year, the state tax commission shall notify the state superintendent of public instruction and the county treasurer of such allotment and apportionment and the amounts thereof.
[63-3503A, added 1998, ch. 132, sec. 5, p. 489; am. 2016, ch. 189, sec. 10, p. 520; am. 2018, ch. 31, sec. 2, p. 57.]
(1) Every producer of electricity by means of wind energy, by means of solar energy, or by means of geothermal energy in this state shall file with the state tax commission of the state of Idaho an operator’s statement in the manner as provided for in section 63-404, Idaho Code, and shall include thereon a statement of the prior calendar year’s gross wind energy earnings, gross solar energy earnings, or gross geothermal energy earnings.
(2) Upon examining and verifying said statement, the state tax commission shall compute the amount of the wind energy tax, solar energy tax, or the geothermal energy tax based on the gross wind energy earnings, gross solar energy earnings, or the gross geothermal energy earnings and shall allot to each county in which the property of such producer is situated, and otherwise exempted from taxation by section 63-602JJ, Idaho Code, either: that proportion of the total wind energy tax, that proportion of the total solar energy tax, or that proportion of the total geothermal energy tax of such producer shown to be due as the same proportion that the total original cost of property situated in such county, and otherwise exempted from taxation by section 63-602JJ, Idaho Code, bears to the total original cost of such property of such producer for the wind energy project, of such producer for the solar energy project, or of such producer for the geothermal energy project.
(3) The state tax commission shall then, for each county, apportion the wind energy tax, solar energy tax, or geothermal energy tax so allotted to such county among the several taxing units thereof within which any property of such producer is situated, and otherwise exempted from taxation by section 63-602JJ, Idaho Code, by apportioning to each such taxing unit that proportion of the wind energy tax, solar energy tax, or geothermal energy tax so allotted to such county. For such apportionment, the state tax commission shall:
(a) Calculate the weighted original cost which shall be the product of the original cost of such property within such taxing unit times such taxing unit’s property tax levy rate for the prior year; provided that if a taxing unit that is a school district did not impose a supplemental levy pursuant to section 33-802, Idaho Code, in the prior year, the state tax commission shall calculate the weighted original cost for such school district using the greater of such school district’s property tax levy rate for the prior year or the property tax levy rate of the county in which such property is situated for the prior year;
(b) Calculate the weighted apportionment rate which shall be the ratio of the wind energy tax, of the solar energy tax, or of the geothermal energy tax, as the case may be, allotted to such county, to the aggregate weighted original cost for all such taxing units within which the property is located; and
(c) Calculate the apportionment of the wind energy tax, solar energy tax, or geothermal energy tax for each such taxing unit to be equal to the product of the weighted original cost times the weighted apportionment rate.
(4) The state tax commission shall, on or before the third Monday in May, notify the state superintendent of public instruction, the county auditor, and the county treasurer of such allotment and apportionment and the amounts thereof.
(5) On or before the first Monday in August, the county auditor shall notify the appropriate taxing units of the amount of wind energy tax, the amount of solar energy tax, or the amount of the geothermal energy tax being apportioned and the amount of the solar energy tax distributed to each of these taxing units during the twelve (12) months immediately preceding July 1 of the current tax year.
[63-3503B, added 2007, ch. 143, sec. 3, p. 417; am. 2008, ch. 227, sec. 3, p. 695; am. 2016, ch. 189, sec. 11, p. 520; am. 2018, ch. 31, sec. 3, p. 58; am. 2026, ch. 104, sec. 1, p. 548.]
(1)(a) On or before April 15 of each year beginning in 2026, every rate-regulated electric utility, rate-regulated affiliated gas company, and rate-regulated gas company in this state shall file with the state tax commission a statement of the amount of its kilowatt-hours and therms sold as described in section 63-3502B(3) and (4), Idaho Code, for the preceding year, and for rate-regulated electric utilities, the amount of kilowatt-hours sold during the preceding year for furnishing power for pumping water for irrigation or drainage purposes, as provided by section 63-3502C, Idaho Code.
(b) On or before September 15 of each year beginning in 2026, every rate-regulated electric utility, rate-regulated affiliated gas company, and rate-regulated gas company in this state shall file with the state tax commission a statement of the amount of its kilowatt-hours and therms sold as described in section 63-3502B(3) and (4), Idaho Code, for the six (6) months of January through June of the current year, and for rate-regulated electric utilities, the amount of kilowatt-hours sold during such six (6) month period for furnishing power for pumping water for irrigation or drainage purposes, as provided by section 63-3502C, Idaho Code. Upon examining and verifying such statement, the state tax commission shall compute the amount of the tax due for the period January through June of the current year using the rates found in section 63-3502B(3) and (4), Idaho Code, and reduced as provided in section 63-3502C, Idaho Code, for rate-regulated electric utilities eligible for such exemption. Such tax shall be billed by the state tax commission to each rate-regulated electric utility, rate-regulated affiliated gas company, and rate-regulated gas company no later than the first Monday of November and shall be due and payable to the state tax commission no later than December 20. Upon receipt of such tax payments, the state tax commission shall promptly pay to each county treasurer the proportionate share of such taxes due to the county as provided in this section, and the county treasurer shall pay such amounts to eligible taxing districts, units, and urban renewal agencies as also provided in this section.
(c) On or before April 15 of each year beginning in 2027, every rate-regulated electric utility, rate-regulated affiliated gas company, and rate-regulated gas company in this state shall file with the state tax commission a statement of the amount of its kilowatt-hours and therms sold as described in section 63-3502B(3) and (4), Idaho Code, for the six (6) months of July through December of the preceding calendar year, and for rate-regulated electric utilities, the amount of kilowatt-hours sold for the six (6) months of July through December of the preceding year for furnishing power for pumping water for irrigation or drainage purposes, as provided by section 63-3502C, Idaho Code. The rate-regulated electric utilities, rate-regulated affiliated gas companies, and rate-regulated gas companies shall also provide such information as shall be necessary for the state tax commission to comply with the requirements of section 63-405(4), Idaho Code, for any year in the applicable five (5) year period in which the filing of such information is required by that section. Upon examining and verifying such statement, the state tax commission shall compute the amount of the tax due for the period July through December of the preceding year, commencing with 2026, using the rates provided in section 63-3502B(3) and (4), Idaho Code, and reduced as provided in section 63-3502C, Idaho Code, for rate-regulated electric utilities eligible for such exemption. Such tax shall be billed by the state tax commission to each rate-regulated electric utility, rate-regulated affiliated gas company, and rate-regulated gas company no later than the first Monday of June and shall be due and payable to the state tax commission no later than June 20. Upon receipt of such tax payments, the state tax commission shall promptly pay to each county treasurer the proportionate share of such taxes due to the county as provided in this section, and the county treasurer shall pay such amounts to eligible taxing districts, units, and urban renewal agencies as also provided in this section.
(2) By no later than the first Monday of July of each year, the state tax commission shall estimate the taxes that will be payable for the current calendar year by taxpayers subject to this section, using the information from the preceding year provided by the taxpayers in the April 15 statements required pursuant to subsection (1)(a) of this section, or by other information available to the state tax commission. The state tax commission shall then notify each county treasurer and county auditor of the amount of estimated taxes due to the county and each taxing district, unit, and urban renewal agency located within the county based on the proportions calculated pursuant to section 63-405(3) and (4), Idaho Code.
(3) By no later than the first Monday of August each year, each county auditor shall notify each taxing district, unit, and urban renewal agency of the estimated amount they will receive based on the calculations provided in subsection (2) of this section. Such estimated amount shall be treated as property tax revenue for the purposes of the certification required by section 63-803, Idaho Code, and the limitations provided by section 63-802, Idaho Code. Amounts received by each county will be distributed by the county auditor to each eligible taxing district, unit, and urban renewal agency in the same manner as property tax.
(4) A new taxing district or revenue allocation area formed after January 1, 2025, shall not be eligible for a tax distribution pursuant to this section.
(5) If any taxing districts consolidate, the resulting district is entitled to a tax distribution pursuant to this section equal to the sum of the tax distributions that would have been made to each district prior to consolidation.
(6) Any taxes levied pursuant to this section and not paid by the due dates provided in subsection (1) of this section shall become delinquent and a penalty of five percent (5%) thereof shall be imposed, together with interest at the rate of one percent (1%) per month from those dates until paid.
(7) All taxes due and payable under this section shall be a lien on all property, real and personal, of the rate-regulated electric utility company, rate-regulated affiliated gas company, or rate-regulated gas company as of the due dates provided in subsection (1) of this section and shall be discharged only by the payment thereof. In any action to enforce payment of any delinquent taxes due under this section, the county pursuing such action shall be entitled to a judgment for the reasonable costs of prosecuting such action, as well as for the delinquent taxes, penalty, and interest.
(8) If a rate-regulated electric utility, rate-regulated affiliated gas company, or rate-regulated gas company fails to file the statement of kilowatt-hours or therms sold in Idaho required pursuant to subsection (1) of this section, the state tax commission shall use the best available information to determine the kilowatt-hours or therms sold in Idaho.
(9) There is hereby created in the state treasury the rate-regulated tax fund. The fund shall consist of all moneys received by the state tax commission pursuant to this section, which shall be deposited into the fund, and such other moneys that may be provided by legislative appropriation. Moneys in the fund are hereby continuously appropriated for disbursement to the appropriate county treasurer as provided in this section.
[63-3503C, added 2025, ch. 188, sec. 8, p. 879; am. 2026, ch. 187, sec. 3, p. 841.]
Upon receipt of the notification of the allotment and apportionment of such taxes by the state tax commission by the county treasurer, said county treasurer shall, not later than June 15 of each year, notify each cooperative electrical association, natural gas cooperative, and producer of electricity by means of wind energy, by means of solar energy or by means of geothermal energy, of the amount of taxes owed, and the apportionment thereof to the county and to the several taxing districts in the county and such tax shall be due and payable not later than July 1, following and, upon the payment thereof, the county treasurer shall pay over to each taxing district its apportionment as herein determined. Any such taxes not paid by July 1, as aforesaid, shall become delinquent and a penalty of five percent (5%) thereof shall be imposed, together with interest at the rate of one percent (1%) per month from July 1 until paid.
[63-3504, added 1959, ch. 237, sec. 4, p. 507; am. 1998, ch. 132, sec. 6, p. 489; am. 2007, ch. 143, sec. 4, p. 418; am. 2008, ch. 227, sec. 4, p. 696; am. 2016, ch. 189, sec. 12, p. 521.]
All taxes due and payable under this chapter shall be a lien on all property, real and personal, of the electrical, or natural gas association, or the producer of electricity by means of wind energy, by means of solar energy or by means of geothermal energy, owing the same, as of June 15 of each year and shall be discharged only by the payment thereof. In any action to enforce payment of any delinquent taxes due under this chapter, the county prosecuting such action shall be entitled to a judgment for the reasonable costs of prosecuting such action, as well as for the delinquent taxes, penalty and interest.
[63-3505, added 1959, ch. 237, sec. 5, p. 507; am. 1998, ch. 132, sec. 7, p. 490; am. 2007, ch. 143, sec. 5, p. 418; am. 2008, ch. 227, sec. 5, p. 697; am. 2016, ch. 189, sec. 13, p. 521.]
Any property not subject to the gross receipts tax levied in this chapter of any cooperative electrical or natural gas association or producer of electricity by means of wind energy, by means of solar energy, or by means of geothermal energy, any property not subject to the kilowatt-hour tax levied in this chapter on any rate-regulated electric utility company, and any property not subject to the thermal energy tax levied in this chapter on any rate-regulated affiliated gas company or rate-regulated gas company shall be assessed by the county assessor of the county wherein such property is situate, and taxes levied against the same shall be a lien and shall be due and payable in the same manner as are any other taxes on property.
[63-3506, added 1959, ch. 237, sec. 6, p. 507; am. 1998, ch. 132, sec. 8, p. 490; am. 2007, ch. 143, sec. 6, p. 418; am. 2008, ch. 227, sec. 6, p. 697; am. 2016, ch. 189, sec. 14, p. 521; am. 2025, ch. 188, sec. 9, p. 880.]
This act is known and may be cited as "The Idaho Sales Tax Act."
[63-3601, added 1965, ch. 195, sec. 1, p. 408.]
When used in this chapter, the terms defined in sections 63-3603 through 63-3618, Idaho Code, shall have the meanings respectively ascribed to them, except as the context or other provisions of this chapter may require.
[63-3602, added 1965, ch. 195, sec. 2, p. 408; am. 1991, ch. 321, sec. 1, p. 834.]
The terms "farm" and "farming" refer to and mean the business of operating for gain or profit a ranch or farm and include stock, dairy, poultry, fish, fur, fruit and truck farms, ranches, ranges and orchards, and custom farming.
[63-3603, added 1965, ch. 195, sec. 3, p. 408; am. 1987, ch. 326, sec. 1, p. 682.]
The terms "in this state" or "in the state" mean within the exterior limits of the state of Idaho and include all territory within these limits owned by or ceded to the United States of America.
[63-3604, added 1965, ch. 195, sec. 4, p. 408.]
The terms "includes" and "including" when used in this act shall not be deemed to exclude other things otherwise within the meaning of the term defined.
[(63-3604B) 63-3605, added 1965, ch. 195, sec. 5, p. 408; am. and redesig. 2019, ch. 320, sec. 7, p. 955.]
The term "logging" means the harvesting of forest trees by cutting, skidding, loading, thinning or decking, regardless of whether the forest trees are owned by the person performing the harvesting when such harvesting is for resale of the product harvested.
[(63-3605C) 63-3605A, added 1989, ch. 257, sec. 1, p. 632; am. 1990, ch. 431, sec. 1, p. 1195; am. and redesig. 2019, ch. 320, sec. 8, p. 955.]
The term "marketplace facilitator" means a person that contracts with sellers to facilitate for consideration, including the deduction of fees from a transaction, the sale of the seller’s products through a physical or electronic marketplace operated by the person, and engages:
(1) Directly or indirectly, through one (1) or more affiliated persons, in any of the following:
(a) Transmitting or otherwise communicating the offer or acceptance between the buyer and seller;
(b) Owning or operating the infrastructure, electronic or physical, or the technology that brings buyers and sellers together;
(c) Providing a virtual currency that buyers are allowed or required to use to purchase products from the seller; or
(d) Software development or research and development activities related to any of the activities described in subsection (2) of this section, if the activities are directly related to a physical or electronic marketplace operated by the person or an affiliated person; and
(2) In any of the following activities, with respect to the seller’s products:
(a) Payment processing services;
(b) Fulfillment or storage services;
(c) Listing products for sale;
(d) Setting prices;
(e) Branding sales as those of the marketplace facilitator;
(f) Taking orders;
(g) Advertising or promotion; or
(h) Providing customer service or accepting or assisting with returns or exchanges.
[63-3605E, added 2019, ch. 320, sec. 1, p. 948.]
The term "mining" means the extraction from the earth of a mineral as defined in sections 47-701 and 47-701A, Idaho Code, excepting therefrom geothermal resources, and includes the further processing of such mineral.
[(63-3605H) 63-3605B, added 1993, ch. 319, sec. 1, p. 1175; am. and redesig. 2019, ch. 320, sec. 9, p. 956.]
The term "modular building," as defined in section 39-4301, Idaho Code, is a substantially complete building designed to be affixed to real property. The term "modular building," includes all components incorporated in such modular building at the time of manufacture and remaining unchanged at the time of the original retail sale. Furniture, fixtures, furnishings, appliances, and attachments not incorporated as component parts of the modular building at the time of manufacture shall be subject to the sales and use tax separately and distinctly from the sales price of a modular building. Refrigerators, ranges, draperies, and wood burning stoves placed in the modular home by the manufacturer shall be deemed to be components incorporated into such modular building.
[(63-3605J) 63-3606A, added 1971, ch. 213, sec. 1, p. 935; am. 1986, ch. 30, sec. 10, p. 93; am. 1996, ch. 46, sec. 1, p. 120; am. 2007, ch. 252, sec. 14, p. 750; am. and redesig. 2019, ch. 320, sec. 10, p. 956.]
The term "motor vehicle" means a vehicle registered or required to be registered for use on public roads. The term "motor vehicle" does not include vehicles not required to be registered pursuant to section 49-426, Idaho Code, or intended for off-road use only, including snowmobiles, boats and aircraft, and all-terrain vehicles and off-road motorcycles when not used on public roads.
[(63-3605L) 63-3606B, added 1999, ch. 42, sec. 1, p. 85; am. and redesig. 2019, ch. 320, sec. 11, p. 956.]
(1) The term "new manufactured home" means a manufactured home, as defined in section 39-4105, Idaho Code, that is sold for the first time at retail. The sale of a new manufactured home by a licensed manufacturer to a licensed retailer who provides a valid resale certificate is exempt from sales and use tax under this chapter. The term "new manufactured home" includes all components incorporated in such manufactured home at the time of manufacture and remaining unchanged at the time of the original retail sale thereof.
(2) Furniture, fixtures, furnishings, appliances and attachments not incorporated as component parts of the manufactured home at the time of manufacture shall be subject to the sales and use tax separately and distinctly from the sales price of a new manufactured home at the time of its first retail sale. Items incorporated into the new manufactured home as component parts by the manufacturer are taxed at the same rate as the new manufactured home.
[63-3606, added 1965, ch. 195, sec. 6, p. 408; am. 1976, ch. 297, sec. 1, p. 1025; am. 1986, ch. 30, sec. 9, p. 92; am. 2021, ch. 31, sec. 1, p. 73.]
(1) The term "new park model recreational vehicle" means a park model recreational vehicle as defined in section 49-117, Idaho Code, that is sold for the first time at retail. The term "new park model recreational vehicle" includes all components incorporated in such park model recreational vehicle at the time of manufacture and remaining unchanged at the time of the original retail sale thereof.
(2) Furniture, fixtures, furnishings, appliances and attachments not incorporated as component parts of the park model recreational vehicle at the time of manufacture shall be subject to the sales and use tax separately and distinctly from the sales price of the new park model recreational vehicle. Refrigerators, ranges, draperies and wood-burning stoves placed in a new park model recreational vehicle by the manufacturer shall be deemed to be components incorporated into such park model recreational vehicle.
[63-3606C, added 2017, ch. 134, sec. 14, p. 324.]
The term "person" includes any individual, firm, copartnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, cooperative, assignee, or any other group or combination acting as a unit.
[63-3607, added 1965, ch. 195, sec. 7, p. 408.]
(1) With respect to the use of tangible personal property, "primary" or "primarily" means the predominant or greatest use of the property.
(2) In determining the primary use of tangible personal property, all uses of the property shall be aggregated into total taxable uses and total nontaxable uses pursuant to the provisions of this chapter. The primary use shall be the greater of the total taxable use or total nontaxable use.
(3) The use of tangible personal property shall be measured in terms of hours, miles, gallons or other measure commonly or customarily used to measure or determine use of the property.
[63-3607A, added 2013, ch. 8, sec. 1, p. 17.]
The term "purchase" means any transfer, rental, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration. A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price is a purchase. A transfer for a consideration of any publication or of tangible personal property which has been produced, fabricated, or printed to the special order of the customer is also a purchase.
[63-3608, added 1965, ch. 195, sec. 8, p. 408.]
The terms "retail sale" or "sale at retail" means a sale for any purpose other than resale in the regular course of business or lease or rental of property in the regular course of business where such rental or lease is taxable under section 63-3612(h), Idaho Code.
(a) All persons engaged in constructing, altering, repairing or improving real estate are consumers of the material used by them; all sales to or use by such persons of tangible personal property are taxable whether or not such persons intend resale of the improved property.
(b) For the purpose of this chapter, the sale or purchase of personal property incidental to the sale of real property or used mobile or manufactured homes is deemed a sale of real property.
[63-3609, added 1965, ch. 195, sec. 9, p. 408; am. 1967, ch. 290, sec. 1, p. 805; am. 1971, ch. 213, sec. 2, p. 935; am. 1985, ch. 140, sec. 1, p. 383; am. 1986, ch. 30, sec. 11, p. 93; am. 1996, ch. 46, sec. 2, p. 120; am. 1998, ch. 48, sec. 1, p. 195; am. 2021, ch. 31, sec. 2, p. 74.]
The term "retailer" includes:
(a) Every seller who makes any retail sale or sales of tangible personal property and every person engaged in the business of making retail sales at auction of tangible personal property owned by the person or others.
(b) Every person engaged in the business of making sales for storage, use, or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use, or other consumption.
(c) Every person making more than two (2) retail sales of tangible personal property during any twelve (12) month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy, or every person making fewer sales who holds himself out as engaging in the business of selling such tangible personal property at retail or who sells a motor vehicle.
(d) When the state tax commission determines that it is necessary for the efficient administration of this act to regard any salesmen, representatives, peddlers, or canvassers as agents of the dealers, distributors, supervisors, or employers under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors, or employers, the state tax commission may so regard them and may regard the dealers, distributors, supervisors, or employers as retailers for the purpose of this act.
(e) Persons conducting both contracting and retailing activities. Such persons must keep separate accounts for the retail portion of their business and pay tax in the usual fashion on this portion.
[63-3610, added 1965, ch. 195, sec. 10, p. 408; am. 1967, ch. 290, sec. 2, p. 805; am. 1995, ch. 54, sec. 1, p. 123; am. 1999, ch. 42, sec. 2, p. 85.]
"Retailer engaged in business in this state" as used in this chapter means any retailer who:
(1) Engages in recurring solicitation of purchases from residents of this state or otherwise purposefully directs its business activities at residents of this state; and
(2) Has sufficient contact with this state, in accordance with the constitution of the United States, to allow the state to require the seller to collect and remit sales or use tax on sales of tangible personal property or services made to customers in this state.
(3) The term "retailer engaged in business in this state" includes any of the following:
(a) Any retailer maintaining, occupying or using, permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business or maintaining a stock of goods.
(b) Any retailer having any representative, agent, salesman, canvasser or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, installing or the taking of orders for any tangible personal property.
(c) Any retailer, with respect to a lease or rental, deriving rentals from a lease or rental of tangible personal property situated in this state.
(d) Any retailer engaging in any activity in connection with servicing or installing tangible personal property in this state.
(e) Any retailer with substantial nexus in this state within the meaning of section 63-3615A, Idaho Code.
(f) Any retailer having a franchisee or licensee operating under its trade name if the franchisee or licensee is required to collect the tax under the provisions of this section.
(g) (i) Any retailer that has an agreement, directly or indirectly, with one (1) or more persons engaged in business in this state pursuant to this section under which, for a commission or other consideration, the persons refer potential purchasers to the retailer directly, whether by a link on an internet website, written or oral presentation, or otherwise; and
(ii) The cumulative gross receipts from sales by the retailer to purchasers who are referred by all retailers engaged in business in this state pursuant to this section with such an agreement are greater than ten thousand dollars ($10,000) during the immediately preceding twelve (12) months. For purposes of this paragraph, gross receipts means receipts from sales to customers located in this state who were referred to the retailer by persons in this state with such an agreement with the retailer.
(iii) For purposes of this paragraph, a retailer may rebut the presumption that it is soliciting sales in Idaho through persons in this state with whom it has an agreement as described in subparagraph (i) of this paragraph. For purposes of administering such rebuttal, the state tax commission will deem the presumption rebutted if the retailer is able to establish that no persons as described in subparagraph (i) of this paragraph engaged in any solicitation in this state on behalf of the retailer that would satisfy the nexus requirement of the United States constitution during the twelve (12) month period in question. The state tax commission may promulgate rules to administer the provisions of this subsection.
(h) On and after June 1, 2019, any retailer without a physical presence in Idaho that has, in the previous calendar year or the current calendar year, cumulative gross receipts from sales delivered into Idaho in excess of one hundred thousand dollars ($100,000). Provided, however, a retailer described under this paragraph (h) shall not collect or remit any local sales tax or any other tax or assessment that is not imposed by this chapter.
[63-3611, added 1989, ch. 311, sec. 2, p. 806; am. 1995, ch. 54, sec. 2, p. 123; am. 1998, ch. 49, sec. 1, p. 199; am. 2008, ch. 49, sec. 1, p. 120; am. 2018, ch. 220, sec. 1, p. 493; am. 2019, ch. 320, sec. 2, p. 949.]
(1) The term "sale" means any transfer of title, exchange or barter, conditional or otherwise, of tangible personal property for a consideration and shall include any similar transfer of possession found by the state tax commission to be in lieu of, or equivalent to, a transfer of title, exchange or barter.
(2) "Sale" shall also include the following transactions when a consideration is transferred, exchanged or bartered:
(a) Producing, fabricating, processing, printing, or imprinting of tangible personal property for consumers who furnish, either directly or indirectly, the tangible personal property used in the producing, fabricating, processing, printing, or imprinting.
(b) Furnishing, preparing, or serving food, meals, or drinks and nondepreciable goods and services directly consumed by customers included in the charge thereof.
(c) A transfer of possession of property where the seller retains the title as security for the payment of the sales price.
(d) A transfer of the title or possession of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication.
(e) Admission to a place or for an event in Idaho, provided that an organization conducting an exempt function as defined in section 527 or exempted by section 501(c)(3) of the Internal Revenue Code, as incorporated in section 63-3004, Idaho Code, and collecting any charges for attendance at the aforementioned event, shall not have those admission charges be defined as a sale if the event:
(i) Is not predominately recreational or commercial; and
(ii) Any included entertainment value is minimal when compared to the charge for attendance; and
(iii) Such entity has paid sales and use tax on taxable property or services used during the event.
(f) The use of or the privilege of using tangible personal property or facilities for recreation.
(g) Providing hotel, motel, campground, or trailer court accommodations, nondepreciable goods directly consumed by customers and included services, except where residence is maintained continuously under the terms of a lease or similar agreement for a period in excess of thirty (30) days.
(h) The lease or rental of tangible personal property.
(i) The intrastate transportation for hire by air of freight or passengers, except (1) as part of a regularly scheduled flight by a certified air carrier, under authority of the United States, or (2) when providing air ambulance services.
(3) As used in subsections (2)(b) and (2)(g) of this section, goods "directly consumed by customers" shall not be interpreted to mean any linens, bedding, cloth napkins or similar nondisposable property.
[63-3612, added 1965, ch. 195, sec. 12, p. 408; am. 1988, ch. 346, sec. 1, p. 1025; am. 1988, ch. 352, sec. 1, p. 1053; am. 1993, ch. 26, sec. 1, p. 87; am. 1997, ch. 62, sec. 1, p. 121; am. 1999, ch. 204, sec. 2, p. 551.]
(a) The term "sales price" means the total amount for which tangible personal property, including services agreed to be rendered as a part of the sale, is sold, rented or leased, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:
The cost of the property sold. However, in accordance with such rules as the state tax commission may prescribe, a deduction may be taken if the retailer has purchased property for some purpose other than resale or rental, has reimbursed his vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold or rented the property prior to making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property.
The cost of materials used, labor or service cost, losses, or any other expense.
The cost of transportation of the property prior to its sale.
The face value of manufacturer’s discount coupons. A manufacturer’s discount coupon is a price reduction coupon presented by a consumer to a retailer upon purchase of a manufacturer’s product, the face value of which may only be reimbursed by the manufacturer to the retailer.
(b) The term "sales price" does not include any of the following:
Retailer discounts allowed and taken on sales, but only to the extent that such retailer discounts represent price adjustments as opposed to cash discounts offered only as an inducement for prompt payment.
Any sums allowed on merchandise accepted in payment of other merchandise, provided that this allowance shall not apply to the sale of a "new manufactured home," a "new park model recreational vehicle" or a "modular building" as defined herein.
The amount charged for property returned by customers when the amount charged therefor is refunded either in cash or credit; but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.
The amount charged for labor or services rendered in installing or applying the property sold, provided that said amount is stated separately and such separate statement is not used as a means of avoiding imposition of this tax upon the actual sales price of the tangible personal property; except that charges by a manufactured homes dealer or park model recreational vehicle dealer for set up of a manufactured home or park model recreational vehicle shall be included in the "sales price" of such manufactured home or park model recreational vehicle.
The amount of any tax (not including, however, any manufacturers’ or importers’ excise tax) imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
The amount charged for finance charges, carrying charges, service charges, time-price differential, or interest on deferred payment sales, provided such charges are not used as a means of avoiding imposition of this tax upon the actual sales price of the tangible personal property.
Delivery and handling charges for transportation of tangible personal property to the consumer, provided that the transportation is stated separately and the separate statement is not used as a means of avoiding imposition of the tax upon the actual sales price of the tangible personal property; except that charges by a manufactured homes dealer or park model recreational vehicle dealer for transportation of a manufactured home or park model recreational vehicle shall be included in the "sales price" of such manufactured home or park model recreational vehicle.
Manufacturers’ rebates when used at the time of a retail sale as a down payment on or reduction to the retail sales price of a motor vehicle to which the rebate applies. A manufacturer’s rebate is a cash payment made by a manufacturer to a consumer who has purchased or is purchasing the manufacturer’s product from the retailer.
The amount of any fee imposed upon an outfitter as defined in section 36-2102, Idaho Code, by a governmental entity pursuant to statute for the purpose of conducting outfitting activities on land or water subject to the jurisdiction of the governmental entity, provided that the fee is stated separately and is presented as a use fee paid by the outfitted public to be passed through to the governmental entity.
The amount of any discount or other price reduction on telecommunications equipment when offered as an inducement to the consumer to commence or continue telecommunications service, or the amount of any commission or other indirect compensation received by a retailer or seller as a result of the consumer commencing or continuing telecommunications service.
(c) The sales price of a "new manufactured home" or a "modular building" as defined in this chapter shall be limited to and include only fifty-five percent (55%) of the sales price as otherwise defined herein.
(d) Taxes previously paid on amounts represented by accounts found to be worthless may be credited upon a subsequent payment of the tax provided in this chapter or, if no such tax is due, refunded. If such accounts are thereafter collected, a tax shall be paid upon the amount so collected.
(e) Tangible personal property when sold at retail for more than eleven cents (11¢) but less than one dollar and one cent ($1.01) through a vending machine shall be deemed to have sold at a sales price equal to one hundred seventeen percent (117%) of the price which is paid for such tangible personal property and/or its component parts including packaging by the owner or operator of the vending machines.
(f) Sales price shall not include a gratuity or tip received when paid to the service provider of a meal. The gratuity or tip can be either voluntary or mandatory, but must be given for the service provided and as a supplement to the service provider’s income.
(g) The sales price of a "new park model recreational vehicle" shall include one hundred percent (100%) of the sales price as otherwise defined in this section.
[63-3613, added 1965, ch. 195, sec. 13, p. 408; am. 1967, ch. 290, sec. 4, p. 805; am. 1969, ch. 261, sec. 1, p. 800; am. 1976, ch. 297, sec. 2, p. 1025; am. 1977, ch. 36, sec. 1, p. 64; am. 1983, ch. 247, sec. 1, p. 668; am. 1984, ch. 287, sec. 1, p. 671; am. 1986, ch. 30, sec. 12, p. 94; am. 1986, ch. 300, sec. 1, p. 749; am. 1990, ch. 352, sec. 1, p. 944; am. 1990, ch. 438, sec. 1, p. 1206; am. 1994, ch. 111, sec. 1, p. 244; am. 1996, ch. 46, sec. 3, p. 121; am. 1996, ch. 433, sec. 1, p. 1467; am. 1999, ch. 42, sec. 3, p. 85; am. 2011, ch. 230, sec. 1, p. 628; am. 2017, ch. 134, sec. 15, p. 324.]
The term "seller" means every person making sales at retail or retail sales to a buyer or consumer, whether as agent, broker or principal.
[63-3614, added 1965, ch. 195, sec. 14, p. 408; am. 1991, ch. 176, sec. 1, p. 429; am. 1992, ch. 16, sec. 1, p. 40.]
(a) The term "storage" includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer.
(b) The term "use" includes the exercise of any right or power over tangible personal property incident to the ownership or the leasing of that property or the exercise of any right or power over tangible personal property by any person in the performance of a contract, or to fulfill contract or subcontract obligations, whether the title of such property be in the subcontractor, contractor, contractee, subcontractee, or any other person, or whether the titleholder of such property would be subject to the sales or use tax, unless such property would be exempt to the titleholder under section 63-3622D, Idaho Code, except that the term "use" does not include the sale of that property in the regular course of business.
(c) "Storage" and "use" do not include the keeping, retaining, or exercising of any right or power over tangible personal property for the purpose of subsequently transporting it outside the state for use thereafter solely outside the state, or for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside the state, and thereafter used solely outside the state.
[63-3615, added 1965, ch. 195, sec. 15, p. 408; am. 1967, ch. 290, sec. 5, p. 805; am. 1969, ch. 261, sec. 2, p. 800; am. 1971, ch. 55, sec. 1, p. 127; am. 1984, ch. 239, sec. 27, p. 584; am. 1985, ch. 256, sec. 2, p. 710; am. 1991, ch. 2, sec. 4, p. 14; am. 1991, ch. 321, sec. 2, p. 834; am. 1994, ch. 376, sec. 1, p. 1209; am. 1995, ch. 54, sec. 3, p. 124.]
(1) Subject to the limitation in subsection (2) of section 63-3611, Idaho Code, a retailer has substantial nexus with this state if both of the following apply:
(a) The retailer and an in-state business maintaining one (1) or more locations within this state are related parties; and
(b) The retailer and the in-state business use an identical or substantially similar name, trade name, trademark or goodwill to develop, promote or maintain sales, or the in-state business provides services to, or that inure to the benefit of, the out-of-state business related to developing, promoting or maintaining the in-state market.
(2) Two (2) entities are related parties under this section if they meet any one (1) of the following tests:
(a) Both entities are component members of the same controlled group of corporations under section 1563 of the Internal Revenue Code;
(b) One (1) entity is a related taxpayer to the other entity under the provisions of section 267 of the Internal Revenue Code;
(c) One (1) entity is a corporation and the other entity and any party, for which section 318 of the Internal Revenue Code requires an attribution of ownership of stock from that party to the entity, own directly, indirectly, beneficially, or constructively at least fifty percent (50%) of the value of the outstanding stock of the corporation; or
(d) One (1) or both entities is a limited liability company, partnership, estate or trust, none of which is treated as a corporation for federal income tax purposes, and such limited liability company, partnership, estate or trust and its members, partners or beneficiaries own in the aggregate directly, indirectly, beneficially, or constructively at least fifty percent (50%) of the profits, capital, stock or value of the other entity or both entities.
(3) The provisions of this section shall not apply to a retailer that had sales in this state in the previous year in an amount of less than one hundred thousand dollars ($100,000).
(4) The definition of "Internal Revenue Code" in section 63-3004, Idaho Code, shall apply to this section.
[63-3615A, added 2008, ch. 49, sec. 2, p. 121.]
(a) The term "tangible personal property" means personal property which may be seen, weighed, measured, felt or touched, or which is in any other manner perceptible to the senses.
(b) The term "tangible personal property" includes any computer software except the following: custom computer programs; computer software that is delivered electronically; remotely accessed computer software; and computer software that is delivered by the load and leave method where the vendor or its agent loads the software at the user’s location but does not transfer any tangible personal property containing the software to the user. As used in this subsection, the term "remotely accessed computer software" means computer software that a user accesses over the internet, over private or public networks, or through wireless media, where the user has only the right to use or access the software by means of a license, lease, subscription, service or other agreement. Notwithstanding the foregoing exclusions of certain types of computer software from the definition of tangible personal property, tangible personal property shall include computer software that constitutes digital music, digital books, digital videos and digital games when the purchaser has a permanent right to use such software and, regardless of the method of delivery or access. If the right to use digital music, digital books, digital videos or digital games is conditioned upon continued payment from the purchaser it is not a permanent right of use.
(i) As used in this subsection, the term "computer software" means any computer program, part of a program or any sequence of instructions for automatic data processing equipment or information stored in an electronic medium.
(ii) As used in this subsection, the term "custom computer program" means any computer software, as defined in this subsection, which is written or prepared exclusively for a customer and includes those services represented by separately stated charges for the modification of existing prewritten programs when the modifications are written or prepared exclusively for a customer. The term does not include a "canned" or prewritten program which is held or existing for general or repeated sale, lease or license, even if the program was initially developed on a custom basis or for in-house use. Modification to an existing prewritten program to meet the customer’s needs is custom computer programming only to the extent of the modification, and only to the extent that the actual amount charged for the modification is separately stated on invoices, statements, and other billing documents supplied to the purchaser.
(c) The term "tangible personal property" does not include advertising space when sold to an advertiser or its agent by the publisher of the newspaper or the magazine in which the advertisement is displayed or circulated.
[63-3616, added 1965, ch. 195, sec. 16, p. 408; am. 1986, ch. 192, sec. 1, p. 488; am. 1993, ch. 26, sec. 2, p. 88; am. 1998, ch. 50, sec. 1, p. 201; am. 2013, ch. 271, sec. 1, p. 707; am. 2014, ch. 340, sec. 1, p. 858; am. 2015, ch. 202, sec. 1, p. 615.]
The term "taxpayer" means any person subject to or liable for any taxes imposed by this act.
[63-3618, added 1965, ch. 195, sec. 18, p. 408.]
An excise tax is hereby imposed upon each sale at retail at the rate of six percent (6%) of the sales price of all retail sales subject to taxation under this chapter and such amount shall be computed monthly on all sales at retail within the preceding month.
(a) The tax shall apply to, be computed on, and collected for all credit, installment, conditional or similar sales at the time of the sale or, in the case of rentals, at the time the rental is charged.
(b) The tax hereby imposed shall be collected by the retailer from the consumer.
(c) The state tax commission shall provide schedules for collection of the tax on sales which involve a fraction of a dollar. The retailer shall calculate the tax upon the entire amount of the purchases of the consumer made at a particular time and not separately upon each item purchased. The retailer may retain any amount collected under the bracket system prescribed which is in excess of the amount of tax for which he is liable to the state during the period as compensation for the work of collecting the tax.
(d) It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that if added it or any part thereof will be refunded. Any person violating any provision of this section is guilty of a misdemeanor.
(e) The tax commission may by rule provide that the amount collected by the retailer from the customer in reimbursement of the tax be displayed separately from the list price, the price advertised on the premises, the marked price, or other price on the sales slip or other proof of sale.
(f) The taxes imposed by this chapter shall apply to the sales to contractors purchasing for use in the performance of contracts with the United States.
[63-3619, added 2003, ch. 318, sec. 7, p. 876; am. 2006, 1st Ex. Sess., ch. 1, sec. 18, p. 61.]
(a) Every retailer engaged in business in this state, before conducting business within this state, shall file with the state tax commission an application for a seller’s permit. Every application for a permit shall be made upon a form prescribed by the state tax commission and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and such other information as the state tax commission may require. The applications, or any information contained thereon, may be made available by the tax commission to authorized representatives of state or federal agencies. The application shall be signed by the owner if he is a natural person or by an individual authorized by the seller to sign the application. Except as provided in subsection (f) of this section, permits shall be issued without charge.
(b) The state tax commission, for the efficient administration of this chapter, may issue:
(1) Temporary seller’s permits. No retailer shall be issued more than three (3) temporary permits in one (1) calendar year. A temporary permit shall be valid only for the period of time shown on the face thereof.
(2) Wholesaler’s permits to persons who are not retailers but who purchase tangible personal property for resale. A wholesaler’s permit shall be valid for no more than twelve (12) consecutive months and may be renewed by the commission.
(c) The person signing the application shall certify that the applicant will actively engage in or conduct a business making sales subject to tax under this chapter.
(d) After compliance by the applicant with the requirements set out above and in section 63-3625, Idaho Code, the state tax commission shall grant and issue to each applicant a permit. A permit shall not be assignable, and shall be valid only for the person in whose name it is issued. The permit or a copy thereof shall at all times be conspicuously displayed at each place where the person to whom it is issued conducts business.
(e) A seller whose permit has been previously suspended or revoked shall pay the state tax commission a fee of ten dollars ($10.00) for the renewal or issuance of a permit in the event of a first revocation and twenty-five dollars ($25.00) for renewal after each successive revocation unless the suspension or revocation is for inactivity pursuant to section 63-3620A, Idaho Code.
(f) Whenever any person fails to comply with any provision of this chapter relating to the sales tax or any rules of the state tax commission relating to the sales tax prescribed and adopted under this chapter, the state tax commission may revoke or suspend any one (1) or more of the permits held by the person or may deny a new permit to such person. Notice of revocation or denial shall be given in the manner provided for deficiencies in taxes in section 63-3629, Idaho Code, which shall be subject to review as provided in section 63-3631, Idaho Code. The state tax commission shall not issue a new permit after the revocation of a permit unless the commission is satisfied that the former holder of the permit will comply with the provisions of this chapter relating to the sales tax and the rules of the state tax commission.
(g) A person who engages in business as a seller in this state without a permit or permits, or after a permit has been suspended, and any person who is a responsible person, as defined in section 63-3627, Idaho Code, of such a business shall, after receiving written notice from the state tax commission, be subject to a civil penalty not in excess of one hundred dollars ($100), and each day shall constitute a separate offense, which the state tax commission may assess as a deficiency pursuant to section 63-3629, Idaho Code.
[63-3620, added 1965, ch. 195, sec. 20, p. 408; am. 1969, ch. 261, sec. 3, p. 800; am. 1988, Ch. 86, sec. 1, p. 170; am. 1990, ch. 439, sec. 1, p. 1208; am. 1991, ch. 1, sec. 1, p. 3, sec. 4, p. 8; am. 1991, ch. 176, sec. 2, p. 429; am. 1992, ch. 16, sec. 2, p. 40; am. 1994, ch. 111, sec. 2, p. 246; am. 1996, ch. 46, sec. 5, p. 123; am. 1996, ch. 210, sec. 1, p. 679; am. 1997, ch. 62, sec. 2, p. 122; am. 1998, ch. 48, sec. 3, p. 197; am. 2003, ch. 9, sec. 1, p. 19; am. 2006, ch. 61, sec. 1, p. 191.]
(1) A permit shall be held only by persons actively engaged in making sales subject to tax under this chapter. Any person not so engaged shall forthwith surrender his permit to the state tax commission for cancellation. The state tax commission may revoke the permit of a person not actively engaged in making sales subject to tax under this chapter.
(2) Notice of revocation shall be given in the manner provided for deficiencies in taxes in section 63-3629, Idaho Code, which shall be subject to review as provided in section 63-3631, Idaho Code.
(3) A permit held by a person who, for a period of twelve (12) consecutive months, reports no sales shall expire automatically upon the state tax commission providing notice of the expiration to the last known address of the person to whom the permit was issued.
(4) The state tax commission may provide by rule for the temporary suspension of permits held by persons engaged in seasonal business or who may otherwise temporarily not be actively engaged in the business of making sales subject to tax under this chapter.
[63-3620A, added 1988, ch. 86, sec. 2, p. 172; am. 1996, ch. 46, sec. 6, p. 125; am. 1996, ch. 210, sec. 2, p. 682.]
(1) The state tax commission may enter into agreements with persons who may not be otherwise liable to collect and remit sales or use taxes for the collection of sales and use taxes due on their sales of tangible personal property or taxable services to customers in this state. These agreements shall be made on terms and conditions determined by the commission to be in the best interests of the state.
(2) The state tax commission is authorized to participate in the northwest regional sales tax pilot project with states, especially the states of Washington and Utah, and selected businesses, to simplify the sales and use tax administration and to enter into joint agreements for that purpose.
(a) Agreements to participate in the pilot project shall establish provisions for the administration, imposition and collection of sales and use taxes resulting in revenues paid that are substantially the same as would be paid under this chapter.
(b) Business parties to the agreements are excused from complying with the provisions of this chapter to the extent a different procedure is required by the agreements.
(c) Agreements authorized in subsection (2) of this section shall terminate on June 30, 2001.
[63-3620B, added 1998, ch. 49, sec. 2, p. 200; am. 1999, ch. 252, sec. 2, p. 653.]
(1) The operator or promoter contracting with persons for participation in a promoter sponsored event, as a prerequisite to renting or leasing space to any person for conducting business as a retailer on any premises owned or controlled by that operator or promoter, shall obtain:
(a) Written evidence that the retailer holds a valid seller’s permit issued pursuant to this chapter or will apply to the state tax commission for a regular or temporary seller’s permit; or
(b) A written statement from the retailer that the retailer is not offering for sale any item that is taxable under this chapter or is otherwise not required to hold a valid seller’s permit.
(2) Such written evidence or statements shall be in such form and contain such information as the state tax commission shall require. The operator or promoter shall submit the documents to the state tax commission within ten (10) days following the beginning of the event.
(3)(a) The state tax commission may appoint a sponsor or promoter as its agent for issuing temporary seller’s permits to participants in the event and for accounting for such permits.
(b) A sponsor or promoter appointed to issue temporary permits under this subsection shall be entitled to a credit or refund of income or franchise taxes imposed under chapter 30, title 63, Idaho Code, in the amount of one dollar ($1.00) for each such temporary permit issued by the sponsor or promoter during the taxable year.
(4) Any operator or promoter of a promoter-sponsored event who fails to comply with this section may be subject to a minimum penalty of fifty dollars ($50.00) per event and twenty-five dollars ($25.00) for each seller over two (2) sellers for whom such records required by subsection (1) of this section are not obtained, but not to exceed one thousand dollars ($1,000) for each such event. Under no circumstances shall an operator or a promoter be responsible for sales or use tax not remitted by a retailer at a promoter-sponsored event.
(5) The penalties provided in subsection (4) of this section shall not apply:
(a) Unless the state tax commission shall have previously given notice to the operator or promoter or its officer, agent or employee, by certified mail or secure electronic communication, of the requirements of this section and of a violation of this section by the operator or promoter or its officer, agent or employee; or
(b) If the operator or promoter shows that such failure was due to reasonable cause and not to willful neglect.
(6) The state tax commission shall give notice of any penalty provided in this section and it shall assess such penalties in the manner provided for deficiencies of tax.
(7) "Promoter-sponsored event," as used in this section, means a swap meet, flea market, gun show, fair or similar activity involving a series of sales sufficient in number, scope and character to constitute a regular course of business; or any event at which two (2) or more persons offer tangible personal property or services for sale or exchange and at which a fee is charged for the privilege of offering the services or displaying the property for sale or exchange; or at which a fee is charged to prospective buyers for admission to the area where the property or services are offered or displayed for sale or exchange.
[63-3620C, added 1999, ch. 204, sec. 1, p. 550; am. 2000, ch. 349, sec. 1, p. 1176; am. 2007, ch. 111, sec. 1, p. 318; am. 2026, ch. 153, sec. 9, p. 702.]
(1) A marketplace facilitator shall register with the state tax commission and collect, report, and pay state sales and use taxes on any retail sale facilitated by the marketplace facilitator. A marketplace facilitator shall not collect, report, or pay any local sales tax or any other tax or assessment that is not imposed by this chapter.
(2) A marketplace facilitator that has physical presence in this state but has not previously facilitated a retail sale in the state of Idaho shall have forty-five (45) days to comply with this section upon completion of the marketplace facilitator’s first facilitated retail sale in Idaho.
(3) A marketplace facilitator that does not have physical presence in this state must comply with this section once the combined total of its own sales and any sales it facilitates for retailers or authorized agents of the retailer exceeds one hundred thousand dollars ($100,000).
(4) A marketplace facilitator is not liable under this section for failure to file, collect, and remit sales and use taxes if the marketplace facilitator demonstrates that the error was due to incorrect or insufficient information given to the marketplace facilitator by the retailer or authorized agent of the retailer. This subsection shall not apply if the marketplace facilitator and the retailer or authorized agent of the retailer are related parties.
(5) No class action on behalf of customers may be brought against a marketplace facilitator in any court of this state that arises from or is in any way related to an overpayment of sales or use tax collected on sales facilitated by the marketplace facilitator, regardless of whether that claim is characterized as a tax refund claim. Nothing in this subsection affects a customer’s right to seek a refund as provided under section 63-3626, Idaho Code.
(6) The state tax commission may waive penalties and interest if a marketplace facilitator seeks liability relief and the state tax commission finds that a reasonable cause exists.
[63-3620E, added 2019, ch. 320, sec. 3, p. 950.]
(1) State sales and use taxes collected by retailers without a physical presence in Idaho, as described in section 63-3611(3)(h), Idaho Code, and state sales and use taxes collected on transactions facilitated for third-party sellers by marketplace facilitators, as described in section 63-3605E, Idaho Code, shall be distributed as provided in this section.
(2) All state sales and use taxes described in subsection (1) of this section shall be distributed by the state tax commission as follows:
(a) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims under this section. All refunds authorized for payment by the state tax commission shall be paid through the state refund account and those moneys are continuously appropriated; and
(b) All remaining funds received pursuant to this section shall be distributed to the tax relief fund established in section 57-811, Idaho Code.
(3) Marketplace facilitators must obtain a separate seller’s permit and collect and remit under that separate permit for state sales and use taxes collected on transactions facilitated for third-party sellers.
[63-3620F, added 2019, ch. 320, sec. 4, p. 950; am. 2022, ch. 318, sec. 2, p. 1012; am. 2023, ch. 200, sec. 14, p. 552.]
(1) An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property acquired on or after October 1, 2006, for storage, use, or other consumption in this state at the rate of six percent (6%) of the value of the property, and a recent sales price shall be presumptive evidence of the value of the property unless the property is wireless telecommunications equipment, in which case a recent sales price shall be conclusive evidence of the value of the property.
(2) Every person storing, using, or otherwise consuming, in this state, tangible personal property is liable for the tax. His liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer maintaining a place of business in this state or engaged in business in this state given to the purchaser is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. A retailer shall not be considered to have stored, used, or consumed wireless telecommunications equipment by virtue of giving, selling, or otherwise transferring such equipment at a discount as an inducement to a consumer to commence or continue a contract for telecommunications service.
(3) Every retailer engaged in business in this state and making sales of tangible personal property for the storage, use, or other consumption in this state, not exempted under section 63-3622, Idaho Code, shall, at the time of making the sales or, if storage, use, or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use, or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the state tax commission.
(4) The provisions of this section shall not apply when the retailer pays sales tax on the transaction and collects reimbursement for such sales tax from the customer.
(5) Every retailer engaged in business in this state or maintaining a place of business in this state shall register with the state tax commission and give the name and address of all agents operating in this state the location of all distributions or sales houses or offices or other places of business in this state and such other information as the state tax commission may require.
(6) For the purpose of the proper administration of this act and to prevent evasion of the use tax and the duty to collect the use tax, it shall be presumed that tangible personal property sold by any person for delivery in this state is sold for storage, use, or other consumption in this state. The burden of proving the sale is tax-exempt is on the person who makes the sale, unless he obtains from the purchaser a resale certificate to the effect that the property is purchased for resale or rental. It shall be presumed that sales made to a person who has completed a resale certificate for the seller’s records are not taxable and the seller need not collect sales or use taxes unless the tangible personal property purchased is taxable to the purchaser as a matter of law in the particular instance claimed on the resale certificate.
(a) A seller may accept a resale certificate from a purchaser prior to the time of sale, at the time of sale, or at any reasonable time after the sale when necessary to establish the privilege of the exemption. The resale certificate relieves the person selling the property from the burden of proof only if taken from a person who is engaged in the business of selling or renting tangible personal property and who holds the permit provided for by section 63-3620, Idaho Code, or who is a retailer not engaged in business in this state and who, at the time of purchasing the tangible personal property, intends to sell or rent it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or used for some other purpose. Other than as provided elsewhere in this section, when a resale certificate, properly executed, is presented to the seller, the seller has no duty or obligation to collect sales or use taxes in regard to any sales transaction so documented, regardless of whether the purchaser properly or improperly claimed an exemption. A seller so relieved of the obligation to collect tax is also relieved of any liability to the purchaser for failure to collect tax or for making any report or disclosure of information required or permitted under this chapter.
(b) The resale certificate shall bear the name and address of the purchaser, shall be signed by the purchaser or his agent, shall indicate the number of the permit issued to the purchaser or that the purchaser is an out-of-state retailer, and shall indicate the general character of the tangible personal property sold by the purchaser in the regular course of business. The certificate shall be substantially in such form as the state tax commission may prescribe.
(c) If a purchaser who gives a resale certificate makes any storage or use of the property other than retention, demonstration, or display while holding it for sale in the regular course of business, the storage or use is taxable as of the time the property is first so stored or used.
(7) Any person violating any provision of this section is guilty of a misdemeanor and punishable by a fine not in excess of one hundred dollars ($100), and each violation shall constitute a separate offense.
(8) It shall be presumed that tangible personal property shipped or brought to this state by the purchaser was purchased from a retailer for storage, use, or other consumption in this state.
(9) It shall be presumed that tangible personal property delivered outside this state to a purchaser known by the retailer to be a resident of this state was purchased from a retailer for storage, use, or other consumption in this state. This presumption may be controverted by evidence satisfactory to the state tax commission that the property was not purchased for storage, use, or other consumption in this state.
(10) When the tangible personal property subject to use tax has been subjected to a general retail sales or use tax by another state of the United States in an amount equal to or greater than the amount of the Idaho tax, and evidence can be given of such payment, the property will not be subject to Idaho use tax. If the amount paid to the other state was less, the property will be subject to use tax to the extent that the Idaho tax exceeds the tax paid to the other state. For the purposes of this subsection, a registration certificate or title issued by another state or subdivision thereof for a vehicle or trailer or a vessel as defined in section 67-7003, Idaho Code, shall be sufficient evidence of payment of a general retail sales or use tax.
(11) The use tax imposed by this section shall not apply to the use by a nonresident of this state of a motor vehicle registered or licensed under the laws of the state of his residence and not used in this state more than a cumulative period of time totaling ninety (90) days in any consecutive twelve (12) months and if none of the buyers listed on the purchase, registration, or title documents are Idaho residents. A nonresident business entity will be held to the same requirements as a nonresident individual to qualify for the exemption provided in this subsection, except that the nonresident business entity also must not be formed under the laws of the state of Idaho. The use tax herein shall also not apply to any use of a motor vehicle registered or licensed under the laws of the state of residence of a nonresident student while such nonresident student is enrolled as a full-time student in an institution of postsecondary education that is both physically located in Idaho and recognized as accredited by the state board of education.
(12) The use tax imposed by this section shall not apply to the use of household goods, personal effects, and personally owned vehicles or personally owned aircraft by a resident of this state if such articles were acquired by such person in another state while a resident of that state and primarily for use outside this state and if such use was actual and substantial; however, if an article was acquired less than ninety (90) days prior to the time he entered this state, it will be presumed that the article was acquired for use in this state and that its use outside this state was not actual and substantial. The use tax imposed by this section shall not apply to the use of household goods, personal effects, and personally owned vehicles or personally owned aircraft by active duty military personnel temporarily assigned in this state and spouses who accompany them if such articles were acquired prior to receipt of orders to transfer to Idaho or ninety (90) days prior to moving to Idaho, whichever time period is shorter. For purposes of this subsection, "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code. For purposes of this subsection, wherever the term "individual" appears in section 63-3013 or 63-3013A, Idaho Code, the term includes a natural person or a grantor trust as described in sections 673 through 678 of the Internal Revenue Code.
(13)(a) The use tax imposed by this section shall not apply to the storage, use, or other consumption of tangible personal property that is or will be incorporated into real property and has been donated to and has become the property of:
(i) A nonprofit organization as defined in section 63-3622O, Idaho Code;
(ii) The state of Idaho; or
(iii) Any political subdivision of the state.
(b) This exemption applies whether the tangible personal property is incorporated in real property by the donee, a contractor, a subcontractor of the donee, or any other person.
(14) The use tax imposed by this section shall not apply to tastings of food and beverages, including but not limited to wine and beer. For the purposes of this subsection, a tasting of wine and beer shall be defined as the maximum serving allowed by state or federal laws for such occasions provided to a potential customer, at no charge, at a location where like or similar beverages are sold. For nonalcoholic beverages and food, a tasting shall be defined as a sample from a unit available for sale at the tasting location.
(15) The use tax imposed by this section shall not apply to donations of food or beverages, or both, to individuals or nonprofit organizations. For the purposes of this section, "nonprofit organization" means those nonprofit entities currently registered with the secretary of state pursuant to section 30-30-102, Idaho Code.
(16) The use tax imposed by this section shall not apply to a retailer supplying prepared food or beverages free of charge to its employee when that retailer sells prepared food or beverages in its normal course of business.
[63-3621, added 2003, ch. 318, sec. 8, p. 877; am. 2006, 1st Ex. Sess., ch. 1, sec. 19, p. 61; am. 2009, ch. 91, sec. 1, p. 265; am. 2011, ch. 18, sec. 1, p. 55; am. 2011, ch. 278, sec. 1, p. 756; am. 2012, ch. 55, sec. 1, p. 154; am. 2013, ch. 34, sec. 2, p. 74; am. 2013, ch. 113, sec. 1, p. 272; am. 2014, ch. 113, sec. 1, p. 322; am. 2015, ch. 226, sec. 1, p. 693; am. 2020, ch. 82, sec. 36, p. 206; am. 2021, ch. 205, sec. 1, p. 556; am. 2022, ch. 19, sec. 1, p. 37; am. 2023, ch. 47, sec. 1, p. 191.]
(a) As used in this section, the term "transient equipment" means tangible personal property which is:
(1) Subject to use tax in this state; and
(2) Eligible for depreciation under the federal internal revenue code and actually depreciated on the owner’s federal income tax return; and
(3) Present in this state for a cumulative period of time totaling not more than ninety (90) days in any consecutive twelve (12) months. For purposes of this subsection, any part of a day is one (1) day.
(b) In the case of transient equipment owned and operated by a nonresident of this state, the use tax imposed by section 63-3621, Idaho Code, may be the lesser of the amount of tax computed upon:
(1) The value of the property. A recent sales price shall be presumptive evidence of the value of the property. If there is no recent sales price, the value shall be the fair market value of the property on the date the property is first brought into Idaho; or
(2) The fair rental value of the property during the time the property is located in Idaho. Fair rental value is the amount for which the same or similar property could be leased or rented by the taxpayer from another, unrelated person in the business of leasing or renting such equipment for profit. A taxpayer electing to pay use tax on the fair rental value must establish the value by clear and convincing evidence. Any allowable credit for sales or use taxes paid to another state shall be first exhausted before any tax becomes due under this section.
(c) If transient equipment taxed upon its fair rental value ceases to qualify as transient equipment, it shall be taxed as provided in section 63-3621, Idaho Code, based upon the value at the time the equipment ceased to qualify.
(d) A taxpayer may elect to pay tax on the fair rental value on or before the due date of the first tax return on which the use tax is due. The election need not be filed with the state tax commission but must be reflected in the records supporting the computation of the tax shown to be due on the return. After the due date of the first tax return on which the use tax is due, an election may only be made with the written approval of the state tax commission. The commission shall grant approval only upon evidence establishing that at the time the equipment first became subject to use tax in this state, the taxpayer intended a use for the equipment which would have qualified the property as transient equipment.
(e) Upon discovery of property subject to use tax in this state in regard to which no use tax has been reported, the state tax commission may assert use tax in the manner provided in section 63-3629, Idaho Code, based upon the fair rental value if the commission finds that at the time the equipment first became subject to use tax in this state, the taxpayer intended a use for the equipment which would have qualified the property as transient equipment.
[63-3621A, added 1992, ch. 7, sec. 2, p. 13.]
(a) To prevent evasion of the sales and use tax, it shall be presumed that all sales are subject to the taxes imposed by the provisions of this chapter and the retailer shall have the burden of establishing the facts giving rise to such exemption unless the purchaser delivers to the retailer, or has on file with the retailer, an exemption certificate or resale certificate, in which case the purchaser shall bear the burden of establishing the facts giving rise to the exemption.
(b) An exemption certificate shall show the purchaser’s name, business name, address, a federal employer identification number or driver’s license number and state of issue, signature, date, and the reason for and nature of the claimed exemption.
(c) A resale certificate shall be signed and dated by, and bear the name and address of, the purchaser or his agent, shall show the federal employer identification number or driver’s license number and state of issue, shall indicate the number of the permit issued to the purchaser or that the purchaser is an out-of-state retailer, and shall indicate the general character of the tangible personal property sold or rented by the purchaser in the regular course of business. If a purchaser who gives a resale certificate makes any use of the property other than retention, demonstration or display while holding it for sale or rent in the regular course of business, the use shall be taxable to the purchaser as of the time the property is first used by him, and the sales price of the property to him shall be deemed the measure of the tax.
(d) A seller may accept an exemption certificate or resale certificate from a purchaser prior to the time of sale, at the time of the sale, or at any reasonable time after the sale when necessary to establish the privilege of the exemption. Other than as provided elsewhere in this section, when an exemption certificate or resale certificate, properly executed, is presented to or is on file with the seller, the seller has no duty or obligation to collect sales or use taxes in regard to any sales transaction so documented regardless of whether the purchaser properly or improperly claimed an exemption. A seller so relieved of the obligation to collect tax is also relieved of any liability to the purchaser for failure to collect tax or for making any report or disclosure of information required or permitted under this chapter. The purchaser providing an exemption certificate or resale certificate to a seller shall bear all responsibility and liability for any subsequent audit of the transaction and the seller shall be held harmless. A seller need not accept an exemption certificate or resale certificate that is not readable, legible or copyable.
(e) Any person who gives an exemption certificate or resale certificate with the intention of evading payment of the amount of the tax applicable to the transaction is guilty of a misdemeanor and punishable by a fine not exceeding one thousand dollars ($1,000) or imprisonment for not more than one (1) year, or by both such fine and imprisonment.
(f) An exemption certificate or resale certificate shall be substantially in such form as the state tax commission may prescribe. The claim for the exemption may be a part of the documentation on a sales invoice, purchase order, or other documentation retained by the retailer with regard to the sale. Unless the purchaser has an exemption certificate or resale certificate on file with the seller, the purchaser or his agent must sign the exemption claim, which shall be in addition to any other signature which the seller normally requires on sales invoices, purchase orders, or other sales documentation.
(g) It shall be presumed that sales made to a person who has completed an exemption certificate or resale certificate for the seller’s records are not taxable and the seller need not collect sales or use taxes unless the tangible personal property or services purchased are taxable to the purchaser as a matter of law in the particular instance claimed on the exemption certificate.
[63-3622, added 1992, ch. 16, sec. 6, p. 45; am. 1996, ch. 46, sec. 8, p. 128; am. 1997, ch. 62, sec. 3, p. 124; am. 2021, ch. 282, sec. 1, p. 855.]
There is exempted from the taxes imposed by this chapter the sale at retail, storage, use or other consumption of tangible personal property or taxable services which this state is prohibited from taxing under the constitution of the United States.
[63-3622A, added 1984, ch. 239, sec. 2, p. 576.]
(1) There is hereby exempted from the taxes imposed by this chapter the sale, purchase, or use of records, transcripts, deeds, licenses, reports, and other documents for which a fee, the amount of which is set by the Idaho Code, is imposed or charged.
(2) There is exempted from the taxes imposed by this chapter the sale, purchase, or use of public records requested pursuant to section 74-102, Idaho Code.
[63-3622AA, added 1984, ch. 284, sec. 1, p. 657; am. 2019, ch. 10, sec. 1, p. 11.]
There is exempted from the taxes imposed by this chapter the sale of tangible personal property to contractors for subsequent incorporation into real property outside this state in the performance of a contract to improve the out-of-state realty unless this provision would result in subjection of said contractor to a use or similar excise tax in another state.
[63-3622B, added 1984, ch. 239, sec. 3, p. 576; am. 1993, ch. 7, sec. 1, p. 24.]
There is exempted from the taxes imposed by this chapter:
(1) The sale or use of that property primarily or directly used or consumed in connection with research, development, experimental and testing activities, when exclusively financed by the United States in connection with the Idaho national laboratory and any successor thereto.
(2) If a facility is used by the United States or one (1) of its management and operating contractors for research and development activities at the Idaho national laboratory and also is used by a person or persons in addition to the United States or one (1) of its management and operating contractors, there is exempted from the taxes imposed by this chapter a percentage of each sale or use of tangible personal property used or consumed at or for the benefit of the facility in the amount that the research and development activities of the United States or its management and operating contractors bear to the total use of the facility by all persons. The state tax commission shall adopt rules to govern the procedures for the calculation, verification and documentation of this allocation.
[63-3622BB, added 1985, ch. 256, sec. 1, p. 710; am. 1998, ch. 48, sec. 4, p. 198; am. 2018, ch. 152, sec. 1, p. 310.]
There are exempted from the taxes imposed by this chapter purchases which are subject to the motor fuels tax imposed by chapter 24, title 63, Idaho Code, and purchases upon which motor fuels taxes have actually been paid and the sale or use of any fuel which is subsequently transported outside the state for use thereafter outside the state. Nothing in this chapter shall be construed to authorize the imposition of a tax on fuel brought into this state in the fuel tanks of motor vehicles or railroad locomotives in interstate commerce.
[63-3622C, added 1984, ch. 239, sec. 4, p. 577; am. 1985, ch. 35, sec. 1, p. 69; am. 1987, ch. 18, sec. 7, p. 25; am. 1999, ch. 42, sec. 5, p. 90.]
There is exempted from the taxes imposed by this chapter the sale, storage, use or other consumption of tangible personal property which is railroad rolling stock rebuilt or remanufactured in this state and which was used in interstate commerce for at least three (3) consecutive months prior to such rebuilding or remanufacturing.
[63-3622CC, added 1986, ch. 180, sec. 2, p. 477.]
There are exempted from the taxes imposed by this chapter:
(a) The sale at retail, storage, use or other consumption in this state of:
(1) Tangible personal property which will enter into and become an ingredient or component part of tangible personal property manufactured, processed, mined, produced or fabricated for sale, including birds, fish or other wildlife that are hunted or fished on property a business owns, controls or has the right to use and where the business collects sales tax for the charges imposed for the hunting or fishing activity, and including the cost of acquiring such birds, fish or other wildlife and the feed, supplies and labor used to raise or maintain such birds, fish or other wildlife.
(2) Tangible personal property primarily and directly used or consumed in or during a manufacturing, processing, mining, farming, fabricating, hunting or fishing operation, including, but not limited to, repair parts, lubricants, hydraulic oil, and coolants, which become a component part of such tangible personal property and including, but not limited to, ammunition, birds, fish or other wildlife; provided that the use or consumption of such tangible personal property is necessary or essential to the performance of such operation.
(3) Chemicals, catalysts, and other materials which are used for the purpose of producing or inducing a chemical or physical change in the product or for removing impurities from the product or otherwise placing the product in a more marketable condition as part of an operation described in subsection (a)(2) of this section, and chemicals and equipment used in clean-in-place systems in the food processing and food manufacturing industries.
(4) Safety equipment and supplies required to meet a safety standard of a state or federal agency when such safety equipment and supplies are used as part of an operation described in subsection (a)(2) of this section.
(5) Plants to be used as part of a farming operation.
(6) Grain bin structures, augers, dryers, fans, sweep augers, and other equipment that is used directly and primarily in agricultural production, whether or not such equipment is to become a part of real property and whether or not installed by the farmer, a contractor, or a subcontractor.
(7) Equipment and supplies used in the performance of a quality control function used to prepare a crop for storage in a grain bin structure that is directly and primarily used in agricultural production, whether or not such equipment and supplies used in the performance of a quality control function are to become a part of real property and whether or not installed by the farmer, a contractor, or subcontractor.
(b) Other than as provided in subsection (c) of this section, the exemptions allowed in subsection (a)(1), (2), (3) and (4) of this section are available only to a business or separately operated segment of a business which is primarily devoted to producing tangible personal property which that business will sell and which is intended for ultimate sale at retail within or without this state. A contractor providing services to a business entitled to an exemption under this section is not exempt as to any property owned, leased, rented or used by it unless, as a result of the terms of the contract, the use of the property is exempt under section 63-3615(b), Idaho Code.
(c) The exemptions allowed in subsection (a)(1), (2), (3) and (4) of this section shall also be available to a business, or separately operated segment of a business, engaged in farming or mining, whether as a subcontractor, contractor, contractee or subcontractee, when such business or segment of a business is primarily devoted to producing tangible personal property which is intended for ultimate sale at retail within or without this state, without regard to the ownership of the product being produced; and shall also be available to a business, or separately operated segment of a business, engaged in offering the right to hunt birds or other wildlife or fish on property the business owns, controls or has the right to use, where the charges for such rights are subject to sales tax as provided in this chapter.
(d) The exemptions allowed in subsection (a)(1), (2), (3) and (4) of this section shall also be available to a business, or separately operated segment of a business, engaged in the business of processing materials, substances or commodities for use as fuel for the production of energy, whether as a subcontractor, contractor, contractee or subcontractee, without regard to the ownership of the materials, substances or commodities being processed and irrespective of whether the materials, substances or commodities being processed are intended for ultimate sale at retail within or without this state.
(e) As used in this section, the term "directly used or consumed in or during" a farming operation means the performance of a function reasonably necessary to the operation of the total farming business, including the planting, growing, harvesting, storage and removal from storage of crops and other agricultural products, and movement of crops and produce from the place of harvest to the place of initial storage. It includes disinfectants used in the dairy industry to clean cow udders or to clean pipes, vats or other milking equipment.
(f) The exemptions allowed in this section do not include machinery, equipment, materials and supplies used in a manner that is incidental to the manufacturing, processing, mining, farming or fabricating operations such as maintenance and janitorial equipment and supplies.
(g) Without regard to the use of such property, this section does not exempt:
(1) Tangible personal property used in any activities other than the actual manufacturing, processing, mining, farming, fabricating, hunting or fishing operations, such as office equipment and supplies, and equipment and supplies used in selling or distributing activities.
(2) Property used in transportation activities.
(3) Machinery, equipment, tools or other property used to make repairs. This subsection does not include repair parts that become a component part of tangible property exempt from tax under this section or lubricants, hydraulic oil, or coolants used in the operation of tangible personal property exempt under this section.
(4) Machinery, equipment, tools or other property used to manufacture, fabricate, assemble or install tangible personal property which is:
(i) Not held for resale in the regular course of business; and
(ii) Owned by the manufacturer, processor, miner, farmer or fabricator;
provided, however, this subsection does not prevent exemption of machinery, equipment, tools or other property exempted from tax under subsection (a)(2) or (a)(3) of this section.
(5) Any improvement to real property or fixture thereto or any tangible personal property that becomes or is intended to become a component of any real property or any improvement or fixture thereto, except as provided in subsection (a)(6) and (7) of this section.
(6) Motor vehicles and aircraft.
(7) Tangible personal property used or consumed in processing, producing or fabricating tangible personal property exempted from tax under this chapter in sections 63-3622F and 63-3622I, Idaho Code.
(8) Tangible personal property described in section 63-3622HH, Idaho Code.
(h) Any tangible personal property exempt under this section which ceases to qualify for this exemption, and does not qualify for any other exemption or exclusion of the taxes imposed by this chapter, shall be subject to use tax based upon its value at the time it ceases to qualify for exemption. Any tangible personal property taxed under this chapter which later qualifies for this exemption shall not entitle the owner of it to any claim for refund.
[63-3622D, added 1984, ch. 239, sec. 5, p. 577; am. 1987, ch. 326, sec. 2, p. 682; am. 1989, ch. 257, sec. 2, p. 632; am. 1990, ch. 122, sec. 1, p. 292; am. 1990, ch. 431, sec. 2, p. 1195; am. 1990, ch. 437, sec. 1, p. 1205; am. 1991, ch. 321, sec. 3, p. 834; am. 1993, ch. 319, sec. 2, p. 1175; am. 1996, ch. 46, sec. 9, p. 129; am. 1999, ch. 42, sec. 6, p. 90; am. 2005, ch. 242, sec. 3, p. 754; am. 2006, ch. 315, sec. 1, p. 980; am. 2008, ch. 233, sec. 1, p. 710; am. 2015, ch. 85, sec. 1, p. 210; am. 2015, ch. 225, sec. 1, p. 690; am. 2016, ch. 86, sec. 1, p. 271; am. 2024, ch. 297, sec. 1, p. 1004.]
There is exempted from the taxes imposed by this chapter the sale, storage, use or other consumption of tangible personal property which is parts, material or equipment used to rebuild or remanufacture railroad rolling stock exempt from tax under section 63-3622CC, Idaho Code.
[63-3622DD, added 1986, ch. 180, sec. 3, p. 478.]
There is exempted from the taxes imposed by this chapter the sale or purchase of containers in the following categories:
(a) Nonreturnable containers when sold without the contents to persons who place the contents in the container and sell the contents together with the container.
(b) Containers when sold with the contents if the sales price of the contents is not required to be included in the measure of the taxes imposed by this act.
(c) Returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for filling.
[63-3622E, added 1984, ch. 239, sec. 6, p. 578.]
Commencing October 1, 1987, purchases of food pursuant to section 17 of the federal child nutrition act of 1966 and the school lunch and child nutrition amendment of 1986 are exempt from the taxes imposed by chapter 36, title 63, Idaho Code, and are exempt from the taxes that may be imposed on such purchases under the provisions of sections 50-1043 through 50-1049, Idaho Code.
[63-3622EE, added 1987, ch. 335, sec. 1, p. 708.]
There is exempted from the taxes imposed by this chapter the sale or purchase of natural gas, electricity, and water when delivered to consumers at the place of consumption by means of pipes, wires, mains or similar systems.
[63-3622F, added 1984, ch. 239, sec. 7, p. 578; am. 1993, ch. 26, sec. 3, p. 89.]
Purchases of food made with benefits provided under the federal supplemental nutrition assistance program (SNAP) are exempt from the taxes imposed by chapter 36, title 63, Idaho Code, and are exempt from the taxes that may be imposed on such purchases under the provisions of sections 50-1043 through 50-1049, Idaho Code.
[63-3622FF, added 1987, ch. 336, sec. 1, p. 708; am. 2010, ch. 81, sec. 1, p. 161; am. 2013, ch. 34, sec. 1, p. 73.]
There is exempted from the taxes imposed by this chapter the sale or purchase of any matter used to produce heat by burning, for the purpose of providing heat to any building or for domestic home use, including wood, coal, petroleum and gas.
[63-3622G, added 1984, ch. 239, sec. 8, p. 578.]
There is exempted from the taxes imposed by this chapter:
(1) The sale, lease, purchase, or use of aircraft primarily used to provide passenger or freight services for hire as a common carrier only if:
(a) The person operates the aircraft under the authority of the laws of this state, the United States or any foreign government; and
(b) The aircraft is used to provide services indiscriminately to the public; and
(c) The aircraft itself transports the person or property from one (1) location on the ground or water to another.
(2) The sale, lease, purchase or use of aircraft primarily used for air ambulance services.
(3) The sale, lease or purchase of aircraft for use outside this state by nonresidents, even though delivery be made within this state, but only when:
(a) The aircraft will be taken from the point of delivery to a point outside this state;
(b) The aircraft will not be used in this state more than ninety (90) days in any twelve (12) month period.
(4) Repair and replacement materials and parts installed in or affixed or applied to, or sold, leased or purchased to be installed in or affixed or applied to, aircraft in connection with the remodeling, repair or maintenance of aircraft described under subsections (1), (2), (5), and (6) of this section and industry standard, federal aviation administration (FAA) approved materials, parts and components installed on nonresident privately owned aircraft by qualified employees of an FAA-approved Idaho repair station are exempt. Tools and equipment utilized in performing such remodeling, repair or maintenance are not exempt.
(5) The sale, lease, purchase or use of fixed-wing aircraft primarily used as an air tactical group supervisor platform under contract with a governmental entity for wildfire activity.
(6) The sale, lease, purchase, or use of aircraft primarily used for agricultural spraying, dusting, seeding, livestock and predatory animal control, or forest and wildlife conservation.
[63-3622GG, added 1988, ch. 352, sec. 2, p. 1053; am. 1994, ch. 44, sec. 1, p. 72; am. 2001, ch. 98, sec. 1, p. 247; am. 2003, ch. 9, sec. 3, p. 21; am. 2009, ch. 91, sec. 2, p. 268; am. 2012, ch. 47, sec. 1, p. 142; am. 2016, ch. 326, sec. 1, p. 907; am. 2020, ch. 332, sec. 1, p. 966.]
(1) Notwithstanding any other provision of law to the contrary, the production exemption provided in section 63-3622D, Idaho Code, shall not apply to sales of or repairs to snowmobiles, off-highway motorbikes, recreational vehicles, or motorcycles and all sales of snowmobiles, off-highway motorbikes, recreational vehicles or motorcycles are subject to the sales and use taxes imposed by this chapter. All repairs to snowmobiles, off-highway motorbikes, recreational vehicles or motorcycles are subject to the sales and use taxes imposed by this chapter.
(2) As used in this section, the term "snowmobile" means any self-propelled vehicle under one thousand (1,000) pounds unladened gross weight designed primarily for travel on snow or ice or over natural terrain which may be steered by tracks, skis or runners, and which is not otherwise registered or licensed under the laws of the state of Idaho.
(3) As used in this section, the term "off-highway motorbike" means any self-propelled two (2), three (3), four (4) or five (5) wheeled motorcycle or motor-driven cycle, excluding tractor, designed for or capable of traveling off developed roadways and highways and also referred to as trailbikes, enduro bikes, trail bikes, motorcross bikes or dual purpose motorcycles.
(4) As used in this section, the term "recreational vehicle" means a motor home, travel trailer, park model recreational vehicle, truck camper or camping trailer, with or without motive power, designed for human habitation for recreational or emergency occupancy. The term "recreational vehicle" shall not include pickup hoods, shells, or canopies designed, created or modified for occupational usage. School buses or van type vehicles which are converted to recreational use are defined as recreational vehicles. Specific classes of recreational vehicles are defined as follows:
(a) The term "motor home" shall mean a vehicular unit designed to provide temporary living quarters, built into an integral part of or permanently attached to a self-propelled motor vehicle chassis. The vehicle must contain permanently installed independent life support systems which meet the American national standards institute (ANSI) A119.7 standard for recreational vehicles, and provide at least four (4) of the following facilities: cooking, refrigeration or icebox, self-contained toilet, heating and/or air conditioning, a potable water supply system including a faucet and sink, separate 110-125 volt electrical power supply and/or LP-gas supply.
(b) The term "travel trailer" shall mean a vehicular unit, mounted on wheels, designed to provide temporary living quarters for recreational, camping, travel or emergency use and of such size or weight as not to require special highway movement permits when towed by a motorized vehicle.
(c) The term "fifth-wheel trailer" shall mean a vehicular unit equipped in the same manner as a travel trailer but constructed with a raised forward section that allows a bi-level floor plan. This style is designed to be towed by a vehicle equipped with a device known as a fifth-wheel hitch, which is typically installed in the bed of a pickup truck.
(d) The term "park model recreational vehicle" means a vehicle as defined in section 49-117, Idaho Code.
(e) The term "fold down camping trailer" shall mean a vehicular portable unit mounted on wheels and constructed with collapsible partial side walls, which fold for towing by another vehicle and unfold at the campsite to provide temporary living quarters, for recreational, camping or travel use.
(f) The term "truck camper" shall mean a portable unit constructed to provide temporary living quarters for recreational, travel or camping use, consisting of a roof, floor, and sides, designed to be loaded onto and unloaded from the bed of a pickup truck, and containing at least one (1) of the following facilities: stove; refrigerator or icebox; self-contained toilet; heater or air conditioner; potable water supply including a faucet and sink; separate 110-125 volt electrical power supply; or LP-gas supply.
(5) As used in this section, the term "motorcycle" means every motor vehicle having a seat or saddle for the use of the rider and designed to travel on not more than three (3) wheels in contact with the ground, but excluding a tractor. A motorcycle also is every motor scooter or motorized bicycle having an engine with less than one hundred fifty (150) cubic centimeters displacement or with five (5) brake horsepower or less.
(6) As used in this section, the term "repairs" shall include only the costs of parts, but not labor, utilized on the snowmobile, off-highway motorbike, recreational vehicle or motorcycle.
[63-3622HH, added 1988, ch. 367, sec. 1, p. 1082; am. 1989, ch. 22, sec. 1, p. 26; am. 2008, ch. 106, sec. 6, p. 302; am. 2017, ch. 134, sec. 16, p. 326.]
(1) There is exempted from the taxes imposed by this chapter the sale or purchase, or the storage, use or other consumption of literature, pamphlets, periodicals, tracts and books published and sold by an entity qualified under section 501(c)(3) of the internal revenue code; no part of the net earnings of which inures to the benefit of a private individual or shareholder.
(2) As used in this section, "literature" includes information available in alternative forms, including audio-visual and magnetic, optical or other machine-readable media.
[63-3622I, added 1984, ch. 239, sec. 10, p. 579; am. 1989, ch. 322, sec. 1, p. 833; am. 1999, ch. 220, sec. 1, p. 587.]
There is hereby exempted from the taxes imposed by this chapter the sale or purchase of money-operated dispensing equipment which is solely consumed in dispensing a tangible product, amusement or service on which a retail sales tax is imposed or collected by the state of Idaho. As used in this section, "money-operated dispensing equipment" shall be interpreted narrowly to include only that equipment which consummates a sale by the placement of lawful money in the dispensing equipment and shall not include sales facilitating equipment such as, but not limited to, transportation, warehousing, storage, and display equipment which is consumed in the disposition of an item or product subject to the tax imposed by this chapter.
[(63-3622II) 63-3622Y, added 1995, ch. 288, sec. 1, p. 966; am. and redesig. 2005, ch. 25, sec. 120, p. 131.]
There is exempted from the taxes imposed by this chapter the sale of meals by public or private schools under the federal school lunch program or under programs that provide nutritional meals for the aging (Title III of the Older Americans Act, P.L. 109-365), and the sale of meals by a church to its members at a church function.
[63-3622J, added 1984, ch. 239, sec. 11, p. 579; am. 2015, ch. 17, sec. 1, p. 24.]
There are exempted from the taxes imposed by this chapter:
(1) The sale at retail, storage, use or other consumption in this state of tangible personal property which is primarily and directly used or consumed in logging including, but not limited to, log loaders, log jammers, log skidders and fuel used in logging trucks, provided that the use or consumption of such tangible personal property is necessary or essential to logging.
(2) The exemption allowed by subsection (1) of this section does not include machinery, equipment, materials and supplies used in a manner that is incidental to logging such as maintenance and janitorial equipment and supplies; nor does it include tangible personal property used in any activities other than the actual logging, such as office equipment and supplies, equipment and supplies used in selling or distributing activities or, except for fuel used in logging trucks, in transportation activities; nor shall this exemption include motor vehicles or aircraft, without regard to the use to which such motor vehicles or aircraft are put; nor shall this exemption apply to vehicles or equipment described in section 63-3622HH, Idaho Code.
[63-3622JJ, added 1990, ch. 431, sec. 4, p. 1197; am. 1996, ch. 263, sec. 1, p. 864; am. 1999, ch. 42, sec. 13, p. 99; am. 2006, ch. 315, sec. 2, p. 982; am. 2007, ch. 111, sec. 3, p. 320; am. 2016, ch. 9, sec. 4, p. 9.]
(a) There are exempted from the taxes imposed by this chapter occasional sales of tangible personal property.
(b) As used in this section, the term "occasional sales" means:
(1) A sale of property not held or used by a person in the course of an activity for which he is required to hold a seller’s permit, provided such sale is not one of a series of sales sufficient in number or of such a nature as to constitute the seller a "retailer" under section 63-3610(c), Idaho Code. The definition of "occasional sales" provided in this subsection does not apply to use tax in regard to tangible personal property used to improve real property when such property is obtained, directly or indirectly, from a person in the business of making like or similar improvements to real property.
(2) Any transfer of all or substantially all of the property held or used by a person in a business requiring a seller’s permit when, after such transfer, the real or ultimate ownership of such property is substantially similar to that which existed before such transfer. For the purpose of this section, stockholders, bondholders, partners, or other persons holding an interest in a corporation or other entity are regarded as having a "real or ultimate ownership" of the property of such corporation or other entity.
(3) A transfer of capital assets to or by a business when the transfer is accomplished through an adjustment of the beneficial interest of the business and the transferor has paid sales or use taxes pursuant to section 63-3619 or 63-3621, Idaho Code, on the capital assets, incidental to:
(i) A division of joint venture, partnership, or limited liability company assets among the members or partners in exchange for a proportional reduction of the transferee’s interest in the joint venture, partnership, or limited liability company. For the purposes of this section, the term "limited liability company" means a business organization as defined in chapter 6, title 53, Idaho Code, or as defined in section 30-6-102, Idaho Code, as appropriate pursuant to section 30-6-1104, Idaho Code;
(ii) The formation of a partnership, joint venture, or limited liability company by the transfer of assets to the partnership, joint venture, or limited liability company or transfers to a partnership, joint venture, or limited liability company in exchange for proportionate interests in the partnership, joint venture, or limited liability company;
(iii) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for stock in proportion to assets contributed;
(iv) The transfer of assets of shareholders in the formation or dissolution of a corporation;
(v) The transfer of capital assets by a corporation to its stockholders in exchange for surrender of capital stock;
(vi) The transfer of assets from a parent corporation to a subsidiary corporation which is owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation;
(vii) The transfer of assets from a subsidiary corporation which is owned at least eighty percent (80%) by the parent corporation to a parent corporation or another subsidiary which is owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets.
(4) The sale, lease or rental of a capital asset in substantially the same form as acquired by the transferor and on which the initial transferor has paid sales or use taxes pursuant to section 63-3619 or 63-3621, Idaho Code, when the owners of all of the outstanding stock, equity or interest of the transferor are the same as the transferee or are members of the same family within the second degree of consanguinity or affinity.
(5) The sale of substantially all of the operating assets of a business or of a separate division, branch, or identifiable segment to a buyer who continues operation of the business. For the purpose of this subsection, a "separate division, branch, or identifiable segment" shall be deemed to exist if, prior to its sale, the income and expense attributable to such "separate division, branch, or identifiable segment" could be separately ascertained from the books of accounts and records.
(6) Sales by persons who are not defined as "retailers" in section 63-3610, Idaho Code.
(7) Sales of animals by any 4-H club or FFA club held in conjunction with a fair or the western Idaho spring lamb sale.
(8) The sale or purchase of tangible personal property at home yard sales; provided however, that no more than two (2) such home yard sales per individual calendar year shall be exempt. If a homeowner has more than two (2) home yard sales and the total sales are less than five thousand dollars ($5,000) in a calendar year, such homeowner may qualify as a small seller as defined in section 63-3622YY, Idaho Code.
(c) As used in this section, the term "occasional sales," when applied to the sale of a motor vehicle, means only:
(1) Sales of motor vehicles between members of a family related within the second degree of consanguinity, unless a sales or use tax was not imposed on the sale of that motor vehicle at the time of purchase, in which situation the sale is taxable.
(2) Sales of motor vehicles that fall within the scope of the transactions detailed in subsection (b)(2) through (5) of this section.
(d) The exemption provided by subsection (b)(1), (4), (6), or (8) of this section shall not apply to the sale, purchase or use of aircraft, as defined in section 21-201, Idaho Code, nor shall it apply to the sale, purchase or use of boats or vessels, as defined in section 67-7003, Idaho Code, nor shall it apply to the sale, purchase or use of snowmobiles, recreational vehicles or off-highway motorbikes, as defined in section 63-3622HH, Idaho Code.
[63-3622K, added 1984, ch. 239, sec. 12, p. 579; am. 1988, ch. 157, sec. 2, p. 284; am. 1988, ch. 367, sec. 2, p. 1084; am. 1989, ch. 264, sec. 1, p. 643; am. 1990, ch. 135, sec. 1, p. 308; am. 1996, ch. 46, sec. 10, p. 131; am. 1996, ch. 111, sec. 1, p. 413; am. 1997, ch. 62, sec. 5, p. 126; am. 1999, ch. 42, sec. 7, p. 92; am. 2005, ch. 15, sec. 1, p. 44; am. 2008, ch. 176, sec. 4, p. 520; am. 2026, ch. 189, sec. 1, p. 844.]
(1) Whenever any religious corporation or society as enumerated in section 63-602B, Idaho Code, purchases tangible personal property upon which it has paid the tax imposed by this chapter, or acquires tangible personal property via gift, the sale of such property as well as any other sale defined in sections 63-3612, 67-4711 and 67-4917A, Idaho Code, by the religious corporation or society shall be exempt from the taxes imposed in this chapter, or by any political subdivision of the state. The exemption provided in this section shall be valid as long as the proceeds from the sale are used exclusively in the programs of the corporations or societies as enumerated in section 63-602B, Idaho Code. If at any time, tangible personal property or other items defined in sections 63-3612, 67-4711 and 67-4917A, Idaho Code, are offered for sale to or used by the general public in the open market in regular competition with commercial enterprise, the sale shall be subject to the taxes imposed by this chapter or by any political subdivision of the state.
(2) As used in this section:
(a) "Commercial" relates to or is connected with trade and traffic or commerce in general and is occupied with business or commerce.
(b) "Competition" means the effort of two (2) or more persons, as defined in section 63-3607, Idaho Code, acting independently to secure the business of a third person by the offer of the most favorable terms.
(c) "General public" means the community at large as opposed to select members of the community.
(d) "Market" means a place of commercial activity in which articles are bought and sold.
[(63-3622KK) 63-3622JJ, added 1990, ch. 434, sec. 1, p. 1203; am. and redesig. 1996, ch. 322, sec. 67, p. 1094.]
There is exempted from the taxes imposed by this chapter the sale of articles through a coin-operated vending machine for a total consideration of eleven cents ($.11) or less and individual transactions involving a total sales price of eleven cents ($.11) or less.
[63-3622L, added 1984, ch. 239, sec. 13, p. 579; am. 1987, ch. 18, sec. 3, p. 24; am. 1996, ch. 46, sec. 11, p. 133.]
There is hereby exempted from the taxes imposed by this chapter the sale or purchase of any television measurement service, radio measurement service, newspaper measurement service or other media measurement service.
[63-3622LL, added 1997, ch. 396, sec. 1, p. 1258.]
There are exempted from the taxes imposed by this chapter sales of liquor by the state liquor division to a person licensed under the provisions of chapter 9, title 23, Idaho Code, for resale as liquor by-the-drink.
[63-3622M, added 1984, ch. 239, sec. 14, p. 580; am. 2009, ch. 23, sec. 59, p. 70.]
(1) There are exempted from the taxes imposed by this chapter, the sale, purchase or use of livestock when sold at a livestock market.
(2) As used in this section, the term "livestock market" shall mean:
(a) A "public livestock market" as defined in section 25-1721, Idaho Code, and holding a charter issued by the Idaho department of agriculture pursuant to chapter 17, title 25, Idaho Code; and
(b) Those organizations expressly exempted from the chartering requirement by section 25-1722, Idaho Code.
(3) As used in this section, the term "livestock" shall mean cattle, calves, sheep, mules, horses, swine or goats.
[63-3622MM, added 2002, ch. 52, sec. 1, p. 119.]
(a) There are exempted from the taxes imposed by this chapter the following when administered or distributed by a practitioner or when purchased by or on behalf of an individual for use by such individual under a prescription or work order of a practitioner:
(1) Drugs, hypodermic syringes, insulin, insulin syringes, artificial eyes, eyeglasses and eyeglass component parts, contact lenses, hearing aids, hearing aid parts and hearing aid accessories;
(2) Drugs and supplies used in hemodialysis and peritoneal dialysis;
(3) Braces and other orthopedic appliances;
(4) Dental prostheses and other orthodontic appliances, including fillings;
(5) Catheters, urinary accessories, colostomy supplies, and other prosthetic devices which shall include, but are not limited to, enteral and parenteral feeding equipment and supplies, (tubing, pumps, containers) catheter devices and supplies;
(6) Equipment and devices or chemical reagents which are used to test or monitor blood or urine of a diabetic;
(7) Other durable medical equipment and devices and related parts and supplies specifically designed for those products which shall include, but are not limited to: oxygen equipment, oxygen cylinders, cylinder transport devices (sheaths, carts), cylinder stands, support devices, regulators, flowmeters, tank wrench, oxygen concentrators, liquid oxygen base dispenser, liquid oxygen portable dispenser, oxygen tubing, nasal cannulas, face masks, oxygen humidifiers, oxygen fittings and accessories, respiratory therapy equipment, room humidifiers, aspirators, aerosol compressors (stationary and portable), ultrasonic nebulizers, volume ventilators, respirators and related device supplies, percussors, vibrators, IPPB, circuits, devices and supplies, air oxygen mixers, manual resuscitators, nebulizers, tubing, emergency oxygen delivery units, patient care equipment, physical and occupational therapy items, hospital beds, trapeze bars and bar stand, bed rails, geriatric chairs, lift recliners, bedside commodes, overbed tables, patient lifts, patient lift slings, traction stands and pulleys, shower seating, shower grip bars, raised toilet seats, toilet safety frames, walking canes, quad canes and accessories, walkers, wheeled walkers, walker accessories, I.V. stands, crawlers, posture back supports for seating, posture back supports, wheelchairs, crutches, crutch pads, tips, grips, restraints, standing frame devices and accessories, hand exercise equipment and putty, specially designed hand utensils, leg weights, paraffin baths, hydrocollators, hydrotherm heating pads, communication aids for physically impaired, specialized seating, desks, work stations, foam wedges, writing and speech aids for the impaired, dressing aids, button loops and zipper aids, grooming aids, dental aids, eating and drinking aids, splints, holders, household aids for the impaired, shampoo trays, reaching aids, foam seating pads, decubitus seating pads, bed pads, fitted stroller, alternating pressure pads and pumps, stethoscope, sphygmomanometers, otoscopes, sitting and sleeping cushions, patient transport devices, boards, stairglides, lifts in home, transcutaneous nerve stimulators, muscle stimulators and bone fracture therapy devices.
(b) The term "practitioner" means a physician, physician assistant, surgeon, podiatrist, chiropractor, dentist, optometrist, psychologist, ophthalmologist, nurse practitioner, denturist, orthodontist, audiologist, hearing aid dealer or fitter or any person licensed by the state under title 54, Idaho Code, to prescribe, administer or distribute items identified in subsection (a) of this section.
(c)(1) The term "drug" means a drug which is:
(i) Defined in section 54-1704, Idaho Code; and
(ii) Either:
Listed in a drug compendia which the state board of pharmacy requires to be maintained by Idaho licensed pharmacies; or
The use of which requires a prescription under state or federal law.
(2) The term shall not include articles intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in animals other than man.
(d) The term "durable medical equipment" means equipment which:
(1) Can withstand repeated use;
(2) Is primarily and customarily used to serve a medical purpose;
(3) Generally is not useful to a person in the absence of illness or injury; and
(4) Is appropriate for use in the home.
(e) The term "prosthetic device" means a device which replaces a missing part or function of the human body and shall include any supplies physically connected to such devices.
[63-3622N, added 1990, ch. 42, sec. 2, p. 65; am. 1992, ch. 78, sec. 1, p. 218; am. 1993, ch. 26, sec. 4, p. 89; am. 1996, ch. 46, sec. 12, p. 133; am. 1998, ch. 130, sec. 1, p. 483; am. 2008, ch. 19, sec. 1, p. 29; am. 2015, ch. 95, sec. 1, p. 230; am. 2015, ch. 95, sec. 2, p. 232; am. 2024, ch. 69, sec. 26, p. 358.]
(1) There is exempted from the taxes imposed by this chapter the sale at retail, storage, use or other consumption in this state of tangible personal property which is exclusively used in or to maintain the environment of, or is or becomes a component part of, a clean room, without regard to whether the property is actually contained within the clean room or whether such tangible personal property ultimately becomes affixed to or incorporated into real property.
(2) The following definitions apply to this section:
(a) "Clean room" means an environment in a defined space, within a larger building, where humidity, temperature, particulate matter and contamination are precisely and regularly controlled; and
(i) Which is a "Class 10,000" clean room or better, and
(ii) In which the primary activities are:
Activities which qualify for the production exemption in section 63-3622D, Idaho Code, resulting in the manufacture of products which are either semiconductors, products manufactured using semiconductor manufacturing processes, or equipment used to manufacture semiconductors;
Activities which qualify for the research and development exemption in section 63-3622RR, Idaho Code; or
A combination of the activities described in subparagraphs 1. and 2. above.
(b) "Class 10,000 clean room" means a specified area in which the concentration of airborne particulates of five-tenths (0.5) micrometers or larger is regularly maintained at a level of cleanliness no greater than ten thousand (10,000) particles per cubic foot of air.
(c) "Semiconductor" means a small piece of semiconductor material including silicon:
(i) On which an integrated circuit is embedded, or
(ii) Which is altered in the manufacturing process by primarily using semiconductor processes.
(d) "Integrated circuit" means a complex of multiple active electronic components and their interconnections built upon a semiconductor substrate.
(e) "Semiconductor manufacturing processes" means chemical vapor deposition, plasma vapor deposition, wet and dry etch, chemical mechanical planarization or polishing and such other manufacturing processes generally recognized by the semiconductor industry as being standard processes in the industry.
(f) Property is "exclusively used" for a purpose when its use for any other purpose is insignificant or inconsequential.
[63-3622NN, added 1999, ch. 130, sec. 1, p. 375; am. 2005, ch. 242, sec. 2, p. 753.]
(1) There are exempted from the taxes imposed by this chapter:
(a) Sales to or purchases by hospitals, health-related entities, educational institutions, forest protective associations and canal companies that are nonprofit organizations; and
(b) Donations to, sales to, and purchases by the Idaho Foodbank Warehouse, Inc.; and
(c) Donations to, sales to, and purchases by food banks or soup kitchens of food or other tangible personal property used by food banks or soup kitchens in the growing, storage, preparation or service of food, but not including motor vehicles or trailers; and
(d) Sales of clothes to, donations of clothes to, and purchases of clothes by nonsale clothiers; and
(e) Sales to or purchases by centers for independent living; and
(f) Sales to or purchases by the state of Idaho and its agencies and its political subdivisions; and
(g) Sales to or purchases by volunteer fire departments or licensed emergency medical service agencies; and
(h) Sales to or purchases by a qualifying senior citizen center; and
(i) Sales to or purchases by the Blind Services Foundation, Inc.; and
(j) Donations to, sales to or purchases by the Advocates for Survivors of Domestic Violence and Sexual Assault, Inc., a nonprofit corporation; and
(k) Sales to or purchases by nonprofit organizations offering free dental clinic services to children; and
(l) Admissions to and purchases by museums, as defined in subsection (2) of this section.
(2) As used in this section, these words shall have the following meanings:
(a) "Educational institution" shall mean nonprofit colleges, universities, public charter schools organized pursuant to chapter 52, title 33, Idaho Code, the Idaho digital learning academy established pursuant to chapter 55, title 33, Idaho Code, and other primary and secondary schools, the income of which is devoted solely to education and in which systematic instruction in the usual branches of learning is given. This definition does not include schools primarily teaching business, dancing, dramatics, music, cosmetology, writing, gymnastics, exercise and other special accomplishments nor parent-teacher associations, parent groups, alumni or other auxiliary organizations with purposes related to the educational function of an institution or collective group of institutions.
(b) "Hospital" shall include nonprofit institutions licensed by the state for the care of ill persons. It shall not extend to nursing homes or similar institutions.
(c) "Health-related entities" shall mean the Idaho Cystic Fibrosis Foundation, Idaho Epilepsy League, Idaho Lung Association, March of Dimes, American Cancer Society, Camp Rainbow Gold, Mental Health Association, The Arc, The Children’s Home Society of Idaho, American Heart Association, Idaho Ronald McDonald House, United Cerebral Palsy, Arthritis Foundation, Muscular Dystrophy Foundation, National Multiple Sclerosis Society, Rocky Mountain Kidney Association, American Diabetes Association, Easter Seals, Idaho Community Action Agencies, Idaho Primary Care Association and community health centers that are members of the Idaho Primary Care Association, the Idaho Association of Free and Charitable Clinics and its member clinics, the Idaho Diabetes Youth Programs, Special Olympics Idaho, the Idaho Women’s and Children’s Alliance, and the Family Services Alliance of Southeast Idaho, together with said entities’ local or regional chapters or divisions.
(d) "Canal companies" shall include nonprofit corporations that are incorporated solely for the purpose of operating and maintaining and are engaged solely in operation and maintenance of dams, reservoirs, canals, lateral and drainage ditches, pumps or pumping plants.
(e) "Forest protective associations" shall mean associations whose purpose is the furnishing, operating and maintaining of a protective system for the detection, prevention and suppression of forest or range fires. Forest protective associations shall include only those associations with which the state of Idaho has contracted or become a member of pursuant to chapter 1, title 38, Idaho Code.
(f) "Food banks or soup kitchens" shall mean any nonprofit corporation or association, other than the Idaho Foodbank Warehouse, Inc., one of whose regular activities is the furnishing or providing of food or food products to others without charge.
(g) "Nonsale clothier" shall mean any nonprofit corporation or association, one of whose primary purposes is the furnishing or providing of clothes to others without charge.
(h) "Clothes" shall mean garments in general, designed or intended to be worn by humans, and shall include footwear in addition to wearing apparel.
(i) "Center for independent living" shall mean a private, nonprofit, nonresidential organization in which at least fifty-one percent (51%) of the principal governing board, management and staff are individuals with disabilities and that:
(i) Is designed and operated within a local community by individuals with disabilities;
(ii) Provides an array of independent living services and programs; and
(iii) Is cross-disability.
(j) "Political subdivision" means:
(i) A governmental organization that:
Embraces a certain territory,
Is organized for public advantage and not in the interest of private individuals or classes,
Has been delegated functions of government, and
Has the statutory power to levy taxes; or
(ii) A public health district created by section 39-408, Idaho Code; or
(iii) A soil conservation district as defined in section 22-2717, Idaho Code; or
(iv) A drainage district created pursuant to chapter 29, title 42, Idaho Code; or
(v) An irrigation district created pursuant to title 43, Idaho Code; or
(vi) A state grazing board created by section 57-1204, Idaho Code; or
(vii) A water measurement district created pursuant to section 42-705 or 42-706, Idaho Code; or
(viii) A ground water management district created pursuant to chapter 51, title 42, Idaho Code.
(k) "Agency of the state of Idaho" shall mean an office or organization created by the constitution or statutes of this state and constituting a component part of the executive, judicial or legislative branch of the government of this state.
(l) "Volunteer fire department" means an entity exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code and which primarily provides fire protection or fire prevention on a not-for-profit basis to surrounding residents.
(m) "Licensed emergency medical service agency" means an emergency medical service (EMS) licensed by the Idaho military division and which is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code and which provides emergency medical services on a not-for-profit basis to surrounding residents.
(n) "Qualifying senior citizen center" means an entity exempt from income tax pursuant to section 501(c)(3) of the Internal Revenue Code and which is a community facility for the organization and provision of a broad spectrum of services, which shall include provision of health, including mental health, social, nutritional, and educational services and the provision of facilities for recreational activities for older individuals.
(o) "Museum" means a public institution or an entity exempt from income tax pursuant to section 501(c)(3) of the Internal Revenue Code, which stores, preserves and exhibits objects of art, history, science or other objects of historical, educational or cultural value on a permanent basis in a building, portion of a building or outdoor location and which provides museum services to the public on a regular basis.
(3) The exemption granted by subsection (1)(f) of this section does not include any association or other organization whose members are political subdivisions or state agencies unless the organization is expressly created under the joint powers provision of sections 67-2328 through 67-2333, Idaho Code.
(4) The exemptions granted by subsection (1) of this section do not include the use of tangible personal property by a contractor used to improve real property of an exempt entity when such use is within the definition provided by section 63-3615(b), Idaho Code, whether the use tax liability is included in a contract total or stated separately in a contract.
(5) There is exempted from the taxes imposed in this chapter the renting of a place to sleep to an individual by the Idaho Ronald McDonald House.
[63-3622O, added 1984, ch. 239, sec. 2, p. 576; am. 2007, ch. 90, sec. 26, p. 263; am. 2008, ch. 172, sec. 1, p. 472; am. 2014, ch. 114, sec. 1, p. 325; am. 2018, ch. 111, sec. 1, p. 224; am. 2025, ch. 94, sec. 33, p. 486.]
(1) There is hereby exempted from the taxes imposed by this chapter a motor vehicle dealer’s labor or service charge to add accessories to new factory-delivered vehicles, when sold in conjunction with the new vehicle.
(2) For the purposes of this section:
(a) "Accessories" means an object, feature, or device that does not come standard with a motor vehicle to a motor vehicle dealer from a vehicle manufacturer or distributor, but may be ordered by the retail customer as an addition to the motor vehicle to enhance the performance, effectiveness, or beauty of the motor vehicle. Examples include, but are not limited to, saddlebags for a motorcycle, truck bed coating, and storage racks, chemical or film paint sealant, rustproofing, undercoating, stereo or sound systems, anti-theft devices, alarm systems, wheel locks, window tinting, splash guards, or fabric protection for motor vehicles. "Accessories" does not mean a service or maintenance contract.
(b) "Motor vehicle" means a passenger car, moped, motorbike, motorcycle, motor-driven cycle, motorized wheelchair, electric personal assistive mobility device, neighborhood electric vehicle, specialty off-highway vehicle, all-terrain vehicle, utility type vehicle, all as defined in chapter 1, title 49, Idaho Code, or a vessel, as defined in section 63-3622R(a)(4), Idaho Code, or any other motorized vehicle not described in this paragraph. "Motor vehicle" does not mean aircraft as defined in section 21-101, Idaho Code, a bus, motor home, recreational vehicle, park model recreational vehicle, farm tractor or other self-propelled farm equipment, any type of trailer, special mobile equipment, commercial vehicle or truck exceeding eight thousand (8,000) pounds, or authorized emergency vehicle, all as defined in chapter 1, title 49, Idaho Code.
[63-3622OO, added 2019, ch. 52, sec. 1, p. 140.]
There is exempted from the taxes imposed by this chapter the sale or purchase of tangible personal property shipped by the seller via the purchasing carrier under a bill of lading whether the freight is paid in advance, or the shipment is made freight charges collect, to a point outside this state if the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a common carrier.
[63-3622P, added 1984, ch. 239, sec. 17, p. 581.]
There is hereby exempted from the taxes imposed by this chapter the sale or purchase of Idaho commemorative silver medallions through the office of the treasurer of the state of Idaho or through agents designated by the state treasurer pursuant to the issuance of Idaho commemorative silver medallions authorized in section 67-1223, Idaho Code.
[63-3622PP, added 2003, ch. 369, sec. 1, p. 979.]
There is exempted from the taxes imposed by this chapter the sale or purchase of tangible personal property which is shipped to a point outside this state for use outside this state pursuant to a contract of sale by delivery by the vendor to such point by means of:
(a) Facilities operated by the vendor;
(b) Delivery by the vendor to a carrier for shipment to a consignee at such point; or
(c) Delivery by the vendor to a customs broker or forwarding agent for shipment outside this state.
[63-3622Q, added 1984, ch. 239, sec. 18, p. 581.]
There are exempted from the taxes imposed by this chapter:
(a) Sales to nonresidents of motor vehicles, trailers, vessels, all-terrain vehicles (ATVs), utility type vehicles (UTVs), specialty off-highway vehicles (SOHVs), motorcycles intended for off-road use and snowmobiles for use outside of this state, even though delivery be made within this state, but only when:
(1) The motor vehicles, vessels, ATVs, UTVs, SOHVs, motorcycles intended for off-road use, snowmobiles or trailers will be taken from the point of delivery in this state directly to a point outside this state; and
(2) The motor vehicles, vessels, ATVs, UTVs, SOHVs, motorcycles intended for off-road use, snowmobiles and trailers will be registered immediately under the laws of another state, will be titled in another state if required to be titled in that state, will not be used in this state more than ninety (90) days in any twelve (12) month period, and will not be required to be titled under the laws of this state. If the purchaser is a business entity, it must not have been formed under the laws of the state of Idaho in order to qualify for the exemption provided in this section.
(3) For the purpose of this subsection, the terms "all-terrain vehicle" or "ATV," "utility type vehicle" or "UTV," and "specialty off-highway vehicle" or "SOHV" mean all-terrain vehicle or ATV, utility type vehicle or UTV, and specialty off-highway vehicle or SOHV as defined in section 67-7101, Idaho Code.
(4) For the purpose of this section, the term "vessel" means any boat intended to carry one (1) or more persons upon the water that is either:
(i) Sold together with a motor; or
(ii) Eleven (11) feet in length or more, but shall not include canoes, kayaks, paddleboards, inflatable boats or similar watercraft, unless such canoes, kayaks, paddleboards, inflatable boats or similar watercraft are sold together with a motor.
(b) Sale of used manufactured homes, whether or not such used manufactured homes are sold for use outside this state, and whether or not such used manufactured homes are sold by a dealer. Every manufactured home sale after its sale as a "new manufactured home," as defined in section 63-3606, Idaho Code, is a sale as a used manufactured home.
(c) Sale or lease of motor vehicles with a maximum gross registered weight over twenty-six thousand (26,000) pounds, which shall be immediately registered under the international registration plan, whether or not base plated in Idaho, and the sale or lease of trailers that are part of a fleet of vehicles registered under the international registration plan when such vehicles and trailers are substantially used in interstate commerce. If such a motor vehicle or trailer is not substantially used in interstate commerce during any four (4) fiscal year quarters beginning July 1 and ending June 30 of each year under the international registration plan, it shall be deemed used in Idaho and subject to the use tax under section 63-3621, Idaho Code. For the purpose of this subsection, "substantially used in interstate commerce" means that the vehicles or trailers will be part of a fleet with a minimum of ten percent (10%) of the miles operated by the fleet accrued outside of Idaho in any four (4) fiscal year quarters beginning July 1 and ending June 30 of each year under the international registration plan.
(d) The sale or purchase of a glider kit when the glider kit will be used to assemble a glider kit vehicle as defined in section 49-123, Idaho Code, which will be immediately registered under a plan defined in subsection (c) of this section, provided that if the glider kit vehicle is not substantially used in interstate commerce as defined in subsection (c) of this section during any registration period, it shall be subject to the use tax under section 63-3621, Idaho Code.
(e) The use or other consumption of a motor vehicle temporarily donated to a driver’s education program sponsored by a nonprofit educational institution as defined in section 63-3622O, Idaho Code.
[63-3622R, added 1984, ch. 239, sec. 19, p. 581; am. 1987, ch. 18, sec. 5, p. 24; am. 1987, ch. 326, sec. 3, p. 683; am. 1989, ch. 309, sec. 1, p. 768; am. 1990, ch. 431, sec. 3, p. 1196; am. 1993, ch. 26, sec. 5, p. 90; am. 1995, ch. 54, sec. 5, p. 126; am. 1999, ch. 42, sec. 9, p. 96; am. 2001, ch. 354, sec. 1, p. 1241; am. 2002, ch. 60, sec. 1, p. 128; am. 2003, ch. 9, sec. 2, p. 20; am. 2003, ch. 87, sec. 2, p. 267; am. 2006, ch. 237, sec. 1, p. 721; am. 2007, ch. 111, sec. 2, p. 319; am. 2008, ch. 409, sec. 9, p. 1135; am. 2012, ch. 3, sec. 1, p. 5; am. 2015, ch. 20, sec. 1, p. 25; am. 2016, ch. 11, sec. 1, p. 11; am. 2017, ch. 53, sec. 1, p. 82; am. 2021, ch. 205, sec. 2, p. 559.]
(1) There is exempted from the taxes imposed by this chapter, the lease, rental, purchase, sale at retail, storage, use or other consumption in this state of tangible personal property which is primarily used in research and development activities.
(2) "Research and development" means an activity which is:
(a) Designed to advance existing knowledge or capability in the field of science or technology, the development of new products, materials, technologies or processes, including new uses for or improvements to existing products, materials, technologies or processes; and
(b) Related to the development, design, manufacture, processing, production or fabrication of:
(i) A product or potential product which is tangible personal property; or
(ii) Machinery, materials or components utilized or potentially utilized in the development, design, manufacture, processing, production or fabrication of a product or potential product which is tangible personal property.
[63-3622RR, added 2005, ch. 242, sec. 1, p. 752.]
There are exempted from the taxes imposed by this chapter receipts from the sale, storage, use or other consumption in this state of tangible personal property directly used and consumed in the production and broadcasting of radio and television programs when the purchase, storage, use or other consumption is by a business or segment of a business which is primarily devoted to such production and broadcasting, provided, that the use or consumption of such tangible personal property is necessary or essential to the performance of such operation. This exemption does not include machinery, equipment, materials and supplies used in a manner that is incidental to the production and broadcasting operation, such as maintenance and janitorial equipment and supplies; nor does it include tangible personal property used in any activities other than actual production and broadcasting operations such as office equipment and supplies, equipment and supplies used in selling and distributing activities, in research, or in transportation activities; nor shall this exemption include motor vehicles or aircraft, without regard to the use to which such motor vehicles or aircraft are put.
[63-3622S, added 1984, ch. 239, sec. 20, p. 582; am. 1987, ch. 326, sec. 4, p. 684; am. 1999, ch. 42, sec. 10, p. 97; am. 2016, ch. 9, sec. 1, p. 8.]
There is exempted from the taxes imposed by this chapter any fees that may be charged for the use of the facility at shooting ranges or shooting competitions by nonprofit organizations or membership dues charged by nonprofit hunting or shooting sports organizations.
[63-3622SS, added 2006, ch. 236, sec. 1, p. 720.]
There are exempted from the taxes imposed by this chapter:
(a) Receipts from the sale, storage, use or other consumption in this state of tangible personal property directly used and consumed in the production of publications in a newspaper format which are distributed to the public at large and which rely on advertising revenue as their primary source of income; provided, that the purchase, storage, use or other consumption is by a business or segment of a business which is primarily devoted to such production of said publications; provided, further, that the use or consumption of such tangible personal property is necessary or essential to the performance of such publication business. This exemption does not include machinery, equipment, materials and supplies used in a manner that is incidental to the production of said publications, such as maintenance and janitorial equipment and supplies; nor does it include tangible personal property used in any activities other than the actual production of the publication and shall not include property such as office equipment and supplies, equipment and supplies used in selling and distributing activities, in research or in transportation activities; nor shall this exemption include motor vehicles or aircraft without regard to the use to which such motor vehicles or aircraft are put.
(b) Provided, further, that this exemption shall apply when the publication referred to herein is distributed to the public free of charge.
(c) Provided, further, that in order for the exemption to be applicable, at least ten percent (10%) of the total publication, computed on an average annual column inch basis, must be devoted to the publication of nonincome producing informative material.
[63-3622T, added 1984, ch. 239, sec. 21, p. 582; am. 1987, ch. 326, sec. 5, p. 684; am. 1999, ch. 42, sec. 11, p. 98; am. 2016, ch. 9, sec. 2, p. 8.]
There is hereby exempted from the taxes imposed by this chapter any custom meat processing or packing service, when the consumer furnishes, directly or indirectly, the animal to any seller of meat processing or meat packing services, and any tangible personal property received, however processed, will not be resold.
[63-3622TT, added 2020, ch. 258, sec. 1, p. 753.]
There is exempted from the taxes imposed by this chapter the sale of tangible personal property relating to funeral services by a licensed funeral establishment.
[63-3622U, added 1984, ch. 239, sec. 22, p. 583.]
The taxes imposed by this chapter do not apply to charges for personal property tax added to the rent paid for leases of tangible personal property. This exemption applies if:
(1) The lessor separately states the charge for property tax to the lessee; and
(2) The amount charged to the lessee is not more than the property tax actually paid by the lessor; and
(3) The lease agreement is for an initial period of one (1) year or longer.
[63-3622UU, added 2008, ch. 92, sec. 1, p. 258.]
There is exempted from the taxes imposed by this chapter:
(a) The sale of precious metal bullion or the sale of monetized bullion.
(b) For purposes of this section, "precious metal bullion" means any elementary precious metal which has been put through a process of smelting or refining including, but not limited to, gold, silver, platinum, rhodium, and chromium, and which is in such state or condition that its value depends upon its contents and not upon its form.
(c) For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but shall not include coins or money sold to be manufactured into jewelry or works of art.
[63-3622V, added 1984, ch. 239, sec. 23, p. 583.]
(1) On and after July 1, 2020, there is exempted from the taxes imposed by this chapter the purchase or use of eligible server equipment and new data center facilities, as defined in this section. The exemption provided in this section shall be available only to qualifying business entities and contractors installing eligible server equipment or building new data center facilities for qualifying business entities. The exemption provided in this section shall not be available for property that has been the subject of business incentives granted to a taxpayer or its affiliates, pursuant to the Idaho reimbursement incentive act, sections 67-4737 through 67-4744, Idaho Code.
(2) As used in this section:
(a) "Business entity" means a separate legal entity or separately operated segment of business that exists for the primary purpose of engaging in a commercial activity for profit and whose sole purpose is the operation of a data center. For the purposes of this section, a separately operated segment of business is a segment of a business for which separate records are maintained and that is operated by an employee or employees whose primary employment responsibility is to operate the business segment.
(b) "Cabling" means a fiber or copper cable used in data centers to connect information sources to a server or storage device.
(c) "Capital investment" means real or tangible personal property that is purchased for use in Idaho and is used by a business entity for the purpose of operating a data center.
(d) "Chiller" means a cooling system used in data centers to remove heat from an element and deposit it into another element.
(e) "Commencement of operations" means the date on which a certificate of occupancy is issued for a data center.
(f) "Data center" means a facility comprised of one (1) or more buildings in Idaho that is used to house eligible server equipment for the transmission and storage of data where the facility has the following characteristics:
(i) Uninterruptible power supplies, generator power, or both;
(ii) Sophisticated fire suppression and prevention systems; and
(iii) Enhanced physical security and restricted access.
(g) "Eligible server equipment" means new server equipment acquired by a qualifying business entity as described in this subsection that is maintained and operated in a data center located in Idaho for the sole purpose of data transmission and storage services, providing data and transaction processing services, information technology services, or computer collocation services. "Eligible server equipment" includes servers, rack servers, chillers, storage devices, generators, cabling, and enabling software integral to or installed on such equipment.
(h) "Generator" means an engine used in data centers to convert mechanical energy into electricity.
(i) "New data center facilities" means buildings or structural components of buildings, including equipment, materials, and fixtures thereof, that are used in or intended for use primarily as a data center in Idaho.
(j) "New jobs" means new jobs created in Idaho that are nonseasonal, full-time jobs that collectively pay an average weekly wage that equals or exceeds the average weekly wage for the county where the data center is located, as determined by the most recent report of the United States bureau of labor statistics. A job that merely changes locations within the state of Idaho shall not be considered a new job under this section. New jobs must exceed the business entity’s highest number of full-time employees in Idaho during the twenty-four (24) months immediately preceding the commencement of operations of the data center.
(k) "Qualifying business entity" means a business entity that certifies to the state tax commission that it will make capital investments in one (1) or more data centers after July 1, 2020, in amounts of at least two hundred fifty million dollars ($250,000,000) in the aggregate within the first five (5) years after commencement of construction and that it will create and maintain at least thirty (30) new jobs at the data center within two (2) calendar years after the commencement of operations. Such business entities shall be entitled to a provisional exemption pursuant to this section during the period in which they make capital investments in data center property. If a business entity fails to meet the investment and job creation requirements provided within the time periods required in this section, it shall pay sales or use taxes that would have been due if not for the granting of the provisional exemption. If a business entity meets the investment and job creation requirements provided within the time periods required in this section, its provisional exemption shall become final without further action, and thereafter the exemption shall also apply to all additional purchases of eligible server equipment and purchases associated with constructing new data center facilities.
(l) "Rack server" means a computer in a data center dedicated to use as a server and designed to be installed in a framework called a rack.
(m) "Server" means a computer or computer program used in data centers that manages access to a centralized resource or service in a network.
(n) "Storage device" means a piece of computer equipment on which information can be stored and that is used in data centers.
(3) The state tax commission may promulgate rules to administer and enforce the provisions of this section, including the promulgation of rules relating to the provision of information necessary to certify that the taxpayer satisfies the criteria for a qualifying business entity. For the purpose of carrying out its duties to administer and enforce the provisions of this section, the state tax commission shall have the powers and duties provided by sections 63-217, 63-3038, 63-3039, 63-3042 through 63-3067, 63-3068, 63-3071, and 63-3074 through 63-3078, Idaho Code.
[63-3622VV, added 2020, ch. 335, sec. 1, p. 973.]
There are exempted from the taxes imposed by this chapter all sales of irrigation equipment and supplies to be used for agricultural production purposes, whether or not such equipment and supplies are to become a part of real estate and whether or not installed by the farmer, a contractor or subcontractor.
[63-3622W, added 1984, ch. 239, sec. 24, p. 584; am. 2016, ch. 9, sec. 3, p. 9.]
(1) This section shall be known and may be cited as the "Idaho Semiconductors for America Act."
(2) It is the intent of the legislature that the Idaho semiconductors for America act will meet all criteria set forth in federal law and program guidelines from the United States department of commerce or other delegated agency of the federal government to implement the domestic fabrication, assembly, testing, advanced packaging, or research and development of semiconductors to mitigate domestic supply chain risks, increase economic competitiveness, protect intellectual property, and decrease national security risks.
(3) On and after July 1, 2022, there is exempted from the taxes imposed by this chapter the purchase or use of construction and building materials directly used for a qualifying purpose by a qualifying covered entity for a qualifying project in Idaho during the project term. To qualify for the exemption in this section, an applicant must submit a project outline to the Idaho department of commerce on or before December 31, 2026. Modifications to an approved qualifying project outline must be submitted to the Idaho department of commerce on or before December 31, 2040.
(4) As used in this section:
(a) "Construction and building materials" means materials and supplies permanently installed or placed in or on a qualifying project. The term does not mean equipment, tools, and supplies used to construct or build the project.
(b) "Covered contractor" means any contractor, including subcontractors, that incurs costs and taxes from work done for a qualifying covered entity for a qualifying project.
(c) "Covered entity" means a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to engage in a qualifying project.
(d) "Project term" means the time period beginning on July 1, 2022, and ending upon the completion of the construction of the qualifying project, but no later than December 31, 2040.
(e) "Qualifying covered entity" means a covered entity that submits a qualifying project outline to the Idaho department of commerce that:
(i) Qualifies for a new, meaningful semiconductor incentive offered by the federal government for the purpose of implementing the domestic fabrication, assembly, testing, advanced packaging, or research and development of semiconductors to mitigate domestic supply chain risks, increase economic competitiveness, protect intellectual property, decrease national security risks, and any other reasons deemed necessary by the federal government. Meaningful incentives by the federal government include but are not limited to funding the CHIPS for America act, 15 U.S.C. 4651 through 4658, or providing and funding other such semiconductor investment tax credits; and
(ii) Qualifies for a meaningful incentive from the state of Idaho for a qualifying project for a qualifying purpose. Examples of meaningful incentives from the state of Idaho include but are not limited to the Idaho reimbursement incentive act, sections 67-4737 through 67-4744, Idaho Code; the Idaho small employer incentive act of 2005, chapter 44, title 63, Idaho Code; and the Idaho new capital investments incentives act of 2008, chapter 45, title 63, Idaho Code.
(f) "Qualifying project" means a new project for a qualified purpose by a covered entity.
(g) "Qualifying project outline" means a document submitted by a qualified covered entity to the Idaho department of commerce describing a new semiconductor project in Idaho that meets the definitions of a qualifying project in this section.
(h) "Qualifying purpose" means activities conducted in Idaho to construct, expand, or modernize a facility for the fabrication, assembly, testing, advanced packaging, or research and development of semiconductors, including a facility used primarily for qualified research for such purposes based on the criteria in section 41 of the Internal Revenue Code, including:
(i) A facility built for purposes of discovering information used for semiconductor fabrication, assembly, testing, or advanced packaging;
(ii) A technological facility built for semiconductor fabrication, assembly, testing, or advanced packaging;
(iii) A facility that is intended to be useful in the development of a new or improved business component of the qualifying covered entity used in semiconductor fabrication, assembly, testing, or advanced packaging; or
(iv) A facility where substantially all of the activities occurring at or in it constitute elements of a process of experimentation for semiconductor fabrication, assembly, testing, or advanced packaging for a purpose described in 26 U.S.C. 41(d)(3).
(5) The provisions of this section are contingent on the enactment and funding of a federal law providing a new and meaningful federal semiconductor incentive by December 31, 2026. If no such incentive is enacted and funded on or before December 31, 2026, no project or covered entity may qualify for an exemption under this section.
[63-3622WW, added 2022, ch. 162, sec. 1, p. 552.]
(1) There is hereby exempted from the taxes imposed by this chapter the sale, use or purchase of tangible personal property acquired and primarily used for the purpose of meeting air or water quality standards, rules or regulations of a state or federal agency having authority to regulate and set air or water quality emission standards.
(2) The exemption provided in subsection (1) of this section applies to and includes:
(a) The purchase of dry cleaning equipment that is designed to protect employees from exposure to perchloroethylene as well as retaining the fluid in the machine in order to protect sewer systems and air quality standards. Dry cleaning machines meeting these standards are referred to as "dry to dry transfer systems";
(b) The purchase of a liner or reagent required to meet water quality standards, rules or regulations of a state or federal agency having authority to regulate and set water quality standards regardless of whether the liner or reagent later becomes or is intended to become a component of any real property or improvement or fixture thereto;
(c) The sale, use or purchase of tangible personal property that becomes a component, fixture or improvement to realty acquired and primarily used for the purpose of meeting air or water quality emission standards, rules or regulations when purchased by:
(i) Manufacturing, mining or farming businesses that qualify for the exemption provided by section 63-3622D, Idaho Code, but not including property used to treat drinking water or to treat air or water that is not required for a production process;
(ii) Contractors working for manufacturing, mining or farming businesses that qualify for the exemption provided by section 63-3622D, Idaho Code, who purchase, use or install qualifying material at the direction of a project owner, but not including property used to treat drinking water or to treat air or water that is not required for a production process; or
(iii) Businesses principally devoted to treating and storing hazardous or toxic waste; and
(d) Tangible personal property that is necessary for the operation of property that qualifies for the exemption available in paragraph (c) of this subsection.
(3) The exemption provided in subsection (1) of this section does not apply to or include:
(a) Motor vehicles or aircraft, without regard to the use to which such motor vehicles or aircraft are put;
(b) The sale, use or purchase of fixtures, plumbing fixtures, pipe, pumps or other items used to treat or transport wastewater to a wastewater treatment plant that is owned by a wastewater operator as defined in section 54-2403, Idaho Code;
(c) The sale, use or purchase of fixtures or tangible personal property that is used to treat or transport drinking water by a drinking water operator as defined in section 54-2403, Idaho Code;
(d) The sale, use or purchase of property used to prevent soil erosion;
(e) The sale, use or purchase of property that is affixed to realty and that is used in road construction or the construction of residential or commercial buildings or other improvements to realty owned by persons other than the businesses described in subsection (2)(c) of this section;
(f) The sale, use or purchase of property used to construct buildings or structures that merely house pollution control equipment or a pollution control facility, including both building materials and construction equipment and including equipment used for excavation;
(g) The sale, use or purchase of tangible personal property used to install pollution control equipment or facilities; or
(h) The sale, use or purchase of tangible personal property that will become part of a septic tank or septic system.
[63-3622X, added 1984, ch. 239, sec. 25, p. 584; am. 1987, ch. 326, sec. 6, p. 685; am. 1997, ch. 273, sec. 1, p. 798; am. 1999, ch. 42, sec. 12, p. 98; am. 2006, ch. 326, sec. 1, p. 1029; am. 2007, ch. 290, sec. 1, p. 825.]
Any fee charged by a local government or a nonprofit entity that has tax-exempt status under section 501(c)(3) of the Internal Revenue Code for the adoption or rescue of an animal is deemed a service fee and not the sale or use of tangible personal property. Such adoption or rescue fees, which may include costs ordinarily and necessarily incurred by the local government or nonprofit entity for the care, feeding, housing, and transportation of such adopted or rescued animal, shall not be subject to the taxes imposed by this chapter and have never been subject to such taxes.
[63-3622XX, added 2025, ch. 283, sec. 1, p. 1207.]
There is hereby exempted from the taxes imposed in this chapter the sale, storage, use or other consumption of tangible personal property which is parts, material or equipment that will become a component of an aerial passenger tramway as defined in section 6-1102, Idaho Code, and snowgrooming and snowmaking equipment purchased and used by the owner or operator of a downhill ski area to prepare and maintain the downhill ski slopes accessed by aerial tramways.
[63-3622Y, added 1995, ch. 288, sec. 1, p. 966.]
(1) There is hereby exempted from the taxes imposed by this chapter sales of tangible personal property made by an individual making small sales. A small seller shall not collect or remit any state sales or use tax imposed by this chapter.
(2) For purposes of this section, "small seller" means an Idaho resident making sales that do not exceed five thousand dollars ($5,000) in cumulative gross receipts in the current calendar year. It shall not include partnerships, corporations, or limited liability corporations.
(3) The exemption provided in this section shall not apply to:
(a) Sales of motor vehicles, trailers, all-terrain vehicles, utility type vehicles, specialty off-highway vehicles, motorcycles intended for off-road use, snowmobiles, aircraft, vessels as defined in section 67-7003, Idaho Code, alcohol, or tobacco; or
(b) Items purchased to be sold or incorporated into items to be sold.
(4) A small seller with gross receipts exceeding five thousand dollars ($5,000) in a calendar year shall within thirty (30) days file with the state tax commission an application for a temporary seller’s permit and begin collecting and remitting sales and use tax on all sales exceeding five thousand dollars ($5,000) in such calendar year. No temporary seller’s permit shall be issued for a period of time greater than the remaining calendar year in which sales exceeded five thousand dollars ($5,000) for a small seller. If such seller reasonably anticipates to exceed five thousand dollars ($5,000) in sales for the next calendar year, such seller shall apply for a seller’s permit under the provisions of section 63-3620(a), Idaho Code. A small seller with gross receipts exceeding seven thousand five hundred dollars ($7,500) in a calendar year shall collect and remit sales and use tax on all sales made during such calendar year.
(5) A small seller shall indicate on such seller’s invoice, if requested by the purchaser, that the sale was exempt from sales and use tax pursuant to the provisions of this section.
(6) A small seller shall not permanently maintain, occupy, or use an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business or maintain a stock of goods with anticipation of exceeding gross receipts of five thousand dollars ($5,000).
(7) A small seller may file an application with the state tax commission for a seller’s permit pursuant to section 63-3620, Idaho Code, before such seller reaches the five thousand dollar ($5,000) threshold provided in subsection (2) of this section.
(8) Nothing in this section relieves a small seller from filing individual income tax returns for persons who meet the filing requirements under section 63-3030, Idaho Code.
(9) A small seller with sales exceeding three thousand dollars ($3,000) annually shall keep such records for not less than four (4) years pursuant to section 63-3624, Idaho Code.
[(63-3622YY) 63-3622XX, added 2025, ch. 86, sec. 1, p. 402; am. and redesig. 2026, ch. 189, sec. 2, p. ; 2026, am. and redesig. 2026, ch. 251, sec. 29, p. 1085.]
(1) There is hereby exempted from the taxes imposed by this chapter sales occurring within the boundaries of an Indian reservation located in Idaho when the business or enterprise is wholly owned and operated by an Idaho Indian tribe identified in section 67-4001, Idaho Code.
(2) As used in this section the word "reservation" means lands which are:
(a) Indian lands federally declared to be reservations because they are reserved for Indian tribes by treaty between Indian tribes and any territorial governments, state government, or the United States Government; or, established by acts of the United States congress; or established by formal decision of the executive branch of the United States; or
(b) Held by an Idaho Indian tribe not holding lands which meet the definition of subsection (2)(a) of this section and are tribal lands held in trust by the United States for the use and benefit of such tribe but not placed in trust after the effective date of this act.
[63-3622Z, added 1987, ch. 18, sec. 4, p. 24; am. 1988, ch. 166, sec. 1, p. 296.]
(a) The taxes imposed by this act are due and payable to the state tax commission monthly on or before the twentieth day of the succeeding month.
(b) All moneys collected or received by the state tax commission from the taxes, penalties, interest and fees imposed by this act shall be deposited with the state treasurer to be credited by him to the sales tax account created by this act.
(c) On or before the twentieth day of the month a return shall be filed with the state tax commission in such form as the state tax commission may prescribe.
(d) For the purpose of the sales tax, a return shall be filed by every seller. For the purposes of the use tax, a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property, the storage, use, or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. Returns shall be signed by the person required to file the return or by his duly authorized agent.
(e) For the purposes of the sales tax, the return shall show the total sales at retail subject to tax under this act during the reporting period. For the purposes of the use tax, in case of a return filed by a retailer, the return shall show the total sales price of the property sold by him, the storage, use, or consumption of which property became subject to the use tax during the reporting period; in the case of a return filed by a purchaser, the return shall show the total sales price of the property purchased by him, the storage, use, or consumption of which became subject to the use tax during the reporting period.
(f) The return shall show the amount of the taxes for the period covered by the return and such other information as the state tax commission deems necessary for the proper administration of this act.
(g) The person required to file the return shall mail or deliver the return together with a remittance of any tax due to the state tax commission for the reporting period.
(h) The state tax commission, if it deems it necessary in order to insure payment to or facilitate the collection by the state of taxes, may require returns for periods other than monthly periods.
(i) For the purposes of the sales tax, gross amounts from rentals or leases of tangible personal property which may be subject to tax under this act shall be reported and the tax paid in accordance with such rules as the state tax commission may prescribe.
(j) The state tax commission for good cause may extend, for not to exceed one (1) month, the time for making any return or paying any amount required to be paid under this act.
(k) Any person to whom an extension is granted and who pays the tax within the period for which the extension is granted shall pay, in addition to the tax, interest at the rate provided in section 63-3045, Idaho Code, from the date on which the tax would have been due without the extension until the day of payment.
(l) Upon the transfer of ownership of a motor vehicle subject to sales or use tax, a certificate of title will be issued to the new owner only upon presentation of evidence of payment of sales or use tax on the transaction.
(m) The owner of a motor vehicle or trailer required to be registered by the laws of this state shall, upon demand, furnish to the officer issuing such registration, satisfactory evidence that any sales or use tax to which such motor vehicle or trailer is subject has been paid to this state before any such registration shall be issued.
(n) Retail sales of tangible personal property through a vending machine which are taxable upon the purchase price paid by the owner or operator of the vending machine pursuant to subsection (e) of section 63-3613, Idaho Code, shall be reported upon the sales tax return of the owner or operator of the vending machine in the manner by which the tax commission may by rule prescribe.
[63-3623, added 1965, ch. 195, sec. 23, p. 408; am. 1966 (2nd E.S.), ch. 6, sec. 1, p. 17; am. 1977, ch. 36, sec. 2, p. 66; am. 1981, ch. 290, sec. 6, p. 600; am. 1983, ch. 4, sec. 14, p. 16; am. 1983, ch. 204, sec. 1, p. 556; am. 1984, ch. 285, sec. 1, p. 658; am. 1996, ch. 46, sec. 13, p. 135; am. 1999, ch. 42, sec. 14, p. 99.]
All moneys collected by retailers in compliance with this chapter shall, immediately upon collection, be state money and every such retailer shall hold such money for the state of Idaho and for payment to the state tax commission in the manner and at the times required in this chapter. Such money shall not, for any purpose, be considered to be a part of the proceeds of the sale to which the tax relates and shall not be subject to an encumbrance, security interest, execution or seizure on account of any debt owed by the retailer to any creditor other than the state tax commission.
[63-3623A, added 1983, ch. 220, sec. 2, p. 616.]
(a) For purposes of this section the term "amusement device" shall mean all coin, currency, or token operated machines and devices which are used for amusement including, but not limited to, game machines, pool tables, juke boxes, electronic games and similar devices.
(b) In lieu of the imposition of sales tax upon the use of the amusement device, the owner or lessee or person having the right to impose a charge for use of the amusement device must pay an annual permit fee of thirty-five dollars ($35.00) for each such device.
(c) Upon payment of the permit fees, the state tax commission shall issue the permit(s) to the owner or lessee or person having the right to impose a charge for use of the amusement device. Such permit fee may be increased in a proportionate amount by the commission if the state sales tax rate increases.
(d) All applications for a permit renewal must be made to the state tax commission on or before July 1 of each year. Such application shall contain the same information required on an application to secure a seller’s permit under this chapter and shall be accompanied by the annual permit fee due for each device.
(e) The state tax commission shall adopt a uniform system of providing, affixing and displaying official decals, labels or other official indicia evidencing that the owner, lessee, or person having the right to impose a charge for the use of the amusement device has paid the annual permit fee for such amusement device. No person subject to a permit fee under this chapter may impose a charge or collect any consideration for use of such amusement device unless such official decal, label, or other official indicia, as required herein, is affixed to such amusement device.
(f) In addition to the penalties set forth above and in section 63-3634, Idaho Code, the state tax commission may assess the following penalties:
(1) If any owner, lessee, or person having the right to impose a charge for the use of any coin, currency or token operated amusement device in this state shall violate any provision of this section or any rule promulgated under this section, the commission may assess penalties, of fifty dollars ($50.00) for each device for failure to pay timely permit sticker fees.
(2) A person who knowingly secures or attempts to secure an amusement device permit sticker under this section by fraud, misrepresentation, or subterfuge or uses any permit issued under this section in a fraudulent manner shall be subject to a penalty of up to twenty-five thousand dollars ($25,000).
(g) The state tax commission shall impose the penalties provided in this section by a notice of deficiency determination in the manner provided in section 63-3629, Idaho Code, which shall be subject to review as provided in section 63-3631, Idaho Code.
(h) The commission may revoke all permits of any person who operates any amusement device without complying with the provisions of this section. Notice of revocation shall be given in the manner provided for deficiencies in taxes in section 63-3629, Idaho Code, which shall be subject to review as provided in section 63-3631, Idaho Code.
(i) Permits issued under this section are transferable to another person only after written notice of the transfer is given to the state tax commission.
[63-3623B, added 1986, ch. 299, sec. 1, p. 748; am. 1993, ch. 26, sec. 6, p. 91; am. 1995, ch. 340, sec. 1, p. 1126; am. 1996, ch. 46, sec. 14, p. 136; am. 1997, ch. 62, sec. 6, p. 127.]
(a) The state tax commission shall enforce the provisions of this act and may prescribe, adopt, and enforce rules relating to the administration and enforcement of this act. The state tax commission may prescribe the extent to which any rule shall be applied without retroactive effect.
(b) The state tax commission shall employ qualified auditors for examination of taxpayers’ records and books. The state tax commission shall also employ such accountants, investigators, regional supervisors, assistants, clerks, and other personnel as are necessary for the efficient administration of this act, and may delegate authority to its representatives to conduct hearings, or perform any other duties imposed by this act.
(c) Every seller, every retailer, and every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer shall keep such records, receipts, invoices and other pertinent papers as the state tax commission may require. Every such seller, retailer or person who files the returns required under this act shall keep such records for not less than four (4) years from the making of such records unless the state tax commission in writing sooner authorizes their destruction.
(d) Retail food stores may petition to the state tax commission to be relieved from the responsibility of retaining detailed invoices of nontaxed sales for which the documentation required in sections 63-3620, 63-3621, or 63-3622, Idaho Code, and any other documentation which may be required by the tax commission, has been obtained by the store from the purchaser. The tax commission shall review each petition and may examine the books and records of the petitioner to insure that the products sold by the petitioner are those sold by a retail food store. The tax commission shall give written notice of its determination to the petitioner as soon as practicable after receiving the written request, but in no event later than sixty (60) days after receiving the petition. As used in this section, "retail food stores" shall mean those retail stores primarily engaged in selling food for home preparation and consumption described in major group 54 of the standard industrial classification manual (SIC) of 1987, as amended, published by the office of management and budget of the executive office of the president of the United States.
(e) The state tax commission, or any person authorized in writing by it, may examine the books, papers, records, and equipment of any person selling tangible personal property and any person liable for the use tax and may investigate the character of the business of the person in order to verify the accuracy of any return made, or, if no return is made by the person, to ascertain and determine the amount required to be paid.
(f) Purchasers claiming exemption from tax and retailers whose pertinent records are kept outside of the state must bring the records to Idaho for examination by the state tax commission upon request of the latter, or, by agreement with the state tax commission, permit an auditor designated by the state tax commission to visit the place where the records are kept, and there audit such records.
(g) In the administration of the use tax, the state tax commission may require the filing of reports by any person or class of persons having in his or their possession or custody information relating to sales of tangible personal property the storage, use, or other consumption of which is subject to the tax. The reports shall be filed when the state tax commission requires and shall set forth the names and addresses of purchasers of tangible personal property, the sale price of the property, the date of sale, and such other information as the state tax commission may require.
(h) When the tax commission determines that a retail sale is not exempt and the purchaser has failed to voluntarily pay sales or use tax in regard to the property or services purchased, the tax commission may collect the sales tax which was due at the time of the sale or the use tax due at the time of storage, use or other consumption of the taxable goods or services by issuing to the purchaser a notice of deficiency determination, asserting tax together with interest, at the rate provided in section 63-3045, Idaho Code, and may assert penalties found elsewhere in this chapter.
(i) If the tax commission determines that the purchaser has repeatedly or intentionally made purchases claimed to be exempt that are not exempt, and the purchaser has failed to voluntarily report and pay use tax in regard to those purchases, or the commission determines that the purchaser has repeatedly or intentionally made purchases claimed to be exempt that are not exempt and has removed the goods from this state, the commission may assert a penalty equal to five percent (5%) of the sales price of the property or two hundred dollars ($200), whichever is greater. The tax commission may abate the penalty when the purchaser establishes during a proceeding for redetermination that there were reasonable grounds for believing that the purchase was properly exempt from tax.
[63-3624, added 1965, ch. 195, sec. 24, p. 408; am. 1967, ch. 290, sec. 8, p. 805; am. 1991, ch. 176, sec. 7, p. 437; am. 1992, ch. 16, sec. 7, p. 46; am. 1994, ch. 111, sec. 4, p. 251; am. 1996, ch. 46, sec. 15, p. 138.]
The state tax commission, whenever it deems it necessary to insure compliance with this act, may require any person subject to this act to place with it such security as it may determine. The amount of the necessary security shall be fixed by the state tax commission but, except as provided hereafter, shall not be greater than three (3) times the estimated average monthly amount payable by such persons pursuant to this act or ten thousand dollars ($10,000), whichever amount is the lesser. In the case of persons habitually delinquent in their obligations under this act, the amount of the security shall not be greater than five (5) times the estimated average monthly amount payable by such persons pursuant to this act or ten thousand dollars ($10,000), whichever is the lesser. The amount of the security may be increased or decreased by the state tax commission at any time, subject to the limitations above set forth.
The state tax commission may sell the security at public auction or, in the case of security in the form of bearer bonds issued by the United States or the state of Idaho which have a prevailing market price, at a private sale at a price not lower than the prevailing market price if it becomes necessary to make such sale in order to recover any tax, interest or penalties due on any amount required to be collected. Notice of the sale must be given to the person who deposited the security at least ten (10) days before the sale; such notice may be given personally or by mail addressed to the person at the address furnished to the state tax commission and as it appears in the records of the state tax commission. Upon such sale, any surplus above the amounts due shall be returned to the person who placed the security.
[63-3625, added 1965, ch. 195, sec. 25, p. 408.]
(a) Subject to the provisions of subsection (b) of this section, if any amount due under this chapter has been overpaid, the excess amount may be credited on any amount then due to the state tax commission from the person by whom the excess was paid and any balance refunded to that person.
(b) (1) No such credit or refund shall be allowed after three (3) years from the time the payment was made to the state tax commission, unless before the expiration of such period a written claim therefor is filed with the state tax commission by the claimant or the claimant’s representative, but only if the claimant has authorized in writing the representative to file a claim.
(2) For periods in regard to which the state tax commission asserts a deficiency under section 63-3629 or 63-3630, Idaho Code, a claim for refund, relating to the period to which the deficiency relates, must be made on or before the later of:
(i) The date provided in subsection (b)(1) of this section; or
(ii) The date upon which any administrative or judicial proceeding relating to such deficiency is finally resolved; or
(iii) The date specified in any agreement under section 63-3633(g), Idaho Code.
(3) A taxpayer claiming a refund of amounts paid in obedience to such deficiencies must do so by appealing within the time limits prescribed in sections 63-3631 and 63-3049, Idaho Code.
(c) Interest shall be allowed on the amount of such credits or refunds at the rate provided in section 63-3045, Idaho Code, from the date such tax was paid to the state tax commission.
(d) If the state tax commission denies a claim for refund in whole or in part, it shall provide notice of the denial in the manner provided in section 63-3629(c), Idaho Code. The claimant may petition the state tax commission for a redetermination of the denial as provided in section 63-3631, Idaho Code. The state tax commission shall issue a final decision pursuant to the requirements of section 63-3045B, Idaho Code. Appeal of a tax commission decision denying in whole or in part a claim for refund shall be made in accordance with and within the time limits prescribed in section 63-3049, Idaho Code.
[63-3626, added 1965, ch. 195, sec. 26, p. 408; am. 1970, ch. 223, sec. 1, p. 630; am. 1971, ch. 214, sec. 2, p. 936; am. 1980, ch. 11, sec. 1, p. 24; am. 1981, ch. 290, sec. 4, p. 599; am. 1991, ch. 176, sec. 8, p. 438; am. 1992, ch. 16, sec. 8, p. 48; am. 1997, ch. 62, sec. 7, p. 129; am. 2002, ch. 38, sec. 1, p. 85.]
(a) Every person with the duty to account for and pay over any tax which is imposed upon or required to be collected by any taxpayer under this chapter on behalf of such taxpayer as an officer, member or employee of such taxpayer, shall be personally liable for payment of such tax, plus penalties and interest, if he fails to carry out his duty.
(b) Any such individual required to collect, truthfully account for, and pay over any tax imposed by this chapter who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. No penalty shall be imposed under section 63-3046(b), Idaho Code, for any offense to which this subsection (b) is applicable.
[63-3627, added 1965, ch. 195, sec. 27, p. 408; am. 1967, ch. 290, sec. 9, p. 805; am. 1998, ch. 45, sec. 1, p. 192; am. 2003, ch. 7, sec. 1, p. 14.]
(a) If any vendor liable for any amount under this act sells out his business or stock of goods, the vendee shall make inquiry of the state tax commission and withhold from the purchase price any amount of tax that may be due under this act until such time as the vendor produces a receipt stating that no amount is due.
(b) If the purchaser of a business or stock of goods fails to withhold from the purchase price as above required, he becomes personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price valued in money.
(c) The state tax commission shall, as soon as practicable after receiving written inquiry as to the amount due and no later than thirty (30) days after receipt of the inquiry or, if necessary, thirty (30) days from the date the vendor’s records are made available for audit, but in any event no later than sixty (60) days after receiving the inquiry, issue a statement to the purchaser setting forth the amount of tax due by the vendor, if any. Failure of the state tax commission to issue such statement will release the purchaser from any obligation to withhold from the purchase price as above required.
[63-3628, added 1965, ch. 195, sec. 28, p. 408.]
(a) If the state tax commission is not satisfied with the return or returns of the tax, because of errors or omissions discovered in audits or in any other way, it may compute and determine the amount which is due upon the basis of facts contained in the return or returns or upon the basis of any information within its possession or that may come into its possession and assert a deficiency. One or more deficiency determinations may be made of the amount due for one or for more than one period. In making such determination, the state tax commission may offset overpayments against amounts due.
(b) If any person fails to make a return, the state tax commission shall make an estimate of the amount of sales or use subject to tax by this act, and shall in this manner determine the amount of tax due from such person. The estimate shall be made for the period or periods in respect to which the person failed to make a return and shall be based upon any information which is in the state tax commission’s possession or may come into its possession.
(c) The state tax commission shall give written notice of its determination and the amount of the deficiency, including any interest and penalties, to the person from whom such deficiency amount is due in the manner prescribed by section 63-3045, Idaho Code.
[63-3629, added 1965, ch. 195, sec. 29, p. 408; am. 1993, ch. 94, sec. 9, p. 236.]
If the state tax commission finds that a taxpayer is about to depart from the state of Idaho or to remove his property therefrom, or to conceal himself or his property therein, or to do any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect the tax for the taxable period or any taxes unless such proceedings be brought without delay, the state tax commission shall thereupon make a determination of the tax or amount of tax, together with interest or penalty, required to be collected, noting that fact upon the determination. Upon giving notice and demand, the amount determined shall be immediately due and payable. In any proceeding in court brought to enforce payment of taxes made due and payable by virture of the provisions of this section, the finding of the state tax commission, made as herein provided, whether made after notice to the taxpayer or not, shall be for all purposes prima facie evidence of the taxpayers design.
Collection procedures may be instituted immediately. Any taxpayer deeming himself aggrieved may, within thirty (30) days of receipt of notice, petition to the state tax commission for a redetermination upon payment of the tax together with interest and penalty demanded by the assessment to the state tax commission.
[63-3630, added 1965, ch. 195, sec. 30, p. 408; am. 1967, ch. 290, sec. 10, p. 805.]
(1) Any person against whom a deficiency determination is made under section 63-3629, Idaho Code, or in regard to whom the state tax commission proposes to revoke or suspend a permit under section 63-3620, 63-3620A or 63-3623B, Idaho Code, or any person directly interested, may petition for a redetermination within the time period allowed by section 63-3045, Idaho Code. If a petition for redetermination is not filed within the time period allowed, the determination becomes final as provided in section 63-3045B, Idaho Code.
(2) The state tax commission may decrease or increase the amount of the determination before it becomes final, but the amount may be increased only if a claim for the increase is asserted by the state tax commission at or before the hearing.
(3) A person petitioning for a redetermination under subsection (1) of this section may, in support of his petition, submit resale certificates as provided in section 63-3620 or section 63-3621, Idaho Code, or an exemption certificate as provided in section 63-3622, Idaho Code, only if such certificates are presented to the tax commission within ninety (90) days of the date of the notice of deficiency determination to which the petition relates.
[63-3631, added 1965, ch. 195, sec. 31, p. 408; am. 1972, ch. 7, sec. 1, p. 10; am. 1992, ch. 16, sec. 9, p. 49; am. 1993, ch. 94, sec. 10, p. 237; am. 1996, ch. 210, sec. 3, p. 682.]
Interest upon any deficiency shall be assessed at the rate provided in section 63-3045, Idaho Code, and calculated in accordance with the provisions of that section.
[63-3632, added 1965, ch. 195, sec. 32, p. 408; am. 1967, ch. 290, sec. 11, p. 805; am. 1969, ch. 453, sec. 17, p. 1195; am. 1980, ch. 11, sec. 2, p. 24; am. 1981, ch. 290, sec. 5, p. 600; am. 1993, ch. 94, sec. 11, p. 237; am. 2024, ch. 116, sec. 2, p. 501.]
Except as otherwise provided in this section:
(a) The amount of taxes imposed by this chapter shall be assessed within three (3) years after the due date of the return or the date the return was filed, whichever is the later, and no proceeding in court without assessment for the collection of such taxes shall be begun after the expiration of such period; provided, however, if an assessment has been made within the prescribed time, such tax may be collected by levy or by a proceeding in court within a period of six (6) years after assessment of the tax and, provided further, that this shall not be in derogation of any of the remedies elsewhere herein provided. The running of the period of limitations provided by this section shall be suspended for the period during which the state tax commission is prohibited from making the assessment or from collecting by levy or a proceeding in court, and for thirty (30) days thereafter.
(b) In the case of a false or fraudulent return with the intent to evade tax, or a willful attempt in any manner to defeat or evade tax, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time.
(c) In the case of taxes owed by a person who has failed to file a return as provided in section 63-3623, Idaho Code, the amount of taxes imposed in this chapter shall be assessed within seven (7) years of the time the return upon which the tax asserted to be due should have been filed unless the person had a reasonable belief that no taxes imposed by this chapter were due or payable, in which case within three (3) years of the time the return upon which the taxes asserted to be due should have been filed.
(d) The periods of limitation upon assessment and collection provided in this section shall not apply:
(1) In cases where the facts disclose a false or fraudulent act with the intent to evade tax, or
(2) To taxes collected by a retailer, seller or any other person who has failed to pay over such taxes to the state tax commission.
(e) In the case of taxes due during the lifetime of a decedent, or by his estate during the period of administration, a notice of deficiency shall be issued, a claim shall be made, the tax shall be assessed, or any proceeding in court without assessment for the collection of such tax shall be begun, within twelve (12) months after written request for prompt action is filed with the state tax commission by the executor, administrator, or other fiduciary representing the estate of such decedent. This subsection shall not apply if the return for which the request for prompt action relates has not been filed with the state tax commission.
(f) No assessment of a deficiency with respect to the tax imposed by this chapter, and no distraint or proceedings in court for its collection shall be made, begun, or prosecuted until a notice under section 63-3629, Idaho Code, has been mailed to the taxpayer, nor until all appeal rights relating to the deficiency have become final.
(g) Where, before the expiration of the time prescribed in this section for the assessment of any tax imposed by this act, both the state tax commission or its delegate or deputy and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
[63-3633, added 1965, ch. 195, sec. 33, p. 408; am. 1967, ch. 290, sec. 12, p. 805; am. 1972, ch. 7, sec. 2, p. 10; am. 1989, ch. 363, sec. 5, p. 911; am. 1993, ch. 26, sec. 7, p. 91; am. 1995, ch. 110, sec. 1, p. 346; am. 1997, ch. 113, sec. 5, p. 283; am. 1998, ch. 48, sec. 5, p. 198; am. 2025, ch. 302, sec. 3, p. 1282.]
The additions, penalties and requirements provided by the Idaho Income Tax Act, sections 63-3046, 63-3075, 63-3076 and 63-3077, Idaho Code, shall apply in the same manner and to the same extent to this act as to the Idaho Income Tax Act and shall cover acts, omissions, and delinquencies under this act similar to acts, omissions and delinquencies under the Idaho Income Tax Act and such additions, penalties and requirements shall, for this purpose, be described as and be for acts, omissions, delinquencies and requirements under the Idaho Sales Tax Act; provided, however, that the provisions of section 63-3076, Idaho Code, shall not prevent the release of information about a specific transaction to any party to such transaction and any individual signing an exemption claim relating to the transaction. The tax commission may release such information only when it determines that the release will benefit the enforcement of this chapter, and not otherwise.
[63-3634, added 1965, ch. 195, sec. 34, p. 408; am. 1991, ch. 176, sec. 9, p. 439; am. 1992, ch. 16, sec. 10, p. 49; am. 1995, ch. 54, sec. 6, p. 127.]
Notwithstanding the provisions of section 63-3634 or 63-3076, Idaho Code, relating to confidentiality, the state tax commission may enter into a written agreement with the Idaho transportation department providing for exchange of information as both the commission and the department may find necessary to implement the letter and intent of this chapter or the laws relating to the registration of motor vehicles and the issuing of driver’s licenses in this state. The state tax commission is not authorized by this section to disclose any financial information from any tax return filed with the state tax commission other than whether or not an individual filed a resident or nonresident return.
[63-3634A, added 1988, ch. 314, sec. 1, p. 972; am. 2023, ch. 9, sec. 2, p. 33.]
The collection and enforcement procedures provided by the Idaho Income Tax Act, sections 63-3030A, 63-3038, 63-3039, 63-3040, 63-3042, 63-3043, 63-3044, 63-3045B, 63-3047, 63-3048, 63-3049, 63-3050 through 63-3064, 63-3065A, 63-3071 and 63-3074, Idaho Code, shall apply and be available to the state tax commission for enforcement of the provisions of this act and collection of any amounts due under this act, and said sections shall, for this purpose, be considered part of this act and wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under this act, be described as sales and use tax liens and proceedings.
[63-3635, added 1965, ch. 195, sec. 35, p. 408; am. 1982, ch. 279, sec. 2, p. 711; am. 1991, ch. 2, sec. 5, p. 15; am. 1993, ch. 26, sec. 8, p. 92; am. 1995, ch. 54, sec. 7, p. 127; am. 1996, ch. 46, sec. 16, p. 139.]
For the purposes of section 63-3638, Idaho Code, the following definitions shall apply:
(1) "Per capita distribution" means the amount to be distributed to cities and counties on the basis of their most current population or population estimates available from the United States census bureau no later than thirty (30) days prior to the next quarterly distribution from the revenue-sharing account.
(2) "Revenue-sharing account" means the account established in the treasury for all sales and use tax revenue to be distributed on a quarterly basis pursuant to section 63-3638(10), Idaho Code.
[63-3637, added 2020, ch. 162, sec. 1, p. 470.]
All moneys collected under this chapter, except as may otherwise be required in sections 63-3203, 63-3620F, and 63-3709, Idaho Code, shall be distributed by the state tax commission as follows:
(1) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized under this chapter by the state tax commission shall be paid through the state refund account, and those moneys are continuously appropriated.
(2) Five million dollars ($5,000,000) per year is continuously appropriated and shall be distributed to the permanent building fund, provided by section 57-1108, Idaho Code.
(3) Four million eight hundred thousand dollars ($4,800,000) per year is continuously appropriated and shall be distributed to the water pollution control fund established by section 39-3628, Idaho Code.
(4) An amount equal to the sum required to be certified by the chairman of the Idaho housing and finance association to the state tax commission pursuant to section 67-6211, Idaho Code, in each year is continuously appropriated and shall be paid to any capital reserve fund established by the Idaho housing and finance association pursuant to section 67-6211, Idaho Code. Such amounts, if any, as may be appropriated hereunder to the capital reserve fund of the Idaho housing and finance association shall be repaid for distribution under the provisions of this section, subject to the provisions of section 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as possible, from any moneys available therefor and in excess of the amounts the association determines will keep it self-supporting.
(5) An amount equal to the sum required by the provisions of sections 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by section 63-718(3), Idaho Code, is continuously appropriated and shall be paid as provided by sections 63-709 and 63-717, Idaho Code.
(6) An amount required by the provisions of chapter 53, title 33, Idaho Code.
(7) An amount required by the provisions of chapter 87, title 67, Idaho Code.
(8) For fiscal year 2011 and each fiscal year thereafter, four million one hundred thousand dollars ($4,100,000), of which two million two hundred thousand dollars ($2,200,000) shall be distributed to each of the forty-four (44) counties in equal amounts and one million nine hundred thousand dollars ($1,900,000) shall be distributed to the forty-four (44) counties in the proportion that the population of the county bears to the population of the state. For fiscal year 2012 and for each fiscal year thereafter, the amount distributed pursuant to this subsection shall be adjusted annually by the state tax commission in accordance with the consumer price index for all urban consumers (CPI-U) as published by the U.S. department of labor, bureau of labor statistics, but in no fiscal year shall the total amount allocated for counties under this subsection be less than four million one hundred thousand dollars ($4,100,000). Any increase resulting from the adjustment required in this section shall be distributed to each county in the proportion that the population of the county bears to the population of the state. Each county shall establish a special election fund to which shall be deposited all revenues received from the distribution pursuant to this subsection. All such revenues shall be used exclusively to defray the costs associated with conducting elections as required of county clerks by the provisions of section 34-1401, Idaho Code.
(9) One dollar ($1.00) on each application for certificate of title or initial application for registration of a motor vehicle, snowmobile, all-terrain vehicle or other vehicle processed by the county assessor or the Idaho transportation department, excepting those applications in which any sales or use taxes due have been previously collected by a retailer, shall be a fee for the services of the assessor of the county or the Idaho transportation department in collecting such taxes and shall be paid into the current expense fund of the county or state highway account established in section 40-702, Idaho Code.
(10) Eleven and five-tenths percent (11.5%) of revenues collected under this chapter, following any distributions required by sections 63-3203, 63-3620F, and 63-3709, Idaho Code, and by subsection (1) of this section, is continuously appropriated and shall be distributed to the revenue-sharing account, which is hereby created in the state treasury, and the moneys in the revenue-sharing account will be paid in installments each calendar quarter by the state tax commission as follows:
(a) Forty-five and two-tenths percent (45.2%) shall be paid to the various cities as follows:
(i) The revenue-sharing amount calculated by the state tax commission for the various cities for each quarter of fiscal year 2020 shall be the base amount for current quarterly revenue distribution amounts. The state tax commission shall calculate the per capita distribution for each city resulting from the previous fiscal year’s distributions.
(ii) If there is no change in the amount of the revenue-sharing account from the same quarter of the previous fiscal year, then the various cities shall receive the same amount received for the same quarter of the previous fiscal year.
(iii) If the balance of the revenue-sharing account for the current quarter is greater than the balance of the revenue-sharing account for the same quarter of the previous fiscal year, then:
If the distributions made to the cities during the same quarter of the previous fiscal year were below the base amount established in fiscal year 2020, then the various cities shall first receive a proportional increase up to the base amount for each city and up to a one-percent (1%) increase over such base amount. Any remaining moneys shall be distributed to cities with a below-average per capita distribution in the proportion that the population of that city bears to the population of all cities with below-average per capita distributions within the state.
If the distributions made to the cities during the same quarter of the previous fiscal year were at or above the base amount established in fiscal year 2020, then the cities shall receive the same distribution they received during the same quarter of the previous fiscal year plus a proportional increase up to one percent (1%). Any remaining moneys shall be distributed to the cities with a below-average per capita distribution in the proportion that the population of that city bears to the population of all cities with a below-average per capita distribution within the state.
(iv) If the balance of the revenue-sharing account for the current quarter is less than the balance of the revenue-sharing account for the same quarter of the previous fiscal year, then the cities shall first receive a proportional reduction down to the base amount established in fiscal year 2020. If further reductions are necessary, the cities shall receive reductions based on the proportion that each city’s population bears to the population of all cities within the state.
(b) Forty-seven and one-tenth percent (47.1%) shall be paid to the various counties as follows:
(i) Fifty-nine and eight-tenths percent (59.8%) of the amount to be distributed under this paragraph (b) of this subsection shall be distributed as follows:
One million three hundred twenty thousand dollars ($1,320,000) annually shall be distributed one forty-fourth (1/44) to each of the various counties; and
The balance of such amount shall be paid to the various counties, and each county shall be entitled to an amount in the proportion that the population of that county bears to the population of the state; and
(ii) Forty and two-tenths percent (40.2%) of the amount to be distributed under this paragraph (b) of this subsection shall be distributed as follows:
Each county that received a payment under the provisions of section 63-3638(e), Idaho Code, as that subsection existed immediately prior to July 1, 2000, during the fourth quarter of calendar year 1999, shall be entitled to a like amount during succeeding calendar quarters.
If the dollar amount of money available under this subsection (10)(b)(ii) in any quarter does not equal the amount paid in the fourth quarter of calendar year 1999, each county’s payment shall be reduced proportionately.
If the dollar amount of money available under this subsection (10)(b)(ii) in any quarter exceeds the amount paid in the fourth quarter of calendar year 1999, each county shall be entitled to a proportionately increased payment, but such increase shall not exceed one hundred five percent (105%) of the total payment made in the fourth quarter of calendar year 1999.
If the dollar amount of money available under this subsection (10)(b)(ii) in any quarter exceeds one hundred five percent (105%) of the total payment made in the fourth quarter of calendar year 1999, any amount over and above such one hundred five percent (105%) shall be paid to the various counties in the proportion that the population of the county bears to the population of the state; and
(c) Seven and seven-tenths percent (7.7%) of the amount appropriated in this subsection shall be paid to the several counties for distribution to special purpose taxing districts as follows:
(i) Each such district that received a payment under the provisions of section 63-3638(e), Idaho Code, as such subsection existed immediately prior to July 1, 2000, during the fourth quarter of calendar year 1999, shall be entitled to a like amount during succeeding calendar quarters.
(ii) If the dollar amount of money available under this subsection (10)(c) in any quarter does not equal the amount paid in the fourth quarter of calendar year 1999, each special purpose taxing district’s payment shall be reduced proportionately.
(iii) If the dollar amount of money available under this subsection (10)(c) in any quarter exceeds the amount distributed under paragraph (c)(i) of this subsection, each special purpose taxing district shall be entitled to a share of the excess based on the proportion each such district’s current property tax budget bears to the sum of the current property tax budgets of all such districts in the state. Each year, starting with the distribution for the quarter ending December 31, the state tax commission shall calculate this distribution based on the district’s current property tax budgets, including any unrecovered forgone amounts as determined under section 63-802(1)(e), Idaho Code. When a special purpose taxing district is situated in more than one (1) county, the state tax commission shall determine the portion attributable to the special purpose taxing district from each county in which it is situated.
(iv) If special purpose taxing districts are consolidated, the resulting district is entitled to a base amount equal to the sum of the base amounts received in the last calendar quarter by each district prior to the consolidation.
(v) If a special purpose taxing district is dissolved or disincorporated, the state tax commission shall continuously distribute to the board of county commissioners an amount equal to the last quarter’s distribution prior to dissolution or disincorporation. The board of county commissioners shall determine any redistribution of moneys so received.
(vi) Taxing districts formed after January 1, 2001, are not entitled to a payment under the provisions of this paragraph (c) of this subsection.
(vii) For purposes of this paragraph (c) of this subsection, a special purpose taxing district is any taxing district that is not a city, a county, or a school district.
(viii) Special purpose taxing districts shall use funds received under the provisions of this subsection only for the purposes for which the special purpose taxing districts were formed.
(11) Amounts calculated in accordance with section 2, chapter 356, laws of 2001, for annual distribution to counties and other taxing districts beginning in October 2001 for replacement of property tax on farm machinery and equipment exempted pursuant to section 63-602EE, Idaho Code. For nonschool districts, the state tax commission shall distribute one-fourth (1/4) of this amount certified quarterly to each county. For school districts, the state tax commission shall distribute one-fourth (1/4) of the amount certified quarterly to each school district. For nonschool districts, the county auditor shall distribute such amounts to each district within thirty (30) calendar days from receipt of moneys from the state tax commission. Moneys received by each taxing district for replacement shall be utilized in the same manner and in the same proportions as revenues from property taxation. The moneys remitted to the county treasurer for replacement of property exempt from taxation pursuant to section 63-602EE, Idaho Code, may be considered by the counties and other taxing districts and budgeted at the same time, in the same manner, and in the same year as revenues from taxation on personal property, which these moneys replace. If taxing districts are consolidated, the resulting district is entitled to an amount equal to the sum of the amounts received in the last calendar quarter by each district pursuant to this subsection prior to the consolidation. If a taxing district is dissolved or disincorporated, the state tax commission shall continuously distribute to the board of county commissioners an amount equal to the last quarter’s distribution prior to dissolution or disincorporation. The board of county commissioners shall determine any redistribution of moneys so received. If a taxing district annexes territory, the distribution of moneys received pursuant to this subsection shall be unaffected. Taxing districts formed after January 1, 2001, are not entitled to a payment under the provisions of this subsection. School districts shall receive an amount determined by multiplying the sum of the year 2000 school district levy minus .004 times the market value on December 31, 2000, in the district of the property exempt from taxation pursuant to section 63-602EE, Idaho Code, provided that the result of these calculations shall not be less than zero (0). The result of these school district calculations shall be further increased by six percent (6%). For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this section as property tax replacement for property exempt from taxation pursuant to section 63-602EE, Idaho Code, shall be treated as property tax revenues.
(12) Amounts necessary to pay refunds as provided in section 63-3641, Idaho Code, to a developer of a retail complex shall be remitted to the demonstration pilot project fund created in section 63-3641, Idaho Code.
(13) Amounts calculated in accordance with section 63-602KK(4), Idaho Code, for annual distribution to counties and other taxing districts for replacement of property tax on personal property tax exemptions pursuant to section 63-602KK(2), Idaho Code, which amounts are continuously appropriated unless the legislature enacts a different appropriation for a particular fiscal year. For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this section as property tax replacement for property exempt from taxation pursuant to section 63-602KK, Idaho Code, shall be treated as property tax revenues. If taxing districts are consolidated, the resulting district is entitled to an amount equal to the sum of the amounts that were received in the last calendar year by each district pursuant to this subsection prior to the consolidation. If a taxing district or revenue allocation area annexes territory, the distribution of moneys received pursuant to this subsection shall be unaffected. Taxing districts and revenue allocation areas formed after January 1, 2022, are not entitled to a payment under the provisions of this subsection.
(14) For fiscal year 2023 only, a sum of thirty-four million dollars ($34,000,000) shall be distributed each year by the state tax commission to the forty-four (44) counties in the proportion that the expenditures of each county for indigent defense services during county fiscal year 2021, excluding any state funding or grants, bear to the expenditures of all counties in the state for indigent defense services during county fiscal year 2021, excluding any state funding or grants. No later than July 1, 2022, the state public defense commission shall certify to the state tax commission each county’s proportionate share of all counties’ indigent defense expenses in county fiscal year 2021, excluding any state funding or grants.
(15) For fiscal year 2024 and each fiscal year thereafter, two and twenty-five hundredths percent (2.25%) of revenues collected under this chapter, following any distributions required by sections 63-3203, 63-3620F, and 63-3709, Idaho Code, and by subsections (1), (10), and (16) of this section, is continuously appropriated and shall be distributed annually to the homeowner property tax relief account established in section 63-724, Idaho Code.
(16)(a) Prior to July 1, 2025, four and five-tenths percent (4.5%) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section, but no less than eighty million dollars ($80,000,000) and no more than one hundred forty million dollars ($140,000,000), shall be distributed as follows:
(i) Eighty million dollars ($80,000,000) is continuously appropriated and shall be distributed to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and
(ii) The remaining moneys in excess of eighty million dollars ($80,000,000) provided for in this subsection is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this paragraph for local highway projects.
(b) From July 1, 2025, through June 30, 2026, one hundred forty-five million dollars ($145,000,000) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section shall be distributed as follows:
(i) One hundred million dollars ($100,000,000) is continuously appropriated and shall be distributed first to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and
(ii) The remaining forty-five million dollars ($45,000,000) provided for in this paragraph is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this subparagraph for local highway projects.
(c) From July 1, 2026, through June 30, 2027, one hundred sixty-five million dollars ($165,000,000) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section shall be distributed as follows:
(i) One hundred twenty million dollars ($120,000,000) is continuously appropriated and shall be distributed first to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and
(ii) The remaining forty-five million dollars ($45,000,000) provided for in this paragraph is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this subparagraph for local highway projects.
(d) Commencing July 1, 2027, and for each fiscal year thereafter, one hundred eighty-five million dollars ($185,000,000) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section shall be distributed as follows:
(i) One hundred forty million dollars ($140,000,000) is continuously appropriated and shall be distributed first to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and
(ii) The remaining forty-five million dollars ($45,000,000) provided for in this paragraph is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this subparagraph for local highway projects.
(17) Beginning in fiscal year 2024 and each fiscal year thereafter, three hundred thirty million dollars ($330,000,000) shall be distributed annually to the general fund specifically for the public schools educational support program, and eighty million dollars ($80,000,000) shall be distributed annually to the in-demand careers fund established in section 72-1206, Idaho Code. The state tax commission shall make such transfers in quarterly installments.
(18) For fiscal year 2024 and each fiscal year thereafter, three and twenty-five hundredths percent (3.25%) of revenues collected under this chapter, following any distributions required by sections 63-3203, 63-3620F, and 63-3709, Idaho Code, and by subsections (1), (10), and (16) of this section, is continuously appropriated and shall be distributed annually to the school district facilities fund established pursuant to section 33-911, Idaho Code.
(19) One hundred twenty-five million dollars ($125,000,000) collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1), (10), (15), (16), and (18) of this section is continuously appropriated and shall be distributed to the school modernization facilities fund established in section 33-912, Idaho Code. The state tax commission shall make such transfers in quarterly installments.
(20) Any moneys remaining over and above those necessary to meet and reserve for payments under other subsections of this section shall be distributed to the general fund.
[63-3638, added 1965, ch. 195, sec. 38, p. 408; am. 1967, ch. 115, sec. 11, p. 222; am. 1967, ch. 116, sec. 3, p. 229; am. 1967, ch. 377, sec. 2, p. 1109; am. 1970, ch. 183, sec. 1, p. 530; am. 1971, ch. 14, sec. 1, p. 25; am. 1975, ch. 155, sec. 1, p. 398; am. 1976, ch. 280, sec. 1, p. 959; am. 1977, ch. 325, sec. 1, p. 911; am. 1978, ch. 291, sec. 4, p. 718; am. 1979, ch. 254, sec. 14, p. 676; am. 1980, ch. 179, sec. 15, p. 396; am. 1980, ch. 349, sec. 1, p. 884; am. 1981, ch. 326, sec. 1, p. 683; am. 1984, ch. 287, sec. 5, p. 681; am. 1986, ch. 73, sec. 18, p. 215; am. 1987, ch. 31, sec. 4, p. 50; am. 1987, ch. 92, sec. 2, p. 174; am. 1994, ch. 111, sec. 5, p. 253; am. 1995, ch. 26, sec. 3, p. 37; am. 1996, ch. 253, sec. 32, p. 829; am. 1996, ch. 322, sec. 68, p. 1094; am. 1997, ch. 117, sec. 40, p. 336; am. 1997, ch. 242, sec. 2, p. 704; am. 1998, ch. 362, sec. 2, p. 1135; am. 1999, ch. 42, sec. 15, p. 100; am. 1999, ch. 328, sec. 2, p. 848; am. 2000, ch. 49, sec. 2, p. 92; am. 2000, ch. 207, sec. 2, p. 522; am. 2001, ch. 55, sec. 1, p. 97; am. 2001, ch. 130, sec. 3, p. 463; am. 2003, ch. 318, sec. 4, p. 873; repeal and new section added 2003, ch. 318, secs. 6 and 9, p. 876 and 879; am. 2004, ch. 104, secs. 2 and 3, p. 372 and 375; am. 2005, ch. 18, secs. 1 and 2, p. 49 and 52; am. 2006, ch. 234, sec. 2, p. 697; am. 2006, 1st E.S., ch. 1, sec. 20, p. 64; am. 2007, ch. 172, sec. 2, p. 508; am. 2008, ch. 400, sec. 3, p. 1094; am. 2009, ch. 62, sec. 1, p. 168; am. 2009, ch. 341, sec. 145, p. 1065; am. 2013, ch. 20, sec. 1, p. 30; am. 2013, ch. 243, sec. 4, p. 586; am. 2014, ch. 339, sec. 2, p. 854; am. 2014, ch. 357, sec. 7, p. 895; am. 2016, ch. 13, sec. 2, p. 16; am. 2017, ch. 322, sec. 11, p. 846; am. 2019, ch. 307, sec. 3, p. 922; am. 2019, ch. 320, sec. 6, p. 952; am. 2020, ch. 162, sec. 2, p. 470; am. 2021, ch. 339, sec. 2, p. 1032; am. 2021, ch. 360, sec. 11, p. 1127; am. 2022, ch. 318, sec. 3, p. 1013; am. 2022, 1st E.S., ch. 1, sec. 12, p. 10; am. 2023, ch. 43, sec. 1, p. 177; am. 2023, ch. 46, sec. 1, p. 186; am. 2023, ch. 174, sec. 8, p. 472; am. 2023, ch. 200, sec. 15, p. 552; am. 2023, ch. 234, sec. 1, p. 723; am. 2024, ch. 237, sec. 28, p. 838; am. 2025, ch. 250, sec. 1, p. 1106; am. 2025, ch. 302, sec. 6, p. 1288.]
Notwithstanding the provisions of section 63-3638, Idaho Code, the sales tax collected on the retail sale of liquor and all other merchandise by or on behalf of the director of the state liquor division shall be credited directly to the liquor account, and shall not be or become a part of the sales tax account.
[63-3638A, added 1982, ch. 255, sec. 12, p. 666; am. 1987, ch. 260, sec. 8, p. 551; am. 2006, ch. 18, sec. 7, p. 70; am. 2009, ch. 23, sec. 60, p. 70.]
(1) Commencing October 1, 2006, the purchase, use, storage or other consumption of tangible personal property which is otherwise subject to the taxes imposed by this chapter by persons defined in section 63-3609(a), Idaho Code, shall be exempt from one cent (1¢) of the taxes imposed by sections 63-3619 and 63-3621, Idaho Code, if:
(a) The tangible personal property is purchased, used, stored or otherwise consumed for incorporation into real property; and
(b) The tangible personal property is purchased, used, stored or otherwise consumed in regard to a project performed by such person pursuant to a qualified contract; and
(c) The taxpayer claims the exemption in the manner provided by subsection (3) of this section.
(2) As used in this section, the term "qualified contract" means a contract which:
(a) Is a written contract; and
(b) Was in effect on September 1, 2006, or was submitted for bid or bid in written form on or before September 1, 2006, and subsequently became a written contract; and
(c) Was negotiated or bid based upon the sales or use tax being five percent (5%); and
(d) Requires the cost of the sales or use tax to be borne by the contractor.
(3) A person entitled to the exemption granted in subsection (1) of this section may submit a claim for refund to the state tax commission for the amount of one cent (1¢) of the tax imposed by sections 63-3619 and 63-3621, Idaho Code, if it has actually been paid by him. The claim for refund shall include:
(a) A copy of a written contract which is a qualified contract; and
(b) A detailed invoice prepared by the seller showing all items of tangible personal property purchased by the claimant, the sale of which is subject to the exemption granted in subsection (1) of this section; and
(c) A document signed by the purchaser certifying that the tangible personal property shown on the invoice required by subsection (3)(b) of this section has in fact been used by him on the project to which the qualified contract relates.
(4) Upon receipt of the claim for refund, the state tax commission shall review the claim and, if it finds it to be proper, shall pay the refund together with interest from the date that the claim was filed at the rate established by section 63-3045, Idaho Code, within thirty (30) days from the date the claim was received by the commission.
(5) The use or incorporation into real property of any tangible personal property upon which the exemption provided by subsection (1) of this section has been claimed pursuant to any contract other than a qualified contract shall be a misdemeanor.
(6) In addition to the criminal penalties provided by subsection (5) of this section, the use or incorporation into real property of tangible personal property upon which the exemption provided by subsection (1) of this section has been claimed pursuant to any contract which is not a qualified contract shall subject the user to a penalty of three (3) times the sales or use tax otherwise due under this chapter to be enforced and collected as provided by sections 63-3634 and 63-3635, Idaho Code.
(7) In the case of a retailer who makes sales of tangible personal property to any person entitled to the exemption granted in subsection (1) of this section who is for any reason unable to collect one cent (1¢) of the tax imposed by sections 63-3619 and 63-3621, Idaho Code, from the purchaser, the retailer shall be entitled to claim the refund otherwise available to the purchaser. The claim for refund shall be filed in the manner prescribed by subsection (3) of this section. Nothing in this subsection shall excuse the retailer from reporting sales and use taxes at the full statutory rate on all taxable sales made during the period to which his sales or use tax return relates. If a refund claim is filed concurrently with the return, the refund claimed may be credited against the tax due on the return. Any retailer who claims a refund for any taxes actually collected from the purchaser shall be subject to a penalty of three (3) times the sales or use tax refund improperly claimed to be enforced and collected as provided by sections 63-3634 and 63-3635, Idaho Code.
[63-3640, added 2003, ch. 381, sec. 1, p. 1017; am. 2006, 1st Ex. Sess., ch. 1, sec. 21, p. 67.]
(1) As provided in and subject to the limitations of this section, a developer of a retail complex shall receive a rebate of sales taxes collected and remitted to the state tax commission under this chapter by qualified retailers within the retail complex to reimburse the developer for project expenses incurred for the installation of approved transportation improvements.
(2) As used in this section:
(a) "Approved transportation improvement" means a highway project for the installation of an interchange from an interstate highway or for the improvement of a highway as defined in section 40-109(5), Idaho Code, the cost of which is in excess of five million dollars ($5,000,000). To qualify as an approved highway improvement the developer of a retail complex must enter into an agreement with the Idaho transportation board or a political subdivision. An approved highway improvement shall include those costs directly associated with the highway project but shall not include any improvement not within the right-of-way of the proposed public highway improvement, improvements not specifically authorized in the agreement entered into, or developer financed improvements required by state or local agencies as part of the permitting and development process not within the public highway right-of-way. Such agreement shall not be amended in subsequent years to expand or redefine the scope of an approved transportation improvement.
(b) "Political subdivision" means a city, county or highway district that receives highway funding pursuant to section 40-709, Idaho Code.
(c) "Qualified retailer" means a specific location within a retail complex operated by a retailer in regard to which the retailer:
(i) Has obtained a separate seller’s permit pursuant to section 63-3620, Idaho Code, applicable only to that location and has collected sales or use taxes in regard to retail sales made at that location and has remitted all such taxes to the state tax commission with returns related to that permit;
(ii) Has been identified in the manner required by rules of the state tax commission as associated with the specific retail complex; and
(iii) Did not directly or by any related party, as defined in section 63-3615A(2), Idaho Code, operate a retail business in the same location before construction of the retail complex.
(d) "Retail complex" means:
(i) One (1) or more buildings in a single location constructed by a developer applying for a rebate under this section specifically related to an approved transportation improvement;
(ii) Facilities reasonably related to the buildings, such as parking lots, sidewalks, lighting, traffic signs and accessory equipment; and
(iii) For which the developer has expended a minimum of four million dollars ($4,000,000).
(e) "Retailer" has the same meaning as provided in section 63-3610, Idaho Code;
(f) "Retail sales" has the same meaning as that term is defined in section 63-3609, Idaho Code.
(3) To obtain the rebate provided by this section, the developer of a retail complex shall file a written claim with the state tax commission.
(a) The claim shall:
(i) Identify the location and boundaries of the retail complex;
(ii) Identify the qualified retailers making retail sales within the complex;
(iii) Include verification that the developer has met the expenditure requirements of paragraph (2)(d)(iii) of this section;
(iv) Include certification from the Idaho transportation department or political subdivision of the amount expended on the approved transportation improvements related to the retail complex;
(v) Contain such additional information as the state tax commission may require by rule.
(b) The claim shall be subject to such reasonable documentation and verification as the state tax commission may require.
(c) A developer of a retail complex must submit a claim under this subsection within two (2) years of the developer’s last expenditure on approved transportation improvements.
(4)(a) Upon approval by the state tax commission, the developer is entitled to receive a rebate of sixty percent (60%) of all sales and use taxes imposed by this chapter and remitted to the state tax commission after the date of approval by qualified retailers in the retail complex but not to exceed the lesser of:
(i) The amount certified pursuant to subsection (3)(a)(iv) of this section; or
(ii) The limitation imposed by subsection (5)(c) of this section.
(b) No interest shall be paid on the amounts rebated.
(c) All sales and use tax information remitted by retailers shall be deemed a trade secret, shall be confidential and shall not be disclosed by the state tax commission.
(5)(a) When a retailer certifies to the state tax commission and the commission determines that the requirements of subsection (3)(a)(i), (ii) and (iii) of this section have been met, sixty percent (60%) of all sales and use taxes imposed by this chapter and remitted to the state tax commission after the date of approval by qualified retailers in the retail complex, shall be deposited into the demonstration pilot project fund, which is hereby created in the state treasury.
(b) All moneys rebated shall be paid by the state tax commission from the demonstration pilot project fund in a timely manner not to exceed sixty (60) calendar days after receipt as funds are available in the demonstration pilot project fund. Payments shall be specific to and accounted for by each project.
(c) Once a total of one hundred million dollars ($100,000,000) has been paid in as a rebate on a particular approved transportation improvement, no additional rebates shall be paid in regard to that approved transportation improvement.
[63-3641, added 2009, ch. 62, sec. 3, p. 171; am. 2026, ch. 107, sec. 1, p. 553.]
(1) Any mayor, council, board of commissioners, or any other governing body of a city or county governmental entity that issues an ordinance, resolution, executive order, or proclamation refusing to investigate or enforce any felony provided for in Idaho Code shall not be eligible to receive sales and use tax revenue distributions pursuant to section 63-3638, Idaho Code. Such funds shall be held back until the city or county governmental entity has certified to the state tax commission that such ordinance, resolution, executive order, or proclamation has been repealed or rescinded.
(2) Upon presentation to the attorney general of an authenticated and duly enacted ordinance, resolution, executive order, or proclamation of any mayor, council, board of commissioners, or other governing body of a city or county governmental entity refusing to investigate or enforce any felony provided for in Idaho Code, the attorney general shall notify the state tax commission and the governmental entity of the provisions of this section and provide the governmental entity an opportunity to repeal or rescind the ordinance, resolution, executive order, or proclamation.
(3) If a repeal or rescission is certified within one hundred eighty (180) days of the holdback, the state tax commission shall restore the withheld moneys to the city or county governmental entity. If compliance is not certified within one hundred eighty (180) days, the withheld moneys shall be forfeited and deposited in the general fund by the state tax commission.
[63-3642, added 2023, ch. 119, sec. 1, p. 342.]
(1) If a seller is unable to settle a cash transaction to the whole cent using denominations of United States coin or currency on hand, the seller may round either the total amount due for the transaction, or the amount of change due back to the purchaser, to the nearest multiple of five cents (5¢) as follows:
(a) If the final digit of such amount is 1, 2, 6, or 7, the amount shall be rounded down to the nearest multiple of five cents (5¢); and
(b) If the final digit of such amount is 3, 4, 8, or 9, the amount shall be rounded up to the nearest multiple of five cents (5¢).
(2) The provisions of this section shall also apply to any cash refunds of purchases.
(3) For the purposes of this section, "total amount due" means the sum of the total sales price plus any applicable taxes, fees, or other charges calculated to the nearest cent. Taxes shall be computed based on the total sales price before any rounding occurs under this subsection.
[63-3643, added 2026, ch. 241, sec. 1, p. 1032.]
The "Multistate Tax Compact" is hereby enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:
ARTICLE I
PURPOSES
The purposes of this compact are to:
Facilitate proper determination of State and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes.
Promote uniformity or compatibility in significant components of tax systems.
Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration.
Avoid duplicative taxation.
ARTICLE II
DEFINITIONS
As used in this compact:
"State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any Territory or Possession of the United States.
"Subdivision" means any governmental unit or special district of a State.
"Taxpayer" means any corporation, partnership, firm, association, governmental unit or agency or person acting as a business entity in more than one State.
"Income tax" means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one or more forms of which expenses are not specifically and directly related to particular transactions.
"Capital stock tax" means a tax measured in any way by the capital of a corporation considered in its entirety.
"Gross receipts tax" means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax an income tax.
"Sales tax" means a tax imposed with respect to the transfer for a consideration of ownership, possession or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by State or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles.
"Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax.
"Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV and V of this compact shall apply only to the taxes specifically designated therein and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV.
ARTICLE III
ELEMENTS OF INCOME TAX LAWS
Taxpayer Option, State and Local Taxes
Taxpayer Option, Short Form
Coverage
ARTICLE IV
DIVISION OF INCOME
(a) "Business income" means income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer’s regular trade or business operations.
(b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.
(c) "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services.
(d) "Financial organization" means any bank, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, savings and loan association, credit union, cooperative bank, small loan company, sales finance company, investment company, or any type of insurance company.
(e) "Nonbusiness income" means all income other than business income.
(f) "Public utility" means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipe line, or the production, transmission, sale, delivery, or furnishing of electricity, water or steam; and (2) whose rates of charges for goods or services have been established or approved by a Federal, State or local government or governmental agency.
(g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of this Article.
(h) "State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any Territory or Possession of the United States, and any foreign country or political subdivision thereof.
(i) "This State" means the State in which the relevant tax return is filed or, in the case of application of this Article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.
Any taxpayer having income from business activity which is taxable both within and without this State, other than activity as a financial organization or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this Article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this Article, the taxpayer may elect to allocate and apportion his entire net income as provided in this Article.
For purposes of allocation and apportionment of income under this Article, a taxpayer is taxable in another State if (1) in that State he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that State has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the State does or does not.
Rents and royalties from real or tangible personal property, capital gains, interest, dividends or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this Article.
(a) Net rents and royalties from real property located in this State are allocable to this State.
(b) Net rents and royalties from tangible personal property are allocable to this State: (1) if and to the extent that the property is utilized in this State, or (2) in their entirety if the taxpayer’s commercial domicile is in this State and the taxpayer is not organized under the laws of or taxable in the State in which the property is utilized.
(c) The extent of utilization of tangible personal property in a State is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the State during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the State in which the property was located at the time the rental or royalty payer obtained possession.
(b) Capital gains and losses from sales of tangible personal property are allocable to this State if (1) the property had a situs in this State at the time of the sale, or (2) the taxpayer’s commercial domicile is in this State and the taxpayer is not taxable in the State in which the property had a situs.
(c) Capital gains and losses from sales of intangible personal property are allocable to this State if the taxpayer’s commercial domicile is in this State.
Interest and dividends are allocable to this State if the taxpayer’s commercial domicile is in this State.
(a) Patent and copyright royalties are allocable to this State: (1) if and to the extent that the patent or copyright is utilized by the payer in this State, or (2) if and to the extent that the patent copyright is utilized by the payer in a State in which the taxpayer is not taxable and the taxpayer’s commercial domicile is in this State.
(b) A patent is utilized in a State to the extent that it is employed in production, fabrication, manufacturing, or other processing in the State or to the extent that a patented product is produced in the State. If the basis of receipts from patent royalties does not permit allocation to States or if the accounting procedures do not reflect States of utilization, the patent is utilized in the State in which the taxpayer’s commercial domicile is located.
(c) A copyright is utilized in a State to the extent that printing or other publication originates in the State. If the basis of receipts from copyright royalties does not permit allocation to States or if the accounting procedures do not reflect States of utilization, the copyright is utilized in the State in which the taxpayer’s commercial domicile is located.
All business income shall be apportioned to this State by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three.
The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in this State during the tax period and the denominator of which is the average value of all the taxpayer’s real and tangible personal property owned or rented and used during the tax period.
Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the tax administrator may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer’s property.
The payroll factor is a fraction, the numerator of which is the total amount paid in this State during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period.
Compensation is paid in this State if:
(a) the individual’s service is performed entirely within the State;
(b) the individual’s service is performed both within and without the State, but the service performed without the State, is incidental to the individual’s service within the State; or
(c) some of the service is performed in the State and (1) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the State, or (2) the base of operations or the place from which the service is directed or controlled is not in any State in which some part of the service is performed, but the individual’s residence is in this State.
The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this State during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
Sales of tangible personal property are in this State if:
(a) the property is delivered or shipped to a purchaser, other than the United States Government, within this State regardless of the f.o.b. point or other conditions of the sale; or
(b) the property is shipped from an office, store, warehouse, factory, or other place of storage in this State and (1) the purchaser is the United States Government or (2) the taxpayer is not taxable in the State of the purchaser.
(a) the income-producing activity is performed in this State; or
(b) the income-producing activity is performed both in and outside this State and a greater proportion of the income-producing activity is performed in this State than in any other State, based on costs of performance.
(a) separate accounting;
(b) the exclusion of any one or more of the factors;
(c) the inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this State; or
(d) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.
ARTICLE V
ELEMENTS OF SALES AND USE TAX LAW
Tax Credit
Exemption Certificates, Vendors May Rely
ARTICLE VI
THE COMMISSION
Organization and Management
(b) Each party State shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the Commission member from this State.
(c) Each member shall be entitled to one vote. The Commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.
(d) The Commission shall adopt an official seal to be used as it may provide.
(e) The Commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its Executive Committee may determine. The Commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.
(f) The Commission shall elect annually, from among its members, a Chairman, a Vice Chairman and a Treasurer. The Commission shall appoint an Executive Director who shall serve at its pleasure, and it shall fix his duties and compensation. The Executive Director shall be Secretary of the Commission. The Commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.
(g) Irrespective of the civil service, personnel or other merit system laws of any party State, the Executive Director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the Commission and shall fix their duties and compensation. The Commission bylaws shall provide for personnel policies and programs.
(h) The Commission may borrow, accept or contract for the services of personnel from any State, the United States, or any other governmental entity.
(i) The Commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.
(j) The Commission may establish one or more offices for the transaction of its business.
(k) The Commission shall adopt bylaws for the conduct of its business. The Commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party States.
(l) The Commission annually shall make to the Governor and legislature of each party State a report covering its activities for the preceding year. Any donation or grant accepted by the Commission or services borrowed shall be reported in the annual report of the Commission, and shall include the nature, amount and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The Commission may make additional reports as it may deem desirable.
Committees
(b) The Commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the Commission, including problems of special interest to any party State and problems dealing with particular types of taxes.
(c) The Commission may establish such additional committees as its bylaws may provide.
Powers
(a) Study State and local tax systems and particular types of State and local taxes.
(b) Develop and recommend proposals for an increase in uniformity or compatibility of State and local tax laws with a view toward encouraging the simplification and improvement of State and local tax law and administration.
(c) Compile and publish information as in its judgment would assist the party States in implementation of the campact and taxpayers in complying with State and local tax laws.
(d) Do all things necessary and incidental to the administration of its functions pursuant to this compact.
Finance
(b) Each of the Commission’s budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party States. The total amount of appropriations requested under any such budget shall be apportioned among the party States as follows: one-tenth in equal shares; and the remainder in proportion to the amount of revenue collected by each party State and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, sales and use taxes. In determining such amounts, the Commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party States. Each of the Commission’s budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.
(c) The Commission shall not pledge the credit of any party State. The Commission may meet any of its obligations in whole or in part with funds available to it under paragraph (1)(i) of this Article: provided that the Commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the Commission makes use of funds available to it under paragraph 1(i), the Commission shall not incur any obligation prior to the allotment of funds by the party States adequate to meet the same.
(d) The Commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the Commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the Commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the Commission.
(e) The accounts of the Commission shall be open at any reasonable time for inspection by duly constituted officers of the party States and by any persons authorized by the Commission.
(f) Nothing contained in this Article shall be construed to prevent Commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the Commission.
ARTICLE VII
UNIFORM REGULATIONS AND FORMS
Whenever any two or more party States, or subdivisions of party States, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the Commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The Commission may also act with respect to the provisions of Article IV of this compact.
Prior to the adoption of any regulation, the Commission shall:
(a) As provided in its bylaws, hold at least one public hearing on due notice to all affected party States and subdivisions thereof and to all taxpayers and other persons who have made timely request of the Commission for advance notice of its regulation-making proceedings.
(b) Afford all affected party States and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the Commission.
ARTICLE VIII
INTERSTATE AUDITS
This Article shall be in force only in those party States that specifically provide therefor by statute.
Any party State or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records or other documents may request the Commission to perform the audit on its behalf. In responding to the request, the Commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The Commission may enter into agreements with party States or their subdivisions for assistance in performance of the audit. The Commission shall make charges, to be paid by the State or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.
The Commission may require the attendance of any person within the State where it is conducting an audit or part thereof at a time and place fixed by it within such State for the purpose of giving testimony with respect to any account, book, paper, document, other record, property or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the Commission within the State of which he is a resident: provided that such State has adopted this Article.
The Commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this Article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the Commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the State or subdivision on behalf of which the audit is being made or a court in the State in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a State that has adopted this Article.
The Commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the Commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party States or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the Commission.
Information obtained by any audit pursuant to this Article shall be confidential and available only for tax purposes to party States, their subdivisions or the United States. Availability of information shall be in accordance with the laws of the States or subdivisions on whose account the Commission performs the audit, and only through the appropriate agencies or officers of such States or subdivisions. Nothing in this Article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.
Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party States or any of their subdivisions are not superseded or invalidated by this Article.
In no event shall the Commission make any charge against a taxpayer for an audit.
As used in this Article, "tax," in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.
ARTICLE IX
ARBITRATION
Whenever the Commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this Article in effect, notwithstanding the provisions of Article VII.
The Commission shall select and maintain an Arbitration Panel composed of officers and employees of State and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.
Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party State or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the Commission and to each party State or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the State or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two or more party States or subdivisions thereof. Each party State and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.
The Arbitration Board shall be composed of one person selected by the taxpayer, one by the agency or agencies involved, and one member of the Commission’s Arbitration Panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the Arbitration Panel. The two persons selected for the Board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the Board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the Arbitration Panel. No member of a Board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.
The Board may sit in any State or subdivision party to the proceeding, in the State of the taxpayer’s incorporation, residence or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.
The Board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The Board shall act by majority vote.
The Board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the Board. In case of failure to obey a subpoena, and upon application by the Board, any judge of a court of competent jurisdiction of the State in which the Board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in States that have adopted this Article.
Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the Board in such manner as it may determine. The Commission shall fix a schedule of compensation for members of Arbitration Boards and of other allowable expenses and costs. No officer or employee of a State or local government who serves as a member of a Board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such Board member shall be entitled to expenses.
The Board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the Board shall be final for purposes of making the apportionment or allocation, but for no other purpose.
The Board shall file with the Commission and with each tax agency represented in the proceeding: the determination of the Board; the Board’s written statement of its reasons therefor; the record of the Board’s proceedings; and any other documents required by the arbitration rules of the Commission to be filed.
The Commission shall publish the determinations of Boards together with the statements of the reasons therefor.
The Commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party States.
Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.
ARTICLE X
ENTRY INTO FORCE AND WITHDRAWAL
This compact shall enter into force when enacted into law by any seven States. Thereafter, this compact shall become effective as to any other State upon its enactment thereof. The Commission shall arrange for notification of all party States whenever there is a new enactment of the compact.
Any party State may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party State prior to the time of such withdrawal.
No proceeding commenced before an Arbitration Board prior to the withdrawal of a State and to which the withdrawing State or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the Board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.
ARTICLE XI
AFFECT ON OTHER LAWS AND JURISDICTION
Nothing in this compact shall be construed to:
(a) Affect the power of any State or subdivision thereof to fix rates of taxation, except that a party State shall be obligated to implement Article III 2 of this compact.
(b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax: provided that the definition of "tax" in Article VIII 9 may apply for the purposes of that Article and the Commission’s powers of study and recommendation pursuant to Article VI 3 may apply.
(c) Withdraw or limit the jurisdiction of any State or local court or administrative officer or body with respect to any person, corporation or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.
(d) Supersede or limit the jurisdiction of any court of the United States.
ARTICLE XII
CONSTRUCTION AND SEVERABILITY
This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of any State or of the United States or the applicability thereof to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any State participating therein, the compact shall remain in full force and effect as to the remaining party States and in full force and effect as to the State affected as to all severable matters.
[63-3701, added 1967, ch. 316, sec. 1, p. 928.]
Every multistate taxpayer as defined in said Compact and required to file a return in Idaho whose only activities within Idaho consist of sales and which does not own or rent real estate or tangible personal property and whose dollar volume of gross sales made during the tax year within this state is not in excess of the dollar volume prescribed in article III, section 2, of the Multistate Tax Compact may elect to report its income and pay tax to the state of Idaho at the rate of one per cent (1%) of such dollar volume.
[63-3702, added 1967, ch. 316, sec. 2, p. 928; am. 1969, ch. 301, sec. 1, p. 901.]
The governor, with the advise and consent of the senate, shall appoint a member of the Multistate Tax Commission to represent Idaho from among the persons made eligible by Article VI, Section 1(a) of the Multistate Tax Compact.
[63-3703, added 1967, ch. 316, sec. 3, p. 928.]
The member representing Idaho on the multistate tax commission may be represented thereon by an alternate designated by him. The name of the alternate thus designated shall be filed with the multistate tax commission by the member representing this state.
[63-3704, added 1967, ch. 316, sec. 4, p. 928.]
The attorney general of this state or his designee shall be a nonvoting member of said commission representing this state.
[63-3705, added 1967, ch. 316, sec. 5, p. 928.]
There is hereby established the Multistate Tax Compact advisory committee composed of the member of the multistate tax commission representing this state, any alternate designated by him, the attorney general or his designee, two members of the senate appointed by the president pro tempore of the senate, and two members of the house of representatives appointed by the speaker thereof. The chairman shall be the member of the commission representing this state. The committee shall meet on the call of its chairman or at the request of a majority of its members, but in any event it shall meet not less than once in each year. The committee may consider any and all matters relating to recommendations of the multistate tax commission as raised by any of its members.
[63-3706, added 1967, ch. 316, sec. 6, p. 928; am. 2023, ch. 168, sec. 1, p. 453.]
This state specifically adopts and agrees to participate in the interstate audits provided by article VIII of the Multistate Tax Compact and said article shall be in full force and effect in respect to this state; providing that the state tax commission shall determine the extent of participation by this state in such interstate audits.
[63-3707, added 1967, ch. 316, sec. 7, p. 928.]
The state tax commission at its discretion may furnish to the multistate tax commission, any information contained in tax returns and reports and related schedules and documents filed pursuant to the laws of this state and in the report of an audit or investigation made with respect thereto, provided only that said information be furnished solely for tax purposes; and the multistate tax commission may make said information available to the tax officials of any other state, the District of Columbia, the United States and its territories for tax purposes.
[63-3708, added 1973, ch. 81, sec. 1, p. 130.]
(a) There is hereby created in the office of the state treasurer and subject to his control and custody in the state operating fund an account to be known and designated as the "Multistate Tax Compact Account."
(b) All moneys collected as a direct result of audits or compliance activities conducted by the multistate tax commission or by employees of the state tax commission whose salaries are appropriated from the multistate tax compact account shall be paid by the state tax commission into the multistate tax compact account.
(c) Upon receipt by the state tax commission of the budget of the multistate tax commission, and the statement of Idaho’s share of such budget to be appropriated, the state tax commission shall review said budget and Idaho’s share, and shall determine compliance or noncompliance of said budget and share with section 4(b) of article VI of the multistate tax compact. Upon reviewing said budget and Idaho’s share thereof, the state tax commission shall, on or before February 1 of each year, certify to the Senate finance committee, the House appropriations committee, the Senate local government and taxation committee, and the House revenue and taxation committee, that the budget and Idaho’s share thereof either comply or do not comply with the provisions of section 4(b) of article VI of the multistate tax compact. Unless the legislature determines otherwise prior to adjournment, the amounts which the state tax commission has certified as complying with section 4(b) of article VI are hereby continually appropriated from the multistate tax compact account to the multistate tax commission.
(d) If, at any time, the funds in the multistate tax compact account exceed one hundred and ten percent (110%) of the most recent continuing annual appropriation to the multistate tax commission, the excess thereof shall be transferred to the general account.
(e) Payments to the multistate tax commission from the multistate tax compact account shall be made only with the approval of the state tax commission.
[63-3709, added 1980, ch. 115, sec. 1, p. 253; am. 1999, ch. 26, sec. 1, p. 38.]
Within the department of revenue and taxation, there is hereby established a board of tax appeals as an independent body which shall not in any way be subject to the supervision or control of the state tax commission.
[63-3801, added 1969, ch. 453, sec. 1, p. 1195; am. 1974, ch. 19, sec. 11, p. 524.]
The board of tax appeals shall consist of three (3) members appointed by the governor with the advice and consent of the senate. The members shall be residents of this state and shall be selected on the basis of their knowledge of and experience in taxation, gained from service as certified public accountants, public accountants, licensed real estate brokers, attorneys, duly accredited property appraisers, or in some other manner. No more than two (2) members of the board shall be members of the same political party. No member of the board shall hold any elective office or any public office involving assessment of taxes or administration of any of the tax laws of this state. No member shall take part directly or indirectly in any election campaign on behalf of any political party or organization or candidate or any measure to be voted upon by the people. Nothing in this act shall prohibit a person from properly and lawfully engaging in his business or profession. In any matter, in which a member might, directly or indirectly, encounter a possible conflict of interest, he shall disqualify himself from making any necessary decisions.
[63-3802, added 1969, ch. 453, sec. 2, p. 1195.]
Of the members first appointed, one (1) shall be appointed for a term to expire on June 30, 1970; one (1) for a term to expire on June 30, 1971; and one (1) for a term to expire on June 30, 1972. Succeeding members shall be appointed for three (3) year terms. Any vacancy shall be filled by the governor for the unexpired term subject to confirmation by the senate at its next regular session. The board shall elect a chairman from its membership and the chairman shall hold office until the first regular meeting of the subsequent fiscal year.
[63-3803, added 1969, ch. 453, sec. 3, p. 1195.]
Each member of the board shall be compensated in the amount of three hundred dollars ($300) per day and shall be reimbursed for actual and necessary expenses, subject to the limits provided in section 67-2008, Idaho Code.
[63-3804, added 1969, ch. 453, sec. 4, p. 1195; am. 1980, ch. 247, sec. 79, p. 646; am. 1982, ch. 355, sec. 1, p. 904; am. 1998, ch. 233, sec. 1, p. 790; am. 2017, ch. 39, sec. 1, p. 61.]
The governor may remove any member of the board of tax appeals for cause.
[63-3805, added 1969, ch. 453, sec. 5, p. 1195.]
The board shall appoint a clerk and such other employees as it deems necessary to carry out its duties and may employ counsel.
[63-3806, added 1969, ch. 453, sec. 6, p. 1195.]
The first board shall meet within thirty (30) days after its appointment to organize. The board shall meet annually at the state capitol at a date to be determined by the board and shall hold hearings and meetings at the call of the chairman or a majority of the board. The principal office of the board shall be in Ada county, but the board or any of its members may sit and hold hearings at any other place within the state. A majority of the board shall constitute a quorum for the transaction of any official business other than the conduct of hearings and the board may act even though one (1) position on the board is vacant.
[63-3807, added 1969, ch. 453, sec. 7, p. 1195; am. 2001, ch. 183, sec. 30, p. 638.]
The board shall adopt and publish such rules and regulations as may be necessary to carry out its duties and amplify the procedural structure set out in this act and chapter 52, title 67, Idaho Code.
The board and each member shall have power to issue subpoenas requiring the attendance of witnesses and the production of documentary evidence in the like manner and to the same extent as courts of record. The process issued shall extend to all parts of the state and may be served by any person authorized to serve process of courts of record. The subpoena shall state the name of the board, the title of the action, and shall command each person to whom it is directed to attend and give testimony and produce the books, papers, documents, or tangible things designated therein at the time and place therein specified.
Each witness who shall appear by order of the board or a member shall receive for his attendance the same fees and mileage allowed by law to a witness in civil cases in the district court, which amount shall be paid by the party at whose request such witness was subpoenaed. If any witness shall fail to properly respond to a subpoena, the board may petition the district court in and for the county in which the proceeding is pending setting forth the issuance of the subpoena, its proper service and the basis upon which the board alleges that the witness failed to respond. The court shall enter an order directing the witness to appear before the court at a time and place fixed by the court, not less than five (5) days from the service of such order on the witness, to show cause why he has not attended and testified or produced the documentary evidence before the board. If it shall appear to the court that the subpoena was regularly issued by the board or a member and regularly served, the court shall thereupon enter an order that the witness appear before the board at the time and place fixed in the order to testify or produce the required documentary evidence, and upon failure to obey that order, the witness shall be dealt with for contempt of court.
[63-3808, added 1969, ch. 453, sec. 8, p. 1195; am. 1973, ch. 116, sec. 1, p. 217.]
Hearing assignments will be made by the chairman.
(1) A hearing will be conducted and a recommended decision rendered by a hearing officer or by one (1) member of the board. The recommended decision shall become final when signed by at least two (2) board members.
(2) If the recommended decision fails to gain the signature of two (2) members, the chairman shall direct that a substitute recommended decision be drafted for submission to board members and which shall become final upon the signature of two (2) or more members.
(3) Prior to a final decision being rendered, if, in the opinion of one (1) or more members of the board, a matter is of sufficient importance to the public, it may be certified for consideration by the entire board either at a hearing or upon a transcript of a hearing held by one (1) of its members and recorded in any suitable manner.
(4) Following the filing of a timely notice of appeal to the board of tax appeals for a property tax appeal hearing, a hearing will be set, conducted and a decision shall be rendered no later than May 1. An appeal hearing may be delayed or continued upon written agreement of all parties.
[63-3809, added 1969, ch. 453, sec. 9, p. 1195; am. 1998, ch. 226, sec. 1, p. 775; am. 1999, ch. 107, sec. 2, p. 335.]
A party adversely affected by a decision may move for rehearing if such motion is filed within ten (10) days of the time the decision of the board is mailed to him. If requested in the motion, the matter may be determined by the entire board of tax appeals. If a rehearing by the entire board is requested, it will be conducted at a regular meeting in Boise or a meeting convened for that purpose in Ada county or such other place as may be designated by the chairman.
[63-3810, added 1969, ch. 453, sec. 10, p. 1195; am. 2001, ch. 183, sec. 31, p. 639.]
A taxpayer has the right to appear or to be represented by another person of his choosing in any hearing or rehearing held on the taxpayer’s appeal. The presiding officer must afford the taxpayer or his representative, or both, adequate notice and opportunity to participate in any hearing or rehearing of the taxpayer’s case.
[63-3810A, added 2021, ch. 212, sec. 1, p. 581.]
Taxpayers may, within the period herein provided and by following the procedures herein required, appeal to the board of tax appeals from a final determination of any tax liability, including those pursuant to sections 63-501, 63-511 and 63-3049, Idaho Code.
[63-3811, added 1969, ch. 453, sec. 11, p. 1195; am. 1983, ch. 231, sec. 2, p. 635; am. 1996, ch. 322, sec. 69, p. 1097; am. 2004, ch. 94, sec. 1, p. 339.]
Whenever any taxpayer, assessor, the state tax commission or any other party appearing before the board of tax appeals is aggrieved by a decision of the board of tax appeals or a decision on a motion for rehearing, an appeal may be taken to the district court located in the county of residence of the affected taxpayer, or to the district court in and for the county in which property affected by an assessment is located.
(a) The appeal shall be taken and perfected in accordance with rule 84 of the Idaho rules of civil procedure.
(b) Any record made in such matter together with the record of all proceedings shall be filed by the clerk with the district court of the proper county.
(c) Appeals may be based upon any issue presented by the appellant to the board of tax appeals and shall be heard and determined by the court without a jury in a trial de novo on the issues in the same manner as though it were an original proceeding in that court. The burden of proof shall fall upon the party seeking affirmative relief to establish that the decision made by the board of tax appeals is erroneous. A preponderance of the evidence shall suffice to sustain the burden of proof. The burden of proof shall fall upon the party seeking affirmative relief and the burden of going forward with the evidence shall shift as in other civil litigation. The court shall render its decision in writing, including therein a concise statement of the facts found by the court and conclusions of law reached by the court. The court may affirm, reverse or modify the order, direct the tax collector of the county or the state tax commission to refund any taxes found in such appeal to be erroneously or illegally assessed or collected or may direct the collection of additional taxes in proper cases.
(d) Nothing in this section shall be construed to suspend the payment of taxes pending any appeal, except that any privileges as to bonds or other rights extended by the provisions of chapters 30 and 36, title 63, Idaho Code, shall not be affected. Payment of taxes while an appeal hereunder is pending shall not operate to waive the right to an appeal.
(e) Any final order of the district court under this section shall be subject to appeal to the supreme court in the manner provided by law.
[63-3812, added 1969, ch. 453, sec. 12, p. 1195; am. 1983, ch. 231, sec. 3, p. 635; am. 1993, ch. 94, sec. 12, p. 238; am. 1993, ch. 290, sec. 1, p. 1082; am. 2000, ch. 6, sec. 1, p. 9; am. 2003, ch. 266, sec. 4, p. 705; am. 2004, ch. 95, sec. 1, p. 339.]
In all cases which are not appealed to the district court within the prescribed time, the decision of the board of tax appeals shall be conclusive and all records shall be corrected to comply with the decision of the board. A final decision or order of the board of tax appeals directing a market value change for taxable property that is not further appealed shall be fixed for the current year appealed and there shall be no increase in value for the subsequent assessment year when no physical change occurs to the property; provided however, that annual trending or equalization applied to all properties of a property class or category within the county or a clearly defined area shall still apply. If the order requires repayment or refund of taxes these shall be repaid or refunded by the proper authorities and, if the order affirms or establishes a liability for the payment of taxes, the usual procedure for collection of such taxes shall continue or commence.
[63-3813, added 1969, ch. 453, sec. 13, p. 1195; am. 2002, ch. 332, sec. 1, p. 938.]
The proceedings of the board shall be conducted in conformity with the administrative procedure act set out in chapter 52, title 67, of the Idaho Code, except insofar as this act is inconsistent therewith.
[63-3814, added 1969, ch. 453, sec. 15, p. 1195.]
As used in this chapter:
(1) "Commission" means the state tax commission.
(2) "Communication" means the conveying of information regarding a specific taxpayer’s state tax obligation directly or indirectly to any person through any medium.
(3) "Location information" means a taxpayer’s place of abode and his telephone number at such place, or his place of employment.
(4) "Revenue officer" means any agent, officer or employee of the state tax commission assigned to:
(a) State tax collection or enforcement activities; or
(b) Auditing books and records relating to any return filed or required to be filed or to investigating failures to file a return.
(5) "Tax obligation" means any legally owed tax liability, including tax, fees, penalty and interest, or any tax form required to be filed.
(6) "Disputed tax liability" is any liability asserted by the tax commission to be due but in regard to which the taxpayer has exercised his right to any legally available administrative or judicial review procedure when such procedure and review therefrom is not fully exhausted.
[63-4001, added 1993, ch. 94, sec. 14, p. 239; am. 1994, ch. 172, sec. 6, p. 394.]
Any revenue officer communicating with any person other than the taxpayer for the purpose of acquiring location information about the taxpayer shall:
(1) Disclose no information beyond that necessary to identify himself as a revenue officer of the state and to state that he is confirming or correcting location information concerning the taxpayer.
(2) Not state or declare that the taxpayer owes any taxes.
(3) Not communicate with any such person more than once unless requested to do so by such person or unless the revenue officer reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information.
(4) Not communicate by postcard except for postal locators sent to the U.S. postal service.
(5) After the tax commission is notified in writing that the taxpayer is represented with regard to the subject tax obligation and has knowledge of, or can readily ascertain, such representative’s name and address, not communicate with any person other than that representative with regard to the subject tax obligation, unless the representative fails to respond within seven (7) days to communication from the revenue officer. Nothing shall prohibit the tax commission from copying to the taxpayer all written communications with the taxpayer’s representative.
(6) Nothing in this section prohibits the tax commission from communication with the U.S. government, other states, or other state or local government agencies regarding location information.
[63-4002, added 1993, ch. 94, sec. 14, p. 239; am. 1994, ch. 172, sec. 7, p. 394.]
(1) Without the prior consent of the taxpayer or the express permission of a court of competent jurisdiction, a revenue officer may not communicate with a taxpayer in connection with the collection of any tax obligation:
(a) At any unusual time or place or a time or place known or which should be known to be inconvenient to the taxpayer. In the absence of knowledge of circumstances to the contrary, a revenue officer shall presume that the convenient time for communicating with a taxpayer is after 8 o’clock antemeridian and before 9 o’clock postmeridian, local time at the taxpayer’s location;
(b) If the tax commission has been notified in writing that the taxpayer is represented with respect to such tax obligation and has knowledge of, or can readily ascertain such representative’s name and address, unless the representative fails to respond within seven (7) days to a communication with the taxpayer, except:
(i) To advise the taxpayer that the revenue officer’s further efforts are being terminated;
(ii) To notify the taxpayer as required by law that the revenue officer may invoke specified remedies which are ordinarily invoked by such revenue officer;
(iii) Where applicable, to notify the taxpayer that the revenue office intends to invoke a specified remedy;
(iv) In regard to matters not within the scope of the notice of the representative’s capacity;
but nothing shall prohibit the tax commission from copying to the taxpayer all written communications with the taxpayer’s representative; or
(c) At the taxpayer’s place of employment if the revenue officer knows or has reason to know that the taxpayer’s employer prohibits the taxpayer from receiving such communication.
(2) The taxpayer shall be provided the option to receive communications in connection with the collection of any tax obligation through secure electronic communication as defined in section 63-201, Idaho Code.
(3) Except as provided in chapter 30, title 63, Idaho Code, or section 63-4002, Idaho Code, without the prior consent of the taxpayer, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a revenue officer may not communicate, in connection with the collection of any tax obligation, with any person other than the taxpayer, or his representative.
(4) If a taxpayer notifies a revenue officer in writing that the taxpayer refuses to pay a tax obligation or that the taxpayer wishes the revenue officer to cease further communication with the taxpayer, the revenue officer shall not communicate further with the taxpayer with respect to such tax obligation, except:
(a) To advise the taxpayer that the revenue officer’s further efforts are being terminated;
(b) To notify the taxpayer as required by law that the revenue officer may invoke specified remedies which are ordinarily invoked by such revenue officer; or
(c) Where applicable, to notify the taxpayer that the revenue officer intends to invoke a specified remedy.
If such notice from the taxpayer is made by mail, notification shall be complete upon receipt.
[63-4003, added 1993, ch. 94, sec. 14, p. 240; am. 1994, ch. 172, sec. 8, p. 395; am. 2026, ch. 153, sec. 10, p. 703.]
(1) A revenue officer may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a tax obligation. Without limiting the general application of the foregoing, the following conduct is a violation of the provisions of this section:
(a) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
(b) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
(c) The publication of a list of persons who allegedly refuse to pay tax obligations.
(d) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
(e) The placement of telephone calls without meaningful disclosure of the caller’s identity except in connection with a criminal investigation.
(2) The mailing or service of any notice or other document required or authorized by law as a part of the administration and collection of a tax is not prohibited in this section.
[63-4004, added 1993, ch. 94, sec. 14, p. 241; am. 1994, ch. 172, sec. 9, p. 396.]
A revenue officer may not use any false, deceptive, or misleading representations or means in connection with the collection of any tax obligation. Without limiting the general application of the foregoing, the following conduct is a violation of the provisions of this section:
(1) The false representation of the character, amount, or legal status of any tax obligation.
(2) The false representation or implication that any individual is an attorney or that any communication is from an attorney.
(3) The representation or implication that nonpayment of any tax obligation will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the state tax commission intends to take such action.
(4) The threat to take any action that cannot legally be taken or that is not intended to be taken.
(5) The false representation or implication that a sale, referral, or other transfer of any interest in a tax obligation shall cause the taxpayer to:
(a) Lose any claim or defense to payment of the tax obligation; or
(b) Become subject to any practice prohibited by this chapter.
(6) The false representation or implication that the taxpayer committed any crime or other conduct in order to disgrace the taxpayer.
(7) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed tax obligation is disputed.
(8) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any state, or which creates a false impression as to its source, authorization, or approval.
(9) The use of any false representation or deceptive means to collect or attempt to collect any tax obligation or to obtain information concerning a taxpayer.
(10) Except in the case of criminal investigation and as otherwise provided for communications to acquire location information under the provisions of section 63-4002, Idaho Code, the failure to disclose clearly in all communications made to collect a tax obligation or to obtain information about a taxpayer, that the revenue officer is attempting to collect a tax obligation and that any information obtained will be used for that purpose.
(11) The false representation or implication that documents are legal process.
(12) The false representation or implication that documents are not legal process forms or do not require action by the consumer.
[63-4005, added 1993, ch. 94, sec. 14, p. 241.]
A revenue officer may not use unfair or unconscionable means to collect or attempt to collect any tax obligation. Without limiting the general application of the foregoing, the following conduct is a violation of the provisions of this section:
(1) The collection of any amount, including interest, penalty, fee, charge, or expense incidental to the principal obligation, unless such amount is permitted by law.
(2) The solicitation and acceptance by a revenue officer from any person of a check or other payment instrument postdated by more than five (5) days unless such person is notified in writing of the revenue officer’s intent to deposit such check or instrument not more than ten (10) nor less than three (3) business days prior to such deposit.
(3) The solicitation by a revenue officer of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.
(4) Threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.
(5) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone and telegram fees.
(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if:
(a) There is no present right to possession of the property claimed as collateral through an enforceable security interest;
(b) There is no present intention to take possession of the property; or
(c) The property is exempt by law from such dispossession or disablement.
(7) Communicating with a taxpayer regarding a tax obligation by postcard.
[63-4006, added 1993, ch. 94, sec. 14, p. 242; am. 1994, ch. 172, sec. 10, p. 396.]
If any taxpayer owes multiple tax obligations and makes any single payment to any revenue officer with respect to such obligations, such revenue officer may not apply such payment to any obligation which is disputed by the taxpayer and, where applicable, shall apply such payment in accordance with the taxpayer’s directions. Payments remitted together with a tax return shall be applied to the tax obligation on that return.
[63-4007, added 1993, ch. 94, sec. 14, p. 242; am. 1994, ch. 172, sec. 11, p. 397.]
(1) Any officer or employee of the tax commission in connection with any in-person interview with any taxpayer relating to the determination or collection of any tax shall, upon advance request of such taxpayer, allow the taxpayer to make an audio recording of such interview at the taxpayer’s own expense and with the taxpayer’s own equipment.
(2) An officer or employee of the tax commission may record any interview described in subsection (1) of this section if such officer or employee:
(a) Informs the taxpayer of such recording prior to the interview; and
(b) Upon request of the taxpayer, provides the taxpayer with a transcript or copy of such recording but only if the taxpayer provides reimbursement for the cost of the transcription and reproduction of such transcript or copy.
(3) The provisions of this section shall not apply to criminal investigations or investigations relating to the integrity of any officer or employee of the tax commission.
[63-4008, added 1993, ch. 94, sec. 14, p. 243.]
When a taxpayer becomes delinquent for payment of tax under this title, the taxpayer may request permission to make installment payments.
[63-4009, added 1993, ch. 94, sec. 14, p. 243.]
In conducting evaluations of individual employees, the tax commission may not use monetary quotas or base the evaluation on monetary collections.
[63-4010, added 1993, ch. 94, sec. 14, p. 243; am. 1994, ch. 172, sec. 12, p. 397.]
(1) Except as otherwise provided in this section, if any revenue officer fails to comply with any provision of this chapter with respect to any person, the tax commission is liable to that person in an amount equal to the sum of:
(a) Any actual damage sustained by that person as a result of such failure;
(b) (i) In the case of any action by an individual, such additional damages as the court may allow, but not exceeding one thousand dollars ($1,000); or
(ii) In the case of a class action, such amount for each named plaintiff as could be recovered under subsection (1)(a) of this section, and such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed five hundred thousand dollars ($500,000); and
(c) In the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney’s fees reasonable in relation to the work expended and costs.
(2) In determining the amount of liability in any action under subsection (1) of this section, the court shall consider, among other relevant factors:
(a) In an individual action, the frequency and persistence of noncompliance by the revenue officer, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or
(b) In any class action, the frequency and persistence of noncompliance by the revenue officer, the nature of such noncompliance, the number of persons adversely affected, and the extent to which the revenue officer’s noncompliance was intentional.
(3) The commission may not be held liable in any action brought pursuant to this chapter if the commission shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(4) An action to enforce any liability created in this chapter may be brought in any court of competent jurisdiction within one (1) year from the date on which the violation occurs.
(5) No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(6) The entire amount of any judgment entered under this section shall be paid from the state refund account established in section 63-3067, Idaho Code.
[63-4011, added 1993, ch. 94, sec. 14, p. 243; am. 1994, ch. 172, sec. 13, p. 397.]
(1) No out-of-state taxing entity may tax an Idaho business for conducting sales or other business taking place within the state of Idaho between an Idaho business and a nonresident who is physically present within the state of Idaho while engaging in the business transaction. Notwithstanding any provision of chapter 13, title 10, Idaho Code, to the contrary, any attempt to tax an Idaho business in contravention of this section violates the United States constitution, is null and void, and shall not be enforced in the state of Idaho.
(2) For the purpose of this section, an "out-of-state taxing entity" means another state or territory of the United States, or any governmental subdivision thereof, or any foreign nation or government. An "out-of-state taxing entity" does not include the United States government.
[63-4015, added 2022, ch. 312, sec. 2, p. 1005.]
This chapter may be known and cited as the "Special District Dissolution Act."
[63-4101, added 1987, ch. 87, sec. 1, p. 165.]
As used in this chapter, "special district" means any single purpose district organized or that may be organized as a local public body in accordance with the laws of the state of Idaho for the purpose of constructing or furnishing any municipal service where the district’s enabling law does not provide for dissolution of any district formed under it.
[63-4102, added 1987, ch. 87, sec. 1, p. 165.]
Proceedings for the dissolution of a special district may be initiated by a petition containing the signatures of qualified electors of the district or owners of property within the district equal in number to twenty-five percent (25%) of the largest number of persons who voted for any director in the last election of directors or if no election has been held within two (2) years then a petition may be initiated by twenty-five (25) or more qualified electors or property owners of the district.
The petition, when completed and verified, shall be filed with the clerk of the county or counties if more than one (1) county is involved. The county clerk shall publish notice and the county commissioners shall hold a hearing on the matter. If necessary, they shall hold an election, subject to the provisions of section 34-106, Idaho Code, on the matter. The hearing and election shall be held in accordance with the terms and provisions of chapter 14, title 34, Idaho Code.
[63-4103, added 1987, ch. 87, sec. 1, p. 165; am. 1995, ch. 118, sec. 89, p. 501; am. 2009, ch. 341, sec. 147, p. 1070.]
Any special district which fails or has ceased to function for two (2) or more years may be dissolved by the board or boards of county commissioners of the county or counties in which it is located. The county commissioners may initiate such action upon their own volition or it may be initiated by petition. If by resolution a board of county commissioners finds that an emergency exists, the board may immediately take all steps necessary to operate and provide services of the district and preserve and maintain the property owned by the district.
[63-4104, added 1987, ch. 87, sec. 1, p. 165; am. 2001, ch. 184, sec. 2, p. 642.]
Title to all machinery, buildings, lands, and property of every kind and nature, belonging to a dissolved district shall immediately upon dissolution be vested in the board of county commissioners as custodians thereof; and thereafter as soon as may be practical the board shall dispose of the same. If the county and/or any incorporated cities are to continue providing the services formerly provided by the dissolved district, then the county commissioners and officials from such cities shall estimate the value of all such property and said property shall be transferred to any cities providing services formerly provided by the dissolved district in direct proportion to the portion of the dissolving districts’ total valuation for the preceding calendar year which is located within the city or cities, with the remaining portion of the property going to the county. If the county commissioners and officials from such cities determine that it is advantageous to dispose of the property at public or private sale, all funds arising from such sale or sales shall be deposited in the county treasury in a separate fund, together with other moneys belonging to such district, to be maintained by the treasurer, and from which debts of and claims against said districts shall be paid as hereinafter provided. All funds in the treasury of such district shall be delivered by the treasurer thereof to the treasurer of such county and deposited in a special fund, and all moneys thereafter accruing to such districts from collection of taxes and assessments levied or assessed prior to such dissolution, and all moneys belonging to such district from any source, shall likewise be placed in such special fund. Following the payment of debts and claims against such district, any moneys remaining in such special fund shall be distributed to any incorporated cities located within the boundaries of such district which are providing services formerly provided by such district in proportion to the portion of the total valuation of such district which is located within such cities. All remaining moneys after distribution to such cities shall be transferred to the current expense fund of the county.
If such district is located in more than one (1) county, then all authority vested in the county commissioners under this section shall be vested jointly in the several commissioners; provided, however, that any special fund established for the deposit of moneys accruing to such district shall be established in the treasury of the county which contains the greatest portion of the preceding year’s valuation of the dissolved district and any property or moneys to be transferred to a county current expense fund shall be distributed to the counties in proportion to the portion of the valuation of the district which is located within each county but not including the valuation of any incorporated city which is providing services formerly provided by such district.
[63-4105, added 1987, ch. 87, sec. 1, p. 166.]
The board of county commissioners in the county or counties in which the dissolved district is located shall compute the total indebtedness of the district and shall provide for the payment thereof out of district funds on hand, or out of revenues to be raised by special levies, which shall be determined by the county or counties, and shall be certified to the clerk of the county board of commissioners of each of the counties wherein is situated any part of such district and such tax shall be levied and imposed by each of such counties upon such property of the district as may be within such county and the tax shall be collected, and not less than quarterly, shall be remitted to the treasurer of the county which contains the greatest portion of the preceding calendar year’s valuation of the dissolved district, to be applied in payment of the indebtedness of such district as hereinafter provided.
At the next regular annual meeting of the board of commissioners of the county or counties in which the dissolved district is located at which levies for state and county purposes are fixed, and each year thereafter until all indebtedness of such district shall have been fully paid, such board shall, in addition to all other tax levies, levy a special tax upon all of the property situated within the former boundaries of such dissolved district, sufficient to raise by taxation funds for the payment of current and accruing terms and conditions of outstanding bonds of such district; and shall each year thereafter continue such levy, or make such other or additional levies as may be required, to fully pay and retire the indebtedness of such district according to the terms and conditions thereof; and such taxes must be collected as are other county taxes and shall be turned over to the treasurer of the county which contains the greatest portion of the preceding calendar year’s valuation of the district who must redeem or post for redemption all warrants and bonds as the same mature and in order of their line, and for which the treasurer has funds arising from such district for the payment of same.
[63-4106, added 1987, ch. 87, sec. 1, p. 167.]
This chapter is known as the "Illegal Drug Tax Act."
[63-4201, added 1989, ch. 144, sec. 1, p. 349; am. 1990, ch. 179, sec. 1, p. 379.]
As used in this chapter:
(1) "Commission" means the state tax commission.
(2) "Controlled substance" means the entire amount of any drug or substance, whether real or counterfeit, as defined in section 37-2701, Idaho Code, when possessed in the following quantities and in violation of Idaho law:
(a) More than forty-two and one-half (42 1/2) grams of marijuana; or
(b) One (1) or more growing marijuana plants; or
(c) Seven (7) or more grams of any other controlled substance sold by weight; or
(d) Ten (10) or more dosage units of any controlled substance which is not sold by weight.
(3) "Possess" or "possession" means, in addition to its ordinary meaning and tenses, to include hold, sell, manufacture, acquire, produce, purchase, ship, transport, transfer or import into Idaho.
[63-4202, added 1989, ch. 144, sec. 1, p. 349; am. 1990, ch. 179, sec. 2, p. 379; am. 1993, ch. 9, sec. 1, p. 27.]
(1) Every person who in violation of Idaho law possesses a controlled substance shall be liable for payment of an excise tax on all of the controlled substance possessed including the amount below any threshold provided in section 63-4202, Idaho Code.
(2) The tax hereby imposed is calculated at the following rates:
(a) On each gram of marijuana, or each portion of a gram, three dollars and fifty cents ($3.50);
(b) On each gram of other controlled substance sold by weight, or each portion of a gram, two hundred dollars ($200);
(c) On each fifty (50) dosage units of a controlled substance that is not sold by weight, or portion thereof, two thousand dollars ($2,000); and
(d) On a growing marijuana plant, seven hundred seventy-five dollars ($775) per plant. A credit of seven hundred seventy-five dollars ($775) shall be given for the payment of each illegal drug tax on a growing marijuana plant against payment of illegal drug taxes for possession of marijuana harvested from the growing marijuana plant, provided, no credit shall be given unless evidence of payment of illegal drug taxes on a growing marijuana plant is permanently affixed to the marijuana harvested from it.
(3) For the purpose of calculating the illegal drug tax under this chapter, other than for growing marijuana plants, a quantity of controlled substance is measured by the weight of the substance, whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in a person’s possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
(4) For the purposes of article VII of the Idaho constitution, the illegal drug taxes imposed in this chapter shall not be held or construed to be a tax on property.
[63-4203, added 1989, ch. 144, sec. 1, p. 350; am. 1990, ch. 179, sec. 3, p. 379; am. 1993, ch. 9, sec. 2, p. 27.]
(1) The commission shall adopt a uniform system of providing, affixing and displaying official stamps, official labels, or other official indicia for controlled substances on the possession of which an illegal drug tax is imposed.
(2) In addition to any other prohibition against possession of a controlled substance by Idaho law, no person subject to a tax imposed in this chapter may possess a controlled substance, unless the tax has been paid as evidenced by a stamp or other official indicia.
(3) Official stamps, labels, or other indicia to be affixed to all controlled substances shall be purchased from the commission. The purchaser shall pay one hundred percent (100%) of face value for each stamp, label, or other indicia at the time of the purchase.
[63-4204, added 1989, ch. 144, sec. 1, p. 350; am. 1990, ch. 179, sec. 4, p. 380.]
(1) When any person manufactures, purchases, acquires, possesses, transports, or imports into this state a controlled substance, subject to illegal drug taxes, he shall obtain from the commission illegal drug tax stamps and shall permanently affix the official indicia on the controlled substance evidencing the payment of the tax required under this chapter. No stamp or other official indicia may be used more than once.
(2) Taxes imposed upon possession of controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by the person acquiring or possessing such controlled substance.
(3) Payments required under this chapter shall be made to the commission on forms provided by the commission. The commission shall collect all taxes imposed under this chapter.
[63-4205, added 1989, ch. 144, sec. 1, p. 350; am. 1990, ch. 179, sec. 5, p. 381.]
(1) No person applying to purchase or purchasing illegal drug tax stamps is required to give his name, address, social security number or other identifying information.
(2) No commissioner, deputy, clerk, agent or employee of the commission, and no person formerly holding such a position, may divulge or make known to any person any information obtained from a person applying to purchase or purchasing illegal drug tax stamps or seeking a redetermination by the commission of an assessment for illegal drug taxes or penalties imposed in this chapter. Any person violating this provision shall be guilty of a felony and upon conviction shall forfeit his office or employment and shall be punished by a fine of not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000), or by imprisonment for not more than five (5) years; provided, any information obtained from a person seeking a redetermination of an assessment for taxes or penalties may be used within the commission or in any action in court brought for the collection, remission, cancellation or refund, in whole or in part of the taxes or penalties. Provided further, the provisions of this section do not prohibit exchanges of information within the commission necessary for the processing of purchases of illegal drug tax stamps.
(3) Notwithstanding any other provision of Idaho law, no information obtained by the commission from a person applying to purchase or purchasing illegal drug tax stamps or seeking a redetermination by the commission of an assessment for illegal drug taxes or penalties imposed in this chapter, may be used against him in any criminal proceeding or for investigatory purposes leading to other evidence of a crime unless it is independently obtained; otherwise, nothing in this chapter provides immunity of any kind to any person from criminal prosecution under Idaho law.
(4) The provisions of this section do not prohibit the commission from publishing statistics that do not disclose the identity of persons purchasing illegal drug stamps or the actual contents of particular applications, reports, forms or returns.
[63-4206, added 1990, ch. 179, sec. 6, p. 381.]
(1) Any person violating the provisions of this chapter is subject to a penalty of one hundred percent (100%) of the tax in addition to the tax imposed by section 63-4203, Idaho Code. The penalty shall be collected as part of the tax.
(2) In addition to the tax penalty imposed, any person subject to the taxes imposed in this chapter distributing or possessing a controlled substance without affixing the appropriate stamps, labels, or other indicia is guilty of a criminal offense and, upon conviction, is punishable to the same extent as possession of the controlled substance is punishable as set out in section 37-2732, Idaho Code.
(3) Notwithstanding any other provision of the criminal laws of this state, an information, indictment, or complaint may be filed upon any criminal offense under this chapter within three (3) years after the commission of the offense.
[(63-4207) 1989, ch. 144, sec. 1, p. 351; am. and redesignated, 1990, ch. 179, sec. 7, p. 382.]
(1) The commission shall administer the provisions of this chapter and may adopt rules necessary to enforce the provisions of this chapter.
(2) (a) Upon the discovery of a controlled substance not bearing valid stamps or other official indicia required in this chapter, the commission shall make a jeopardy determination assessing the taxes and penalties against the person subject to the illegal drug taxes. The determination shall be made upon personal knowledge or information available to the commission. Written notice of the amount of the tax and penalty and demand for immediate payment shall be mailed, by certified or registered mail, to the last known address of, or served in person upon, the person subject to the illegal drug taxes and penalties. Upon giving notice and demand, collection procedures as provided in sections 63-3050 through 63-3064 and 63-3065A, Idaho Code, may be instituted immediately.
(b) A person aggrieved by a jeopardy assessment may, within thirty (30) days after mailing or service of the notice of the jeopardy assessment, petition the commission for a redetermination of the assessment. Collection procedures shall not be stayed pending the redetermination unless a bond in double the amount of the assessment is filed with the commission. If a petition for redetermination is not filed within the thirty (30) day period, the jeopardy assessment becomes final.
(c) If a petition for redetermination is filed within the thirty (30) day period, the commission shall redetermine the petition and if requested shall give the petitioner a reasonable opportunity to be heard. The redetermination shall proceed in accordance with the procedures established for redetermining notices of deficiency determination under section 63-3045, Idaho Code. The commission shall mail, by certified mail, or personally serve the petitioner the redetermination decision. A decision redetermining a jeopardy assessment becomes final thirty (30) days after mailing or service of the decision. A person aggrieved by a redetermination by the state tax commission may seek review of that redetermination as provided in section 63-3049, Idaho Code, as limited by this provision.
(d) No property seized pursuant to a jeopardy assessment shall be sold until an assessment becomes final, provided, such property can be sold:
(i) If its owner consents;
(ii) If the expenses of maintenance of the property will gravely reduce the net proceeds of its sale; or
(iii) If the property is perishable.
(3) A homestead exemption provided in chapter 10, title 55, Idaho Code, shall not exempt real property from a lien for illegal drug taxes imposed in this chapter.
(4) Any taxes and penalties assessed by the commission are presumed to be valid and correct. The burden is on the taxpayer to show their incorrectness or invalidity. The unlawful possession of any controlled substance not bearing valid stamps or other official indicia required in this chapter is an act prejudicing the collection of the tax imposed in this chapter. No specific finding of jeopardy by the commission is required to authorize the use of the jeopardy assessment procedure provided in this section.
(5) At any time within one (1) year after the imposition of a jeopardy assessment pursuant to subsection (2)(a) of this section, the commission, if it determines that the jeopardy assessment was not issued for the full amount of tax due under this chapter, may issue to the person liable for the tax under this chapter a notice of deficiency determination in the manner provided in section 63-3045, Idaho Code, for such additional amount. The provisions of subsection (2)(c) of this section shall apply to a notice issued under the provisions of this subsection.
(6) In addition to the enforcement and penalty provisions of this chapter, sections 63-3038, 63-3039, 63-3042, 63-3043, 63-3047 and 63-3048, Idaho Code, shall apply and be available to the state tax commission for the enforcement of the provisions of this chapter for the assessment and collection of any amounts due and said sections shall be considered to be a part of this chapter.
[(63-4208) 63-4207, added 1989, ch. 144, sec. 1, p. 351; am. 1989, ch. 323, sec. 1, p. 834; am. and redesignated, 1990, ch. 179, sec. 8, p. 382; am. 1993, ch. 9, sec. 3, p. 28.]
The revenues received from the taxes imposed by section 63-4203, Idaho Code, and any penalties, interest, or deficiency additions, shall be distributed periodically as follows:
(1) An amount of money equal to the actual cost of collecting, administering and enforcing the tax by the commission, as determined by it shall be retained by the commission. The amount retained by the commission shall not exceed the amount authorized to be expended by appropriation by the legislature. Any unencumbered balance in excess of the actual cost of collecting, administering and enforcing the tax by the commission or in excess of any amount required to be distributed by subsection (2) of this section shall, at the end of each fiscal year, be distributed to the substance abuse treatment account.
(2) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the commission to be paid shall be paid from the state refund account and those moneys are hereby continuously appropriated for that purpose.
[(63-4209) 63-4208, added 1989, ch. 144, sec. 1, p. 351; am. and redesignated, 1990, ch. 179, sec. 9, p. 383.]
Nothing in this chapter requires persons lawfully in possession of a controlled substance to pay the tax required under this chapter.
[63-4210, added 1990, ch. 179, sec. 10, p. 384.]
(1) Any person claiming that the property levied upon and seized by the commission for the collection of any tax, penalty, interest or other amounts due under this chapter is either:
(a) the property of a person other than a person against whom taxes sought to be collected under this chapter have been assessed, or
(b) the property is property exempt from levy to enforce a claim for state taxes under chapter 6, title 11, Idaho Code,
may, within fourteen (14) days of the date of the levy, file a written claim with the commission setting forth the grounds for the claim. The commission shall grant or deny the claim in a written notice to the claimant within fourteen (14) days of the commission’s receipt of the claim.
(2) A denial of a claim under subsection (1) of this section by the commission may be reviewed in the district court for Ada county or the county the property was seized or is then located by a complaint filed by the claimant against the commission within thirty (30) days after the mailing of the notice denying the claim, in whole or in part. Upon the serving of summons upon the commission the case shall proceed as other civil cases and shall be heard by the court without a jury. Only the state of Idaho shall be responsible for any final money judgment secured against the commission, and said judgment shall be paid or satisfied out of the state refund fund created in section 63-3067, Idaho Code.
[63-4211, added 1993, ch. 9, sec. 4, p. 29.]
This chapter shall be known and may be cited as "The Idaho Small Employer Incentive Act of 2005."
[63-4401, added 2005, ch. 370, sec. 1, p. 1178; am. 2008, ch. 390, sec. 3, p. 1073.]
(1) The definitions contained in the Idaho income tax act shall apply to this chapter unless modified in this chapter or unless the context clearly requires another definition.
(2) As used in this chapter:
(a) "Commission" means the Idaho state tax commission.
(b) "New plant and building facilities" means facility or facilities, including related parking facilities, where employees are physically employed.
(c) "Idaho income tax act" means chapter 30, title 63, Idaho Code.
(d) "Investment in new plant" means investment in new plant and building facilities that are:
(i) Qualified investments; or
(ii) Buildings or structural components of buildings.
(e) "New employee":
(i) Means an individual, employed primarily within the project site by the business entity, subject to Idaho income tax withholding whether or not any amounts are required to be withheld, covered for unemployment insurance purposes under chapter 13, title 72, Idaho Code, and who was eligible to receive employer provided coverage under a health benefit plan as described in section 41-4703, Idaho Code, during the taxable year. A person shall be deemed to be so employed if such person performs duties on a regular full-time basis.
(ii) The number of employees employed primarily within the project site by the business entity, during any taxable year for a business entity shall be the mathematical average of the number of such employees reported to the Idaho department of labor for employment security purposes during the twelve (12) months of the taxable year which qualified under paragraph (e)(i) of this subsection. In the event the business is in operation for less than the entire taxable year, the number of employees of the business entity for the year shall be the average number actually employed during the months of operation, provided that the qualifications of paragraph (e)(i) of this subsection are met.
(iii) Existing employees of the business entity who obtain new qualifying positions within the project site and employees transferred from a related business entity or acquired as part of the acquisition of a trade or business from another business entity within the prior twelve (12) months are not included in this definition unless the new position or transfer creates a net new job in Idaho.
(f) "Project period" means the period of time beginning at a physical change to the project site or the first employment of new employees located in Idaho who are related to the activities at the project site, and ending when the facilities constituting the project are placed in service, but no later than December 31, 2030, and no longer than ten (10) years after the beginning.
(g) "Project site" means an area or areas at which new plant and building facilities are located and at which the tax incentive criteria have been or will be met and which are either:
(i) A single geographic area located in this state at which the new plant and building facilities owned or leased by the taxpayer are located; or
(ii) One (1) or more geographic areas located in this state if eighty percent (80%) or more of the investment required by subsection (2)(j)(i) of this section is made at one (1) of the areas.
The project site must be identified and described to the commission by a taxpayer subject to tax under the Idaho income tax act, in the form and manner prescribed by the commission.
(h) "Qualified investment" shall be defined as in section 63-3029B, Idaho Code.
(i) "Recapture period" means:
(i) In the case of credits described in sections 63-4403 and 63-4404, Idaho Code, the same period for which a recapture of investment tax credit under section 63-3029B, Idaho Code, is required; or
(ii) In the case of credits described in section 63-4405, Idaho Code, five (5) years from the date the project period ends.
(j) "Tax incentive criteria" means a business entity meeting at a project site the requirements of subparagraphs (i) and (ii) of this paragraph.
(i) During the project period, making capital investments in new plant of at least five hundred thousand dollars ($500,000) at the project site.
(ii) During a period of time beginning on January 1, 2006, and ending at the conclusion of the project period:
Increasing employment at the project site by at least ten (10) new employees each of whom must earn at least nineteen dollars and twenty-three cents ($19.23) per hour worked during the business entity’s taxable year.
Employment increases above the ten (10) new employees described in subparagraph (ii)1. of this paragraph at the project site shall on average earn at least fifteen dollars and fifty cents ($15.50) per hour worked during the business entity’s taxable year. Calculation of the group average earnings shall not include amounts paid to any employee earning more than forty-eight dollars and eight cents ($48.08) per hour.
Earnings calculated pursuant to subparagraph (ii) of this paragraph shall include income upon which Idaho income tax withholding is required under section 63-3035, Idaho Code, but shall not include income such as stock options or restricted stock grants.
For purposes of determining whether the increased employment threshold has been met, employment at the project site shall be determined by calculating the increase of such new employees reported to the Idaho department of labor for employment security purposes over the employees so reported as of the beginning of the project period or no earlier than January 1, 2006, whichever is larger; and
Maintaining net increased employment in Idaho required by subparagraph (ii) of this paragraph during the remainder of the project period.
(k) "Business entity," for purposes of paragraphs (j) and (e) of this subsection, means either:
(i) A single taxpayer; or
(ii) A single business, a separate division, branch, or identifiable segment, or a group of businesses related through ownership pursuant to section 267 of the Internal Revenue Code. For purposes of this subsection, a "separate division, branch, or identifiable segment" shall be deemed to exist if, prior to the date of application, the income and expense attributable to such a separate division, branch, or identifiable segment could be separately ascertained from the books of accounts and records.
[63-4402, added 2005, ch. 370, sec. 1, p. 1179; am. 2006, ch. 314, sec. 1, p. 974; am. 2007, ch. 360, sec. 25, p. 1087; am. 2008, ch. 90, sec. 1, p. 250; am. 2009, ch. 191, sec. 1, p. 622; am. 2020, ch. 243, sec. 1, p. 710.]
(1) For taxable years beginning on or after January 1, 2006, and before December 31, 2030, and subject to the limitations of this chapter, a taxpayer who has certified that the tax incentive criteria will be met within a project site during a project period shall, in regard to qualified investments made after the beginning of the project period and before December 31, 2030, in lieu of the investment tax credit provided in section 63-3029B, Idaho Code, be allowed a nonrefundable credit against taxes imposed by sections 63-3024, 63-3025 and 63-3025A, Idaho Code, in the amount of three and seventy-five one hundredths percent (3.75%) of the amount of qualified investment made during the project period, wherever located within this state.
(2) The credit allowed by this section shall not exceed sixty-two and five-tenths percent (62.5%) of the tax liability of the taxpayer.
(3) The credit allowed by this section shall not exceed seven hundred fifty thousand dollars ($750,000) in any one (1) taxable year.
[63-4403, added 2005, ch. 370, sec. 1, p. 1181; am. 2006, ch. 314, sec. 2, p. 977; am. 2009, ch. 191, sec. 2, p. 623; am. 2010, ch. 44, sec. 3, p. 82; am. 2020, ch. 243, sec. 2, p. 713.]
(1) For taxable years beginning on or after January 1, 2006, and before December 31, 2030, subject to the limitations of this chapter, a taxpayer who has certified that the tax incentive criteria will be met within a project site during a project period shall be allowed a nonrefundable credit against taxes imposed by sections 63-3024, 63-3025 and 63-3025A, Idaho Code, in the amount of two and five-tenths percent (2.5%) of the investment in new plant which is incurred during the project period applicable to the project site in which the investment is made.
(2) The credit allowed by this section shall not exceed one hundred twenty-five thousand dollars ($125,000) in any one (1) taxable year.
(3) No credit is allowable under this section for a qualified investment in regard to which a credit under section 63-4403, Idaho Code, is available.
(4) The credit allowed by this section is limited to buildings and structural components of buildings related to new plant and building facilities.
[63-4404, added 2005, ch. 370, sec. 1, p. 1181; am. 2006, ch. 314, sec. 3, p. 977; am. 2009, ch. 191, sec. 3, p. 624; am. 2020, ch. 243, sec. 3, p. 713.]
(1) Subject to the limitations of this chapter, for taxable years beginning on or after January 1, 2006, and before December 31, 2030, a taxpayer who has certified that the tax incentive criteria will be met within a project site during a project period shall, for the number of new employees earning more than a rate of twenty-four dollars and four cents ($24.04) per hour worked, in lieu of the credit amount in subsection (3) of section 63-3029F, Idaho Code, be allowed the credit provided by this section. The number of new employees is the increase in the number of employees for the current taxable year over the greater of the following:
(a) The number of employees for the prior taxable year; or
(b) The average of the number of employees for the three (3) prior taxable years.
(2) The credit provided by this section shall be:
(a) One thousand five hundred dollars ($1,500) for each new employee whose annual salary during the taxable year for which the credit is earned is greater than twenty-four dollars and four cents ($24.04) per hour worked but equal to or less than an average rate of twenty-eight dollars and eighty-five cents ($28.85) per hour worked;
(b) Two thousand dollars ($2,000) for each new employee whose annual salary during the taxable year for which the credit is earned is greater than an average rate of twenty-eight dollars and eighty-five cents ($28.85) per hour worked but equal to or less than an average rate of thirty-six dollars and six cents ($36.06) per hour worked;
(c) Two thousand five hundred dollars ($2,500) for each new employee whose annual salary during the taxable year for which the credit is earned is greater than an average rate of thirty-six dollars and six cents ($36.06) per hour worked but equal to or less than an average rate of forty-three dollars and twenty-seven cents ($43.27) per hour worked;
(d) Three thousand dollars ($3,000) for each new employee whose annual salary during the taxable year for which the credit is earned is greater than an average rate of forty-three dollars and twenty-seven cents ($43.27) per hour worked.
(3) The credit allowed by subsection (1) of this section shall apply only to employment primarily within the project site. No credit shall be earned unless such employee shall have performed such duties for the taxpayer for a minimum of nine (9) months during the taxable year for which the credit is claimed.
(4) The credit allowed by this section shall not exceed sixty-two and five-tenths percent (62.5%) of the tax liability of the taxpayer.
(5) Employees transferred from a related taxpayer or acquired from another taxpayer within the prior twelve (12) months shall not be included in the computation of the credit unless the transfer creates a net new job in Idaho.
[63-4405, added 2005, ch. 370, sec. 1, p. 1182; am. 2006, ch. 314, sec. 4, p. 978; am. 2009, ch. 191, sec. 4, p. 624; am. 2011, ch. 318, sec. 4, p. 928; am. 2020, ch. 243, sec. 4, p. 713.]
(1) In addition to other needed rules, the state tax commission may promulgate rules prescribing:
(a) In the case of S corporations, partnerships, trusts, or estates, a method of attributing a credit under this chapter to the shareholders, partners or beneficiaries in proportion to their share of the income from the S corporation, partnership, trust, or estate; and
(b) The method by which the carryover of credits and the duty to recapture credits shall survive and be transferred in the event of reorganizations, mergers or liquidations.
(2) In the case of a unitary group of corporations filing a combined report under section 63-3027(22), Idaho Code, credits against income tax provided by sections 63-4403, 63-4404, and 63-4405, Idaho Code, earned by one (1) member of the group but not used by that member may be used by another member of the group, subject to the limitation in subsection (3) of this section, instead of carried over. For a combined group of corporations, credit carried forward may be claimed by any member of the group unless the member or members who earned the credit are no longer included in the combined group.
(3) The total of all credits allowed by sections 63-4403, 63-4404, and 63-4405, Idaho Code, together with any credits carried forward under subsection (4) of this section shall not exceed the amount of tax due under sections 63-3024, 63-3025, and 63-3025A, Idaho Code, after allowance for all other credits permitted by this chapter and the Idaho income tax act.
(4) If the credits exceed the limitation under subsection (3) of this section, the excess amount may be carried forward for a period that does not exceed:
(a) The next fourteen (14) taxable years, in the case of credits allowed by sections 63-4403 and 63-4404, Idaho Code; or
(b) The next ten (10) taxable years, in the case of credits allowed by section 63-4405, Idaho Code.
[63-4406, added 2005, ch. 370, sec. 1, p. 1182; am. 2006, ch. 195, sec. 7, p. 609; am. 2008, ch. 390, sec. 4, p. 1073; am. 2022, ch. 52, sec. 5, p. 172.]
(1) In the event that any person to whom a tax credit allowed by section 63-4403, 63-4404 or 63-4405, Idaho Code, fails to meet the tax incentive criteria, the full amount of the credit shall be subject to recapture by the commission.
(2) If, during any taxable year, an investment in new plant is disposed of, or otherwise ceases to qualify with respect to the taxpayer, prior to the close of the recapture period, recapture of the credit allowed by sections 63-4403 and 63-4404, Idaho Code, shall be determined for such taxable year in the same proportion and subject to the same provisions as an amount of credit required to be recaptured under section 63-3029B, Idaho Code.
(3) In the event that the employment level for which the credit allowed in section 63-4405, Idaho Code, is not maintained for the entire recapture period, recapture of the credit allowed in section 63-4405, Idaho Code, shall be determined for such taxable year in the same proportion as an amount of credit required to be recaptured under section 63-3029B, Idaho Code. This subsection shall not be construed to require that the required level of employment must be met by the same individual employees.
(4) Any amount subject to recapture is a deficiency in tax for the amount of the credit in the taxable year in which the disqualification first occurs and may be enforced and collected in the manner provided by the Idaho income tax act, provided however, that in lieu of the provisions of section 63-3068(a), Idaho Code, the period of time within which the commission may issue a notice under section 63-3045, Idaho Code, in regard to an amount subject to recapture shall be the later of five (5) years after the end of the taxable year in which the project period ends or three (3) years after the end of the taxable year in which any amounts carried forward under section 63-4406, Idaho Code, expire.
[63-4407, added 2005, ch. 370, sec. 1, p. 1183; am. 2007, ch. 10, sec. 5, p. 18.]
(1) For calendar years beginning on January 1, 2006, and ending on December 31, 2030, subject to the limitations of this chapter, a taxpayer who has certified that the tax incentive criteria will be met within the project site shall be entitled to receive a rebate of twenty-five percent (25%) of all sales and use taxes imposed by chapter 36, title 63, Idaho Code, and that the taxpayer or its contractors actually paid in regard to any property constructed, located or installed within the project site during the project period for that site.
(2) Upon filing of a written refund claim by the taxpayer entitled to the rebate, and subject to such reasonable documentation and verification as the commission may require, the rebate shall be paid by the commission as a refund allowable under section 63-3626, Idaho Code. A claim for rebate under this section must be filed on or before the last day of the third calendar year following the year in which the taxes sought to be rebated were paid or the right to the rebate is lost.
(3) Any rebate paid shall be subject to recapture by the commission:
(a) At one hundred percent (100%) in the event that the tax incentive criteria are not met at the project site during the project period;
(b) In the event that the property is not used, stored or otherwise consumed within the project site for a period of sixty (60) consecutive full months after the property was placed in service; or
(c) In the event that the employment required in section 63-4402(2)(j), Idaho Code, is not maintained for sixty (60) consecutive full months from the date the project period ends.
Any recapture required by paragraph (b) or (c) of this subsection shall be in the same proportion as an amount of credit required to be recaptured under section 63-3029B, Idaho Code.
(4) Any recapture amount due under this section shall be a deficiency in tax for the period in which the disqualification first occurs for purposes of section 63-3629, Idaho Code, and may be enforced and collected in the manner provided by the Idaho sales tax act, provided however, that in lieu of the provisions of section 63-3633, Idaho Code, the period of time within which the commission may issue a notice under section 63-3629, Idaho Code, in regard to an amount subject to recapture, shall be the later of five (5) years after the end of the taxable year, for income tax purposes, in which the project period ends.
(5) The rebate allowed by this section is limited to sales and use taxes actually paid by the taxpayer or its contractors for taxable property related to new plant and building facilities.
[63-4408, added 2005, ch. 370, sec. 1, p. 1184; am. 2006, ch. 314, sec. 5, p. 979; am. 2009, ch. 191, sec. 5, p. 625; am. 2020, ch. 243, sec. 5, p. 714.]
(1) The commission shall enforce the provisions of this chapter and may prescribe, adopt, and enforce reasonable rules relating to the administration and enforcement of those provisions, including the promulgation of rules relating to information necessary to certify that the incentive criteria have been or will be met. For the purpose of carrying out its duties to enforce or administer the provisions of this chapter, the commission shall have the powers and duties provided by sections 63-3038, 63-3039, 63-3042 through 63-3067, 63-3068, 63-3071, 63-3074 through 63-3078 and 63-217, Idaho Code.
(2) Within thirty (30) days after filing form 89SE with the commission to notify of the intent to claim credits associated with the provisions of this chapter, a business entity shall provide a written notice of the filing to the department of commerce.
[63-4409, added 2005, ch. 370, sec. 1, p. 1184; am. 2020, ch. 243, sec. 6, p. 715.]
This chapter shall be known and may be cited as the "Idaho New Capital Investments Incentive Act of 2008."
[63-4501, added 2008, ch. 234, sec. 1, p. 712.]
(1) For calendar years beginning on or after January 1, 2008, the net taxable value of all property of a taxpayer, whether acquired before, during or after the qualifying period, in excess of four hundred million dollars ($400,000,000) located within a single county in Idaho shall be exempt from property taxation and any special assessment, but only if the taxpayer makes a qualifying new capital investment as defined in subsection (2) of this section.
(2) For purposes of this section, the following definitions shall apply:
(a) "Qualifying new capital investment" means an investment of at least one billion dollars ($1,000,000,000) made during the qualifying period by the acquisition, construction, improvement or installation of real, operating or personal property related to new plant and building facilities at a project site located within the county referred to in subsection (1) of this section.
(b) "New plant and building facilities" means:
(i) Qualified investments as defined in section 63-3029B, Idaho Code; or
(ii) Buildings or structural components of buildings, including equipment, materials and fixtures thereof, whether used at a project site or temporarily stored off-site in the county referred to in subsection (1) of this section and intended for use at a project site.
(c) "Qualifying period" means an eighty-four (84) month period of time beginning with the issuance of a building permit for a permanent building structure at a project site and ending no later than eighty-four (84) months a thereafter.
(d) "Project site" means an area or areas at which the new plant and building facilities described in subsection (2)(b) of this section are built, installed or constructed.
(3) The property included in the calculation for purposes of determining a qualifying new capital investment value shall include all real or operating property owned, and all personal property owned, leased or rented. With respect to leased or rented personal property, only that portion of the property for which a taxpayer is contractually liable for payment of property taxes thereon shall be included in the calculation of the investment.
(4) Notwithstanding the exemption provided in subsection (4) of section 63-3029B, Idaho Code, no other exemption from property tax or any special assessment provided by the statutes of this state shall be applicable to any property described in subsection (2) of this section with respect to a year in which the incentives set forth in subsection (1) of this section apply to any of the same property.
(5) Property subject to the provisions of this section shall not be included on any property roll or any new construction roll prepared by the county assessor in accordance with section 63-301 or 63-301A, Idaho Code, respectively.
(6) The state tax commission shall adopt all rules that may be necessary to implement the provisions of this section.
[63-4502, added 2008, ch. 234, sec. 1, p. 712; am. 2011, ch. 10, sec. 1, p. 22; am. 2018, ch. 151, sec. 1, p. 309.]
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