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HJR 5

FRED KOREMATSU-LEGACY

104th Regular Session Introduced by Dee Avelar and 12 co-sponsors

HJR 5 allows Idaho local governments to levy sales and use taxes, pending voter approval, to boost funding for community services and projects.

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Bill Summary · HJR 5

Summary of House Joint Resolution 5 (HJR 5)

Purpose and Intent

House Joint Resolution 5 (HJR 5) proposes an amendment to the Idaho State Constitution that would allow the state legislature to authorize local governments—specifically counties and municipalities—to levy their own sales and use taxes. The intent of this resolution is to provide local governments with additional revenue-generating options to fund services and projects that benefit their communities.

Key Provisions

The proposed amendment includes several important provisions:

  1. Local Tax Authority:

    • The legislature may grant counties, cities, towns, and other municipal corporations the authority to impose a local sales and use tax.

  2. Approval Process:

    • Any proposed local tax must be approved by a majority vote of the qualified electors within the jurisdiction during a general election held in an even year.

  3. Tax Specifications:

    • The ballot measure for the tax must include:
      • A detailed description of the products or services subject to the tax.
      • The intended purpose for the revenue generated.
      • A termination date for the tax, which cannot exceed four years.
      • A maximum tax rate of 2% on the sales price of the taxable products or services.

  4. Restrictions:

    • No other sales or use taxes may be established by local governments beyond what is authorized in this section.
    • The provisions do not apply to any sales or use tax that was authorized and imposed by a municipality or taxing district prior to January 1, 2027.

Affected Parties

The resolution primarily affects:
- Local Governments: Counties and municipalities that may seek to implement a local sales and use tax.
- Voters: Qualified electors within those jurisdictions who will have the opportunity to vote on any proposed local tax measures.
- Businesses and Consumers: Entities and individuals who would be subject to the new local sales and use taxes if enacted.

Procedural Aspects

  • Introduced: March 6, 2025
  • Current Status: Reported printed and filed in the Office of the Chief Clerk as of March 7, 2025.
  • Next Steps: The question regarding the constitutional amendment will be submitted to voters at the next general election.

Fiscal Impact

According to the fiscal note attached to the resolution, this legislation is not expected to cause any increase or decrease in revenue or additional expenditures at the state level. However, if local governments choose to propose a levy that is approved by voters, it may have a fiscal impact at the local level.

Conclusion

HJR 5 seeks to empower local governments in Idaho by enabling them to levy sales and use taxes, subject to voter approval. This amendment could provide essential funding for local services and projects, while also ensuring transparency and accountability in how such taxes are implemented.

Compiled from official sources — confirm details with the bill’s official record.

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