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H 25

SALES TAX – Amends existing law to provide for the distribution of certain sales tax revenues to the transportation expansion and congestion mitigation fund and to local units of government for highway projects.

68th Legislature, 1st Regular Session (2025)

House Bill 25 boosts Idaho's transportation funding by allocating sales tax revenues to local highway projects and the TECM fund, enhancing infrastructure and reducing congestion.

Reported Signed by Governor on April 1, 2025 Session Law Chapter 250 Effective: 04/01/2025
#highways #taxandtaxation #salesanduse #transportation
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WeVote Research Nonpartisan
Bill Summary · H 25

Summary of House Bill 25 (H 25)

Title

Sales Tax – Amends existing law to provide for the distribution of certain sales tax revenues to the transportation expansion and congestion mitigation fund and to local units of government for highway projects.

Status

  • Reported Signed by Governor: April 1, 2025
  • Session Law Chapter: 250
  • Effective Date: April 1, 2025

Introduction

  • Introduced on: January 20, 2025
  • Classification: Bill
  • Subject Areas: Highways, Taxation, Sales and Use, Transportation

Purpose and Intent

House Bill 25 aims to amend existing sales tax distribution laws in Idaho to enhance funding for transportation projects. The bill specifically allocates a portion of sales tax revenues to the Transportation Expansion and Congestion Mitigation Fund (TECM) and ensures consistent funding for local government highway projects.

Key Provisions

  1. Increased Funding for TECM:

    • The bill gradually increases the allocation for the TECM program over three years:
      • FY2026: $145 million
      • FY2027: $165 million
      • FY2028 and beyond: $185 million

  2. Local Government Funding:

    • Local units of government will continue to receive a guaranteed $45 million annually for local road projects.

  3. Overall Revenue Distribution:

    • The total allocation of sales tax revenue for transportation and highway projects will rise from $140 million to $145 million in FY2026, with further increases in subsequent years.

  4. Impact on State General Fund:

    • The changes will reduce the revenue available to the state General Fund by:
      • $23 million in FY2026
      • $20 million in both FY2027 and FY2028

Affected Parties

  • Local Governments: Will benefit from increased funding for highway projects, ensuring better infrastructure and maintenance.
  • State Transportation Programs: Enhanced funding for the TECM will support broader transportation initiatives aimed at reducing congestion and improving road conditions.

Procedural Timeline

  • January 20, 2025: Bill introduced and referred to the Revenue and Taxation Committee.
  • March 5, 2025: Passed in the House with a vote of 70-0-0.
  • March 31, 2025: Passed in the Senate with a vote of 34-0-1.
  • April 1, 2025: Signed by the Governor and became effective the same day.

Conclusion

House Bill 25 represents a significant legislative effort to bolster transportation funding in Idaho through strategic sales tax revenue allocation. By ensuring consistent funding for both state and local transportation projects, the bill aims to enhance infrastructure and address congestion issues across the state.

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

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