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H 375

TAXATION – Amends and adds to existing law to provide for certain local sales and use taxes.

68th Legislature, 1st Regular Session (2025)

House Bill 375 allows Idaho counties and cities to levy local sales taxes up to 2% with voter approval, boosting local revenue for specific projects and services.

Reported Printed; Filed in the Office of the Chief Clerk
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Bill Summary · H 375

Summary of House Bill 375 (H 375)

Bill Information

  • Bill Number: H 375
  • Title: TAXATION – Amends and adds to existing law to provide for certain local sales and use taxes.
  • Status: Reported Printed; Filed in the Office of the Chief Clerk
  • Introduced: March 06, 2025
  • Classification: Bill
  • Subject: Acts, Cities, Counties, Sales, Tax and Taxation, Sales and Use

Purpose and Intent

House Bill 375 aims to establish a framework for counties and municipalities in Idaho to levy local sales and use taxes. This legislation is designed to empower local governments to generate revenue for specific services and projects, thereby allowing for greater local autonomy in fiscal matters.

Key Provisions

  1. Local Option Sales and Use Tax Authority:

    • Cities and counties can impose a local sales and use tax, subject to voter approval.
    • The maximum tax rate is capped at 2% of the sales price of taxable goods and services.

  2. Voter Approval Process:

    • A majority vote from qualified electors is required to authorize the tax.
    • Elections for tax approval will occur during even-numbered years on the specified November election date.
    • A public hearing must be conducted prior to the election, with a 30-day notice period.

  3. Tax Revenue Usage:

    • Revenue generated from the local tax can only be used for purposes specified in the ballot question presented to voters.
    • The tax duration is limited to a maximum of 4 years, after which it may be reauthorized or repealed through another election.

  4. Collection and Administration:

    • The Idaho State Tax Commission will be responsible for the collection and administration of the local taxes.
    • Local governments must contract with the State Tax Commission for these services.

  5. Impact on Property Taxes:

    • The revenue from the local sales and use tax will be deducted from the property tax budget limitations for the respective county and taxing districts.

Affected Parties

  • Local Governments: Cities and counties will gain the authority to levy taxes, potentially increasing their revenue streams.
  • Residents and Voters: Local electors will have the power to approve or reject proposed taxes, directly influencing local fiscal policies.
  • Businesses: Businesses operating within the jurisdiction of the local tax will be subject to the new tax rates, affecting their pricing and sales strategies.

Procedural Aspects

  • The bill was introduced on March 6, 2025, and has been reported printed and filed with the Chief Clerk as of March 7, 2025.
  • The implementation of the local option sales and use tax will require a public hearing and subsequent voter approval, ensuring community engagement in the decision-making process.

Conclusion

House Bill 375 represents a significant shift in local taxation authority in Idaho, allowing municipalities and counties to levy sales and use taxes with voter consent. This legislation aims to enhance local revenue generation while providing a structured process for implementation and oversight.

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

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