Idaho H 671: SALES AND USE TAX – Amends existing law to revise provisions regarding a sales and use tax rebate for certain developers of certain retail complexes.

Bill Text

LEGISLATURE OF THE STATE OF IDAHO
Sixty-eighth Legislature Second Regular Session - 2026
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 671
BY REVENUE AND TAXATION COMMITTEE
AN ACT1
RELATING TO TAXATION; AMENDING SECTION 63-3641, IDAHO CODE, TO REVISE PRO-2
VISIONS REGARDING THE REBATE OF SALES TAX COLLECTED; AND DECLARING AN3
EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.4
Be It Enacted by the Legislature of the State of Idaho:5
SECTION 1. That Section 63-3641, Idaho Code, be, and the same is hereby6
amended to read as follows:7
63-3641. REBATE OF SALES TAXES COLLECTED. (1) As provided in and sub-8
ject to the limitations of this section, a developer of a retail complex9
shall receive a rebate of sales taxes collected and remitted to the state10
tax commission under this chapter by qualified retailers within the retail11
complex to reimburse the developer for project expenses incurred for the12
installation of approved transportation improvements.13
(2) As used in this section:14
(a) "Approved transportation improvements" means a highway project the15
cost of which is in excess of six million dollars ($6,000,000) for the16
installation of an interchange from an interstate highway or expended17
on for the improvement of a highway as defined in section 40-109(5),18
Idaho Code, the cost of which is in excess of five million dollars19
($5,000,000). To qualify as an approved highway improvement the de-20
veloper of a retail complex must enter into an agreement with the Idaho21
transportation board and/or or a political subdivision. An approved22
highway improvement shall include those costs directly associated with23
the highway project but shall not include any improvement not within the24
right-of-way of the proposed public highway improvement, improvements25
not specifically authorized in the agreement entered into, or developer26
financed improvements required by state or local agencies as part of27
the permitting and development process not within the public highway28
right-of-way.29
(b) "Political subdivision" means a city, county or highway district30
that receives highway funding pursuant to section 40-709, Idaho Code.31
(c) "Qualified retailer" means a specific location within a retail com-32
plex operated by a retailer in regard to which the retailer:33
(i) Has obtained a separate seller's permit pursuant to section34
63-3620, Idaho Code, applicable only to that location and has col-35
lected sales or use taxes in regard to retail sales made at that lo-36
cation and has remitted all such taxes to the state tax commission37
with returns related to that permit;38
(ii) Has been identified in the manner required by rules of the39
state tax commission as associated with the specific retail com-40
plex; and41

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(iii) Did not directly or by any related party, (as defined in sec-1
tion 63-3615A(2), Idaho Code), operate a retail business in the2
same location before construction of the retail complex.3
(d) "Retail complex" means:4
(i) One (1) or more buildings in a single location constructed by5
a developer applying for a rebate under this section;6
(ii) Facilities reasonably related to the buildings, such as7
parking lots, sidewalks, lighting, traffic signs and accessory8
equipment; and9
(iii) For which the developer has expended a minimum of four mil-10
lion dollars ($4,000,000).11
(e) "Retailer" has the same meaning as provided in section 63-3610,12
Idaho Code;13
(f) "Retail sales" has the same meaning as that term is defined in sec-14
tion 63-3609, Idaho Code.15
(3) To obtain the rebate provided by this section, the developer of a16
retail complex shall file a written claim with the state tax commission.17
(a) The claim shall:18
(i) Identify the location and boundaries of the retail complex;19
(ii) Identify the qualified retailers making retail sales within20
the complex;21
(iii) Include verification that the developer has met the expendi-22
ture requirements of paragraph (2)(d)(iii) of this section;23
(iv) Include certification from the Idaho transportation depart-24
ment or political subdivision of the amount expended on the ap-25
proved transportation improvements related to the retail complex;26
(v) Contain such additional information as the state tax commis-27
sion may require by rule.28
(b) The claim shall be subject to such reasonable documentation and29
verification as the state tax commission may require.30
(c) A developer of a retail complex must submit a claim under this sub-31
section within two (2) years of the developer's last expenditure on ap-32
proved transportation improvements.33
(4)(a) Upon approval by the state tax commission, the developer is en-34
titled to receive a rebate of sixty percent (60%) of all sales and use35
taxes imposed by this chapter and remitted to the state tax commission36
after the date of approval by qualified retailers in the retail complex37
but not to exceed the lesser of:38
(i) The amount certified pursuant to subsection (3)(a)(iv) of39
this section; or40