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H0506

Sales Tax Rebate for Retail Complex Developers

Last scannedAug 24, 2026, 7:59 AM

In one sentence

This bill changes Idaho law to give developers of certain retail complexes a partial refund on sales taxes collected from stores in their complex if they pay for approved highway improvements.

Allows developers to receive a rebate of 60% of the sales and use tax paid by qualified retailers inside their new shopping complexes.
Requires that the retail complex include one or more buildings with related facilities like parking lots, where the developer spent at least $4 million.
Mandates that developers pay for approved highway projects, such as interchanges costing over $6 million or other road improvements costing over $10 million.
Creates a new state fund called the demonstration pilot project fund to hold tax money before it is paid out as rebates.
Sets a limit of $35 million in total rebates for any single highway improvement project.

Developers who build retail complexes and pay for approved transportation improvements.
Retail stores located inside these new shopping centers that collect sales tax from customers.
The Idaho State Tax Commission, which reviews claims and manages the rebate fund.
State or local highway agencies that agree to work with developers on road projects.

Rebates stop once $35 million has been paid for a specific highway project.
Developers must file their claim within two years of finishing payments on the road improvements.
Payments are made only as funds become available in the demonstration pilot project fund.

Plain language

Retail complex: One or more buildings built by a developer at one location, including parking lots and sidewalks, where the developer spent at least $4 million.
Approved transportation improvement: A highway project like an interchange costing over $6 million or other road work costing over $10 million that is agreed upon with a government agency.
Qualified retailer: A store in the complex that has its own tax permit, pays taxes to the state, and did not operate at that exact spot before construction began.

Official record

Source attached

Sales tax, rebate, developers

Official activity