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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
535
BY
TRANSPORTATION
AND
DEFENSE
COMMITTEE
AN
ACT
1
RELATING
TO
TRANSPORTATION
FUNDING;
AMENDING
SECTION
40
-
701,
IDAHO
CODE,
TO
2
REVISE
PROVISIONS
REGARDING
APPORTIONMENT
OF
THE
HIGHWAY
DISTRIBUTION
3
ACCOUNT,
TO
REVISE
A
PROVISION
REGARDING
FEES
ON
ELECTRIC
AND
HYBRID
4
VEHICLES,
AND
TO
MAKE
A
TECHNICAL
CORRECTION;
AMENDING
SECTION
63
-
2412,
5
IDAHO
CODE,
TO
REVISE
A
DISTRIBUTION
TO
THE
LOCAL
BRIDGE
INSPECTION
6
ACCOUNT,
TO
REMOVE
A
LIMITATION
REGARDING
REVENUES
RECEIVED
FROM
FUEL
7
TAXES,
AND
TO
MAKE
TECHNICAL
CORRECTIONS;
AMENDING
SECTION
63
-
2418,
8
IDAHO
CODE,
TO
REVISE
A
PROVISION
REGARDING
THE
DISTRIBUTION
OF
THE
TAX
9
ON
CERTAIN
SPECIAL
FUELS
AND
TO
MAKE
A
TECHNICAL
CORRECTION;
AND
DECLAR
-
10
ING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
1
1
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
12
SECTION
1.
That
Section
40
-
701,
Idaho
Code,
be,
and
the
same
is
hereby
13
amended
to
read
as
follows:
14
40
-
701.
HIGHWAY
DISTRIBUTION
ACCOUNT
-
-
APPORTIONMENT.
(1)
There
is
15
established
in
the
state
treasury
an
account
known
as
the
"Highway
Distribu
-
16
tion
Account,"
to
which
shall
be
credited:
17
(a)
Moneys
as
provided
by
sections
63
-
2412(1)(f)4.
and
63
-
2418(4),
18
Idaho
Code;
19
(b)
All
moneys
collected
by
the
department,
their
its
agents
and
ven
-
20
dors,
and
county
assessors
and
sheriffs,
under
the
provisions
of
title
21
49,
Idaho
Code,
except
as
otherwise
specifically
provided
for;
and
22
(c)
All
other
moneys
as
may
be
provided
by
law.
23
(2)
(a)
The
highway
distribution
account
shall
be
apportioned
as
fol
-
24
lows:
25
(a)
Thirty
-
eight
percent
(38%)
in
fiscal
year
2021,
thirty
-
eight
and
26
one
-
half
percent
(38.5%)
in
fiscal
year
2022,
thirty
-
nine
percent
(39%)
27
in
fiscal
year
2023,
thirty
-
nine
and
one
-
half
percent
(39.5%)
in
fis
-
28
cal
year
2024,
thirty
-
nine
and
three
-
quarters
percent
(39.75%)
in
fis
-
29
cal
year
2025,
and
forty
percent
(40%)
thereafter
to
local
units
of
gov
-
30
ernment
as
provided
in
section
40
-
709,
Idaho
Code;
31
(b)
Fifty
-
seven
percent
(57%)
in
fiscal
year
2021,
fifty
-
seven
and
one
-
32
half
percent
(57.5%)
in
fiscal
year
2022,
fifty
-
eight
percent
(58%)
in
33
fiscal
year
2023,
fifty
-
eight
and
one
-
half
percent
(58.5%)
in
fiscal
34
year
2024,
fifty
-
nine
and
one
-
quarter
percent
(59.25%)
in
fiscal
year
35
2025,
and
sixty
percent
(60%)
thereafter
to
the
state
highway
account
36
established
in
section
40
-
702,
Idaho
Code;
and
37
(c)
Five
percent
(5%)
in
fiscal
year
2021,
four
percent
(4%)
in
fiscal
38
year
2022,
three
percent
(3%)
in
fiscal
year
2023,
two
percent
(2%)
in
39
fiscal
year
2024,
one
percent
(1%)
in
fiscal
year
2025,
and
zero
dol
-
40
lars
thereafter
to
the
law
enforcement
account,
established
in
section
41
67
-
2914,
Idaho
Code.
The
state
controller
shall
cause
the
remittance
of
42
2
the
moneys
apportioned
to
local
units
of
government
not
later
than
Jan
-
1
uary
25,
April
25,
July
25
and
October
25
of
each
year,
and
to
the
law
2
enforcement
account
and
the
state
highway
account
as
the
moneys
become
3
available
to
the
highway
distribution
account.
4
(i)
Forty
percent
(40%)
to
local
units
of
government
as
provided
5
in
section
40
-
709,
Idaho
Code;
and
6
(ii)
Sixty
percent
(60%)
to
the
state
highway
account
established
7
in
section
40
-
702,
Idaho
Code.
8
(b)
The
state
controller
shall
cause
the
remittance
of
the
moneys
ap
-
9
portioned
to
local
units
of
government
no
later
than
January
25,
April
10
25,
July
25,
and
October
25
of
each
year
and
to
the
state
highway
account
1
1
as
the
moneys
become
available
to
the
highway
distribution
account.
12
(3)
All
new
revenues
generated
by
increases
in
registration
fees
and
13
fees
on
electric
and
hybrid
vehicles
pursuant
to
the
provisions
of
House
Bill
14
No.
312,
as
amended
in
the
Senate,
as
amended
in
the
Senate,
during
the
first
15
regular
session
of
the
sixty
-
third
Idaho
legislature,
fees
on
electric
and
16
hybrid
vehicles
and
all
revenues
generated
by
fees
on
electric
and
plug
-
in
17
hybrid
vehicles
pursuant
to
the
provisions
of
section
49
-
457,
Idaho
Code,
18
shall
be
apportioned
as
follows:
19
(a)
Forty
percent
(40%)
to
local
units
of
government
as
provided
in
sec
-
20
tion
40
-
709,
Idaho
Code;
and
21
(b)
Sixty
percent
(60%)
to
the
state
highway
account
established
in
22
section
40
-
702,
Idaho
Code.
23
(4)
Interest
earned
on
the
investment
of
idle
moneys
in
the
highway
dis
-
24
tribution
account
shall
be
paid
to
the
highway
distribution
account.
25
(5)
All
idle
moneys
in
the
dedicated
highway
trust
or
asset
accounts
or
26
subaccounts
established
from
highway
user
revenues,
reimbursements,
fees
or
27
permits
shall
be
invested
by
the
state
treasurer
in
the
same
manner
as
pro
-
28
vided
under
section
67
-
1210,
Idaho
Code,
with
respect
to
other
surplus
or
29
idle
moneys
in
the
state
treasury.
Interest
earned
on
the
investments
shall
30
be
returned
to
the
various
highway
trust
or
asset
accounts
and
subaccounts.
31
SECTION
2.
That
Section
63
-
2412,
Idaho
Code,
be,
and
the
same
is
hereby
32
amended
to
read
as
follows:
33
63
-
2412.
DISTRIBUTION
OF
TAX
REVENUES
FROM
TAX
ON
GASOLINE
AND
AIR
-
34
CRAFT
ENGINE
FUEL.
(1)
The
revenues
received
from
the
taxes
imposed
by
sec
-
35
tions
63
-
2402
and
63
-
2421,
Idaho
Code,
upon
the
receipt
or
use
of
gasoline,
36
and
any
penalties,
interest,
or
deficiency
additions,
shall
be
distributed
37
periodically
as
follows:
38
(a)
An
amount
of
money
equal
to
the
actual
cost
of
collecting,
admin
-
39
istering
and
enforcing
the
gasoline
tax
requirements
by
the
commission,
40
as
determined
by
it
,
shall
be
retained
by
the
commission.
The
amount
re
-
41
tained
by
the
commission
shall
not
exceed
the
amount
authorized
to
be
42
expended
by
appropriation
by
the
legislature.
Any
unencumbered
balance
43
in
excess
of
the
actual
cost
of
collecting,
administering
and
enforcing
44
the
gasoline
tax
requirements
by
the
commission
at
the
end
of
each
fis
-
45
cal
year
shall
be
distributed
as
listed
in
paragraph
(f)
of
this
subsec
-
46
tion.
47
(b)
An
amount
of
money
shall
be
distributed
to
the
state
refund
account
48
sufficient
to
pay
current
refund
claims.
All
refunds
authorized
by
the
49
3
commission
to
be
paid
shall
be
paid
from
the
state
refund
account
,
and
1
those
moneys
are
hereby
continuously
appropriated
for
that
purpose.
2
(c)
As
soon
as
possible
after
the
beginning
of
each
fiscal
year,
the
sum
3
of
two
hundred
fifty
thousand
dollars
($250,000)
shall
be
distributed
4
to
the
railroad
grade
crossing
protection
account
fund
in
the
dedicated
5
fund,
to
pay
the
amounts
from
the
account
fund
pursuant
to
the
provi
-
6
sions
of
section
62
-
304C,
Idaho
Code.
7
(d)
As
soon
as
possible
after
the
beginning
of
each
fiscal
year,
the
sum
8
of
one
hundred
seventy
-
five
thousand
dollars
($175,000)
three
hundred
9
thousand
dollars
($300,000)
shall
be
distributed
to
the
local
bridge
10
inspection
account
in
the
dedicated
fund,
to
pay
the
amounts
from
the
1
1
account
pursuant
to
the
provisions
of
section
40
-
703,
Idaho
Code.
12
(e)
An
amount
of
money
equal
to
seven
percent
(7%)
shall
be
distributed
13
to
the
state
highway
account
established
in
section
40
-
702,
Idaho
Code.
14
(f)
From
the
balance
remaining
with
the
commission
after
distributing
15
the
amounts
in
paragraphs
(a)
through
(e)
of
this
subsection:
16
1.
One
and
twenty
-
eight
hundredths
percent
(1.28%)
shall
be
17
distributed
as
follows:
sixty
-
six
percent
(66%)
of
the
one
and
18
twenty
-
eight
hundredths
percent
(1.28%)
shall
be
distributed
to
19
the
waterways
improvement
fund,
as
created
in
chapter
15,
title
20
57,
Idaho
Code.
Up
to
twenty
percent
(20%)
of
the
moneys
dis
-
21
tributed
to
the
waterways
improvement
account
fund
under
the
22
provisions
of
this
paragraph
may
be
used
by
the
department
of
parks
23
and
recreation
to
defray
administrative
costs.
Any
moneys
un
-
24
used
at
the
end
of
the
fiscal
year
by
the
department
of
parks
and
25
recreation
shall
be
returned
to
the
state
treasurer
for
deposit
26
in
the
waterways
improvement
account
fund
.
Thirty
-
three
percent
27
(33%)
of
the
one
and
twenty
-
eight
hundredths
percent
(1.28%)
shall
28
be
distributed
into
the
park
and
recreation
capital
improvement
29
account
as
created
in
section
57
-
1801,
Idaho
Code.
One
percent
30
(1%)
of
the
one
and
twenty
-
eight
hundredths
percent
(1.28%)
shall
31
be
distributed
to
the
search
and
rescue
fund
created
in
section
32
67
-
2913,
Idaho
Code;
33
2.
One
and
twenty
-
eight
hundredths
percent
(1.28%)
shall
be
34
distributed
as
follows:
sixty
-
six
percent
(66%)
of
the
one
and
35
twenty
-
eight
hundredths
percent
(1.28%)
shall
be
distributed
to
36
the
off
-
road
motor
vehicle
account,
as
created
in
section
57
-
1901,
37
Idaho
Code.
Up
to
twenty
percent
(20%)
of
the
moneys
distributed
38
to
the
off
-
road
motor
vehicle
account
by
this
subparagraph
may
be
39
used
by
the
department
of
parks
and
recreation
to
defray
adminis
-
40
trative
costs.
Any
moneys
unused
at
the
end
of
the
fiscal
year
by
41
the
department
of
parks
and
recreation
shall
be
returned
to
the
42
state
treasurer
for
deposit
in
the
off
-
road
motor
vehicle
account.
43
Thirty
-
three
percent
(33%)
of
the
one
and
twenty
-
eight
hundredths
44
percent
(1.28%)
shall
be
distributed
into
the
park
and
recreation
45
capital
improvement
account
as
created
in
section
57
-
1801,
Idaho
46
Code.
One
percent
(1%)
of
the
one
and
twenty
-
eight
hundredths
47
percent
(1.28%)
shall
be
distributed
to
the
search
and
rescue
fund
48
created
in
section
67
-
2913,
Idaho
Code;
and
49
4
3.
Forty
-
four
hundredths
percent
(.44%)
shall
be
distributed
to
1
the
park
and
recreation
capital
improvement
account
as
created
2
in
section
57
-
1801,
Idaho
Code,
to
be
used
solely
to
develop,
3
construct,
maintain
and
repair
roads,
bridges
and
parking
areas
4
within
and
leading
to
parks
and
recreation
areas
of
the
state.
5
4.
The
balance
remaining
shall
be
distributed
to
the
highway
dis
-
6
tribution
account
created
in
section
40
-
701,
Idaho
Code.
7
(2)
Provided
however,
the
distribution
pursuant
to
subsection
(1)
of
8
this
section
of
revenues
received
from
the
taxes
imposed
pursuant
to
section
9
63
-
2402(2),
Idaho
Code,
shall
apply
only
to
twenty
-
five
cents
(25¢)
of
ev
-
10
ery
thirty
-
two
cents
(32¢)
received.
The
remaining
seven
cents
(7¢)
of
ev
-
1
1
ery
thirty
-
two
cents
(32¢)
received
pursuant
to
the
provisions
of
section
12
63
-
2402(2),
Idaho
Code,
shall
be
distributed
as
follows:
13
(a)
Sixty
percent
(60%)
to
the
state
highway
account;
and
14
(b)
Forty
percent
(40%)
to
be
distributed
pursuant
to
the
provisions
of
15
section
40
-
709,
Idaho
Code,
in
the
same
manner
as
distribution
of
mon
-
16
eys
appropriated
from
the
highway
distribution
account
to
local
units
17
of
government.
18
(3)
(2)
The
revenues
received
from
the
taxes
imposed
by
section
19
63
-
2408,
Idaho
Code,
and
any
penalties,
interest,
and
deficiency
amounts,
20
shall
be
distributed
as
follows:
21
(a)
An
amount
of
money
shall
be
distributed
to
the
state
refund
account
22
sufficient
to
pay
current
refund
claims.
All
refunds
authorized
by
the
23
commission
to
be
paid
shall
be
paid
from
the
state
refund
account,
and
24
those
moneys
are
hereby
continuously
appropriated.
25
(b)
The
balance
remaining
of
all
the
taxes
collected
shall
be
dis
-
26
tributed
to
the
state
aeronautics
fund,
as
provided
in
section
21
-
211,
27
Idaho
Code.
28
SECTION
3.
That
Section
63
-
2418,
Idaho
Code,
be,
and
the
same
is
hereby
29
amended
to
read
as
follows:
30
63
-
2418.
DISTRIBUTION
OF
TAX
REVENUES
FROM
TAX
ON
SPECIAL
FUELS.
Un
-
31
less
as
otherwise
provided
in
subsection
(5)
of
this
section,
revenues
re
-
32
ceived
from
the
tax
imposed
by
this
chapter
upon
the
receipt
of
special
fuel
33
and
any
penalties,
interest
or
deficiency
additions,
or
from
the
fees
im
-
34
posed
by
the
commission
under
the
provisions
of
section
63
-
2424
or
63
-
2438,
35
Idaho
Code,
shall
be
distributed
as
follows:
36
(1)
An
amount
of
money
equal
to
the
actual
cost
of
collecting,
adminis
-
37
tering
and
enforcing
the
special
fuels
tax
provisions
by
the
commission,
as
38
determined
by
it
,
shall
be
retained
by
the
commission.
The
amount
retained
39
by
the
commission
shall
not
exceed
the
amount
authorized
to
be
expended
by
40
appropriation
by
the
legislature.
Any
unencumbered
balance
in
excess
of
the
41
actual
cost
of
collecting,
administering
and
enforcing
the
special
fuels
tax
42
requirements
by
the
commission
at
the
end
of
each
fiscal
year
shall
be
dis
-
43
tributed
to
the
highway
distribution
account.
44
(2)
An
amount
of
money
shall
be
distributed
to
the
state
refund
account
45
sufficient
to
pay
current
refund
claims.
All
refunds
authorized
by
the
com
-
46
mission
to
be
paid
under
this
chapter
shall
be
paid
from
the
state
refund
ac
-
47
count,
those
moneys
being
hereby
continuously
appropriated.
48
5
(3)
An
amount
of
money
equal
to
seven
percent
(7%)
shall
be
distributed
1
to
the
state
highway
account
as
established
in
section
40
-
702,
Idaho
Code.
2
(4)
The
balance
remaining
with
the
commission
after
distributing
the
3
amounts
specified
in
subsections
(1),
(2)
and
(3)
of
this
section
shall
4
be
distributed
to
the
highway
distribution
account
established
in
section
5
40
-
701,
Idaho
Code.
6
(5)
For
those
special
fuels
subject
to
tax
pursuant
to
section
63
-
2402
7
or
63
-
2424,
Idaho
Code,
twenty
-
five
cents
(25¢)
of
every
thirty
-
two
cents
8
(32¢)
of
revenue
received
from
such
tax
shall
be
distributed
pursuant
to
the
9
provisions
of
subsections
(1),
(2),
(3)
and
(4)
of
this
section.
The
remain
-
10
ing
seven
cents
(7¢)
of
every
thirty
-
two
cents
(32¢)
of
the
revenue
received
1
1
shall
be
distributed
as
follows:
12
(a)
Sixty
percent
(60%)
to
the
state
highway
account;
and
13
(b)
Forty
percent
(40%)
to
be
distributed
pursuant
to
the
provisions
of
14
section
40
-
709,
Idaho
Code,
in
the
same
manner
as
distribution
of
mon
-
15
eys
appropriated
from
the
highway
distribution
account
to
local
units
16
of
government.
17
SECTION
4.
An
emergency
existing
therefor,
which
emergency
is
hereby
18
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
19
July
1,
2026.
20