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

LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
751
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
SECTION
63
-
3641,
IDAHO
CODE,
TO
REVISE
PRO
-
2
VISIONS
REGARDING
THE
REBATE
OF
SALES
TAX
COLLECTED;
AND
DECLARING
AN
3
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
hereby
6
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
complex
9
shall
receive
a
rebate
of
sales
taxes
collected
and
remitted
to
the
state
10
tax
commission
under
this
chapter
by
qualified
retailers
within
the
retail
1
1
complex
to
reimburse
the
developer
for
project
expenses
incurred
for
the
12
installation
of
approved
transportation
improvements.
13
(2)
As
used
in
this
section:
14
(a)
"Approved
transportation
improvement
s
"
means
a
highway
project
the
15
cost
of
which
is
in
excess
of
six
million
dollars
($6,000,000)
for
the
16
installation
of
an
interchange
from
an
interstate
highway
or
expended
17
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
dollars
19
($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
Idaho
21
transportation
board
and/or
or
a
political
subdivision.
An
approved
22
highway
improvement
shall
include
those
costs
directly
associated
with
23
the
highway
project
but
shall
not
include
any
improvement
not
within
the
24
right
-
of
-
way
of
the
proposed
public
highway
improvement,
improvements
25
not
specifically
authorized
in
the
agreement
entered
into,
or
developer
26
financed
improvements
required
by
state
or
local
agencies
as
part
of
27
the
permitting
and
development
process
not
within
the
public
highway
28
right
-
of
-
way.
Such
agreement
shall
not
be
amended
in
subsequent
years
29
to
expand
or
redefine
the
scope
of
an
approved
transportation
improve
-
30
ment.
31
(b)
"Political
subdivision"
means
a
city,
county
or
highway
district
32
that
receives
highway
funding
pursuant
to
section
40
-
709,
Idaho
Code.
33
(c)
"Qualified
retailer"
means
a
specific
location
within
a
retail
com
-
34
plex
operated
by
a
retailer
in
regard
to
which
the
retailer:
35
(i)
Has
obtained
a
separate
seller's
permit
pursuant
to
section
36
63
-
3620,
Idaho
Code,
applicable
only
to
that
location
and
has
col
-
37
lected
sales
or
use
taxes
in
regard
to
retail
sales
made
at
that
lo
-
38
cation
and
has
remitted
all
such
taxes
to
the
state
tax
commission
39
with
returns
related
to
that
permit;
40

2
(ii)
Has
been
identified
in
the
manner
required
by
rules
of
the
1
state
tax
commission
as
associated
with
the
specific
retail
com
-
2
plex;
and
3
(iii)
Did
not
directly
or
by
any
related
party
,
(
as
defined
in
sec
-
4
tion
63
-
3615A(2),
Idaho
Code
)
,
operate
a
retail
business
in
the
5
same
location
before
construction
of
the
retail
complex.
6
(d)
"Retail
complex"
means:
7
(i)
One
(1)
or
more
buildings
in
a
single
location
constructed
by
8
a
developer
applying
for
a
rebate
under
this
section
specifically
9
related
to
an
approved
transportation
improvement
;
10
(ii)
Facilities
reasonably
related
to
the
buildings,
such
as
1
1
parking
lots,
sidewalks,
lighting,
traffic
signs
and
accessory
12
equipment;
and
13
(iii)
For
which
the
developer
has
expended
a
minimum
of
four
mil
-
14
lion
dollars
($4,000,000).
15
(e)
"Retailer"
has
the
same
meaning
as
provided
in
section
63
-
3610,
16
Idaho
Code;
17
(f)
"Retail
sales"
has
the
same
meaning
as
that
term
is
defined
in
sec
-
18
tion
63
-
3609,
Idaho
Code.
19
(3)
To
obtain
the
rebate
provided
by
this
section,
the
developer
of
a
20
retail
complex
shall
file
a
written
claim
with
the
state
tax
commission.
21
(a)
The
claim
shall:
22
(i)
Identify
the
location
and
boundaries
of
the
retail
complex;
23
(ii)
Identify
the
qualified
retailers
making
retail
sales
within
24
the
complex;
25
(iii)
Include
verification
that
the
developer
has
met
the
expendi
-
26
ture
requirements
of
paragraph
(2)(d)(iii)
of
this
section;
27
(iv)
Include
certification
from
the
Idaho
transportation
depart
-
28
ment
or
political
subdivision
of
the
amount
expended
on
the
ap
-
29
proved
transportation
improvements
related
to
the
retail
complex;
30
(v)
Contain
such
additional
information
as
the
state
tax
commis
-
31
sion
may
require
by
rule.
32
(b)
The
claim
shall
be
subject
to
such
reasonable
documentation
and
33
verification
as
the
state
tax
commission
may
require.
34
(c)
A
developer
of
a
retail
complex
must
submit
a
claim
under
this
sub
-
35
section
within
two
(2)
years
of
the
developer's
last
expenditure
on
ap
-
36
proved
transportation
improvements.
37
(4)(a)
Upon
approval
by
the
state
tax
commission,
the
developer
is
en
-
38
titled
to
receive
a
rebate
of
sixty
percent
(60%)
of
all
sales
and
use
39
taxes
imposed
by
this
chapter
and
remitted
to
the
state
tax
commission
40
after
the
date
of
approval
by
qualified
retailers
in
the
retail
complex
41
but
not
to
exceed
the
lesser
of:
42
(i)
The
amount
certified
pursuant
to
subsection
(3)(a)(iv)
of
43
this
section;
or
44
(ii)
The
limitation
imposed
by
subsection
(5)(c)
of
this
section.
45
(b)
No
interest
shall
be
paid
on
the
amounts
rebated.
46
(c)
All
sales
and
use
tax
information
remitted
by
retailers
shall
be
47
deemed
a
trade
secret,
shall
be
confidential
and
shall
not
be
disclosed
48
by
the
state
tax
commission.
49

3
(5)(a)
When
a
retailer
certifies
to
the
state
tax
commission
and
the
1
commission
determines
that
the
requirements
of
subsection
(3)(a)(i),
2
(ii)
and
(iii)
of
this
section
have
been
met,
sixty
percent
(60%)
of
all
3
sales
and
use
taxes
imposed
by
this
chapter
and
remitted
to
the
state
tax
4
commission
after
the
date
of
approval
by
qualified
retailers
in
the
re
-
5
tail
complex,
shall
be
deposited
into
the
demonstration
pilot
project
6
fund,
which
is
hereby
created
in
the
state
treasury.
7
(b)
All
moneys
rebated
shall
be
paid
by
the
state
tax
commission
from
8
the
demonstration
pilot
project
fund
in
a
timely
manner
not
to
exceed
9
sixty
(60)
calendar
days
after
receipt
as
funds
are
available
in
the
10
demonstration
pilot
project
fund.
Payments
shall
be
specific
to
and
1
1
accounted
for
by
each
project.
12
(c)
Once
a
total
of
thirty
-
five
million
dollars
($35,000,000)
one
hun
-
13
dred
million
dollars
($100,000,000)
has
been
paid
in
as
a
rebate
on
a
14
particular
approved
transportation
improvement,
no
additional
rebates
15
shall
be
paid
in
regard
to
that
approved
transportation
improvement.
16
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
17
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
its
18
passage
and
approval,
and
retroactively
to
January
1,
2026.
19