Idaho Code § 63-3701 — Idaho Code / Title 63 / Chapter 37 / Section 63-3701
63-3701 MULTISTATE TAX COMPACT ENACTED.
Status: in_force

63-3701. Multistate tax compact enacted. The "Multistate Tax Compact" is hereby enacted into law and entered into with all jurisdictions legally joining therein, in the form substantially as follows:

ARTICLE I

PURPOSES

The purposes of this compact are to:

1. Facilitate proper determination of State and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes.

2. Promote uniformity or compatibility in significant components of tax systems.

3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration.

4. Avoid duplicative taxation.

ARTICLE II

DEFINITIONS

As used in this compact:

1. "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any Territory or Possession of the United States.

2. "Subdivision" means any governmental unit or special district of a State.

3. "Taxpayer" means any corporation, partnership, firm, association, governmental unit or agency or person acting as a business entity in more than one State.

4. "Income tax" means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one or more forms of which expenses are not specifically and directly related to particular transactions.

5. "Capital stock tax" means a tax measured in any way by the capital of a corporation considered in its entirety.

6. "Gross receipts tax" means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax an income tax.

7. "Sales tax" means a tax imposed with respect to the transfer for a consideration of ownership, possession or custody of tangible personal property or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by State or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles.

8. "Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax.

9. "Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of Articles III, IV and V of this compact shall apply only to the taxes specifically designated therein and the provisions of Article IX of this compact shall apply only in respect to determinations pursuant to Article IV.

ARTICLE III

ELEMENTS OF INCOME TAX LAWS

Taxpayer Option, State and Local Taxes

1. Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party State or pursuant to the laws of subdivisions in two or more party States may elect to apportion and allocate his income in the manner provided by the laws of such State or by the laws of such States and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party States or subdivisions thereof or in any one or more of the party States or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from State taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein Article IV is employed for all subdivisions of a State may the sum of all apportionments and allocations to subdivisions within a State be greater than the apportionment and allocation that would be assignable to that State if the apportionment or allocation were being made with respect to a State income tax.

Taxpayer Option, Short Form

2. Each party State or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the State or subdivision, as the case may be, is not in excess of $100,000 may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the $100,000 figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the Commission, shall replace the $100,000 figure specifically provided herein. Each party State and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph.

Coverage

3. Nothing in this Article relates to the reporting or payment of any tax other than an income tax.

ARTICLE IV

DIVISION OF INCOME

1. As used in this Article, unless the context otherwise requires:

(a) "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations.

(b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.

(c) "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services.

(d) "Financial organization" means any bank, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, savings and loan association, credit union, cooperative bank, small loan company, sales finance company, investment company, or any type of insurance company.

(e) "Nonbusiness income" means all income other than business income.

(f) "Public utility" means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipe line, or the production, transmission, sale, delivery, or furnishing of electricity, water or steam; and (2) whose rates of charges for goods or services have been established or approved by a Federal, State or local government or governmental agency.

(g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of this Article.

(h) "State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any Territory or Possession of the United States, and any foreign country or political subdivision thereof.

(i) "This State" means the State in which the relevant tax return is filed or, in the case of application of this Article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.

2. Any taxpayer having income from business activity which is taxable both within and without this State, other than activity as a financial organization or public utility or the rendering of purely personal services by an individual, shall allocate and apportion his net income as provided in this Article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his income from activities subject to this Article, the taxpayer may elect to allocate and apportion his entire net income as provided in this Article.

3. For purposes of allocation and apportionment of income under this Article, a taxpayer is taxable in another State if (1) in that State he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that State has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the State does or does not.

4. Rents and royalties from real or tangible personal property, capital gains, interest, dividends or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this Article.

5. (a) Net rents and royalties from real property located in this State are allocable to this State.

(b) Net rents and royalties from tangible personal property are allocable to this State: (1) if and to the extent that the property is utilized in this State, or (2) in their entirety if the taxpayer's commercial domicile is in this State and the taxpayer is not organized under the laws of or taxable in the State in which the property is utilized.

(c) The extent of utilization of tangible personal property in a State is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the State during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the State in which the property was located at the time the rental or royalty payer obtained possession.

6. (a) Capital gains and losses from sales of real property located in this State are allocable to this State.

(b) Capital gains and losses from sales of tangible personal property are allocable to this State if (1) the property had a situs in this State at the time of the sale, or (2) the taxpayer's commercial domicile is in this State and the taxpayer is not taxable in the State in which the property had a situs.

(c) Capital gains and losses from sales of intangible personal property are allocable to this State if the taxpayer's commercial domicile is in this State.

7. Interest and dividends are allocable to this State if the taxpayer's commercial domicile is in this State.

8. (a) Patent and copyright royalties are allocable to this State: (1) if and to the extent that the patent or copyright is utilized by the payer in this State, or (2) if and to the extent that the patent copyright is utilized by the payer in a State in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this State.

(b) A patent is utilized in a State to the extent that it is employed in production, fabrication, manufacturing, or other processing in the State or to the extent that a patented product is produced in the State. If the basis of receipts from patent royalties does not permit allocation to States or if the accounting procedures do not reflect States of utilization, the patent is utilized in the State in which the taxpayer's commercial domicile is located.

(c) A copyright is utilized in a State to the extent that printing or other publication originates in the State. If the basis of receipts from copyright royalties does not permit allocation to States or if the accounting procedures do not reflect States of utilization, the copyright is utilized in the State in which the taxpayer's commercial domicile is located.

9. All business income shall be apportioned to this State by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three.

10. The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this State during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.

11. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.

12. The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the tax administrator may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.

13. The payroll factor is a fraction, the numerator of which is the total amount paid in this State during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period.

14. Compensation is paid in this State if:

(a) the individual's service is performed entirely within the State;

(b) the individual's service is performed both within and without the State, but the service performed without the State, is incidental to the individual's service within the State; or

(c) some of the service is performed in the State and (1) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the State, or (2) the base of operations or the place from which the service is directed or controlled is not in any State in which some part of the service is performed, but the individual's residence is in this State.

15. The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this State during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.

16. Sales of tangible personal property are in this State if:

(a) the property is delivered or shipped to a purchaser, other than the United States Government, within this State regardless of the f.o.b. point or other conditions of the sale; or

(b) the property is shipped from an office, store, warehouse, factory, or other place of storage in this State and (1) the purchaser is the United States Government or (2) the taxpayer is not taxable in the State of the purchaser.

17. Sales, other than sales of tangible personal property, are in this State if:

(a) the income-producing activity is performed in this State; or

(b) the income-producing activity is performed both in and outside this State and a greater proportion of the income-producing activity is performed in this State than in any other State, based on costs of performance.

18. If the allocation and apportionment provisions of this Article do not fairly represent the extent of the taxpayer's business activity in this State, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable:

(a) separate accounting;

(b) the exclusion of any one or more of the factors;

(c) the inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this State; or

(d) the employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

ARTICLE V

ELEMENTS OF SALES AND USE TAX LAW

Tax Credit

1. Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another State and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the State, and any unused portion of the credit shall then be applied against the amount of any use tax due a subdivision.

Exemption Certificates, Vendors May Rely

2. Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate State or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.

ARTICLE VI

THE COMMISSION

Organization and Management

1. (a) The Multistate Tax Commission is hereby established. It shall be composed of one "member" from each party State who shall be the head of the State agency charged with the administration of the types of taxes to which this compact applies. If there is more than one such agency the State shall provide by law for the selection of the Commission member from the heads of the relevant agencies. State law may provide that a member of the Commission be represented by an alternate but only if there is on file with the Commission written notification of the designation and identity of the alternate. The Attorney General of each party State or his designee, or other counsel if the laws of the party State specifically provide, shall be entitled to attend the meetings of the Commission, but shall not vote. Such Attorneys General, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this Article.

(b) Each party State shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the Commission member from this State.

(c) Each member shall be entitled to one vote. The Commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.

(d) The Commission shall adopt an official seal to be used as it may provide.

(e) The Commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its Executive Committee may determine. The Commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.

(f) The Commission shall elect annually, from among its members, a Chairman, a Vice Chairman and a Treasurer. The Commission shall appoint an Executive Director who shall serve at its pleasure, and it shall fix his duties and compensation. The Executive Director shall be Secretary of the Commission. The Commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.

(g) Irrespective of the civil service, personnel or other merit system laws of any party State, the Executive Director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the Commission and shall fix their duties and compensation. The Commission bylaws shall provide for personnel policies and programs.

(h) The Commission may borrow, accept or contract for the services of personnel from any State, the United States, or any other governmental entity.

(i) The Commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.

(j) The Commission may establish one or more offices for the transaction of its business.

(k) The Commission shall adopt bylaws for the conduct of its business. The Commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party States.

(l) The Commission annually shall make to the Governor and legislature of each party State a report covering its activities for the preceding year. Any donation or grant accepted by the Commission or services borrowed shall be reported in the annual report of the Commission, and shall include the nature, amount and conditions, if any, of the donation, gift, grant or services borrowed and the identity of the donor or lender. The Commission may make additional reports as it may deem desirable.

Committees

2. (a) To assist in the conduct of its business when the full Commission is not meeting, the Commission shall have an Executive Committee of seven members, including the Chairman, Vice Chairman, Treasurer and four other members elected annually by the Commission. The Executive Committee, subject to the provisions of this compact and consistent with the policies of the Commission, shall function as provided in the bylaws of the Commission.

(b) The Commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the Commission, including problems of special interest to any party State and problems dealing with particular types of taxes.

(c) The Commission may establish such additional committees as its bylaws may provide.

Powers

3. In addition to powers conferred elsewhere in this compact, the Commission shall have power to:

(a) Study State and local tax systems and particular types of State and local taxes.

(b) Develop and recommend proposals for an increase in uniformity or compatibility of State and local tax laws with a view toward encouraging the simplification and improvement of State and local tax law and administration.

(c) Compile and publish information as in its judgment would assist the party States in implementation of the campact and taxpayers in complying with State and local tax laws.

(d) Do all things necessary and incidental to the administration of its functions pursuant to this compact.

Finance

4. (a) The Commission shall submit to the Governor or designated officer or officers of each party State a budget of its estimated expenditures for such period as may be required by the laws of that State for presentation to the legislature thereof.

(b) Each of the Commission's budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party States. The total amount of appropriations requested under any such budget shall be apportioned among the party States as follows: one-tenth in equal shares; and the remainder in proportion to the amount of revenue collected by each party State and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, sales and use taxes. In determining such amounts, the Commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party States. Each of the Commission's budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.

(c) The Commission shall not pledge the credit of any party State. The Commission may meet any of its obligations in whole or in part with funds available to it under paragraph (1)(i) of this Article: provided that the Commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the Commission makes use of funds available to it under paragraph 1(i), the Commission shall not incur any obligation prior to the allotment of funds by the party States adequate to meet the same.

(d) The Commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the Commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the Commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the Commission.

(e) The accounts of the Commission shall be open at any reasonable time for inspection by duly constituted officers of the party States and by any persons authorized by the Commission.

(f) Nothing contained in this Article shall be construed to prevent Commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the Commission.

ARTICLE VII

UNIFORM REGULATIONS AND FORMS

1. Whenever any two or more party States, or subdivisions of party States, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, sales or use tax, the Commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The Commission may also act with respect to the provisions of Article IV of this compact.

2. Prior to the adoption of any regulation, the Commission shall:

(a) As provided in its bylaws, hold at least one public hearing on due notice to all affected party States and subdivisions thereof and to all taxpayers and other persons who have made timely request of the Commission for advance notice of its regulation-making proceedings.

(b) Afford all affected party States and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the Commission.

3. The Commission shall submit any regulations adopted by it to the appropriate officials of all party States and subdivisions to which they might apply. Each such State and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.

ARTICLE VIII

INTERSTATE AUDITS

1. This Article shall be in force only in those party States that specifically provide therefor by statute.

2. Any party State or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records or other documents may request the Commission to perform the audit on its behalf. In responding to the request, the Commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents and any relevant property or stock of merchandise. The Commission may enter into agreements with party States or their subdivisions for assistance in performance of the audit. The Commission shall make charges, to be paid by the State or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.

3. The Commission may require the attendance of any person within the State where it is conducting an audit or part thereof at a time and place fixed by it within such State for the purpose of giving testimony with respect to any account, book, paper, document, other record, property or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he may be required to attend for such purpose at any time and place fixed by the Commission within the State of which he is a resident: provided that such State has adopted this Article.

4. The Commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this Article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the Commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the State or subdivision on behalf of which the audit is being made or a court in the State in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a State that has adopted this Article.

5. The Commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the Commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party States or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the Commission.

6. Information obtained by any audit pursuant to this Article shall be confidential and available only for tax purposes to party States, their subdivisions or the United States. Availability of information shall be in accordance with the laws of the States or subdivisions on whose account the Commission performs the audit, and only through the appropriate agencies or officers of such States or subdivisions. Nothing in this Article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.

7. Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party States or any of their subdivisions are not superseded or invalidated by this Article.

8. In no event shall the Commission make any charge against a taxpayer for an audit.

9. As used in this Article, "tax," in addition to the meaning ascribed to it in Article II, means any tax or license fee imposed in whole or in part for revenue purposes.

ARTICLE IX

ARBITRATION

1. Whenever the Commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this Article in effect, notwithstanding the provisions of Article VII.

2. The Commission shall select and maintain an Arbitration Panel composed of officers and employees of State and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.

3. Whenever a taxpayer who has elected to employ Article IV, or whenever the laws of the party State or subdivision thereof are substantially identical with the relevant provisions of Article IV, the taxpayer, by written notice to the Commission and to each party State or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he is dissatisfied with the final administrative determination of the tax agency of the State or subdivision with respect thereto on the ground that it would subject him to double or multiple taxation by two or more party States or subdivisions thereof. Each party State and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.

4. The Arbitration Board shall be composed of one person selected by the taxpayer, one by the agency or agencies involved, and one member of the Commission's Arbitration Panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the Arbitration Panel. The two persons selected for the Board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the Board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the Arbitration Panel. No member of a Board selected by lot shall be qualified to serve if he is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.

5. The Board may sit in any State or subdivision party to the proceeding, in the State of the taxpayer's incorporation, residence or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.

6. The Board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The Board shall act by majority vote.

7. The Board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the Board. In case of failure to obey a subpoena, and upon application by the Board, any judge of a court of competent jurisdiction of the State in which the Board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in States that have adopted this Article.

8. Unless the parties otherwise agree the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the Board in such manner as it may determine. The Commission shall fix a schedule of compensation for members of Arbitration Boards and of other allowable expenses and costs. No officer or employee of a State or local government who serves as a member of a Board shall be entitled to compensation therefor unless he is required on account of his service to forego the regular compensation attaching to his public employment, but any such Board member shall be entitled to expenses.

9. The Board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the Board shall be final for purposes of making the apportionment or allocation, but for no other purpose.

10. The Board shall file with the Commission and with each tax agency represented in the proceeding: the determination of the Board; the Board's written statement of its reasons therefor; the record of the Board's proceedings; and any other documents required by the arbitration rules of the Commission to be filed.

11. The Commission shall publish the determinations of Boards together with the statements of the reasons therefor.

12. The Commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party States.

13. Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.

ARTICLE X

ENTRY INTO FORCE AND WITHDRAWAL

1. This compact shall enter into force when enacted into law by any seven States. Thereafter, this compact shall become effective as to any other State upon its enactment thereof. The Commission shall arrange for notification of all party States whenever there is a new enactment of the compact.

2. Any party State may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party State prior to the time of such withdrawal.

3. No proceeding commenced before an Arbitration Board prior to the withdrawal of a State and to which the withdrawing State or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the Board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.

ARTICLE XI

AFFECT ON OTHER LAWS AND JURISDICTION

Nothing in this compact shall be construed to:

(a) Affect the power of any State or subdivision thereof to fix rates of taxation, except that a party State shall be obligated to implement Article III 2 of this compact.

(b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax: provided that the definition of "tax" in Article VIII 9 may apply for the purposes of that Article and the Commission's powers of study and recommendation pursuant to Article VI 3 may apply.

(c) Withdraw or limit the jurisdiction of any State or local court or administrative officer or body with respect to any person, corporation or other entity or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.

(d) Supersede or limit the jurisdiction of any court of the United States.

ARTICLE XII

CONSTRUCTION AND SEVERABILITY

This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of any State or of the United States or the applicability thereof to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any State participating therein, the compact shall remain in full force and effect as to the remaining party States and in full force and effect as to the State affected as to all severable matters.

History:

[63-3701, added 1967, ch. 316, sec. 1, p. 928.]
Idaho Code § 63-602U — Idaho Code / Title 63 / Chapter 6 / Section 63-602U
63-602U PROPERTY EXEMPT FROM TAXATION — PERSONAL PROPERTY SHIPPED INTO THE STATE AND STORED IN A PUBLIC OR PRIVATE WAREHOUSE STRUCTURE, AND DESIGNATED FOR SHIPMENT OUT OF THE STATE TO BE CONSIDERED IN TRANSIT.
Status: in_force

63-602U. Property exempt from taxation — Personal property shipped into the state and stored in a public or private warehouse structure, and designated for shipment out of the state to be considered in transit. (1) Personal property shipped into this state and stored in a public or private warehouse structure, which property is not offered for sale in Idaho and designated for reshipment outside of the state, is considered to be "in transit" and shall be exempt from taxation. Such property shall not be deprived of exemption because while in storage, awaiting such further shipment, such personal property is labeled, packaged, disassembled, divided, broken in bulk, relabeled, or repackaged, or because the personal property is held for resale to customers outside the state of Idaho. Provided that all personal property claimed to be exempt "in transit" be labeled as such and shall be designated immediately upon receipt as being in transit upon the books and records of the warehouse, whether public or private, wherein the same is located. The books and records of such storage warehouse shall contain a full, true and correct inventory of all such property, together with the date of receipt of same, the point of origin, the date of its withdrawal, and, if known, the ultimate destination thereof. The books and records pertaining to the storage of any such in transit property shall be opened to inspection by any taxing authority in the state of Idaho having jurisdiction thereof upon reasonable demand having been made.

(2) Public warehousing is the storing of personal property by any person, firm or corporation regularly engaged in the business of storing such property for hire.

(3) Private warehousing is the storage of personal property by any person, firm or corporation which is carrying on the activity of warehousing or storing such property only in the operation of his or its own business. This exemption shall only apply to private storage from and after a notice, describing by address and physical premises, is filed with the county assessor, which notice shall be filed annually.

History:

[63-602U added 1996, ch. 98, sec. 7, p. 356.]
Idaho Code § 63-3027C — Idaho Code / Title 63 / Chapter 30 / Section 63-3027C
63-3027C ELECTION IS BINDING — TREATMENT OF DIVIDENDS.
Status: in_force

63-3027C. Election is binding — Treatment of dividends. (a) A water's-edge election shall be made in the original return for a year and shall be binding for all years thereafter, except as follows:

(1) If, in the future, the United States supreme court or the supreme court of the state of Idaho rules that there is a state or federal constitutional right for a group of corporations to use the worldwide unitary method, a water's-edge combined group of corporations may, without permission of the tax commission, change its future filing to the worldwide unitary method.

(2) Any changes to use of the water's-edge method or any other changes beyond those described in paragraph (1) of this subsection may only occur with the written permission of the tax commission.

(3) No water's-edge election shall be made for an income year beginning prior to the operative date of sections 63-3027B through 63-3027E, Idaho Code.

(b) When disregarding an election or granting a change of election, the tax commission shall impose conditions which are necessary to prevent the avoidance of tax or to clearly reflect income for the period the election was made.

(c) For purposes of this section:

(1) Dividends received from payors incorporated outside the fifty (50) states and District of Columbia, to the extent taxable, shall be treated as income subject to apportionment.

(2) The income of corporations filing elections under section 936 of the Internal Revenue Code shall be deemed dividends received from payors incorporated outside the fifty (50) states and District of Columbia.

(3) Eighty-five per cent (85%) of all dividends described in subsection (c)(1) or (c)(2) of this section shall be excluded from income subject to apportionment.

(4) The dividends subject to apportionment shall be in lieu of any expenses attributable to such dividend income.

(5) Any actual dividend received from a corporation filing an election under section 936 of the Internal Revenue Code shall be eliminated from income.

(d) Any dividend from any payor required to be combined under the water's-edge election shall be eliminated from the calculation of apportionable income. Dividends received from a corporation described in section 922 of the Internal Revenue Code (defining "FSC") will be treated as follows:

(1) Dividends received from an FSC will be eliminated in the proportion that FSC federal taxable income for the year, out of which the dividend was paid, bears to the total FSC income before taxes for such year.

(2) The portion of FSC dividend not eliminated under paragraph (1) of this subsection will be subject to the eighty-five per cent (85%) exclusion provided for in subsection (c)(3) of this section.

(e) For purposes of this section:

(1) Amounts included in income by reference to subpart F of part III of subchapter N of chapter 1 of the Internal Revenue Code shall constitute dividends from payors outside the fifty (50) states and District of Columbia;

(2) Amounts included in income under part VI of subchapter P of chapter 1 of the Internal Revenue Code shall constitute dividends from payors outside the fifty (50) states and the District of Columbia; and

(3) Deemed distributions defined by Section 78 of the Internal Revenue Code shall be excluded from the income of the water's-edge combined group.

History:

[63-3027C, added 1986, ch. 342, sec. 1, p. 848; am. 1993, ch. 284, sec. 5, p. 971; am. 1994, ch. 247, sec. 4, p. 788; am. 1997, ch. 59, sec. 1, p. 110.]
Idaho Code § 63-2805 — Idaho Code / Title 63 / Chapter 28 / Section 63-2805
63-2805 FALSE STATEMENTS CONSTITUTE PERJURY.
Status: in_force

63-2805. False statements constitute perjury. If any one herein required to make a statement shall knowingly and wilfully swear to any false statement contained therein, then such person shall be guilty of perjury, and shall be prosecuted and punished as provided for in other cases of perjury.

History:

[(63-2805) 1903, p. 4, sec. 10; reen. R.C. & C.L., sec. 1867; C.S., sec. 3364; I.C.A., sec. 61-2305.]
Idaho Code § 63-3704 — Idaho Code / Title 63 / Chapter 37 / Section 63-3704
63-3704 MULTISTATE TAX COMMISSION — DESIGNATION OF ALTERNATE.
Status: in_force

63-3704. Multistate tax commission — Designation of alternate. The member representing Idaho on the multistate tax commission may be represented thereon by an alternate designated by him. The name of the alternate thus designated shall be filed with the multistate tax commission by the member representing this state.

History:

[63-3704, added 1967, ch. 316, sec. 4, p. 928.]
Idaho Code § 63-310 — Idaho Code / Title 63 / Chapter 3 / Section 63-310
63-310 COMPLETION AND DELIVERY OF PROPERTY ROLL.
Status: in_force

63-310. Completion and delivery of property roll. The assessor must certify the completion of the property roll on or before the fourth Monday of June in each year, and must, on or before that date, deliver the completed property roll, together with all claims for exemptions from assessment or taxation to the clerk of the board. The property roll and claims for exemptions must remain in the office of the clerk until the second Monday of July for the inspection of all persons interested.

History:

[63-310 added 1996, ch. 98, sec. 4, p. 331.]
Idaho Code § 63-2511 — Idaho Code / Title 63 / Chapter 25 / Section 63-2511
63-2511 RECORDS TO BE KEPT — INSPECTION.
Status: in_force

63-2511. Records to be kept — Inspection. Each wholesaler of cigarettes shall keep and preserve for a period of four (4) years, records showing the purchase and sale of cigarettes, as well as separate invoices and records of stamps purchased. All records and stocks of cigarettes on hand shall be open to inspection by the state tax commission or authorized employees at all reasonable times. Additionally, the state tax commission may require reports to be submitted to it from time to time concerning the purchase and sale of cigarettes and stamps.

All retailers shall permit the state tax commission or authorized employees to inspect all cigarettes on hand.

History:

[63-2511, added 1974, ch. 211, sec. 11, p. 1548; am. 1986, ch. 193, sec. 6, p. 490; am. 2014, ch. 230, sec. 1, p. 590.]
Idaho Code § 63-3029C — Idaho Code / Title 63 / Chapter 30 / Section 63-3029C
63-3029C INCOME TAX CREDIT FOR CERTAIN CHARITABLE CONTRIBUTIONS — LIMITATION.
Status: in_force

63-3029C. Income tax credit for certain charitable contributions — Limitation. At the election of the taxpayer, there shall be allowed, subject to the applicable limitations provided herein, as a credit against the income tax imposed by chapter 30, title 63, Idaho Code, an amount equal to fifty percent (50%) of the aggregate amount of charitable contributions made by such taxpayer during the year to the anchor house or its foundation, to the children's home society of Idaho, inc., to the Idaho youth ranch or its foundation, to kinderhaven or its foundation, to the women's and children's alliance or its foundation, to children's village, inc. or its foundation, to Idaho drug free youth, inc. or its foundation, to gem youth services or its foundation, to the hope house, inc. or its foundation, to the north Idaho children's home or its foundation, to the shepherd's home, inc. or its foundation, to a project safe place located within the state of Idaho, to the learning lab, inc. or its foundation, to a center for independent living located within the state of Idaho, to project P.A.T.C.H., planned assistance for troubled children, to a nonprofit substance abuse center licensed by the department of health and welfare, or to a nonprofit rehabilitation facility located within the state of Idaho or its foundation.

(1) In the case of a taxpayer other than a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed twenty percent (20%) of such taxpayer's total income tax liability imposed by section 63-3024, Idaho Code, for the year, or one hundred dollars ($100), whichever is less.

(2) In the case of a corporation, the amount allowable as a credit under this section for any taxable year shall not exceed ten percent (10%) of such corporation's total income or franchise tax liability imposed by sections 63-3025 and 63-3025A, Idaho Code, for the year, or five hundred dollars ($500), whichever is less.

(3) For the purposes of this section, "center for independent living" shall mean a private, nonprofit, nonresidential organization in which at least fifty-one percent (51%) of the principal governing board, management and staff are individuals with disabilities and that:

(a) Is designed and operated within a local community by individuals with disabilities;

(b) Provides an array of independent living services and programs; and

(c) Is cross-disability.

(4) For the purposes of this section, "nonprofit rehabilitation facility" means only a facility that is accredited by the commission on accreditation of rehabilitation facilities or another accreditation organization recognized by the state of Idaho.

History:

[63-3029C, added 1982, ch. 84, sec. 1, p. 157; am. 1986, ch. 141, sec. 1, p. 398; am. 1998, ch. 131, sec. 1, p. 485; am. 1998 ch. 133, sec. 1, p. 490; am. 1998, ch. 183, sec. 1, p. 672; am. 1999, ch. 257, sec. 1, p. 662; am. 2000, ch. 216, sec. 1, p. 604; am. 2001, ch. 157, sec. 1, p. 564; am. 2001, ch. 382, sec. 1, p. 1339; am. 2002, ch. 269, sec. 1, p. 799; am. 2004, ch. 80, sec. 1, p. 305; am. 2004, ch. 193, sec. 1, p. 603; am. 2006, ch. 69, sec. 1, p. 212; am. 2006, ch. 209, sec. 1, p. 638; am. 2006, ch. 307, sec. 1, p. 946; am. 2006, ch. 309, sec. 1, p. 952; am. 2006, ch. 320, sec. 1, p. 1018.]
Idaho Code § 63-1309 — Idaho Code / Title 63 / Chapter 13 / Section 63-1309
63-1309 SPECIAL TAXING DISTRICT OR BOND PROPOSAL DEFEATED IN ELECTION BARS SUBSEQUENT ELECTIONS FOR SPECIFIED TIME — EXCEPTION — BOARD OF EDUCATION MAY CONDUCT ELECTION — MUNICIPALITIES, WATER OR SEWER DISTRICTS MAY CONDUCT BOND ELECTION.
Status: in_force

63-1309. Special taxing district or bond proposal defeated in election bars subsequent elections for specified time — Exception — Board of education may conduct election — Municipalities, water or sewer districts may conduct bond election. If any election has been held for the formation of any special taxing district, or for the approval of any bond issue or other proposal that would have resulted in a property tax levy, and the proposal submitted at such election was defeated, no subsequent election shall be held within two (2) months from and after the date of such prior election for the same or a similar purpose in any district that includes any part of the area that was affected by the prior election. In the event any school building is destroyed or rendered unusable for school purposes by reason of fire, flood or other catastrophe, and a school bond election for the purpose of the replacement of such building is prohibited by the provisions of this section or by the provisions of section 34-106, Idaho Code, the state board of education shall have the power to authorize an election for such purpose by order based upon a finding of such facts. The provisions of this section shall not apply to school elections held solely for determining property tax levies for general school purposes not involving the issuance of bonds. This time requirement between elections shall not apply to municipalities or water and/or sewer districts when bond issues are being proposed for the installation or improvement of water supply systems or public sewerage systems that have been deemed necessary by the Idaho department of environmental quality to bring such system or systems in conformance with state statutes or rules.

History:

[63-1309, added 1996, ch. 98, sec. 14, p. 392; am. 2009, ch. 341, sec. 144, p. 1064; am. 2025, ch. 47, sec. 18, p. 239.]
Idaho Code § 63-501 — Idaho Code / Title 63 / Chapter 5 / Section 63-501
63-501 MEETING OF COMMISSIONERS AS A BOARD OF EQUALIZATION.
Status: in_force

63-501. Meeting of commissioners as a board of equalization. (1) The county commissioners of each county shall convene as a board of equalization at least once in every month of the year up to the fourth Monday of June for the purpose of equalizing the assessments of property on the property roll and shall meet on the aforesaid date in each year:

(a) To complete the equalization of assessments on all property which has not yet been equalized; and

(b) To hear appeals of assessment or exemption of property which are received on or before the end of each county's normal business hours on the fourth Monday of June.

Upon meeting to complete the equalization of assessments, the board of equalization shall continue in session from day to day until equalization of the assessments of such property has been completed and shall also hear and determine complaints upon allowing or disallowing exemptions under chapter 6, title 63, Idaho Code. The board of equalization must complete such business and adjourn as a board of equalization on the second Monday of July, provided that the board of equalization may adjourn any time prior to the aforesaid date when they have completed all of the business as a board of equalization.

The county assessor or his designee shall attend all meetings of the county commissioners in session as a board of equalization and he may make any statements or introduce testimony and examine witnesses on questions before the board of equalization relating to the assessments.

(2) The county commissioners of each county in this state shall meet as a board of equalization on the fourth Monday of November in each year for the purpose of:

(a) Equalizing the assessments of all property entered upon the subsequent property roll;

(b) Determining complaints and hearing appeals in regard to the assessment of such property;

(c) Allowing or disallowing exemptions and cancellations claimed under the provisions of this title affecting the assessment or taxation of property entered upon the rolls, and having a settlement with the assessor and tax collector.

The board of equalization shall complete its business and adjourn on or before the first Monday of December in each year, but if other personal or real property is discovered and assessed after the subsequent board of equalization has adjourned, and is entered on the missed property roll, the taxpayer may appeal that assessment to the county commissioners meeting as a board of equalization, for the purposes stated in subsection (2)(a), (b) and (c) of this section, during its monthly meeting in January of the following year, provided however, that said meeting must be no sooner than the first Monday in January.

History:

[63-501 added 1996, ch. 98, sec. 6, p. 343; am. 2012, ch. 4, sec. 1, p. 6.]
Idaho Code § 63-1401 — Idaho Code / Title 63 / Chapter 14 / Section 63-1401
63-1401 AUTHORITY OF ASSESSOR — DUTY OF ASSESSOR.
Status: in_force

63-1401. Authority of assessor — Duty of assessor. (1) The assessor is hereby authorized to administer oaths to all persons who may be required to swear, and he may examine under oath any person who is required under the provisions of this chapter to list property for appraisal, assessment or taxation, concerning the amount and value of such property, and he may examine under oath any person whom he may suppose to have knowledge of the amount or value of the property of any person refusing to list such property or to verify such list, or whenever the assessor shall be of the opinion that the person listing property for himself or for any other person has not made a complete list of such property. If any person shall refuse to answer under oath any question asked of him by the assessor concerning the amount and value of the property required to be listed by him, the assessor may list and assess such property according to his best judgment and information, but, if any property is willfully concealed, removed, transferred, misrepresented or not listed by the person required to do so, such property, upon discovery, must be appraised, assessed and taxed at two (2) times its value for each year such property has escaped taxation. The county board of equalization may excuse the liability for such penalty upon a proper showing that by good and sufficient cause the requirement to list such property need not be complied with. Any person making a false list, schedule or statement under oath shall be guilty of perjury.

(2) The assessor shall note, at the time of appraisal, all cases where the owner, agent or other person required by this title to list property: refused or failed to make the sworn taxpayer's declaration required of him; refused to answer any question asked of him by the assessor in reference to the appraisal of property; was absent or willfully concealed, removed, transferred, misrepresented or failed to list such property.

History:

[63-1401 added 1996, ch. 98, sec. 15, p. 394.]
Idaho Code § 63-2510A — Idaho Code / Title 63 / Chapter 25 / Section 63-2510A
63-2510A BONDING.
Status: in_force

63-2510A. Bonding. (1) At the time an application for a wholesaler's license or permit, under section 63-2503, Idaho Code, is submitted to the state tax commission, the applicant shall file a bond, in such form as the commission may determine, conditioned upon faithful performance of all of the requirements of this chapter. The total amount of the bond shall be fixed by the commission and shall be the greater of twice the estimated average tax liability for the reporting period for which the applicant will be required to file a return, under section 63-2510, Idaho Code, or the value of stamps in the wholesaler's inventory including the value of stamps ordered but not yet received. The total amount required to be secured by the bond may be increased or reduced by the commission at any time. Any bond given in conjunction with the provisions of this section shall be a continuing instrument, and shall cover the period during which the license or permit in connection with which the bond is given is in effect, unless the surety on the bond is released or discharged by the commission. Any surety on any bond furnished by a wholesaler shall be discharged only by the commission. Any surety on any bond furnished by a wholesaler shall be discharged and released by the commission from, any and all, liability to the state, accruing on the bond after the expiration of thirty (30) days from the date upon which the surety shall have lodged with the commission a written request to be released and discharged. The request shall not operate to relieve, release, or discharge the surety from any liability accrued, or which will accrue, before the expiration of the thirty (30) day period. The commission shall promptly, upon receipt of the notice of the request, notify the wholesaler and require him to furnish a new bond. Unless the wholesaler files a new bond with the commission in the amount provided in this section before the expiration of the thirty (30) day period, the commission shall immediately cancel the wholesaler's license or permit.

(2) In the event that any taxes due under the provisions of this chapter are not paid by a wholesaler, and the unpaid taxes are assessed by the commission, and after all avenues for appeal of the assessment have been exhausted, the commission may apply the unpaid tax liability against the bond required in this section.

(3) A wholesaler may pay full value for stamps in advance in lieu of posting a bond. A wholesaler that has posted a bond may petition for release from the bond requirement after having filed timely and fully paid cigarette tax returns, as provided in section 63-2510, Idaho Code, for a period of not less than twelve (12) months. Upon such petition from the wholesaler, the commission will review the cigarette tax return filing and payment record of the wholesaler and, if determined necessary, within sixty (60) days examine the books and records of the wholesaler. The commission will, no later than ninety (90) days from the date of receipt of the petition, advise the wholesaler in writing of its determination and the reasons therefor. If the wholesaler wishes to seek a redetermination of the commission's decision, a petition for redetermination may be filed as provided in section 63-3045, Idaho Code.

(4) If at any time after release of a bond requirement the wholesaler becomes delinquent for any period in the filing of tax returns or the payment of the tax as required in section 63-2510, Idaho Code, the commission may make immediate demand that the return be filed or the payment be tendered and that a bond be filed as set forth in subsection (1) of this section. Any wholesaler against whom such demand is made may petition for a redetermination as provided in section 63-3045, Idaho Code, except that the petition must be filed no later than ten (10) days after service upon the person of notice thereof. If a petition for redetermination is not filed within the ten (10) day period, the determination shall become final and the commission shall issue a jeopardy assessment as provided in section 63-3630, Idaho Code, and thereafter may:

(a) Seize all Idaho cigarette stamps in the possession of the wholesaler which are not applied to cigarettes;

(b) File a lien of record upon the cigarettes held in inventory by the wholesaler or seize such cigarettes;

(c) Revoke the wholesaler's cigarette permit as provided in section 63-2503, Idaho Code, except that no notice or hearing shall be required; and

(d) Notify the manufacturers of the cigarettes held in inventory by the wholesaler of any or all actions so taken.

(5) A wholesaler who acquires all cigarettes with tax stamps affixed at the time of acquisition may petition the state tax commission for waiver of the bond required in subsection (1) of this section. Upon receipt of evidence establishing that the wholesaler is not required to pay cigarette taxes under this chapter because the wholesaler exclusively purchases cigarettes with stamps affixed by another wholesaler, the state tax commission may waive the requirement for a bond. Any such waiver is conditioned upon the wholesaler's continuing qualification for the waiver under this subsection.

History:

[63-2510A, added 1988, ch. 224, sec. 3, p. 430; am. 1990, ch. 41, sec. 1, p. 64; am. 1992, ch. 49, sec. 4, p. 153; am. 2006, ch. 60, sec. 6, p. 189; am. 2016, ch. 28, sec. 1, p. 69.]
Idaho Code § 63-2515 — Idaho Code / Title 63 / Chapter 25 / Section 63-2515
63-2515 COMPROMISE AND CONFISCATION.
Status: in_force

63-2515. Compromise and confiscation. When it is shown to the satisfaction of the state tax commission that there was no intention to violate any of the provisions of this act, the commission may return any property confiscated to the party and permit the party to affix the proper amount of stamps to any cigarettes, provided additionally the party pays all costs incurred and a penalty of twenty-five per cent (25%) of the amount of tax as well as interest on the total value of the stamps required to be purchased at one per cent (1%) for each month or portion thereof, from the date of the initial incident or occurrence of violations.

History:

[63-2515, added 1974, ch. 211, sec. 15, p. 1548.]
Idaho Code § 63-3068 — Idaho Code / Title 63 / Chapter 30 / Section 63-3068
63-3068 PERIOD OF LIMITATIONS FOR ISSUING A NOTICE OF DEFICIENCY AND COLLECTION OF TAX.
Status: in_force

63-3068. Period of limitations for issuing a notice of deficiency and collection of tax. (a) Except as otherwise provided in this section, a notice of deficiency, as provided in section 63-3045, Idaho Code, for the tax imposed in this chapter shall be issued within three (3) years from either the due date of the return, without regard to extensions, or from the date the return was filed, whichever is later.

(b) If an assessment has been made as provided in this chapter, then such tax shall be collected either by levy, or by a proceeding brought in court, within a period of twelve (12) years from the date of entry of the record of assessment required by section 63-3045A, Idaho Code, of the tax and provided, further, that this shall not be in derogation of any of the remedies elsewhere provided in this chapter.

(c) In the case of a fraudulent return or a false return with the intent to evade the tax imposed in this chapter, or a willful attempt in any manner to defeat or evade the tax imposed in this chapter, a notice of deficiency may be issued, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time.

(d) In the case of a failure to file a return, for any reason, a notice of deficiency may be issued, the tax imposed in this chapter may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time, unless the taxpayer had a reasonable belief that no return was required to be filed under this chapter, in which case any deficiency, assessment, or proceeding for collection of such tax shall be commenced within three (3) years of the time the return was due.

(e) In the case of income received during the lifetime of a decedent, or by his estate during the period of administration, a notice of deficiency shall be issued, a claim shall be made, the tax shall be assessed or any proceeding in court without assessment for the collection of such tax shall be begun, within twelve (12) months after written request for prompt action is filed with the state tax commission by the executor, administrator, or other fiduciary representing the estate of such decedent. This subsection shall not apply if the return for which the request for prompt action relates has not been filed with the state tax commission.

(f) When Idaho taxable income or tax credits for any taxable year have been adjusted as a result of a final federal adjustment, the period of limitation for issuing a notice of deficiency shall be reopened and shall not expire until the later of one (1) year from the final determination date, three (3) years from the due date of the return, without regard to extensions, or three (3) years from the date the return was filed. For purposes of this section the term "final federal adjustment" shall have the same meaning as that term is defined in section 63-3070(2)(i), Idaho Code, and "final determination date" shall have the same meaning as that term is defined in section 63-3070(2)(h), Idaho Code. When the final federal adjustment is submitted, the taxpayer shall also submit copies of all schedules and written explanations provided by the internal revenue service. Upon the expiration of the period of limitations as provided in subsections (a) and (m) of this section, only those specific items of income, deductions, gains, losses, or credits which were adjusted in the final federal adjustment shall be subject to adjustment for purposes of recomputing Idaho income, deductions, gains, losses, credits, and the effect of such adjustments on Idaho allocations and apportionments.

(g) If an adjustment, which was made within the period of limitations as provided in this section, affects the amount of tax credit, net operating loss, or capital loss, claimed in a taxable year other than the tax year in which the adjustment is made, then adjustments to the credit, net operating loss, or capital loss claimed in such other tax year may be made and a resulting notice of deficiency may be issued even though such notice of deficiency would otherwise be barred under the provisions of this section.

(h) Notwithstanding any other provisions of this section, when an amended Idaho return is filed within the period of limitations as provided in subsections (a) and (m) of this section, the period of limitations for issuing a notice of deficiency shall be three (3) years from the date the amended return was filed. However, upon the expiration of the period of limitations as provided in subsections (a) and (m) of this section, only those specific items of income, deductions, gains, losses, or credits, which were adjusted in the amended Idaho return shall be subject to adjustment for purposes of recomputing Idaho income, deductions, gains, losses, credits, and the effect of such adjustments on Idaho allocations and apportionments.

(i) If a taxpayer has filed an amended federal return, and no corresponding Idaho amended return has been filed with the state tax commission, then the period of limitations for issuing a notice of deficiency shall be reopened and shall not expire until three (3) years from the date of delivery to the tax commission by the taxpayer of the amended federal return. However, upon the expiration of the period of limitations as provided in subsections (a) and (m) of this section, then only those specific items of income, deductions, gains, losses, or credits, which were adjusted in the amended federal return shall be subject to adjustment for purposes of recomputing Idaho income, deductions, gains, losses, credits, and the effect of such adjustments on Idaho allocations and apportionments.

(j) Notwithstanding any other provisions of this section, a notice of deficiency, related to items on the return of any pass-through entity, as defined in this section, which other taxpayers are required by law to report, shall be issued to such other taxpayers within the later of three (3) years from the due date of the other taxpayers' return, without regard to extensions, three (3) years from the date the other taxpayers' returns were filed, or three (3) years from the date of filing of the pass-through entity's return. If the pass-through entity files an amended return, notices of deficiency may be issued to the other taxpayers within three (3) years from the date the amended return for the pass-through entity was filed with the state tax commission. If the pass-through entity files an amended return with the internal revenue service, or the internal revenue service issues a final determination to the pass-through entity, then the period of limitations for issuing a notice of deficiency to the other taxpayers shall be reopened and shall not expire until three (3) years from the date of delivery to the tax commission by the pass-through entity of the amended federal return or the later of one (1) year from the date of delivery to the state tax commission by the pass-through entity of the final federal adjustment, three (3) years from the due date of the pass-through entity's return, without regard to extensions, or three (3) years from the date the pass-through entity's return was filed.

(k) For purposes of this section, "pass-through entity" means a partnership, S corporation, trust, limited liability company or any other entity whose items of income, deductions, gains, losses and credits must be reported by other taxpayer(s). For further purposes of this section, the term "other taxpayer" shall include, by way of unlimiting example, such taxpayers as partners, shareholders, beneficiaries, joint venturers or investors.

(l) In the case of a duplicate return filed under section 63-217(1)(b), Idaho Code, the limitation under this section shall be the later of one (1) year from the filing of the duplicate return or the date otherwise applicable under this section.

(m) Prior to the expiration of the time prescribed in this section for the issuance of a notice of deficiency for the tax imposed in this chapter, both the state tax commission, its delegate or deputy, and the taxpayer may consent in writing to extend the period of time within which a notice of deficiency may be issued. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. When a pass-through entity extends the period of limitations in accordance with this subsection, the period of limitations for the other taxpayers is automatically extended for the same period for the purpose of issuing a notice of deficiency to the other taxpayers reflecting the adjustments to the pass-through entity's return.

(n) The expiration of the period of limitations as provided in this section shall be suspended for the time period during which the state tax commission is prohibited from issuing a notice of deficiency, making the assessment, or from collecting by levy or a proceeding in court, and for thirty (30) days thereafter.

(o) For the purposes of this section, "return" includes a notice of deficiency determination issued by the state tax commission when no return was filed by the taxpayer. Such a return is deemed filed on the date the taxes determined by the state tax commission are assessed.

History:

[63-3068, added 1993, ch. 47, sec. 2, p. 119; am. 1995, ch. 111, sec. 34, p. 378; am. 1996, ch. 44, sec. 1, p. 114; am. 1997, ch. 113, sec. 4, p. 280; am. 2002, ch. 35, sec. 11, p. 78; am. 2005, ch. 23, sec. 7, p. 71; am. 2008, ch. 10, sec. 1, p. 13; am. 2013, ch. 244, sec. 2, p. 591; am. 2025, ch. 302, sec. 5, p. 1285; am. 2026, ch. 81, sec. 2, p. 428.]
Idaho Code § 63-2509 — Idaho Code / Title 63 / Chapter 25 / Section 63-2509
63-2509 COMPENSATION FOR AFFIXING STAMPS.
Status: in_force

63-2509. Compensation for affixing stamps. On and after July 1, 2005, wholesalers shall be allowed as compensation for affixing stamps, three and three-tenths percent (3.3%) of the face value of the stamps purchased by them.

History:

[63-2509, added 1974, ch. 211, sec. 9, p. 1548; am. 2003, ch. 362, sec. 2, p. 966; am. 2005, ch. 404, sec. 2, p. 1378.]
Idaho Code § 63-3027A — Idaho Code / Title 63 / Chapter 30 / Section 63-3027A
63-3027A COMPUTING IDAHO TAXABLE INCOME OF CORPORATIONS NOT SUBJECT TO SECTION 63-3027, IDAHO CODE.
Status: in_force

63-3027A. Computing Idaho taxable income of corporations not subject to section 63-3027, Idaho Code. The Idaho taxable income of any corporation transacting business in this state which is not subject to the provisions of section 63-3027, Idaho Code, shall be computed by making appropriate adjustments under the provisions of section 63-3022, Idaho Code, to the taxable income of the taxpayer.

History:

[63-3027A, added 1995, ch. 111, sec. 29, p. 372.]
Idaho Code § 63-1802 — Idaho Code / Title 63 / Chapter 18 / Section 63-1802
63-1802 LEGISLATIVE INTENT.
Status: in_force

63-1802. legislative intent. This act is designed to promote access to short-term rentals and vacation rentals by limiting local governmental authority to prohibit these beneficial property uses, or to specifically target them for regulation, except in circumstances necessary to safeguard public health and welfare. This act is also designed to preserve personal property rights and promote property owner access to platforms for offering their properties as short-term rentals and vacation rentals, and enhancing local tax revenue by permitting platforms to assume tax collection and remittance responsibilities.

History:

[63-1802, added 2017, ch. 239, sec. 1, p. 591.]
Idaho Code § 63-3027 — Idaho Code / Title 63 / Chapter 30 / Section 63-3027
63-3027 COMPUTING IDAHO TAXABLE INCOME OF MULTISTATE OR UNITARY CORPORATIONS.
Status: in_force

63-3027. Computing Idaho taxable income of multistate or unitary corporations. The Idaho taxable income of any multistate or unitary corporation transacting business both within and without this state shall be computed in accordance with the provisions of this section:

(1) As used in this section, unless the context otherwise requires:

(a) "Apportionable income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income arising from tangible and intangible property if the acquisition, management, employment, development, or disposition of the property constitutes integral or necessary parts of the taxpayer's trade or business operations.

(b) "Broadcast customer" means a person, corporation, partnership, limited liability company, or other entity that has a direct connection or contractual relationship with the broadcaster under which revenue is derived by the broadcaster, such as an advertiser or a platform distribution company.

(c) "Broadcaster" means a taxpayer that is a television broadcast network, a cable program network, or a television distribution company.

(d) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.

(e) "Communications company" means any person or any related person described in section 267 of the Internal Revenue Code, whether individually or in the aggregate, that:

(i) Is:

1. A telecommunications carrier as defined in section 62-610B, Idaho Code;

2. A communications company that provides the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point or between or among points and includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as a voice over internet protocol service or is classified by the federal communications commission as enhanced or value added. The company may also provide video programming provided by or generally considered comparable to programming provided by a television broadcast station, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Video programming includes but is not limited to cable service as defined in 47 U.S.C. 522 and video programming services delivered by providers of commercial mobile radio service as defined in 47 CFR 20.3; or

3. A broadcast company that provides an over-the-air broadcast radio station or over-the-air broadcast television station; and

(ii) Owns, operates, manages, or controls any plant or equipment used to furnish telecommunications service, communication services, broadband services, internet service, or broadcast services directly or indirectly to the general public at large and derives at least seventy percent (70%) of its gross sales for the current taxable year from the provision of these services. For purposes of the seventy percent (70%) test, "gross sales" does not include interest, dividends, rents, royalties, capital gains, or ordinary gains from asset dispositions, other than in the normal course of business.

(f) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.

(g) "Film programming" means one (1) or more performances, events, or productions, or segments of performances, events, or productions, intended to be distributed for visual and auditory perception, including but not limited to news, entertainment, sporting events, plays, stories, or other literary, commercial, educational, or artistic works.

(h) "Nonapportionable income" means all income other than apportionable income.

(i) "Sales" or "receipts" means all gross receipts of the taxpayer not allocated under this section and that are received from transactions and activities in the regular course of the taxpayer's trade or business or otherwise required to be included as apportionable income.

(j) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.

(2) Any taxpayer having income from business activity that is taxable both within and without this state shall allocate and apportion such net income as provided in this section.

(3) In any case in which the provisions of section 63-3701, Idaho Code, are inconsistent with the provisions of this section, the provisions of this section shall control.

(4) For purposes of allocation and apportionment of income under this section, a taxpayer is taxable in another state if:

(a) In that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or

(b) That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.

(5) Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonapportionable income, shall be allocated as provided in subsections (6) through (9) of this section. Allocable nonapportionable income shall be limited to the total nonapportionable income received in excess of any related expenses that have been allowed as a deduction during the taxable year. In the case of allocable nonapportionable interest or dividends, related expenses include interest on indebtedness incurred or continued to purchase or carry assets on which the interest or dividends are nonapportionable income.

(6)(a) Net rents and royalties from real property located in this state are allocable to this state.

(b) Net rents and royalties from tangible personal property are allocable to this state:

(i) If and to the extent that the property is utilized in this state; or

(ii) In their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.

(7)(a) Capital gains and losses from sales of real property located in this state are allocable to this state.

(b) Capital gains and losses from sales of tangible personal property are allocable to this state if:

(i) The property had a situs in this state at the time of the sale; or

(ii) The taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.

(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state, unless such gains and losses constitute apportionable income as defined in this section.

(8) Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state, unless such interest or dividends constitute apportionable income as defined in this section.

(9)(a) Patent and copyright royalties are allocable to this state:

(i) If and to the extent that the patent or copyright is utilized by the payer in this state; or

(ii) If and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.

(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patent product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.

(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.

(10)(a) All apportionable income shall be apportioned to this state under subsection (11) of this section by multiplying the income by a fraction, the numerator of which is the total sales of the taxpayer in Idaho during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period.

(b) An electrical corporation as defined in section 61-119, Idaho Code, a telephone corporation as defined in section 62-603, Idaho Code, a communications company as defined in this section, or a taxpayer subject to a special industry regulation pursuant to subsection (18) of this section may elect to apportion all apportionable income of the taxpayer to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor and the denominator of which is three (3). Where a taxpayer makes an election to use a special industry regulation under this paragraph, if the property, payroll, or sales factors are defined in a special industry regulation pursuant to subsection (18) of this section, those definitions or terms will be controlling to the extent they are in conflict with the definitions provided in subsections (12) through (16) of this section.

(11)(a) In the case of a corporation or group of corporations combined under subsection (22) of this section, Idaho taxable income or loss of the corporation or combined group shall be determined as follows:

(i) From the income or loss of the corporation or combined group of corporations, subtract any nonapportionable income and subtract any nonapportionable loss included in the total; and

(ii) Multiply the amounts determined under subparagraph (i) of this paragraph by the Idaho apportionment percentage defined in subsection (10) of this section, taking into account, where applicable, the property, payroll, and sales of all corporations, wherever incorporated, that are included in the combined group. The resulting product shall be the amount of income or loss apportioned to Idaho.

(b) To the amount determined as apportionable income or loss under paragraph (a)(ii) of this subsection, add nonapportionable income allocable entirely to Idaho under the provisions of this section or subtract nonapportionable loss allocable entirely to Idaho under this section. The resulting sum is the Idaho taxable income or loss of the corporation.

(c) In the case of a corporation not subject to subsection (22) of this section, the income or loss referred to in paragraph (a)(i) of this subsection shall be the taxable income of the corporation after making appropriate adjustments under the provisions of section 63-3022, Idaho Code.

(12) Sales of tangible personal property, including gross receipts from leases and other uses of tangible personal property, are in this state if:

(a) The property is delivered or shipped to a purchaser, other than the United States government, within this state, regardless of the free on board (f.o.b.) point or other conditions of the sale; or

(b) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state; and

(i) The purchaser is the United States government; or

(ii) The taxpayer is not taxable in the state of the purchaser.

(13) Sales, other than sales of tangible property, are in this state if the taxpayer's market for the sales is in this state. The taxpayer's market for sales is in this state:

(a) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;

(b) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;

(c) In the case of a service, if and to the extent the service is delivered to a location in this state;

(d) In the case of intangible property that is:

(i) Rented, leased, or licensed, if and to the extent the property is used in this state, provided that intangible property utilized in marketing a good or service to a consumer is "used in this state" if that good or service is purchased by a consumer who is in this state; and

(ii) Sold, if and to the extent the property is used in this state, provided that:

1. A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is "used in this state" if the geographic area includes all or part of this state; and

2. Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subparagraph (i) of this paragraph; and

(e) In the case of sales of a broadcaster from advertising or licensing income that arises from the broadcast or other distribution of film programming by any means, if the commercial domicile of the broadcast customer, as defined in this section, is in this state. Other sales of a broadcaster shall be apportioned in a manner consistent with the rules that apply to such sales.

(14) If the state or states of assignment under subsection (13) of this section cannot be determined, the state or states of assignment shall be reasonably approximated.

(15) A communications company, as defined in this section, may elect to use this subsection for purposes of sourcing sales other than the sales of tangible personal property. If such an election is made, sales other than sales of tangible personal property are in this state if:

(a) All the income-producing activity is performed in this state; or

(b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.

(16) If a taxpayer makes the election in subsection (10)(b) of this section or is using an alternative method pursuant to subsection (17) of this section that requires the use of a property or payroll factor, the property and payroll factor definitions in this subsection apply.

(a) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period, and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.

(b) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.

(c) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the state tax commission may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.

(d) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period.

(e) Compensation is paid in this state if:

(i) The individual's service is performed entirely within the state; or

(ii) The individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or

(iii) Some of the service is performed in the state and:

1. The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or

2. The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.

(17) If the allocation and apportionment provisions of this section do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the state tax commission may require, in respect to all or any part of the taxpayer's business activity, if reasonable:

(a) Separate accounting;

(b) The exclusion of any one (1) or more of the factors;

(c) The inclusion of one (1) or more additional factors that will fairly represent the taxpayer's business activity in this state; or

(d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

(18) If the allocation and apportionment provisions of this section do not fairly represent the extent of business activity in Idaho of taxpayers engaged in a particular industry or in a particular transaction or activity, the state tax commission may, in addition to the authority in subsection (17) of this section, establish appropriate rules for determining alternative allocation and apportionment methods for such taxpayers. A rule adopted pursuant to this subsection shall be applied uniformly, except that, with respect to any taxpayer to whom such rule applies, the taxpayer may petition for, or the state tax commission may require, adjustment pursuant to subsection (17) of this section.

(19)(a) The party petitioning for, or the state tax commission requiring, the use of any method to effectuate an equitable allocation or apportionment of the taxpayer's income pursuant to subsection (17) of this section must prove by a preponderance of the evidence:

(i) That the allocation and apportionment provisions of this section do not fairly represent the extent of the taxpayer's business activity in Idaho; and

(ii) That the alternative to such provision is reasonable.

(b) The same burden of proof shall apply, whether the taxpayer is petitioning for, or the state tax commission is requiring, the use of any reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income. However, if the state tax commission can show that in any two (2) of the prior five (5) years the taxpayer had used an allocation or apportionment method at variance with its allocation or apportionment method or methods used for such other tax years, then the state tax commission shall not bear the burden of proof in imposing a different method pursuant to subsection (17) of this section.

(20) If the state tax commission requires any method to effectuate an equitable allocation and apportionment of the taxpayer's income, the state tax commission cannot impose any civil or criminal penalty with reference to the tax due that is attributable to the taxpayer's reasonable reliance solely on the allocation and apportionment provisions of this section.

(21) A taxpayer that has received written permission from the state tax commission to use a reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income shall not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in, or a material misrepresentation of, the facts provided by the taxpayer upon which the state tax commission reasonably relied.

(22) For purposes of this section and sections 63-3027B through 63-3027E, Idaho Code, the income of two (2) or more corporations, wherever incorporated, the voting stock of which is more than fifty percent (50%) owned directly or indirectly by a common owner or owners, when necessary to accurately reflect income, shall be allocated or apportioned as if the group of corporations were a single corporation, in which event:

(a) The Idaho taxable income of any corporation subject to taxation in this state shall be determined by use of a combined report that includes the income, determined under paragraph (b) of this subsection, of all corporations that are members of a unitary business, allocated and apportioned using apportionment factors for all corporations included in the combined report and methods set out in this section. The use of a combined report does not disregard the separate corporate identities of the members of the unitary group. Each corporation transacting business in this state is responsible for its apportioned share of the combined apportionable income plus its nonapportionable income or loss allocated to Idaho, minus its net operating loss carryover or carryback.

(b) The income of a corporation to be included in a combined report shall be determined as follows:

(i) For a corporation incorporated in the United States or included in a consolidated federal corporation income tax return, the income to be included in the combined report shall be the taxable income for the corporation after making appropriate adjustments under the provisions of section 63-3022, Idaho Code;

(ii) For a corporation incorporated outside the United States but not included in subparagraph (i) of this paragraph, the income to be included in the combined report shall be the net income before income taxes of such corporation stated on the profit and loss statements of such corporation which are included within the consolidated profit and loss statement prepared for the group of related corporations of which the corporation is a member, which statement is prepared for filing with the United States securities and exchange commission. If the group of related companies is not required to file such profit and loss statement with the United States securities and exchange commission, the profit and loss statement prepared for reporting to shareholders and subject to review by an independent auditor may be used to obtain net income before income taxes. In the alternative, and subject to reasonable substantiation and consistent application by the group of related companies, adjustments may be made to the profit and loss statements of the corporation incorporated outside the United States, if necessary, to conform such statements to tax accounting standards as required by the Internal Revenue Code as if such corporation were incorporated in the United States and required to file a federal income tax return, subject to appropriate adjustments under the provisions of section 63-3022, Idaho Code;

(iii) If the income computation for a group under subparagraphs (i) and (ii) of this paragraph results in a loss, such loss shall be taken into account in other years, subject to the provisions of subsections (b) and (c) of section 63-3022, Idaho Code; and

(iv) When one (1) or more corporations included in a combined report have excess inclusion income for a tax year that is taxable to those corporations pursuant to section 63-3011B, Idaho Code, the amount of such excess inclusion income shall be reported as the taxable income for those members of the combined group as provided by section 63-3011B, Idaho Code, and any net operating loss for that tax year or carried forward from an earlier tax year may be taken as deductions in other tax years, subject to the provisions of subsections (b) and (c) of section 63-3022, Idaho Code. In computing the net operating loss that may be used in another tax year for that corporation or other member of the combined return group, the excess inclusion income recognized as taxable income shall be deducted from gross income, as provided by treasury regulation 1.860E-1(a)(1).

(23) If compensation is paid in the form of a reasonable cash fee for the performance of management services directly for the United States government at the Idaho national laboratory or any successor organization, separate accounting for that part of the business activity without regard to other activity of the taxpayer in the state of Idaho or elsewhere shall be required; provided that only that portion of general expenses clearly identifiable with Idaho business operations of that activity shall be allowed as a deduction.

(24) The state tax commission shall promulgate rules as necessary or appropriate to carry out the purposes of this section.

History:

[63-3027, added 1959, ch. 299, sec. 27, p. 613; am. 1961, ch. 328, sec. 10, p. 622; am. 1965, ch. 254, sec. 1, p. 639; am. 1969, ch. 319, sec. 9, p. 982; am. 1972, ch. 398, sec. 5, p. 1149; am. 1975, ch. 32, sec. 1, p. 52; am. 1979, ch. 250, sec. 1, p. 654; am. 1985, ch. 114, sec. 2, p. 233; am. 1993, ch. 284, sec. 3, p. 964; am. 1994, ch. 247, sec. 2, p. 782; am. 1994, ch. 301, sec. 1, p. 948; am. 1995, ch. 111, sec. 27, p. 366; am. 1998, ch. 42, sec. 5, p. 182; am. 2007, ch. 10, sec. 2, p. 10; am. 2014, ch. 74, sec. 2, p. 192; am. 2022, ch. 52, sec. 1, p. 157.]
Idaho Code § 63-3622N — Idaho Code / Title 63 / Chapter 36 / Section 63-3622N
63-3622N PRESCRIPTIONS.
Status: in_force

63-3622N. Prescriptions. (a) There are exempted from the taxes imposed by this chapter the following when administered or distributed by a practitioner or when purchased by or on behalf of an individual for use by such individual under a prescription or work order of a practitioner:

(1) Drugs, hypodermic syringes, insulin, insulin syringes, artificial eyes, eyeglasses and eyeglass component parts, contact lenses, hearing aids, hearing aid parts and hearing aid accessories;

(2) Drugs and supplies used in hemodialysis and peritoneal dialysis;

(3) Braces and other orthopedic appliances;

(4) Dental prostheses and other orthodontic appliances, including fillings;

(5) Catheters, urinary accessories, colostomy supplies, and other prosthetic devices which shall include, but are not limited to, enteral and parenteral feeding equipment and supplies, (tubing, pumps, containers) catheter devices and supplies;

(6) Equipment and devices or chemical reagents which are used to test or monitor blood or urine of a diabetic;

(7) Other durable medical equipment and devices and related parts and supplies specifically designed for those products which shall include, but are not limited to: oxygen equipment, oxygen cylinders, cylinder transport devices (sheaths, carts), cylinder stands, support devices, regulators, flowmeters, tank wrench, oxygen concentrators, liquid oxygen base dispenser, liquid oxygen portable dispenser, oxygen tubing, nasal cannulas, face masks, oxygen humidifiers, oxygen fittings and accessories, respiratory therapy equipment, room humidifiers, aspirators, aerosol compressors (stationary and portable), ultrasonic nebulizers, volume ventilators, respirators and related device supplies, percussors, vibrators, IPPB, circuits, devices and supplies, air oxygen mixers, manual resuscitators, nebulizers, tubing, emergency oxygen delivery units, patient care equipment, physical and occupational therapy items, hospital beds, trapeze bars and bar stand, bed rails, geriatric chairs, lift recliners, bedside commodes, overbed tables, patient lifts, patient lift slings, traction stands and pulleys, shower seating, shower grip bars, raised toilet seats, toilet safety frames, walking canes, quad canes and accessories, walkers, wheeled walkers, walker accessories, I.V. stands, crawlers, posture back supports for seating, posture back supports, wheelchairs, crutches, crutch pads, tips, grips, restraints, standing frame devices and accessories, hand exercise equipment and putty, specially designed hand utensils, leg weights, paraffin baths, hydrocollators, hydrotherm heating pads, communication aids for physically impaired, specialized seating, desks, work stations, foam wedges, writing and speech aids for the impaired, dressing aids, button loops and zipper aids, grooming aids, dental aids, eating and drinking aids, splints, holders, household aids for the impaired, shampoo trays, reaching aids, foam seating pads, decubitus seating pads, bed pads, fitted stroller, alternating pressure pads and pumps, stethoscope, sphygmomanometers, otoscopes, sitting and sleeping cushions, patient transport devices, boards, stairglides, lifts in home, transcutaneous nerve stimulators, muscle stimulators and bone fracture therapy devices.

(b) The term "practitioner" means a physician, physician assistant, surgeon, podiatrist, chiropractor, dentist, optometrist, psychologist, ophthalmologist, nurse practitioner, denturist, orthodontist, audiologist, hearing aid dealer or fitter or any person licensed by the state under title 54, Idaho Code, to prescribe, administer or distribute items identified in subsection (a) of this section.

(c)(1) The term "drug" means a drug which is:

(i) Defined in section 54-1704, Idaho Code; and

(ii) Either:

1. Listed in a drug compendia which the state board of pharmacy requires to be maintained by Idaho licensed pharmacies; or

2. The use of which requires a prescription under state or federal law.

(2) The term shall not include articles intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in animals other than man.

(d) The term "durable medical equipment" means equipment which:

(1) Can withstand repeated use;

(2) Is primarily and customarily used to serve a medical purpose;

(3) Generally is not useful to a person in the absence of illness or injury; and

(4) Is appropriate for use in the home.

(e) The term "prosthetic device" means a device which replaces a missing part or function of the human body and shall include any supplies physically connected to such devices.

History:

[63-3622N, added 1990, ch. 42, sec. 2, p. 65; am. 1992, ch. 78, sec. 1, p. 218; am. 1993, ch. 26, sec. 4, p. 89; am. 1996, ch. 46, sec. 12, p. 133; am. 1998, ch. 130, sec. 1, p. 483; am. 2008, ch. 19, sec. 1, p. 29; am. 2015, ch. 95, sec. 1, p. 230; am. 2015, ch. 95, sec. 2, p. 232; am. 2024, ch. 69, sec. 26, p. 358.]
Idaho Code § 63-2705 — Idaho Code / Title 63 / Chapter 27 / Section 63-2705
63-2705 EXEMPTION OF ELECTRICITY FOR PUMPING WATER FOR IRRIGATION PURPOSES.
Status: in_force

63-2705. Exemption of electricity for pumping water for irrigation purposes. All electricity and electrical energy used for pumping water for irrigation purposes to be used on lands in the state of Idaho or for pumping water for drainage purposes on or from land in the state of Idaho is exempt from the provisions of this chapter, except in cases where the water so pumped is sold or rented to such irrigated lands: provided, the exemption here given shall accrue to the benefit of the consumer of such electricity or electrical energy: provided further, that the full amount of such license tax which would have been due from such producers of electricity and electrical energy, if such exemptions had not been made, shall be credited annually for the year in which the exemptions are made on the power bill to the consumer by the producer of such electricity and electrical energy, furnishing such power, and such producer shall include a statement of the amount of electricity and electrical energy exempted by this section, furnished by it for the purpose of pumping water for irrigation purposes on lands in the state of Idaho, or for the purpose of pumping water for drainage purposes on or from lands in the state of Idaho to the tax commission of the state of Idaho as a part of the statement required by section 63-2701, together with a statement of the credits made on the power bills to the consumers of such electricity and electrical energy for the pumping of water for irrigation to be used on lands in the state of Idaho, or for pumping water for drainage purposes on or from lands in the state of Idaho.

History:

[(63-2705) 1931 (E.S.), ch. 3, sec. 5, p. 57; I.C.A., sec. 61-2205; am. 1941, ch. 41, sec. 1, p. 88; am. 1971, ch. 63, sec. 4, p. 142.]
Idaho Code § 63-3638 — Idaho Code / Title 63 / Chapter 36 / Section 63-3638
63-3638 SALES TAX — DISTRIBUTION.
Status: in_force

63-3638. Sales tax — Distribution. All moneys collected under this chapter, except as may otherwise be required in sections 63-3203, 63-3620F, and 63-3709, Idaho Code, shall be distributed by the state tax commission as follows:

(1) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized under this chapter by the state tax commission shall be paid through the state refund account, and those moneys are continuously appropriated.

(2) Five million dollars ($5,000,000) per year is continuously appropriated and shall be distributed to the permanent building fund, provided by section 57-1108, Idaho Code.

(3) Four million eight hundred thousand dollars ($4,800,000) per year is continuously appropriated and shall be distributed to the water pollution control fund established by section 39-3628, Idaho Code.

(4) An amount equal to the sum required to be certified by the chairman of the Idaho housing and finance association to the state tax commission pursuant to section 67-6211, Idaho Code, in each year is continuously appropriated and shall be paid to any capital reserve fund established by the Idaho housing and finance association pursuant to section 67-6211, Idaho Code. Such amounts, if any, as may be appropriated hereunder to the capital reserve fund of the Idaho housing and finance association shall be repaid for distribution under the provisions of this section, subject to the provisions of section 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as possible, from any moneys available therefor and in excess of the amounts the association determines will keep it self-supporting.

(5) An amount equal to the sum required by the provisions of sections 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by section 63-718(3), Idaho Code, is continuously appropriated and shall be paid as provided by sections 63-709 and 63-717, Idaho Code.

(6) An amount required by the provisions of chapter 53, title 33, Idaho Code.

(7) An amount required by the provisions of chapter 87, title 67, Idaho Code.

(8) For fiscal year 2011 and each fiscal year thereafter, four million one hundred thousand dollars ($4,100,000), of which two million two hundred thousand dollars ($2,200,000) shall be distributed to each of the forty-four (44) counties in equal amounts and one million nine hundred thousand dollars ($1,900,000) shall be distributed to the forty-four (44) counties in the proportion that the population of the county bears to the population of the state. For fiscal year 2012 and for each fiscal year thereafter, the amount distributed pursuant to this subsection shall be adjusted annually by the state tax commission in accordance with the consumer price index for all urban consumers (CPI-U) as published by the U.S. department of labor, bureau of labor statistics, but in no fiscal year shall the total amount allocated for counties under this subsection be less than four million one hundred thousand dollars ($4,100,000). Any increase resulting from the adjustment required in this section shall be distributed to each county in the proportion that the population of the county bears to the population of the state. Each county shall establish a special election fund to which shall be deposited all revenues received from the distribution pursuant to this subsection. All such revenues shall be used exclusively to defray the costs associated with conducting elections as required of county clerks by the provisions of section 34-1401, Idaho Code.

(9) One dollar ($1.00) on each application for certificate of title or initial application for registration of a motor vehicle, snowmobile, all-terrain vehicle or other vehicle processed by the county assessor or the Idaho transportation department, excepting those applications in which any sales or use taxes due have been previously collected by a retailer, shall be a fee for the services of the assessor of the county or the Idaho transportation department in collecting such taxes and shall be paid into the current expense fund of the county or state highway account established in section 40-702, Idaho Code.

(10) Eleven and five-tenths percent (11.5%) of revenues collected under this chapter, following any distributions required by sections 63-3203, 63-3620F, and 63-3709, Idaho Code, and by subsection (1) of this section, is continuously appropriated and shall be distributed to the revenue-sharing account, which is hereby created in the state treasury, and the moneys in the revenue-sharing account will be paid in installments each calendar quarter by the state tax commission as follows:

(a) Forty-five and two-tenths percent (45.2%) shall be paid to the various cities as follows:

(i) The revenue-sharing amount calculated by the state tax commission for the various cities for each quarter of fiscal year 2020 shall be the base amount for current quarterly revenue distribution amounts. The state tax commission shall calculate the per capita distribution for each city resulting from the previous fiscal year's distributions.

(ii) If there is no change in the amount of the revenue-sharing account from the same quarter of the previous fiscal year, then the various cities shall receive the same amount received for the same quarter of the previous fiscal year.

(iii) If the balance of the revenue-sharing account for the current quarter is greater than the balance of the revenue-sharing account for the same quarter of the previous fiscal year, then:

1. If the distributions made to the cities during the same quarter of the previous fiscal year were below the base amount established in fiscal year 2020, then the various cities shall first receive a proportional increase up to the base amount for each city and up to a one-percent (1%) increase over such base amount. Any remaining moneys shall be distributed to cities with a below-average per capita distribution in the proportion that the population of that city bears to the population of all cities with below-average per capita distributions within the state.

2. If the distributions made to the cities during the same quarter of the previous fiscal year were at or above the base amount established in fiscal year 2020, then the cities shall receive the same distribution they received during the same quarter of the previous fiscal year plus a proportional increase up to one percent (1%). Any remaining moneys shall be distributed to the cities with a below-average per capita distribution in the proportion that the population of that city bears to the population of all cities with a below-average per capita distribution within the state.

(iv) If the balance of the revenue-sharing account for the current quarter is less than the balance of the revenue-sharing account for the same quarter of the previous fiscal year, then the cities shall first receive a proportional reduction down to the base amount established in fiscal year 2020. If further reductions are necessary, the cities shall receive reductions based on the proportion that each city's population bears to the population of all cities within the state.

(b) Forty-seven and one-tenth percent (47.1%) shall be paid to the various counties as follows:

(i) Fifty-nine and eight-tenths percent (59.8%) of the amount to be distributed under this paragraph (b) of this subsection shall be distributed as follows:

1. One million three hundred twenty thousand dollars ($1,320,000) annually shall be distributed one forty-fourth (1/44) to each of the various counties; and

2. The balance of such amount shall be paid to the various counties, and each county shall be entitled to an amount in the proportion that the population of that county bears to the population of the state; and

(ii) Forty and two-tenths percent (40.2%) of the amount to be distributed under this paragraph (b) of this subsection shall be distributed as follows:

1. Each county that received a payment under the provisions of section 63-3638(e), Idaho Code, as that subsection existed immediately prior to July 1, 2000, during the fourth quarter of calendar year 1999, shall be entitled to a like amount during succeeding calendar quarters.

2. If the dollar amount of money available under this subsection (10)(b)(ii) in any quarter does not equal the amount paid in the fourth quarter of calendar year 1999, each county's payment shall be reduced proportionately.

3. If the dollar amount of money available under this subsection (10)(b)(ii) in any quarter exceeds the amount paid in the fourth quarter of calendar year 1999, each county shall be entitled to a proportionately increased payment, but such increase shall not exceed one hundred five percent (105%) of the total payment made in the fourth quarter of calendar year 1999.

4. If the dollar amount of money available under this subsection (10)(b)(ii) in any quarter exceeds one hundred five percent (105%) of the total payment made in the fourth quarter of calendar year 1999, any amount over and above such one hundred five percent (105%) shall be paid to the various counties in the proportion that the population of the county bears to the population of the state; and

(c) Seven and seven-tenths percent (7.7%) of the amount appropriated in this subsection shall be paid to the several counties for distribution to special purpose taxing districts as follows:

(i) Each such district that received a payment under the provisions of section 63-3638(e), Idaho Code, as such subsection existed immediately prior to July 1, 2000, during the fourth quarter of calendar year 1999, shall be entitled to a like amount during succeeding calendar quarters.

(ii) If the dollar amount of money available under this subsection (10)(c) in any quarter does not equal the amount paid in the fourth quarter of calendar year 1999, each special purpose taxing district's payment shall be reduced proportionately.

(iii) If the dollar amount of money available under this subsection (10)(c) in any quarter exceeds the amount distributed under paragraph (c)(i) of this subsection, each special purpose taxing district shall be entitled to a share of the excess based on the proportion each such district's current property tax budget bears to the sum of the current property tax budgets of all such districts in the state. Each year, starting with the distribution for the quarter ending December 31, the state tax commission shall calculate this distribution based on the district's current property tax budgets, including any unrecovered forgone amounts as determined under section 63-802(1)(e), Idaho Code. When a special purpose taxing district is situated in more than one (1) county, the state tax commission shall determine the portion attributable to the special purpose taxing district from each county in which it is situated.

(iv) If special purpose taxing districts are consolidated, the resulting district is entitled to a base amount equal to the sum of the base amounts received in the last calendar quarter by each district prior to the consolidation.

(v) If a special purpose taxing district is dissolved or disincorporated, the state tax commission shall continuously distribute to the board of county commissioners an amount equal to the last quarter's distribution prior to dissolution or disincorporation. The board of county commissioners shall determine any redistribution of moneys so received.

(vi) Taxing districts formed after January 1, 2001, are not entitled to a payment under the provisions of this paragraph (c) of this subsection.

(vii) For purposes of this paragraph (c) of this subsection, a special purpose taxing district is any taxing district that is not a city, a county, or a school district.

(viii) Special purpose taxing districts shall use funds received under the provisions of this subsection only for the purposes for which the special purpose taxing districts were formed.

(11) Amounts calculated in accordance with section 2, chapter 356, laws of 2001, for annual distribution to counties and other taxing districts beginning in October 2001 for replacement of property tax on farm machinery and equipment exempted pursuant to section 63-602EE, Idaho Code. For nonschool districts, the state tax commission shall distribute one-fourth (1/4) of this amount certified quarterly to each county. For school districts, the state tax commission shall distribute one-fourth (1/4) of the amount certified quarterly to each school district. For nonschool districts, the county auditor shall distribute such amounts to each district within thirty (30) calendar days from receipt of moneys from the state tax commission. Moneys received by each taxing district for replacement shall be utilized in the same manner and in the same proportions as revenues from property taxation. The moneys remitted to the county treasurer for replacement of property exempt from taxation pursuant to section 63-602EE, Idaho Code, may be considered by the counties and other taxing districts and budgeted at the same time, in the same manner, and in the same year as revenues from taxation on personal property, which these moneys replace. If taxing districts are consolidated, the resulting district is entitled to an amount equal to the sum of the amounts received in the last calendar quarter by each district pursuant to this subsection prior to the consolidation. If a taxing district is dissolved or disincorporated, the state tax commission shall continuously distribute to the board of county commissioners an amount equal to the last quarter's distribution prior to dissolution or disincorporation. The board of county commissioners shall determine any redistribution of moneys so received. If a taxing district annexes territory, the distribution of moneys received pursuant to this subsection shall be unaffected. Taxing districts formed after January 1, 2001, are not entitled to a payment under the provisions of this subsection. School districts shall receive an amount determined by multiplying the sum of the year 2000 school district levy minus .004 times the market value on December 31, 2000, in the district of the property exempt from taxation pursuant to section 63-602EE, Idaho Code, provided that the result of these calculations shall not be less than zero (0). The result of these school district calculations shall be further increased by six percent (6%). For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this section as property tax replacement for property exempt from taxation pursuant to section 63-602EE, Idaho Code, shall be treated as property tax revenues.

(12) Amounts necessary to pay refunds as provided in section 63-3641, Idaho Code, to a developer of a retail complex shall be remitted to the demonstration pilot project fund created in section 63-3641, Idaho Code.

(13) Amounts calculated in accordance with section 63-602KK(4), Idaho Code, for annual distribution to counties and other taxing districts for replacement of property tax on personal property tax exemptions pursuant to section 63-602KK(2), Idaho Code, which amounts are continuously appropriated unless the legislature enacts a different appropriation for a particular fiscal year. For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this section as property tax replacement for property exempt from taxation pursuant to section 63-602KK, Idaho Code, shall be treated as property tax revenues. If taxing districts are consolidated, the resulting district is entitled to an amount equal to the sum of the amounts that were received in the last calendar year by each district pursuant to this subsection prior to the consolidation. If a taxing district or revenue allocation area annexes territory, the distribution of moneys received pursuant to this subsection shall be unaffected. Taxing districts and revenue allocation areas formed after January 1, 2022, are not entitled to a payment under the provisions of this subsection.

(14) For fiscal year 2023 only, a sum of thirty-four million dollars ($34,000,000) shall be distributed each year by the state tax commission to the forty-four (44) counties in the proportion that the expenditures of each county for indigent defense services during county fiscal year 2021, excluding any state funding or grants, bear to the expenditures of all counties in the state for indigent defense services during county fiscal year 2021, excluding any state funding or grants. No later than July 1, 2022, the state public defense commission shall certify to the state tax commission each county's proportionate share of all counties' indigent defense expenses in county fiscal year 2021, excluding any state funding or grants.

(15) For fiscal year 2024 and each fiscal year thereafter, two and twenty-five hundredths percent (2.25%) of revenues collected under this chapter, following any distributions required by sections 63-3203, 63-3620F, and 63-3709, Idaho Code, and by subsections (1), (10), and (16) of this section, is continuously appropriated and shall be distributed annually to the homeowner property tax relief account established in section 63-724, Idaho Code.

(16)(a) Prior to July 1, 2025, four and five-tenths percent (4.5%) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section, but no less than eighty million dollars ($80,000,000) and no more than one hundred forty million dollars ($140,000,000), shall be distributed as follows:

(i) Eighty million dollars ($80,000,000) is continuously appropriated and shall be distributed to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and

(ii) The remaining moneys in excess of eighty million dollars ($80,000,000) provided for in this subsection is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this paragraph for local highway projects.

(b) From July 1, 2025, through June 30, 2026, one hundred forty-five million dollars ($145,000,000) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section shall be distributed as follows:

(i) One hundred million dollars ($100,000,000) is continuously appropriated and shall be distributed first to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and

(ii) The remaining forty-five million dollars ($45,000,000) provided for in this paragraph is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this subparagraph for local highway projects.

(c) From July 1, 2026, through June 30, 2027, one hundred sixty-five million dollars ($165,000,000) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section shall be distributed as follows:

(i) One hundred twenty million dollars ($120,000,000) is continuously appropriated and shall be distributed first to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and

(ii) The remaining forty-five million dollars ($45,000,000) provided for in this paragraph is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this subparagraph for local highway projects.

(d) Commencing July 1, 2027, and for each fiscal year thereafter, one hundred eighty-five million dollars ($185,000,000) of revenues collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1) and (10) of this section shall be distributed as follows:

(i) One hundred forty million dollars ($140,000,000) is continuously appropriated and shall be distributed first to the transportation expansion and congestion mitigation fund established in section 40-720, Idaho Code; and

(ii) The remaining forty-five million dollars ($45,000,000) provided for in this paragraph is continuously appropriated and shall be apportioned to local units of government for local highway projects in the same percentages provided for in section 40-709(1) through (3), Idaho Code. Local units of government may pool funds allocated to them pursuant to this subparagraph for local highway projects.

(17) Beginning in fiscal year 2024 and each fiscal year thereafter, three hundred thirty million dollars ($330,000,000) shall be distributed annually to the general fund specifically for the public schools educational support program, and eighty million dollars ($80,000,000) shall be distributed annually to the in-demand careers fund established in section 72-1206, Idaho Code. The state tax commission shall make such transfers in quarterly installments.

(18) For fiscal year 2024 and each fiscal year thereafter, three and twenty-five hundredths percent (3.25%) of revenues collected under this chapter, following any distributions required by sections 63-3203, 63-3620F, and 63-3709, Idaho Code, and by subsections (1), (10), and (16) of this section, is continuously appropriated and shall be distributed annually to the school district facilities fund established pursuant to section 33-911, Idaho Code.

(19) One hundred twenty-five million dollars ($125,000,000) collected under this chapter, following any distributions required by sections 63-3620F and 63-3709, Idaho Code, and by subsections (1), (10), (15), (16), and (18) of this section is continuously appropriated and shall be distributed to the school modernization facilities fund established in section 33-912, Idaho Code. The state tax commission shall make such transfers in quarterly installments.

(20) Any moneys remaining over and above those necessary to meet and reserve for payments under other subsections of this section shall be distributed to the general fund.

History:

[63-3638, added 1965, ch. 195, sec. 38, p. 408; am. 1967, ch. 115, sec. 11, p. 222; am. 1967, ch. 116, sec. 3, p. 229; am. 1967, ch. 377, sec. 2, p. 1109; am. 1970, ch. 183, sec. 1, p. 530; am. 1971, ch. 14, sec. 1, p. 25; am. 1975, ch. 155, sec. 1, p. 398; am. 1976, ch. 280, sec. 1, p. 959; am. 1977, ch. 325, sec. 1, p. 911; am. 1978, ch. 291, sec. 4, p. 718; am. 1979, ch. 254, sec. 14, p. 676; am. 1980, ch. 179, sec. 15, p. 396; am. 1980, ch. 349, sec. 1, p. 884; am. 1981, ch. 326, sec. 1, p. 683; am. 1984, ch. 287, sec. 5, p. 681; am. 1986, ch. 73, sec. 18, p. 215; am. 1987, ch. 31, sec. 4, p. 50; am. 1987, ch. 92, sec. 2, p. 174; am. 1994, ch. 111, sec. 5, p. 253; am. 1995, ch. 26, sec. 3, p. 37; am. 1996, ch. 253, sec. 32, p. 829; am. 1996, ch. 322, sec. 68, p. 1094; am. 1997, ch. 117, sec. 40, p. 336; am. 1997, ch. 242, sec. 2, p. 704; am. 1998, ch. 362, sec. 2, p. 1135; am. 1999, ch. 42, sec. 15, p. 100; am. 1999, ch. 328, sec. 2, p. 848; am. 2000, ch. 49, sec. 2, p. 92; am. 2000, ch. 207, sec. 2, p. 522; am. 2001, ch. 55, sec. 1, p. 97; am. 2001, ch. 130, sec. 3, p. 463; am. 2003, ch. 318, sec. 4, p. 873; repeal and new section added 2003, ch. 318, secs. 6 and 9, p. 876 and 879; am. 2004, ch. 104, secs. 2 and 3, p. 372 and 375; am. 2005, ch. 18, secs. 1 and 2, p. 49 and 52; am. 2006, ch. 234, sec. 2, p. 697; am. 2006, 1st E.S., ch. 1, sec. 20, p. 64; am. 2007, ch. 172, sec. 2, p. 508; am. 2008, ch. 400, sec. 3, p. 1094; am. 2009, ch. 62, sec. 1, p. 168; am. 2009, ch. 341, sec. 145, p. 1065; am. 2013, ch. 20, sec. 1, p. 30; am. 2013, ch. 243, sec. 4, p. 586; am. 2014, ch. 339, sec. 2, p. 854; am. 2014, ch. 357, sec. 7, p. 895; am. 2016, ch. 13, sec. 2, p. 16; am. 2017, ch. 322, sec. 11, p. 846; am. 2019, ch. 307, sec. 3, p. 922; am. 2019, ch. 320, sec. 6, p. 952; am. 2020, ch. 162, sec. 2, p. 470; am. 2021, ch. 339, sec. 2, p. 1032; am. 2021, ch. 360, sec. 11, p. 1127; am. 2022, ch. 318, sec. 3, p. 1013; am. 2022, 1st E.S., ch. 1, sec. 12, p. 10; am. 2023, ch. 43, sec. 1, p. 177; am. 2023, ch. 46, sec. 1, p. 186; am. 2023, ch. 174, sec. 8, p. 472; am. 2023, ch. 200, sec. 15, p. 552; am. 2023, ch. 234, sec. 1, p. 723; am. 2024, ch. 237, sec. 28, p. 838; am. 2025, ch. 250, sec. 1, p. 1106; am. 2025, ch. 302, sec. 6, p. 1288.]
Idaho Code § 63-3603 — Idaho Code / Title 63 / Chapter 36 / Section 63-3603
63-3603 FARMING.
Status: in_force

63-3603. Farming. The terms "farm" and "farming" refer to and mean the business of operating for gain or profit a ranch or farm and include stock, dairy, poultry, fish, fur, fruit and truck farms, ranches, ranges and orchards, and custom farming.

History:

[63-3603, added 1965, ch. 195, sec. 3, p. 408; am. 1987, ch. 326, sec. 1, p. 682.]
Idaho Code § 63-3033 — Idaho Code / Title 63 / Chapter 30 / Section 63-3033
63-3033 EXTENSION OF TIME.
Status: in_force

63-3033. Extension of time. (a) Taxpayers shall have an automatic extension of time for filing any return, declaration, statement or other document required by this chapter for a period of six (6) months if on or before the unextended due date the taxpayer has paid at least eighty percent (80%) of the total tax due on the income tax return when it is filed, or the total tax due on the income tax return for the prior year if a return was filed for the prior year.

(b) If, on the unextended due date, the payment required to meet the provisions of subsection (a) of this section, after consideration of any previous credits or payments applicable to the return, is fifty dollars ($50.00) or less, such payment shall not be required in order to qualify for the extension. However, interest shall accrue as provided in subsection (g) of this section. Payment of any balance of tax is due on the earlier of the extended due date or the date the return is filed.

(c) Taxpayers residing outside any of the United States and Puerto Rico (including persons in military or naval service) shall have an automatic extension of time within which to file income tax returns with this state for a period which shall expire on the fifteenth day of the sixth month following the close of their taxable year.

(d) Individuals who are entitled to extensions for filing federal income tax returns as a result of the application of the provisions of sections 911 and 7508 of the Internal Revenue Code, shall be entitled to extensions of time for the same period for filing income tax returns with the state of Idaho subject to the requirements imposed in implementation of the indicated sections.

(e) Any taxpayer entitled to an extension under subsection (c) or (d) of this section shall attach a statement to his return claiming his right to the extension.

(f) If the amount of payment made under subsection (a) of this section is less than eighty percent (80%) of the total tax due under the provisions of this chapter and is less than the amount of the total tax due on the income tax return for the prior year, except as permitted by subsection (b) of this section, a penalty may be applied to the total of the balance due unless reasonable cause can be established. The penalty shall be:

(1) If the taxes for the taxable year are paid on or before the extended due date, two percent (2%) per month from the original due date to the date of payment.

(2) If the taxes for the taxable year are not paid on or before the extended due date, the penalty provided in section 63-3046(c), Idaho Code, from the original due date.

(g) In all cases of an extension of time in which to file any return, except for those related to section 7508 of the Internal Revenue Code, interest shall be paid on any tax due from the original due date to date of payment at the rate provided in section 63-3045, Idaho Code. For an individual entitled to an extension of time allowed by subsection (d) of this section and section 7508 of the Internal Revenue Code, interest shall be paid on any tax due from the extended due date allowed in subsection (d) of this section to the date of payment.

History:

[63-3033, added 1959, ch. 299, sec. 33, p. 613; am. 1965, ch. 316, sec. 5, p. 880; am. 1969, ch. 319, sec. 11, p. 982; am. 1976, ch. 77, sec. 1, p. 249; am. 1976, ch. 270, sec. 1, p. 913; am. 1980, ch. 5, sec. 1, p. 10; am. 1981. ch. 290, sec. 3, p. 598; am. 1992, ch. 49, sec. 2, p. 151; am. 1993, ch. 3, sec. 5, p. 14; am. 1997, ch. 57, sec. 10, p. 102; am. 1998, ch. 54, sec. 1, p. 207; am. 1999, ch. 34, sec. 1, p. 71; am. 2001, ch. 53, sec. 1, p. 95; am. 2005, ch. 23, sec. 5, p. 69; am. 2006, ch. 56, sec. 1, p. 166; am. 2011, ch. 45, sec. 1, p. 102; am. 2014, ch. 9, sec. 3, p. 12.]
Idaho Code § 63-2702A — Idaho Code / Title 63 / Chapter 27 / Section 63-2702A
63-2702A REFUNDS — LIMITATIONS — INTEREST.
Status: in_force

63-2702A. Refunds — Limitations — Interest. (1) If the tax commission determines that any amount due under this act has been paid more than once or has been erroneously or illegally collected or computed, the tax commission shall set forth that fact in its records and the excess amount paid or collected may be credited on any amount then due and payable to the tax commission from that person and any balance refunded to the person by whom it was paid or to his successors, administrators or executors. The tax commission is authorized and the state board of tax appeals authorized to order the tax commission in proper cases to credit or refund such amounts whether or not such payments have been paid under protest and certify such refund to the state board of examiners.

(2) No such credit or refund shall be allowed or made after three (3) years from the time the payment was made, unless before the expiration of such period a claim therefor is filed by the taxpayer.

(3) Interest shall be allowed on the amount of such credits or refunds at the rate provided in section 63-3045, Idaho Code, from the date such tax was paid.

History:

[63-2702A, added 1987, ch. 260, sec. 4, p. 548.]
Idaho Code § 63-1707 — Idaho Code / Title 63 / Chapter 17 / Section 63-1707
63-1707 EXAMINATION OF RECORDS.
Status: in_force

63-1707. Examination of records. In order to properly administer the provisions of this chapter, the state tax commission shall have the right at reasonable times to examine the books, accounts and records of the landowner, timber owner or forest products owner at the time of severance or harvest, or party utilizing the logs or other forest products at the time of severance or harvest as necessary to verify the reports required under the provisions of this chapter and shall have the right to examine the source land.

History:

[63-1707, added 1982, ch. 123, sec. 5, p. 355.]
Idaho Code § 63-3025 — Idaho Code / Title 63 / Chapter 30 / Section 63-3025
63-3025 TAX ON CORPORATE INCOME.
Status: in_force

63-3025. Tax on corporate income. (1) For each taxable year, a tax is hereby imposed on the Idaho taxable income of a corporation, other than an S corporation, that transacts or is authorized to transact business in this state or has income attributable to this state. The tax rate imposed by this section shall be as follows:

(a) For each taxable year, commencing on and after January 1, 2001, the tax imposed by this section shall be equal to seven and six-tenths percent (7.6%) of Idaho taxable income.

(b) For each taxable year, commencing on and after January 1, 2012, the tax imposed by this section is changed and shall be equal to seven and four-tenths percent (7.4%) of Idaho taxable income.

(c) For each taxable year, commencing on and after January 1, 2018, the tax imposed by this section is changed and shall be equal to six and nine hundred twenty-five thousandths percent (6.925%) of Idaho taxable income.

(d) For each taxable year, commencing on and after January 1, 2021, the tax imposed by this section is changed and shall be equal to six and five-tenths percent (6.5%) of Idaho taxable income.

(e) For each taxable year, commencing on and after January 1, 2022, the tax imposed by this section is changed and shall be equal to six percent (6%) of Idaho taxable income.

(f) For each taxable year, commencing on and after January 1, 2023, the tax imposed by this section is changed and shall be equal to five and eight-tenths percent (5.8%) of Idaho taxable income.

(g) For each taxable year, commencing on and after January 1, 2024, the tax imposed by this section is changed and shall be equal to five and six hundred ninety-five thousandths percent (5.695%) of Idaho taxable income.

(h) For each taxable year, commencing on and after January 1, 2025, the tax imposed by this section is changed and shall be equal to five and three-tenths percent (5.3%) of Idaho taxable income.

(2) In the case of an S corporation that is required to file a return under section 63-3030, Idaho Code, a tax is hereby imposed at the rate provided in subsection (1) of this section upon both:

(a) Net recognized built-in gain attributable to this state. The amount of net recognized built-in gain attributable to this state shall be computed in accordance with section 1374 of the Internal Revenue Code subject to the apportionment and allocation provisions of section 63-3027, Idaho Code; and

(b) Excess net passive income attributable to this state. The amount of excess net passive income attributable to this state shall be computed in accordance with section 1375 of the Internal Revenue Code subject to the apportionment and allocation provisions of section 63-3027, Idaho Code.

(3) The tax imposed by subsection (1) or (2) of this section shall not be less than twenty dollars ($20.00); provided that the twenty-dollar ($20.00) minimum payment shall not be collected from nonproductive mining corporations.

(4) The tax imposed by this section shall not apply to corporations taxed pursuant to the provisions of section 63-3025A, Idaho Code.

History:

[63-3025, added 2022, 1st E.S., ch. 1, sec. 7, p. 7; am. 2024, ch. 237, sec. 3, p. 825; am. 2025, ch. 13, sec. 4, p. 44; am. 2025, ch. 302, sec. 2, p. 1282.]
Idaho Code § 63-3802 — Idaho Code / Title 63 / Chapter 38 / Section 63-3802
63-3802 MEMBERS.
Status: in_force

63-3802. Members. The board of tax appeals shall consist of three (3) members appointed by the governor with the advice and consent of the senate. The members shall be residents of this state and shall be selected on the basis of their knowledge of and experience in taxation, gained from service as certified public accountants, public accountants, licensed real estate brokers, attorneys, duly accredited property appraisers, or in some other manner. No more than two (2) members of the board shall be members of the same political party. No member of the board shall hold any elective office or any public office involving assessment of taxes or administration of any of the tax laws of this state. No member shall take part directly or indirectly in any election campaign on behalf of any political party or organization or candidate or any measure to be voted upon by the people. Nothing in this act shall prohibit a person from properly and lawfully engaging in his business or profession. In any matter, in which a member might, directly or indirectly, encounter a possible conflict of interest, he shall disqualify himself from making any necessary decisions.

History:

[63-3802, added 1969, ch. 453, sec. 2, p. 1195.]
Idaho Code § 63-4103 — Idaho Code / Title 63 / Chapter 41 / Section 63-4103
63-4103 PETITIONS FOR DISSOLUTION OF SPECIAL DISTRICTS.
Status: in_force

63-4103. Petitions for dissolution of special districts. Proceedings for the dissolution of a special district may be initiated by a petition containing the signatures of qualified electors of the district or owners of property within the district equal in number to twenty-five percent (25%) of the largest number of persons who voted for any director in the last election of directors or if no election has been held within two (2) years then a petition may be initiated by twenty-five (25) or more qualified electors or property owners of the district.

The petition, when completed and verified, shall be filed with the clerk of the county or counties if more than one (1) county is involved. The county clerk shall publish notice and the county commissioners shall hold a hearing on the matter. If necessary, they shall hold an election, subject to the provisions of section 34-106, Idaho Code, on the matter. The hearing and election shall be held in accordance with the terms and provisions of chapter 14, title 34, Idaho Code.

History:

[63-4103, added 1987, ch. 87, sec. 1, p. 165; am. 1995, ch. 118, sec. 89, p. 501; am. 2009, ch. 341, sec. 147, p. 1070.]
Idaho Code § 63-602B — Idaho Code / Title 63 / Chapter 6 / Section 63-602B
63-602B PROPERTY EXEMPT FROM TAXATION — RELIGIOUS LIMITED LIABILITY COMPANIES, CORPORATIONS OR SOCIETIES.
Status: in_force

63-602B. Property exempt from taxation — Religious limited liability companies, corporations or societies. (1) The following property is exempt from taxation: property belonging to any religious limited liability company, corporation or society of this state, used exclusively for and in connection with any combination of religious, educational, or recreational purposes or activities of such religious limited liability company, corporation or society, including any and all residences used for or in furtherance of such purposes.

(2) If the entirety of any property belonging to any such religious limited liability company, corporation or society is leased by such owner, or if such religious limited liability company, corporation or society uses the entirety of such property for business or commercial purposes from which a revenue is derived, then the same shall be assessed and taxed as any other property. If any such property is leased in part or used in part by such religious limited liability company, corporation or society for such business or commercial purposes, the assessor shall determine the value of the entire exempt property, and the value of the part used or leased for such business or commercial purposes, and that part used or leased for such business or commercial purposes shall be taxed as any other property. The Idaho state tax commission shall promulgate rules establishing a method of determining the value of the part used or leased for such business or commercial purposes. If the value of the part used or leased for such business or commercial purposes is determined to be three percent (3%) or less of the value of the entirety, the whole of said property shall remain exempt. If the value of the part used or leased for such business or commercial purposes is determined to be more than three percent (3%) of the value of the entirety, the assessor shall assess such proportionate part of such property, and shall assess the trade fixtures used in connection with the sale of all merchandise for such business or commercial purposes, provided however, that the use or lease of any property by any such religious limited liability company, corporation or society for athletic or recreational facilities, residence halls or dormitories, meeting rooms or halls, auditoriums, or club rooms for and in connection with the purposes for which such religious limited liability company, corporation or society is organized, shall not be deemed a business or commercial purpose, even though fees or charges be imposed and revenue derived therefrom.

History:

[63-602B added 1996, ch. 98, sec. 7, p. 349; am. 2007, ch. 38, sec. 1, p. 95; am. 2008, ch. 50, sec. 1, p. 122.]
Idaho Code § 63-1007 — Idaho Code / Title 63 / Chapter 10 / Section 63-1007
63-1007 REDEMPTION — EXPIRATION OF RIGHT.
Status: in_force

63-1007. Redemption — Expiration of right. (1) After the issuance of a tax deed, real property may be redeemed only by the record owner or owners, or party in interest, up to the time the county commissioners have entered into a contract of sale or the property has been transferred by county deed. In order to redeem real property, the record owner or owners, or party in interest, shall pay any delinquency including the late charges, accrued interest, and costs, including, but not limited to, title search and other professional fees. The property taxes accrued against such property subsequent to the issuance of a tax deed to the county shall be extended upon a valuation to be given by the assessor upon application of the tax collector. The property taxes shall be computed according to the authorized levies for the year or years to be extended, including the current calendar year which shall be calculated using the previous year's levies until the current levies are authorized.

(2) Should such payments be made, a redemption deed shall be issued by the county tax collector into the name of the redemptioner and the rights, title and interest acquired by the county shall cease and terminate; provided however, that such right of redemption shall expire fourteen (14) months from the date of issuance of a tax deed to the county, in the event the county commissioners have not extinguished the right of redemption by contract of sale or transfer by county deed during said redemption period. In the event a tax deed is issued and payment is not received within fourteen (14) months of the issuance of such tax deed, then said tax deed to the county is presumptive evidence of the regularity of all proceedings prior thereto and the fee simple title, after the issuance of said tax deed, rests in the county.

History:

[63-1007 added 1996, ch. 98, sec. 11, p. 385; am. 2001, ch. 193, sec. 1, p. 658; am. 2014, ch. 15, sec. 1, p. 23.]
Idaho Code § 63-1705 — Idaho Code / Title 63 / Chapter 17 / Section 63-1705
63-1705 TAXATION OF FOREST LANDS UNDER THE PRODUCTIVITY OPTION.
Status: in_force

63-1705. Taxation of forest lands under the productivity option. (1) In order to encourage private forest landowners to retain and improve their holdings of forest lands and to promote better forest management, forest lands subject to this option shall be appraised, assessed and taxed as real property under the provisions of this section.

(2) Forest lands shall be governed by the following productivity classifications and assessments:

(a) All forest land shall retain the productivity classification that it held in tax year 2021 for each year thereafter, unless there is a substantial change of use or the landowner successfully appeals the classification pursuant to chapter 5, title 63, Idaho Code. All forest land shall be assessed in accordance with subsection (4) of this section.

(b) Changes to productivity classification of forest land prior to January 1, 2021, shall be made pursuant to the process set forth in section 63-1705A, Idaho Code, and shall be assessed each year thereafter in accordance with the provisions of subsection (4) of this section, except that all reviews by county assessors pursuant to section 63-1705A, Idaho Code, shall be completed no later than January 1, 2021.

(c) The productivity classification for land newly classified as forest land after tax year 2021 shall be determined pursuant to section 63-1705A, Idaho Code. In the year immediately following classification and for each year thereafter, newly classified forest land shall retain its productivity classification and shall be valued in accordance with the provisions of subsection (4) of this section.

(3)(a) Prior to tax year 2021, the forest land value shall be determined by the timber productivity valuation process, as provided for in the committee on forest land taxation methodologies (CFTM), user's guide to the timber productivity option's valuation method – 2005 (Schlosser, January 1, 2005, Moscow, Idaho), referred to in this chapter as the "user's guide," on file with the Idaho state tax commission, available on the website of the Idaho state tax commission, and which shall be made available in the office of each county assessor, which values the net wood production over a reasonable rotation period plus other agricultural-related income, if any, less annualized custodial expenses as defined in section 63-1701, Idaho Code. The state tax commission shall promulgate rules relating to the timber productivity valuation process, including custodial expenses, as provided for in the user's guide and the provisions of this chapter.

(b) The market value for assessment purposes shall be determined annually by the county assessor using the timber productivity valuation process developed by the CFTM, and as further prescribed in rule. Effective January 1, 2012, the forest land values for taxation purposes will be floored at the 2011 valuation level of all four (4) of the forest value zones for the next ten (10) year period. The ceiling for taxation purposes for forest land values during such ten (10) year period will be capped at thirty percent (30%) above the 2011 forest land values. The annual changes for taxation purposes shall be limited to not more than a five percent (5%) annual increase or decrease from the immediate prior year based upon the 2005 user's guide valuation model, provided however, that no decrease shall be in an amount less than the established floor nor increase above the established ceiling.

(c) Actual annual valuation calculations shall also be tracked, though not necessarily utilized for taxation purposes. Actual annual valuation calculations may drop below the floor or rise above the ceiling. Forest land values derived by the model will be used as the forest land value for taxation purposes only when the derived value is between the floor and the ceiling. Furthermore, the actual annual valuation calculations shall not exceed a five percent (5%) adjustment from the previous year's valuation calculation. When the model-derived values for a given year are below the floor, the forest land value for taxation purposes will be equal to the floor value for that year. When the model-derived values in a given year are above the ceiling, the forest land value for taxation purposes will be equal to the ceiling for that year.

(d) Except as provided in subsection (6) of this section, any change to the productivity classification of a forest land parcel prior to tax year 2021 shall adhere to the process set forth in this subsection and in section 63-1705A, Idaho Code, or else such change shall be void. However, the assessor's appraisal shall be upheld upon appeal if the board of equalization determines that the landowner has purposely or unreasonably denied the assessor timely access to the land to complete fieldwork under the provisions of section 63-1705A, Idaho Code.

(e) The CFTM may recommend to the legislature a new process by which county assessors establish forest land productivity classification for land newly designated as forest land after tax year 2021.

(4) Beginning in tax year 2021 and each tax year thereafter, land assessed as forest land shall be valued by indexing each parcel's value by the percentage change in the five (5) year rolling average stumpage values, with 2019 being the base year. The stumpage values shall be based upon the preceding five (5) year rolling average value of timber harvested within the forest value zone from state timber sales or, if unavailable, the best available data for the same five (5) year period. Any changes in value shall be limited to no more than a five percent (5%) annual increase or decrease from the immediate prior year. The state tax commission shall provide the stumpage value calculation required under this subsection by March 1 of each year.

(5) Pursuant to the provisions of section 63-602W, Idaho Code, the inventory of forest products shall not be included as part of the valuation of the forest land.

(6) Forest lands upon which, at any time after January 1, 1982, the trees are destroyed by fire, disease, insect infestation or other natural disaster such that the lands affected will not meet minimum stocking requirements under rules adopted pursuant to chapter 13, title 38, Idaho Code, shall be eligible for a reduction in value for the first ten (10) property tax years following the loss. The amount of reduction shall be determined by dividing the average age of the trees destroyed by the rotation age for the specific forest productivity class appropriate for the affected acres. In no instance shall the annual reduction exceed eighty percent (80%) of the original forest value per year. In order to obtain a reduction, the landowner shall, on or before January 1 following the destruction, make written application to the assessor indicating the legal description of the lands in question and stating all pertinent facts. The assessor may investigate the facts and may request assistance from the state tax commission in performing such investigations. If the requirements are met, such forest lands shall be assessed and taxed on the reduced basis herein provided.

(7) Buildings and other improvements, other than roads, located on forest lands shall be appraised, assessed and taxed as provided by applicable laws and rules.

(8) There is created within the Idaho state tax commission the CFTM. The membership of the CFTM shall be:

(a) A nonvoting chairman who shall be the member of the Idaho state tax commission assigned to property tax matters;

(b) Four (4) members who are representing business entities owning no fewer than five thousand (5,000) acres of Idaho forest land, provided that there shall be only one (1) representative for each individual business entity and provided further that affiliated business entities shall be considered a single business entity for the purposes of this section. The business entity employing such member shall designate a successor member at its discretion. If a vacancy occurs among the representatives of forest landowners owning no fewer than five thousand (5,000) acres, a replacement member will be selected by the remaining members qualifying under the provisions of this section;

(c) One (1) member selected from the membership of the Idaho forest owners' association;

(d) Five (5) members selected from the membership of the Idaho association of counties; and

(e) The state superintendent of public instruction or his/her designee, in a nonvoting capacity.

(9) The CFTM may retain a forest economist selected by a majority of its members to advise the CFTM.

(10) The costs of each CFTM member shall be borne by the respective member. The fees and costs of the forest economist shall be borne as determined by the CFTM.

(11) The CFTM may prepare and deliver written reports to the house of representatives revenue and taxation committee and the senate local government and taxation committee of its findings and recommendations for legislation as the need may arise. The CFTM may meet periodically as determined by its chairman or the CFTM.

History:

[63-1705, added 1982, ch. 123, sec. 5, p. 353; am. 1984, ch. 237, sec. 2, p. 568; am. 1996, ch. 322, sec. 61, p. 1090; am. 1998, ch. 198, sec. 1, p. 711; am. 2000, ch. 156, sec. 2, p. 397; am. 2005, ch. 24, sec. 2, p. 75; am. 2011, ch. 5, sec. 1, p. 11; am. 2012, ch. 9, sec. 1, p. 14; am. 2017, ch. 48, sec. 1, p. 76; am. 2018, ch. 83, sec. 1, p. 186; am. 2020, ch. 247, sec. 1, p. 721.]
Idaho Code § 63-1703 — Idaho Code / Title 63 / Chapter 17 / Section 63-1703
63-1703 CERTAIN FOREST LANDS TO BE DESIGNATED FOR TAXATION BY OWNER — LIMITATIONS.
Status: in_force

63-1703. Certain forest lands to be designated for taxation by owner — Limitations. For the purposes of appraisal, assessment and taxation under the provisions of this chapter, all forest lands in parcels of five (5) or more acres but less than five thousand (5,000), whether contiguous or not, as long as such parcels are held in common ownership, must be designated by the forest landowner to be subject to the provisions of either subsection (a) or (b) of this section. A forest landowner cannot have parcels designated under the provisions of both subsections (a) and (b) of this section at one time. If the forest landowner fails to make a designation, his forest lands shall be subject to appraisal, assessment and taxation under the provisions of section 63-1702, Idaho Code. Once a designation is made by the forest landowner, such designation must remain in effect until the designation period expires, unless the forest lands are transferred to another owner using a different taxing category; in such case, the taxing category of the transferred forest lands shall be the same as that maintained by the new owner.

A forest landowner may change the designation of all forest lands in common ownership at the end of any designation period, subject to the recapture of any deferred taxes due as a result of such change. After January 1 and by December 31 of the tenth year of each designation period, the forest landowner must notify the county assessor of any change in forest land designation. Failure to notify the county assessor will result in the continuation of the landowner's present designation until the end of the next designation period.

Any substantial change in the use of forest lands not conforming with the definition of "forest land" in section 63-1701, Idaho Code, during such ten (10) year period under the designations made in subsection (a) or (b) of this section shall be reported by the landowner to the county assessor within thirty (30) days of the change in use. Upon notification of the change in use or a determination by the assessor that the land no longer meets the definition of "forest land" in section 63-1701, Idaho Code, the assessor shall appraise, assess and tax those acres as provided by applicable laws and rules. Failure to notify the assessor of the change in use when forest lands have been designated as subject to the provisions of subsection (a) or (b) of this section shall cause forfeiture of such designation and cause that property to be appraised, assessed and taxed as provided in section 63-1702, Idaho Code. If there are deferred taxes subject to recapture as a result of loss of forest land designation, the assessor shall take no action to supply deferred tax amounts to the county treasurer before the taxpayer has been notified and provided an opportunity to appeal the decision of the assessor to the county board of equalization. Said appeal shall be considered timely if filed with the county clerk within thirty (30) days of receipt of the notification of the decision of the assessor. Upon the filing of a timely appeal, the taxpayer shall be given at least ten (10) days' notice of the date and location of the next meeting of the county board of equalization at which the appeal shall be considered. Once the appeal is considered, the county board of equalization shall notify the appellant of the decision, which is further appealable pursuant to section 63-511, Idaho Code.

Forest lands designated for assessment pursuant to the provisions of section 63-1706, Idaho Code, shall be subject to the recapture of deferred taxes upon removal of such designation, a substantial change in use, or ownership transfer, except that there shall be no recapture initiated upon ownership transfer of forest lands designated as subject to the provisions of section 63-1706, Idaho Code, to a landowner with forest lands already designated as subject to the provisions of section 63-1706, Idaho Code, prior to the transfer, or who so designates his lands to be subject to the provisions of section 63-1706, Idaho Code. In the event payment is offered or made, it shall be accepted by the county treasurer and applied in the manner of payment of other property tax.

The dollar amount of deferred taxes subject to recapture shall be determined by the county assessor by applying current tax levies against the current values that would have been in effect if the lands were subject to appraisal and assessment during the current year under the provisions of section 63-1705, Idaho Code, if there has been a change in ownership or a removal of designation, or section 63-1702, Idaho Code, if there has been a change in use with no change in ownership, which amount shall be multiplied by the number of years that the lands have been subject to the designation under section 63-1706, Idaho Code. The amount of the deferred tax shall accrue through designation periods, up to a maximum of ten (10) years, and shall apply to the most recent ten (10) years in which the parcel has been designated under the provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes actually paid under the provisions of section 63-1706, Idaho Code, for an identical ten (10) year period, up to the total amount of the deferred taxes. All deferred amounts shall be a lien against the land. Deferred tax amounts shall be calculated by the county assessor on forms prescribed by the state tax commission. Deferred tax amounts shall be supplied by the county assessor to the county treasurer by May 15 of the year following conveyance or within thirty (30) days of the lapsing or conclusion of the appeals procedure provided in this section with regard to the removal of the forest land designation, or of learning of a change in use. All deferred tax amounts shall be due and payable to the county treasurer on demand and shall become delinquent if not paid by the demand due date specified by the county treasurer on the forms prescribed by the state tax commission. If the deferred tax is not paid as provided in this section, the payment becomes delinquent and subject to late charges and interest in the amounts provided in sections 63-201(12) and 63-1001, Idaho Code, and subject to collection in the manner as set forth in chapter 10, title 63, Idaho Code. Estimated deferred tax amounts may be held by the county treasurer in a tax anticipation account from the date of conveyance until June 1 of the year following conveyance.

The county treasurer shall cause the deferred taxes and any penalty and interest paid pursuant to the provisions of this section to be apportioned to the various taxing authorities within which the property subject to the tax is located in the same manner as property taxes.

(a) A forest landowner may choose to have his forest land assessed, appraised and taxed under the provisions of section 63-1705, Idaho Code, by filing such choice with the county assessor on a form prescribed by the state tax commission. Designation filed pursuant to section 63-1705, Idaho Code, shall become effective the first day of January following the year of designation.

(b) A forest landowner may choose to have his forest land assessed, appraised and taxed under the provisions of section 63-1706, Idaho Code, by filing such choice with the county assessor on a form prescribed by the state tax commission. Designation filed pursuant to section 63-1706, Idaho Code, shall become effective the first day of January following the year of designation.

(c) All forest products or timber harvested from investment lands not designated as subject to the provisions of section 63-1702, 63-1705 or 63-1706, Idaho Code, and delivered to a point of utilization as logs or semiprocessed forest products, except those forest products harvested for the domestic use of the landowner under the provisions of section 63-1708, Idaho Code, shall be subject to the yield tax at the time of harvest in the same manner provided for in section 63-1706, Idaho Code.

History:

[63-1703, added 1982, ch. 123, sec. 5, p. 352; am. 1984, ch. 237, sec. 1, p. 567; am. 1992, ch. 18, sec. 2, p. 53; am. 1994, ch. 370, sec. 2, p. 1190; am. 1995, ch. 90, sec. 1, p. 259; am. 1996, ch. 322, sec. 60, p. 1088; am. 1996, ch. 431, sec. 1, p. 1464; am. 2004, ch. 183, sec. 1, p. 573; am. 2008, ch. 53, sec. 4, p. 135; am. 2008, ch. 400, sec. 5, p. 1099; am. 2009, ch. 11, sec. 24, p. 37; am. 2016, ch. 16, sec. 1, p. 21.]
Idaho Code § 63-3079 — Idaho Code / Title 63 / Chapter 30 / Section 63-3079
63-3079 FRANCHISE TAX NOT REPEALED.
Status: in_force

63-3079. Franchise tax not repealed. Nothing in this act shall be construed as repealing any law requiring corporations and other forms of associations to pay an annual franchise tax based on their income or on premiums collected or according to the amount of business transacted.

History:

[63-3079, added 1959, ch. 299, sec. 79, p. 613; am. 1981, ch. 132, sec. 1, p. 221.]
Idaho Code § 63-3084 — Idaho Code / Title 63 / Chapter 30 / Section 63-3084
63-3084 TAX ADDITIONAL TO OTHER INCOME TAXES.
Status: in_force

63-3084. Tax additional to other income taxes. The tax imposed by this act shall be in addition to any other income taxes imposed by the laws of this state.

History:

[63-3084, added 1959, ch. 303, sec. 3, p. 654.]
Idaho Code § 63-303 — Idaho Code / Title 63 / Chapter 3 / Section 63-303
63-303 ASSESSMENT OF MANUFACTURED HOMES.
Status: in_force

63-303. Assessment of manufactured homes. Manufactured homes shall be assessed as other residential housing and such assessments shall be entered on the property roll.

History:

[63-303 added 1996, ch. 98, sec. 4, p. 328; am. 2004, ch. 27, sec. 2, p. 44.]
Idaho Code § 63-3202 — Idaho Code / Title 63 / Chapter 32 / Section 63-3202
63-3202 PROCEDURE FOR ISSUANCE OF NOTES.
Status: in_force

63-3202. Procedure for issuance of notes. (1) Whenever the state treasurer shall deem it to the best interests of the state of Idaho to issue state of Idaho tax anticipation notes, as provided in section 63-3201, Idaho Code, the state treasurer shall make written application to the state board of examiners, stating the amount of state of Idaho tax anticipation notes the state treasurer deems advisable to issue. Upon approval of the state board of examiners by order or resolution duly entered on the minutes of the state board of examiners, the state treasurer shall issue the tax anticipation notes in accordance with the provisions of this chapter.

(2) Prior to the public issuance and public sale of any tax anticipation note, the state treasurer shall prepare a written plan of financing which shall be filed in the office of the governor. The plan of financing shall provide for the terms and conditions under which the tax anticipation notes shall be issued, sold and delivered, the taxes to be anticipated, the maximum amount of tax anticipation notes which may be outstanding at any one time under the plan of financing, the sources of payment of the tax anticipation notes issued pursuant to the plan of financing, which may include the proceeds of sale of notes issued to refund outstanding tax anticipation notes and to pay accrued interest thereon, and all other details necessary in connection with the issuance, sale and delivery of the tax anticipation notes. The plan of financing shall specify a method pursuant to which the interest rate or rates on the tax anticipation notes may be determined during the time the tax anticipation notes are outstanding and shall also set forth the maximum interest rate which the tax anticipation notes may bear.

(3) The tax anticipation notes shall bear interest, shall be in the form, shall be executed in the manner, shall be payable, shall be sold in the manner and at prices, either at, in excess of, or below the face value thereof, and generally shall be issued in the manner and with the details as shall be set forth in an order of the state treasurer, all in conformity with any applicable plan of financing and with this chapter.

(4) Each tax anticipation note shall recite that it is a valid and binding obligation of the state of Idaho and that the faith and credit of the state of Idaho is solemnly pledged for the payment of the principal of and interest thereon in accordance with its terms and the constitution and laws of the state of Idaho.

(5) Each tax anticipation note shall be recorded in the office of the state controller.

(6) Immediately upon the completion of any sale, the state treasurer shall make a verified return of said sale to the state controller, specifying the amount of notes sold, the person or persons to whom said notes were sold and the price, terms and conditions of the sale. Immediately upon the sale of any tax anticipation notes, the state treasurer shall credit the proceeds of sale, other than accrued interest, to the general fund of the state.

History:

[63-3202, added 1983, ch. 102, sec. 2, p. 220; am. 1994, ch. 180, sec. 157, p. 523; am. 2003, ch. 32, sec. 33, p. 137.]
Idaho Code § 63-2412 — Idaho Code / Title 63 / Chapter 24 / Section 63-2412
63-2412 DISTRIBUTION OF TAX REVENUES FROM TAX ON GASOLINE AND AIRCRAFT ENGINE FUEL.
Status: in_force

63-2412. Distribution of tax revenues from tax on gasoline and aircraft engine fuel. (1) The revenues received from the taxes imposed by sections 63-2402 and 63-2421, Idaho Code, upon the receipt or use of gasoline, and any penalties, interest, or deficiency additions, shall be distributed periodically as follows:

(a) An amount of money equal to the actual cost of collecting, administering and enforcing the gasoline tax requirements by the commission, as determined by it, shall be retained by the commission. The amount retained by the commission shall not exceed the amount authorized to be expended by appropriation by the legislature. Any unencumbered balance in excess of the actual cost of collecting, administering and enforcing the gasoline tax requirements by the commission at the end of each fiscal year shall be distributed as listed in paragraph (f) of this subsection.

(b) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the commission to be paid shall be paid from the state refund account, and those moneys are hereby continuously appropriated for that purpose.

(c) As soon as possible after the beginning of each fiscal year, the sum of two hundred fifty thousand dollars ($250,000) shall be distributed to the railroad grade crossing protection fund, to pay the amounts from the fund pursuant to the provisions of section 62-304C, Idaho Code.

(d) As soon as possible after the beginning of each fiscal year, the sum of three hundred thousand dollars ($300,000) shall be distributed to the local bridge inspection fund, to pay the amounts from the account pursuant to the provisions of section 40-703, Idaho Code.

(e) An amount of money equal to seven percent (7%) shall be distributed to the state highway account established in section 40-702, Idaho Code.

(f) From the balance remaining with the commission after distributing the amounts in paragraphs (a) through (e) of this subsection:

1. One and twenty-eight hundredths percent (1.28%) shall be distributed as follows: sixty-six percent (66%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the waterways improvement fund, as created in chapter 15, title 57, Idaho Code. Up to twenty percent (20%) of the moneys distributed to the waterways improvement fund under the provisions of this paragraph may be used by the department of parks and recreation to defray administrative costs. Any moneys unused at the end of the fiscal year by the department of parks and recreation shall be returned to the state treasurer for deposit in the waterways improvement fund. Thirty-three percent (33%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed into the park and recreation capital improvement account as created in section 57-1801, Idaho Code. One percent (1%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the search and rescue fund created in section 67-2913, Idaho Code;

2. One and twenty-eight hundredths percent (1.28%) shall be distributed as follows: sixty-six percent (66%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the off-road motor vehicle account, as created in section 57-1901, Idaho Code. Up to twenty percent (20%) of the moneys distributed to the off-road motor vehicle account by this subparagraph may be used by the department of parks and recreation to defray administrative costs. Any moneys unused at the end of the fiscal year by the department of parks and recreation shall be returned to the state treasurer for deposit in the off-road motor vehicle account. Thirty-three percent (33%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed into the park and recreation capital improvement account as created in section 57-1801, Idaho Code. One percent (1%) of the one and twenty-eight hundredths percent (1.28%) shall be distributed to the search and rescue fund created in section 67-2913, Idaho Code; and

3. Forty-four hundredths percent (.44%) shall be distributed to the park and recreation capital improvement account as created in section 57-1801, Idaho Code, to be used solely to develop, construct, maintain and repair roads, bridges and parking areas within and leading to parks and recreation areas of the state.

4. The balance remaining shall be distributed to the highway distribution account created in section 40-701, Idaho Code.

(2) Provided however, the distribution pursuant to subsection (1) of this section of revenues received from the taxes imposed pursuant to section 63-2402(2), Idaho Code, shall apply only to twenty-five cents (25¢) of every thirty-two cents (32¢) received. The remaining seven cents (7¢) of every thirty-two cents (32¢) received pursuant to the provisions of section 63-2402(2), Idaho Code, shall be distributed to the highway distribution account created in section 40-701, Idaho Code.

(3) The revenues received from the taxes imposed by section 63-2408, Idaho Code, and any penalties, interest, and deficiency amounts, shall be distributed as follows:

(a) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the commission to be paid shall be paid from the state refund account, and those moneys are hereby continuously appropriated.

(b) The balance remaining of all the taxes collected shall be distributed to the state aeronautics fund, as provided in section 21-211, Idaho Code.

History:

[63-2412, added 1983, ch. 158, sec. 4, p. 448; am. 1984, ch. 87, sec. 4, p. 173; am. 1984, ch. 195, sec. 35, p. 475; am. 1985, ch. 33, sec. 1, p. 66; am. 1985, ch. 253; sec. 9, p. 702; am. 1986, ch. 73, sec. 8, p. 208; am. 1986, ch. 99, sec. 3, p. 279; am. 1988, ch. 253, sec. 1, p. 487; am. 1990, ch. 395, sec. 1, p. 1106; am. 1991, ch. 120, sec. 2, p. 259; am. 1993, ch. 301, sec. 1, p. 1116; am. 1994, ch. 280, sec. 6, p. 872; am. 1994, ch. 315, sec. 3, p. 1006; am. 1997, ch. 50, sec. 1, p. 85; am. 2000, ch. 100, sec. 1, p. 220; am. 2000, ch. 186; sec. 3, p. 458; am. 2002, ch. 174, sec. 6, p. 513; am. 2009, ch. 332, sec. 2, p. 963; am. 2010, ch. 14, sec. 2, p. 16; am. 2015, ch. 341, sec. 5, p. 1283; am. 2016, ch. 152, sec. 1, p. 420; am. 2020, ch. 48, sec. 1, p. 114; am. 2026, ch. 98, sec. 2, p. 529.]
Idaho Code § 63-3622U — Idaho Code / Title 63 / Chapter 36 / Section 63-3622U
63-3622U FUNERAL SERVICES.
Status: in_force

63-3622U. Funeral services. There is exempted from the taxes imposed by this chapter the sale of tangible personal property relating to funeral services by a licensed funeral establishment.

History:

[63-3622U, added 1984, ch. 239, sec. 22, p. 583.]
Idaho Code § 63-2562 — Idaho Code / Title 63 / Chapter 25 / Section 63-2562
63-2562 ADDITIONS AND PENALTIES.
Status: in_force

63-2562. Additions and penalties. The additions, penalties and requirements provided by the Idaho income tax act, sections 63-3046, 63-3075, 63-3076 and 63-3077, Idaho Code, shall apply in the same manner and to the same extent to this act as to the Idaho income tax act and shall cover acts, omissions, and delinquencies under the Idaho income tax act and such additions, penalties and requirements shall, for this purpose, be described and be for acts, omissions, delinquencies and requirements under the Idaho tobacco products tax act.

History:

[I.C., sec. 63-2562, as added by 1974, ch. 173, sec. 2, p. 1432.]
Idaho Code § 63-2810 — Idaho Code / Title 63 / Chapter 28 / Section 63-2810
63-2810 GENERAL DUTIES OF OFFICERS.
Status: in_force

63-2810. General duties of officers. The duties of the assessor, tax collector, county auditor, state tax commission and the county board of equalization, as to the assessment of the net profits of mines, the statements and returns to be made, the equalization thereof, and other official acts, are the same as those provided by the laws of this state for the assessment of other property.

History:

[(63-2810) 1903, p. 4, sec. 6; reen. R.C. & C.L., sec. 1871; C.S., sec. 3369; I.C.A., sec. 61-2310; am. 1969, ch. 455, sec. 81, p. 1205.]
Idaho Code § 63-407 — Idaho Code / Title 63 / Chapter 4 / Section 63-407
63-407 APPEAL OF OPERATING PROPERTY ASSESSMENTS.
Status: in_force

63-407. Appeal of operating property assessments. Every person whose property is to be assessed by the state tax commission shall, upon request therefor in writing, be entitled to a hearing before the commission in relation to the assessment on his property or the assessment of other property in the state, and the commission shall, upon any such request, fix a time for such hearing within the period in which such assessment must be made, and such hearing shall be conducted in such manner as the commission may direct.

History:

[63-407 added 1996, ch. 98, sec. 5, p. 339.]
Idaho Code § 63-2529 — Idaho Code / Title 63 / Chapter 25 / Section 63-2529
63-2529 APPLICABILITY.
Status: in_force

63-2529. Applicability. (1) This act does not apply to:

(a) Cigarettes imported or brought into the United States for personal use; or

(b) Cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of 19 U.S.C. section 1555(b) and any implementing regulations. Provided however, that this chapter shall apply to any such cigarettes that are brought back into the customs territory for resale within the customs territory.

(2) The penalties provided in this chapter are in addition to any other penalties imposed under other law.

History:

[63-2529, added 2000, ch. 351, sec. 1, p. 1181.]
Idaho Code § 63-602W — Idaho Code / Title 63 / Chapter 6 / Section 63-602W
63-602W BUSINESS INVENTORY EXEMPT FROM TAXATION — BUSINESS INVENTORY THAT IS A COMPONENT OF REAL PROPERTY THAT IS A SINGLE FAMILY DWELLING.
Status: in_force

63-602W. Business inventory exempt from taxation — Business inventory that is a component of real property that is a single family dwelling. The following property is exempt from property taxation: business inventory. For the purpose of this section, "business inventory" means all items of tangible personal property or other property, including site improvements, described as:

(1) All livestock, fur-bearing animals, fish, fowl and bees.

(2) All nursery stock, stock-in-trade, merchandise, products, finished or partly finished goods, raw materials, and all forest products subject to the provisions of chapter 17, title 63, Idaho Code, supplies, containers and other personal property that is held for sale or consumption in the ordinary course of the taxpayer's manufacturing, farming, wholesale jobbing, or merchandising business.

(3) Residential improvements never occupied. Once residential improvements are occupied as defined in section 63-317, Idaho Code, they shall be subject to the tax provided by section 63-317, Idaho Code. The provisions of section 63-602Y, Idaho Code, shall not apply to the exemption provided by this subsection. The exemption provided by this subsection applies only to improvements to real property, and only until first occupied. For purposes of this section, the term "residential improvements" means only:

(a) Single family residences; or

(b) Residential townhouses; or

(c) Residential condominium units.

The nonresidential portion of an improvement to real property that is used or is to be used for residential and nonresidential purposes does not qualify for the exemption provided by this section. If an improvement contains multiple residential units, each such unit shall lose the exemption provided in this section when it becomes occupied.

(4) Site improvements that are associated with land, such as roads and utilities, on real property held by the land developer, either as owner or vendee in possession under a land sale contract, for sale or consumption in the ordinary course of the land developer's business until other improvements, such as buildings or structural components of buildings, are completed or the real property is conveyed to a third party. For purposes of this subsection, a transfer of title to real property to a legal entity of which at least fifty percent (50%) is owned by the land developer, the land developer's original entity or the same principals who owned the land developer's original entity shall not be considered a conveyance to a third party. For purposes of this subsection, the amount of the exemption shall be the difference between the market value of the land with site improvements and the market value of the land without site improvements as shall be determined by a comparative market analysis of a similarly situated parcel or parcels of real property that have not been improved with such site improvements contemplated by this subsection. In the case the market value of land without site improvements cannot be reasonably assessed because of the absence of comparable sales, an exemption value of seventy-five percent (75%) of the market value of land with site improvements shall be granted to that parcel. An application is required for the exemption provided in this subsection in the first year the exemption is claimed; in subsequent consecutive years no new application is required. The application must be made to the board of county commissioners by April 15 and the taxpayer and county assessor must be notified of any decision and assessment of property by May 15. The decision or assessment of property, or both, of the board of county commissioners may be appealed to the county board of equalization no later than the fourth Monday in June. The applicant shall notify the board of county commissioners in writing of any change in eligibility for the parcel by April 15.

History:

[63-602W, added 1996, ch. 98, sec. 7, p. 357; am. 1997, ch. 242, sec. 1, p. 703; am. 1998, ch. 95, sec. 1, p. 341; am. 2012, ch. 192, sec. 1, p. 517; am. 2013, ch. 276, sec. 1, p. 714; am. 2021, ch. 360, sec. 3, p. 1115.]
Idaho Code § 63-3622D — Idaho Code / Title 63 / Chapter 36 / Section 63-3622D
63-3622D PRODUCTION EXEMPTION.
Status: in_force

63-3622D. Production exemption. There are exempted from the taxes imposed by this chapter:

(a) The sale at retail, storage, use or other consumption in this state of:

(1) Tangible personal property which will enter into and become an ingredient or component part of tangible personal property manufactured, processed, mined, produced or fabricated for sale, including birds, fish or other wildlife that are hunted or fished on property a business owns, controls or has the right to use and where the business collects sales tax for the charges imposed for the hunting or fishing activity, and including the cost of acquiring such birds, fish or other wildlife and the feed, supplies and labor used to raise or maintain such birds, fish or other wildlife.

(2) Tangible personal property primarily and directly used or consumed in or during a manufacturing, processing, mining, farming, fabricating, hunting or fishing operation, including, but not limited to, repair parts, lubricants, hydraulic oil, and coolants, which become a component part of such tangible personal property and including, but not limited to, ammunition, birds, fish or other wildlife; provided that the use or consumption of such tangible personal property is necessary or essential to the performance of such operation.

(3) Chemicals, catalysts, and other materials which are used for the purpose of producing or inducing a chemical or physical change in the product or for removing impurities from the product or otherwise placing the product in a more marketable condition as part of an operation described in subsection (a)(2) of this section, and chemicals and equipment used in clean-in-place systems in the food processing and food manufacturing industries.

(4) Safety equipment and supplies required to meet a safety standard of a state or federal agency when such safety equipment and supplies are used as part of an operation described in subsection (a)(2) of this section.

(5) Plants to be used as part of a farming operation.

(6) Grain bin structures, augers, dryers, fans, sweep augers, and other equipment that is used directly and primarily in agricultural production, whether or not such equipment is to become a part of real property and whether or not installed by the farmer, a contractor, or a subcontractor.

(7) Equipment and supplies used in the performance of a quality control function used to prepare a crop for storage in a grain bin structure that is directly and primarily used in agricultural production, whether or not such equipment and supplies used in the performance of a quality control function are to become a part of real property and whether or not installed by the farmer, a contractor, or subcontractor.

(b) Other than as provided in subsection (c) of this section, the exemptions allowed in subsection (a)(1), (2), (3) and (4) of this section are available only to a business or separately operated segment of a business which is primarily devoted to producing tangible personal property which that business will sell and which is intended for ultimate sale at retail within or without this state. A contractor providing services to a business entitled to an exemption under this section is not exempt as to any property owned, leased, rented or used by it unless, as a result of the terms of the contract, the use of the property is exempt under section 63-3615(b), Idaho Code.

(c) The exemptions allowed in subsection (a)(1), (2), (3) and (4) of this section shall also be available to a business, or separately operated segment of a business, engaged in farming or mining, whether as a subcontractor, contractor, contractee or subcontractee, when such business or segment of a business is primarily devoted to producing tangible personal property which is intended for ultimate sale at retail within or without this state, without regard to the ownership of the product being produced; and shall also be available to a business, or separately operated segment of a business, engaged in offering the right to hunt birds or other wildlife or fish on property the business owns, controls or has the right to use, where the charges for such rights are subject to sales tax as provided in this chapter.

(d) The exemptions allowed in subsection (a)(1), (2), (3) and (4) of this section shall also be available to a business, or separately operated segment of a business, engaged in the business of processing materials, substances or commodities for use as fuel for the production of energy, whether as a subcontractor, contractor, contractee or subcontractee, without regard to the ownership of the materials, substances or commodities being processed and irrespective of whether the materials, substances or commodities being processed are intended for ultimate sale at retail within or without this state.

(e) As used in this section, the term "directly used or consumed in or during" a farming operation means the performance of a function reasonably necessary to the operation of the total farming business, including the planting, growing, harvesting, storage and removal from storage of crops and other agricultural products, and movement of crops and produce from the place of harvest to the place of initial storage. It includes disinfectants used in the dairy industry to clean cow udders or to clean pipes, vats or other milking equipment.

(f) The exemptions allowed in this section do not include machinery, equipment, materials and supplies used in a manner that is incidental to the manufacturing, processing, mining, farming or fabricating operations such as maintenance and janitorial equipment and supplies.

(g) Without regard to the use of such property, this section does not exempt:

(1) Tangible personal property used in any activities other than the actual manufacturing, processing, mining, farming, fabricating, hunting or fishing operations, such as office equipment and supplies, and equipment and supplies used in selling or distributing activities.

(2) Property used in transportation activities.

(3) Machinery, equipment, tools or other property used to make repairs. This subsection does not include repair parts that become a component part of tangible property exempt from tax under this section or lubricants, hydraulic oil, or coolants used in the operation of tangible personal property exempt under this section.

(4) Machinery, equipment, tools or other property used to manufacture, fabricate, assemble or install tangible personal property which is:

(i) Not held for resale in the regular course of business; and

(ii) Owned by the manufacturer, processor, miner, farmer or fabricator;

provided, however, this subsection does not prevent exemption of machinery, equipment, tools or other property exempted from tax under subsection (a)(2) or (a)(3) of this section.

(5) Any improvement to real property or fixture thereto or any tangible personal property that becomes or is intended to become a component of any real property or any improvement or fixture thereto, except as provided in subsection (a)(6) and (7) of this section.

(6) Motor vehicles and aircraft.

(7) Tangible personal property used or consumed in processing, producing or fabricating tangible personal property exempted from tax under this chapter in sections 63-3622F and 63-3622I, Idaho Code.

(8) Tangible personal property described in section 63-3622HH, Idaho Code.

(h) Any tangible personal property exempt under this section which ceases to qualify for this exemption, and does not qualify for any other exemption or exclusion of the taxes imposed by this chapter, shall be subject to use tax based upon its value at the time it ceases to qualify for exemption. Any tangible personal property taxed under this chapter which later qualifies for this exemption shall not entitle the owner of it to any claim for refund.

History:

[63-3622D, added 1984, ch. 239, sec. 5, p. 577; am. 1987, ch. 326, sec. 2, p. 682; am. 1989, ch. 257, sec. 2, p. 632; am. 1990, ch. 122, sec. 1, p. 292; am. 1990, ch. 431, sec. 2, p. 1195; am. 1990, ch. 437, sec. 1, p. 1205; am. 1991, ch. 321, sec. 3, p. 834; am. 1993, ch. 319, sec. 2, p. 1175; am. 1996, ch. 46, sec. 9, p. 129; am. 1999, ch. 42, sec. 6, p. 90; am. 2005, ch. 242, sec. 3, p. 754; am. 2006, ch. 315, sec. 1, p. 980; am. 2008, ch. 233, sec. 1, p. 710; am. 2015, ch. 85, sec. 1, p. 210; am. 2015, ch. 225, sec. 1, p. 690; am. 2016, ch. 86, sec. 1, p. 271; am. 2024, ch. 297, sec. 1, p. 1004.]
Idaho Code § 63-3022R — Idaho Code / Title 63 / Chapter 30 / Section 63-3022R
63-3022R CERTAIN LOSS RECOVERIES.
Status: in_force

63-3022R. certain loss recoveries. If taxable income includes recovered amounts previously deducted from taxable income that were not allowed or allowable as a deduction from Idaho taxable income except as provided by this section, a deduction equal to the recovered amount shall be allowed in determining Idaho taxable income.

History:

[63-3022R, added 2013, ch. 2, sec. 1, p. 3.]
Idaho Code § 63-3632 — Idaho Code / Title 63 / Chapter 36 / Section 63-3632
63-3632 INTEREST ON DEFICIENCIES.
Status: in_force

63-3632. Interest on deficiencies. Interest upon any deficiency shall be assessed at the rate provided in section 63-3045, Idaho Code, and calculated in accordance with the provisions of that section.

History:

[63-3632, added 1965, ch. 195, sec. 32, p. 408; am. 1967, ch. 290, sec. 11, p. 805; am. 1969, ch. 453, sec. 17, p. 1195; am. 1980, ch. 11, sec. 2, p. 24; am. 1981, ch. 290, sec. 5, p. 600; am. 1993, ch. 94, sec. 11, p. 237; am. 2024, ch. 116, sec. 2, p. 501.]
Idaho Code § 63-4404 — Idaho Code / Title 63 / Chapter 44 / Section 63-4404
63-4404 REAL PROPERTY IMPROVEMENT TAX CREDIT.
Status: in_force

63-4404. Real property improvement tax credit. (1) For taxable years beginning on or after January 1, 2006, and before December 31, 2030, subject to the limitations of this chapter, a taxpayer who has certified that the tax incentive criteria will be met within a project site during a project period shall be allowed a nonrefundable credit against taxes imposed by sections 63-3024, 63-3025 and 63-3025A, Idaho Code, in the amount of two and five-tenths percent (2.5%) of the investment in new plant which is incurred during the project period applicable to the project site in which the investment is made.

(2) The credit allowed by this section shall not exceed one hundred twenty-five thousand dollars ($125,000) in any one (1) taxable year.

(3) No credit is allowable under this section for a qualified investment in regard to which a credit under section 63-4403, Idaho Code, is available.

(4) The credit allowed by this section is limited to buildings and structural components of buildings related to new plant and building facilities.

History:

[63-4404, added 2005, ch. 370, sec. 1, p. 1181; am. 2006, ch. 314, sec. 3, p. 977; am. 2009, ch. 191, sec. 3, p. 624; am. 2020, ch. 243, sec. 3, p. 713.]