TRANSPORTATION – Amends existing law to revise provisions regarding apportionment of the Highway Distribution Account, to remove a limitation regarding revenues received from fuel taxes, and to revise a provision regarding the distribution of the tax on special fuels.

H 535 revises Idaho's transportation funding formulas to adjust how highway account revenues are distributed. It increases the percentage of funds going to local governments from 38% (2021) to 40% (2025+) while decreasing the state highway account share from 57% to 60%, and eliminates a restriction on using fuel tax revenues. The bill also updates allocations for local bridge inspections and special fuel taxes. These changes directly affect local governments receiving highway funds and the state highway program. The bill makes technical adjustments to existing law without creating new programs or altering tax rates.