Local Government and Taxation

This bill extends Idaho's Child Tax Credit indefinitely by amending state tax law to allow a $205 credit for each qualifying child for tax years beginning on or after January 1, 2026. The credit applies only to Idaho residents and follows existing rules about which parent can claim the credit based on custody arrangements. By declaring an emergency, the bill makes the extension effective immediately upon passage and retroactive to January 1, 2026.

This bill creates a new excise tax on international money transfers originating in Idaho, charging a $5 fee plus 4% on amounts over $500 for each transaction. The tax applies to individuals sending money to recipients outside the United States through various methods like wire transfers or electronic payments, but exempts transactions where the sender uses their own bank account or can prove U.S. legal residence with valid identification. Money transmission companies must collect and remit the tax quarterly to the state, while senders receive receipts that explain how they can claim a refund or tax credit. The state tax commission will distribute the collected revenue, with amounts used for refunds going to the state refund account and the remainder funding the general fund.

This bill increases Idaho's Parental Choice Tax Credit for 2026 and 2027, allowing eligible parents to claim up to $5,000 per child for education expenses. It directly affects Idaho parents of students aged 5-18 (or 5-21 for children with disabilities), covering costs like private school tuition, tutoring, textbooks, and transportation. Parents with income under 300% of the federal poverty level get priority, and families with children requiring disability services qualify for a higher $7,500 credit. To claim the credit, parents must apply annually, document expenses, and verify eligibility through the state tax commission.

Idaho's S 1166 restricts new or expanded homeless shelters in cities with over 100,000 residents (like Boise) by requiring them to be at least 300 feet away from residentially zoned properties or existing single-family homes. It defines "homeless shelter" broadly to include facilities providing temporary sleeping accommodations, regardless of operating hours. Existing shelters won’t need to relocate but cannot expand if it violates the 300-foot rule, and local governments must enforce this during zoning approvals. The bill also creates a 10-year application ban for denied shelter sites and allows exemptions if two-thirds of nearby property owners sign affidavits.

Idaho bill S 1163, titled the "Short-term Rental and Vacation Rental Tourism Revenue Protection Act," prevents cities and counties from banning short-term rentals (like Airbnb) or imposing different rules than those for standard homes. It requires local governments to allow these rentals unless necessary for public health/safety, mandates safety disclosures (smoke alarms, fire extinguishers, first aid kits), and establishes a simple $50 annual permit system with limited revocation grounds. The bill repeals existing restrictions on short-term rental regulations and aims to protect tourism revenue by limiting local regulatory authority. It takes effect July 1, 2025.