Bill Description: House Bill 709 would establish that 5.75% of the sales tax collected on online purchases from out-of-state businesses be used for property tax relief.
Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
Several years ago, when the state started collecting sales tax on online purchases from out-of-state companies, the revenue was directed to a special tax relief fund. Cities and counties typically receive 11.5% of sales tax revenue, but they did not receive any of the money that went to the tax relief fund. The law that set up this exclusion is set to expire in 2024.
House Bill 709 can be viewed as providing a small amount of property tax relief. But it should be noted that directing sales tax revenue derived from online purchases from out-of-state companies to the tax-relief fund would result in far more tax relief.
House Bill 709 creates Section 57-810, Idaho Code, and amends sections 63-3620F and 63-802, Idaho Code, to adjust the sales tax distribution formula for cities and counties.
Specifically, the bill would require that half of the cities' and counties' 11.5% cut of the revenue derived from sales taxes on online purchases from out-of-state companies be directed to property tax relief.
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