IdahoIdaho collects electric and gas utility taxes twice a year
Idaho’s law requires regulated electric and gas utilities to pay energy taxes twice yearly through a state fund that sends money to eligible local governments.
What it does
Regulated electric and gas utilities pay energy taxes for each half of the year. A state fund holds the payments for distribution to eligible local governments.
Eligible local governments use estimated utility-tax shares in their budgets. Shares tied to dissolved districts or expired bonds go to eligible overlapping recipients; districts formed after January 1, 2025, are excluded.
The state tax commission checks utility investments in each county once per five-year period and reports to lawmakers. Utilities provide the county investment figures for that review.
Argument forRedirecting shares when districts dissolve or bonds expire could keep tax money supporting eligible local services in the same area.
Argument againstSeparate reports for each half of the year could require utilities to spend time preparing and checking multiple sales reports.
More detail
Regulated electric and gas utilities report energy sales and pay taxes to the Idaho State Tax Commission. The schedule covers electric and gas utilities operating in Idaho whose rates are regulated. Eligible electric utilities receive the tax reduction allowed for power used to pump water for irrigation or drainage. Late payments carry a 5% penalty and interest of 1% per month from the payment deadline. The state fund holds collected taxes and sets aside that money for payments to county treasurers. Starting in 2026, January–June sales reports are due September 15 and payments December 20. Starting in 2027, reports for the previous July–December are due April 15 and payments June 20.
The Idaho State Tax Commission estimates local tax shares, and counties distribute payments to eligible local governments. County shares depend on covered utility property taxes levied or allocated in 2025. Recipients must have taxed covered utility property or received a share of those property taxes for 2025. Districts and redevelopment tax areas formed after January 1, 2025, are excluded. When a district or redevelopment tax area dissolves or leaves a county, or a voter-approved bond expires, its share goes to otherwise eligible recipients with overlapping boundaries in that county. Redistribution does not change each county’s overall share. Districts that combine receive the sum of their former shares. Local governments count estimated energy-tax shares as property tax revenue when applying budget rules and limits. The commission sends estimates to counties by the first Monday in July. Counties notify local recipients by the first Monday in August. Redistribution takes effect the year after dissolution or bond expiration.
The Idaho State Tax Commission checks utilities’ investments in each county and reports the county shares of statewide investment to the legislature. The review covers regulated electric utilities and regulated gas companies. In the selected reporting year, utilities report each county’s investment as of the end of the previous calendar year. The first five-year period begins January 1, 2026. In the selected reporting year, the commission notifies utilities by January 31, and their reports are due April 15.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 30Reported Signed by Governor Brad Little on March 26, 2026 Session Law Chapter 187 Effective: Retroactive to 01/01/2026Became Law
- Mar 26Delivered to Governor at 12:58 p.m. on March 26, 2026To Governor
- Mar 26Returned Signed by the President; Ordered Transmitted to GovernorMinor
- Mar 25Signed by President; returned to HouseMajor
- Mar 25Received from the House enrolled/signed by SpeakerMajor
- Mar 25Reported Enrolled; Signed by Speaker; Transmitted to SenateMajor
- Mar 24Returned from Senate Passed; to JRA for EnrollingMinor
- Vote recorded Read third time in full –. Result: pass.Upper
- Mar 24Read third time in full – PASSED - 34-0-1AYES – Adams, Anthon, Bernt, Blaylock, Burtenshaw, Carlson, Cook, Den Hartog, Foreman, Galloway, Grow, Guthrie, Harris, Hart, Keyser, Kohl, Lakey, Lenney, Lent, Nichols, Okuniewicz, Rabe, Ricks, Ruchti, Semmelroth, Shippy, Taylor, Toews, VanOrden, Ward-Engelking, Wintrow, Woodward, Zito, ZuiderveldNAYS – NoneAbsent and excused – Bjerke(Bjerke)Floor Sponsor - RicksTitle apvd - to HousePassed 2nd Chamber
- Mar 18Read second time; filed for Third ReadingMinor
- Mar 17Reported out of Committee with Do Pass Recommendation; Filed for second readingMinor
- Mar 13Introduced, read first time; referred to: Local Government & TaxationMinor
- Mar 13Received from the House passed; filed for first reading
- Mar 12Rules Suspended: Ayes 62 Nays 0 Abs/Excd 8, read in full as required – PASSED - 65-0-5AYES – Alfieri, Barbieri, Beiswenger, Berch, Bingham, Boyle, Bruce, Burgoyne, Cannon, Cayler, Cheatum, Cornilles, Crane(12), Crane(13), Dygert, Egbert, Ehardt, Ehlers, Erickson(Larsen), Fuhriman, Furniss, Galaviz, Gannon, Garner, Green, Hall(Stone), Handy, Harris, Hawkins, Haws, Healey, Hill, Holtzclaw, Hostetler, Leavitt, Manwaring, Marmon, Mathias, McCann, Mendive, Miller, Mitchell, Monks, Nelsen, Palmer, Petzke, Pickett, Pohanka, Price, Rasor, Raybould, Redman, Sauter, Scott, Shepherd, Shirts, Skaug, Tanner(13), Tanner(14), Thompson, Vander Woude, Veile, Weber, Wisniewski, Mr. SpeakerNAYS – NoneAbsent – Church, Mickelsen, Raymond, Rubel, WheelerFloor Sponsor - EhlersTitle apvd - to SenatePassed 1st Chamber
- Vote recorded Rules Suspended: Ayes 62 Nays 0 Abs/Excd 8, read in full as required –. Result: pass.Lower
- Mar 12Read second time; Filed for Third ReadingMinor
- Mar 11Reported out of Committee with Do Pass Recommendation, Filed for Second ReadingMinor
- Feb 18Reported Printed and Referred to Revenue & Taxation
- Feb 17Introduced, read first time, referred to JRA for PrintingIntroduced
Taxes & BudgetEnvironment & Energy