Amends existing law to provide certain procedures for the credit and refund of certain sales taxes paid erroneously.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 891 BY REVENUE AND TAXATION COMMITTEE AN ACT1 RELATING TO TAXATION; AMENDING SECTION 63-3623, IDAHO CODE, TO PROVIDE FOR2 CERTAIN REFUNDS WHEN SALES TAXES ARE ERRONEOUSLY PAID; AND DECLARING AN3 EMERGENCY AND PROVIDING AN EFFECTIVE DATE.4

Be It Enacted by the Legislature of the State of Idaho:5

SECTION 1. That Section 63-3623, Idaho Code, be, and the same is hereby6 amended to read as follows:7 63-3623. RETURNS AND PAYMENTS. (a) The taxes imposed by this act are8 due and payable to the state tax commission monthly on or before the twenti-9 eth day of the succeeding month.10 (b) All moneys collected or received by the state tax commission from11 the taxes, penalties, interest and fees imposed by this act shall be de-12 posited with the state treasurer to be credited by him to the sales tax13 account created by this act.14 (c) On or before the twentieth day of the month a return shall be filed15 with the state tax commission in such form as the state tax commission may16 prescribe.17 (d) For the purpose of the sales tax, a return shall be filed by every18 seller. For the purposes of the use tax, a return shall be filed by every re-19 tailer engaged in business in this state and by every person purchasing tan-20 gible personal property, the storage, use, or other consumption of which is21 subject to the use tax, who has not paid the use tax due to a retailer required22 to collect the tax. Returns shall be signed by the person required to file23 the return or by his duly authorized agent.24 (e) For the purposes of the sales tax, the return shall show the total25 sales at retail subject to tax under this act during the reporting period.26 For the purposes of the use tax, in case of a return filed by a retailer, the27 return shall show the total sales price of the property sold by him, the stor-28 age, use, or consumption of which property became subject to the use tax dur-29 ing the reporting period; in the case of a return filed by a purchaser, the30 return shall show the total sales price of the property purchased by him, the31 storage, use, or consumption of which became subject to the use tax during32 the reporting period.33 (f) The return shall show the amount of the taxes for the period covered34 by the return and such other information as the state tax commission deems35 necessary for the proper administration of this act.36 (g) The person required to file the return shall mail or deliver the re-37 turn together with a remittance of any tax due to the state tax commission for38 the reporting period.39 (h) The state tax commission, if it deems it necessary in order to in-40 sure payment to or facilitate the collection by the state of taxes, may re-41 quire returns for periods other than monthly periods.42

2 (i) For the purposes of the sales tax, gross amounts from rentals or1 leases of tangible personal property which may be subject to tax under this2 act shall be reported and the tax paid in accordance with such rules as the3 state tax commission may prescribe.4 (j) The state tax commission for good cause may extend, for not to ex-5 ceed one (1) month, the time for making any return or paying any amount re-6 quired to be paid under this act.7 (k) Any person to whom an extension is granted and who pays the tax8 within the period for which the extension is granted shall pay, in addition9 to the tax, interest at the rate provided in section 63-3045, Idaho Code,10 from the date on which the tax would have been due without the extension until11 the day of payment.12 (l) Upon the transfer of ownership of a motor vehicle subject to sales13 or use tax, a certificate of title will be issued to the new owner only upon14 presentation of evidence of payment of sales or use tax on the transaction.15 (m) The owner of a motor vehicle or trailer required to be registered16 by the laws of this state shall, upon demand, furnish to the officer issuing17 such registration, satisfactory evidence that any sales or use tax to which18 such motor vehicle or trailer is subject has been paid to this state before19 any such registration shall be issued.20 (n) Retail sales of tangible personal property through a vending ma-21 chine which are taxable upon the purchase price paid by the owner or operator22 of the vending machine pursuant to subsection (e) of section 63-3613, Idaho23 Code, shall be reported upon the sales tax return of the owner or operator of24 the vending machine in the manner by which the tax commission may by rule pre-25 scribe.26 (o) A seller who collects sales tax from a buyer when no sales tax was27 due shall be entitled to a credit against the use tax owed by the seller on28 that transaction pursuant to section 63-3621, Idaho Code, for any "use" as29 defined in section 63-3615(b), Idaho Code. The amount of the credit shall30 not exceed the amount of use tax due to the state with respect to that trans-31 action. When credits have been taken by the seller on transactions where use32 tax was owed instead of sales tax, no additional credits shall be allowed un-33 der this subsection for subsequent transactions after the seller has been34 made aware that use tax was owed instead of sales tax. If a buyer who has35 paid sales tax when no sales tax was due requests a refund from the seller,36 the seller shall refund the amount of sales tax paid by the buyer. The seller37 may take a credit or seek a refund from the state tax commission equal to the38 amount of sales tax refunded to the buyer less the use tax due by the seller.39

SECTION 2. An emergency existing therefor, which emergency is hereby40 declared to exist, this act shall be in full force and effect on and after41 July 1, 2026.42