This bill rewrites Idaho Code section 63-301A, which governs the 'new construction roll' county assessors prepare. It clarifies what counts as new construction value, adds a specific item for value resulting from the dissolution of revenue allocation (urban renewal) areas, adjusts which increments are included and excluded, and prescribes reporting and correction deadlines for county auditors and the state tax commission.
The act also declares an emergency and applies retroactively to January 1, 2026.
The change matters because it shifts how incremental value tied to terminated urban renewal districts is treated for tax distribution and how local taxing districts — notably fire and ambulance districts — may regain a portion of previously captured increment. It also creates new administrative steps and timing obligations for assessors, county auditors, and the state tax commission that will affect tax rolls and potentially taxpayer bills for the current and prior tax year covered by the retroactivity clause.
At a Glance
What It Does
The bill requires county assessors to include, on the new construction roll, specified amounts of taxable market value that result from newly completed construction and from the dissolution or modification of urban renewal revenue allocation areas, subject to percentage rules and listed exclusions. It prescribes certification and reporting dates, a state correction window, and specific deductions for prior adjustments.
Who It Affects
County assessors and auditors, the Idaho State Tax Commission, local taxing districts (especially fire and ambulance districts and those that reclaim increment after urban renewal termination), property owners and developers with newly constructed or electricity-generation improvements, and taxpayers with provisional exemptions.
Why It Matters
The bill changes how incremental tax base is calculated and allocated after urban renewal dissolution, restoring a share of increment to local taxing districts and creating compliance and valuation tasks for county and state officials. Retroactivity means the revised calculations can alter taxable values for the current tax year and for events earlier in 2026.
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What This Bill Actually Does
The amended section structures the new construction roll as an add-on managed by county assessors that now explicitly records five types of entries: taxpayer name, a local description of the new construction, taxable market value added by new construction, taxable value added because an urban renewal revenue allocation area was dissolved, and deduction entries reflecting certain adjustments. The bill tightens which adjustments must be listed — appeals or court-ordered decreases in the last five years, corrections for double assessment, certain homestead or other statutory exemptions, and voluntary homestead reductions.
Operationally, the bill keeps the existing reporting cadence but adds precision: assessors must certify the new construction roll to the county auditor by the first Monday in June; auditors forward district-level listings to the State Tax Commission by the fourth Monday in July; the State Tax Commission reports values tied to dissolved revenue allocation areas to county auditors by the third Monday in July; and the commission may correct those values until the first Monday in September, at which point counties must pass corrections to taxing districts. Those timing rules matter because they fix when changes can be challenged or corrected before final tax distribution.On how to calculate what gets on the roll, the bill retains a baseline rule that the new construction roll includes 90% of the taxable market value increase from enumerated activities: newly completed structures, additions to nonresidential buildings, installation of manufactured homes, loss of certain exemptions, and many other situations.
For value linked to urban renewal termination or modification, the bill parcels the increment with special percentage rules: in some cases 80% of the increment is reportable (notably for areas formed after Dec. 31, 2006, or for certain base-value adjustments), and in other narrowly defined circumstances 90% applies thereafter for qualifying fire and ambulance districts. The text explicitly excludes replacement equipment from inclusion, provisional property tax exemptions, and property granted certain sales-and-use-tax exemptions.Finally, the act declares an emergency and states the amendments are retroactive to January 1, 2026, which means counties and the state must apply these rules to the 2026 tax year and any calculations tied to that period.
That retroactive clause can change previously issued rolls and trigger adjustments during the fixed correction window spelled out in the statute.
The Five Things You Need to Know
The bill requires county assessors to show on the new construction roll taxable value added by dissolution of any revenue allocation (urban renewal) area.
The new construction roll generally includes 90% of qualifying taxable market value increases, but certain urban renewal-related increments are subject to 80% inclusion rules.
County assessors must certify the new construction roll to the county auditor by the first Monday in June; county listings go to the State Tax Commission by the fourth Monday in July.
The State Tax Commission must report values tied to subsection (3)(e) (urban-renewal-type values) to county auditors by the third Monday in July and may correct those values until the first Monday in September.
The act declares an emergency and makes the amendments effective retroactively to January 1, 2026, exposing the current tax year to recalculation under the new rules.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
New construction roll contents and new 'dissolution' entry
This subsection lists the specific fields the assessor must include on the new construction roll. The notable addition is an explicit line for taxable market value added as a result of dissolution of a revenue allocation area; that directs counties to treat such post‑urban‑renewal increments as a discrete item on the roll rather than leaving treatment implicit. The subsection also enumerates deduction categories (appeals or court-ordered reductions within the prior five years, corrections for double assessment, specific homestead exemptions, and voluntary homestead reductions) that assessors must subtract when assembling the roll.
Certification and reporting deadlines; correction window
This subsection fixes operational deadlines: assessors certify the roll to county auditors by the first Monday in June; county auditors forward district-level amounts to the State Tax Commission by the fourth Monday in July; values from subsection (3)(e) are separately reported to auditors by the State Tax Commission by the third Monday in July. The commission can adjust the subsection (3)(e) values until the first Monday in September, and any corrections must be routed back to taxing districts via county auditors. Those dates define the administrative window for resolving valuation disputes and locking in final district allocations.
Which increases are included and percentage rules
This is the core valuation mechanics section. It lists categories of new construction and value changes that are reportable — new structures, nonresidential additions, manufactured homes, loss of certain exemptions, and equipment used for electricity generation (with exclusions). The baseline rule is inclusion of 90% of the taxable market value increase, but the subsection creates carve-outs for urban renewal increments: terminated revenue allocation areas and certain modifications or de‑annexations get an 80% or other specified share, and areas formed after Dec. 31, 2006, may be treated differently (entire increment or 80% depending on the provision). The subsection also creates a special rule allowing fire and ambulance districts that withdrew from a revenue allocation area to include 80% of the increment in the year of withdrawal and 90% thereafter, even if the new construction is located within a revenue allocation area.
Value attribution rules and exclusions
Subsection (4) clarifies that 'new construction' value is the net change in taxable market value attributable directly to the improvement or to the loss of a specific exemption and excludes general market-driven value changes except where an urban renewal increment rule in subsection (3)(f) applies. Subsections (5) and (6) carve out exclusions: properties granted a provisional property tax exemption under section 63‑1305C and properties receiving a sales-and-use-tax exemption under section 63‑3622VV must be omitted from the new construction roll. The bill also preserves an owner's ability to apply for certain exemptions at permit or construction start, or later, as provided in statute.
Emergency clause and retroactivity
The act declares an emergency and makes the amendments effective on passage and retroactive to January 1, 2026. That means counties, the state, and taxpayers must apply these rules to the 2026 tax year and any assessments or distributions linked to that date, subject to the correction windows in subsection (2). Retroactivity compresses implementation timelines and can prompt revisions to already-prepared tax documents.
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Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Fire and ambulance districts that withdrew from a revenue allocation area: the bill allows such districts to include 80% of increment the year of withdrawal and 90% thereafter, restoring tax base that urban renewal financing previously captured.
- Other local taxing districts affected by dissolved urban renewal areas: by requiring the new construction roll to show value from dissolution, districts may regain a portion of incremental value previously diverted to an urban renewal body.
- State Tax Commission and county auditors (clarity of process): the statute prescribes explicit reporting deadlines and a narrow correction window, which reduces ambiguity around when and how adjustments are communicated between agencies.
- Counties with newly taxable electricity-generation improvements: municipalities and counties gain clearer guidance on when generation-related equipment must be included on the new construction roll (subject to exclusions for allocation/apportionment and ownership by certain cooperatives, municipalities, or public utilities).
- Taxing districts that previously lacked access to increment after plan modification or de‑annexation: specific percentage rules (80% vs. 90% or full increment) allow partial recovery of base value in several modification scenarios.
Who Bears the Cost
- Property owners and developers with new construction or generation equipment: inclusion of incremental value (often 90%, sometimes 80%) can increase taxable value and therefore tax bills, and retroactivity may affect bills for 2026.
- County assessors and auditors: the bill adds line items, new calculation rules for urban renewal increments, mandated deadlines, and a responsibility to integrate state corrections — increasing administrative workload and potential need for system updates.
- State Tax Commission: the commission must calculate and report subsection (3)(e) values on a tight schedule and retain authority to correct values through September, an operational responsibility that requires staff resources and data exchange with counties.
- Urban renewal agencies or redevelopment authorities: where increments are restored to taxing units on dissolution or modification, redevelopment entities will see reduced captured increment and potentially less funding available for projects.
- Local taxing districts that remain inside urban renewal financing provisions: districts that continue to have increment captured by active revenue allocation areas may not gain from these rules and could face comparative shifts in local tax distribution.
Key Issues
The Core Tension
The central tension is between restoring local taxing capacity by returning increment from dissolved or modified urban renewal arrangements and preserving administrative simplicity and taxpayer predictability: the bill shifts revenue back to local districts but does so through layered percentage formulas, historical benchmarks, and tight reporting windows that increase valuation complexity and risk retroactive taxpayer impacts.
The bill ties several technical valuation rules to historical benchmarks (notably incremental value as of December 31, 2006) and to differing treatment for revenue allocation areas formed before or after that date. That layering creates complexity: counties must determine which rule applies to each area, calculate the correct 80% or 90% share, and reconcile base-year incremental values that may be the subject of prior challenges.
The statute also creates parallel flows of information — state-calculated subsection (3)(e) values reported to counties and a commission correction window — which reduces some local discretion but heightens the need for reliable intergovernmental data exchange and audit trails.
Retroactivity to January 1, 2026, sharpens the implementation burden. Assessors and auditors may need to reopen work already completed for the 2026 tax year; taxpayers could receive revised taxable values or late adjustments.
The bill does not create an explicit procedure for taxpayer notice or appeal tied to retroactive changes beyond existing appeal windows, so practical disputes over timing, liability for taxes already paid, and refund mechanics could arise. Finally, the statute excludes replacement equipment and certain exempt properties, but it leaves open edge cases — for example, how to treat partial replacements, mixed-use installations with apportioned ownership, or increment calculations in areas with multiple sequential plan modifications.
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