House Bill 540 Summary

• Creates a new sales tax rebate program for developers of fulfillment center complexes, providing 60% rebate on sales and use taxes collected from retailers operating within a designated development area.

• Requires developers to invest a minimum of $4,000,000 in the fulfillment center complex and obtain a developer's agreement with the Idaho Transportation Board to fund approved transportation improvements costing over $6,000,000.

• Establishes the "fulfillment center pilot project fund" to hold and distribute rebate payments, capping total rebates per project at $35,000,000 or the certified transportation improvement cost, whichever is less.

• Distinguishes between "new retailers" (those beginning operations after complex construction) and "existing retailers" (those operating before construction), with new retailers receiving 60% rebate on all sales taxes and existing retailers receiving 60% rebate only on sales exceeding their prior 12-month baseline.

• Declares an emergency effective date, making the law effective upon passage and approval.