ID H0608

Adds Section 63-3642 to Idaho Code to establish a sales and use tax rebate for governmental agencies (cities, counties, highway districts, and state agencies) that purchase road materials through contractors for highway, street, road, and alley construction, repair, or replacement.

Requires governmental agencies to file written claims with the state tax commission within 12 months of paying contractor invoices, including copies of the construction contract, contractor invoices showing sales or use taxes paid, and proof of payment.

Contractors have no right to receive the rebate directly; only the governmental agency may claim the rebate for taxes paid on materials that become the agency's property upon project completion.

State tax commission shall pay rebates from the state refund account during the next quarterly sales tax distribution following the 30-day period after receipt of a complete claim, with no interest paid on rebated amounts.

Allows claims to be filed on an ongoing basis as invoices are paid and does not require final project completion before filing rebate claims.