ID H0630

Local governments are prohibited from levying sales, use, franchise, receipts, or other similar taxes or fees on the business of operating a short-term rental marketplace.

Short-term rental marketplaces must register with the state tax commission to collect, report, and pay state sales and use taxes, travel and convention taxes, and applicable local government taxes on lodging transactions they facilitate.

Local governments may contract with the state tax commission for tax collection and administration, with the commission retaining fees for actual administrative costs and distributing remaining revenues monthly to the local government.

Sales or use tax collected on short-term rental marketplace transactions must be distributed according to Idaho Code sections 63-3638, with specific provisions of sections 57-811, 63-3605E, 63-3611, 63-3620E, and 63-3620F exempted from applying to these transactions.

Short-term rental marketplaces that have not previously facilitated lodging transactions in Idaho have 45 days to comply with registration and tax collection requirements upon completing their first lodging transaction in the state.

The act takes effect on July 1, 2022 under emergency declaration.