House Bill 736 Summary

• Repeals Section 63-205B and establishes a new kilowatt-hour tax of $0.00113 per kilowatt-hour on all electricity sold by rate-regulated electric utility companies to retail customers in Idaho, effective January 1, 2025.

• Requires rate-regulated electric utilities to include the kilowatt-hour tax assessment on customer bills no later than January 31, 2025, with the Public Utilities Commission adjusting base tariff rates to account for previous property tax recovery.

• Apportions kilowatt-hour tax revenues to counties based on their proportional share of property taxes levied on electric utility operating property in tax year 2024, with distributions to eligible taxing districts and urban renewal agencies by August 4 each year.

• Creates kilowatt-hour tax exemptions for electricity used in irrigation and drainage pumping on Idaho lands, with exemption benefits accruing to consumers; procedures mirror existing property tax exemption processes under Section 63-602O.

• Freezes eligibility for kilowatt-hour tax apportionment to taxing districts and revenue allocation areas existing as of December 31, 2024, preventing new districts or areas created after that date from receiving distributions.