ID H0886

Establishes a new state property tax at 2.5 mills on the taxable value of non-primary residential properties, including second homes, vacation properties, and high-occupancy short-term rentals (those exceeding 6 guests or rented more than 30 days annually)

Exempts primary residences with homestead exemptions, commercial/industrial property, agricultural land, forest land, mining property, operating property, personal property, and long-term rental properties leased for at least 7 months

Distributes collected revenue with 50% to counties, cities, and fire districts for public safety services (law enforcement, fire, EMS); 30% returned as direct property tax credits to homestead-exempt homeowners; and 20% for infrastructure maintenance (roads, water, sewer)

Repeals Section 63-216, Idaho Code, which previously prohibited state property tax levies while a sales tax was in effect

Takes effect January 1, 2027