BOISE, ID – The Idaho Legislature’s powerful budget committee on Friday agreed to increase funding for the Idaho State Tax Commission by more than $3.3 million, in part to help implement new federal tax changes championed by President Donald Trump.
The Idaho Legislature’s Joint Finance-Appropriations Committee, or JFAC, voted 19-0 Friday to provide an additional $765,300 in the current fiscal year 2026 budget to help Idaho conform to federal tax changes included in the federal One Big Beautiful Bill Act that Trump signed into law last summer.
JFAC also voted 15-4 on Friday to provide an additional $2.5 million in total funding enhancements for the Idaho State Tax Commission’s fiscal year 2027 budget. The 2027 enhancements include an additional $903,000 in funding from the general fund portion of the state budget.
State budget records indicate the fiscal year 2027 budget enhancements would pay for property tax education, system automation, tax collection services from the FAST vendor, additional seasonal tax employees and one-time replacement items.
Cost of implementing tax conformity wasn’t included in bill’s fiscal note, as required
The increased funding to comply with the Trump tax cuts was not included with the fiscal note attached to House Bill 559, despite JFAC co-chair Rep. Josh Tanner, R-Eagle, repeatedly telling legislators and members of the public that it is essential to include accurate fiscal notes that describe the true cost of implementing new laws.
On Feb. 2, Idaho State Tax Commission Chairman Jeff McCray wrote a memo to Reps. Jeff Ehlers, R-Meridian, and David Cannon, R-Blackfoot, and Sen. Doug Ricks, R-Rexburg, saying that the agency had already spent its budget preparing for the current tax filing season, records obtained by the Idaho Capital Sun indicate. McCray estimated it would cost an additional $550,000 to conform to new federal tax changes and the retroactive tax conformity debate.
Idaho budget committee votes down funding for National Guard tuition assistance
“Considering current budgetary constraints and the Tax Commission’s ongoing efforts to support the Legislature and Governor, we recommend full transparency by including these estimated administrative costs in the fiscal note for this year’s conformity language. Your consideration is greatly appreciated,” McCray wrote in the Feb. 2 memo.
Although McCray recommended legislators include the estimated cost in the fiscal note associated with the bill to achieve full transparency, none of that information was included with the bill when the Idaho House of Representatives voted to pass the bill Feb. 3 or when the Idaho Senate voted on the bill Feb. 5, the Sun previously reported.
The much larger increase in funding to implement tax cuts, tax education and tax collection software sailed easily through JFAC on Friday less than an hour after JFAC members rejected a much less expensive proposal to restore funding that had been cut for tuition assistance benefits for members of the Idaho National Guard.
Idaho Capital Sun is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Idaho Capital Sun maintains editorial independence. Contact Editor Christina Lords for questions: info@idahocapitalsun.com.
