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As the result of an Executive Order signed by Governor Dirk Kempthorne on July 29, 2005, Idaho officially supports the mission of the Streamlined Sales Tax Project, joining as a participating state. This action entitles Idaho to vote on issues before the SSTP and analyze and recommend sales tax simplifications cited in the SSTP Agreement (Executive Order No. 2005-09, Office of the Governor, signed July 29, 2005).


Beginning January 1, 2005, there will be a variety of incentives available to businesses that invest in a corporate headquarters location in Idaho. One of the incentives is a rebate for all sales and use tax paid by a taxpayer to a contractor for services used in the construction of a corporate headquarters. The rebate applies to property constructed, located or installed in the project site between January 1, 2005 and December 31, 2009. Claims for the rebate must be applied for within 3 years of paying the tax. The rebates are subject to recapture if the employment goals are not met or if the property is improperly used. (Idaho House Bill No.306 of 2005)


On July 27, 2005, the Multistate Tax Commission made their final decision at their 38th annual meeting in Boise, Idaho on who would be elected as the new executive director. Joe Huddleston, former Tennessee Revenue Commissioner, was appointed to the position with a consensual agreement. After directing the Tennessee Department of Revenue, he continued his tax career in various public and private sector facilities, including, among others, was his prominent position as vice president of tax solutions for the tax software firm, Liquid Engines Inc. (State Tax Notes, June 27, 2005)


The State of Idaho has passed a law exempting property used for research and development from sales and use tax. Research and development is defined as “an activity designed to advance existing knowledge in the field of science or technology, the development of new products, materials, technologies or processes and related to the development, design, manufacture, processing, production or fabrication of a product or potential product.” The production and clean room exemptions are also modified to include property used in research and development. This bill is effective retroactively to April 1, 2005. (Idaho H.B. 260, Laws 2005)


A recent press release indicated that building contractors may qualify for sales tax refunds. Building contractors may now apply for a refund of 1% in sales tax, as longs as the contract to build or renovate improvements to property was signed by April 15, 2003. This was created to help contractors recover from the increase in sales tax, which cannot be charged to the property owner. (Idaho Tax Commission, June 2003)



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