Local Sales Tax Authority Constitutional Amendment: 2025 Idaho House Joint Resolution 5
The Bill’s Purpose
HJR 5 aims to remove the current constitutional block on local sales taxes. Right now, if Sandpoint wants to fund a new fire truck or Pocatello needs to repair aging sewer lines, they must ask the state legislature for permission to raise funds12. This amendment would let local governments propose specific, time-limited sales taxes directly to their voters instead of going through the legislature3.
The Core Provisions Simplified
Let's break down exactly what this constitutional amendment would do if voters approve it:
Voter Control - No city or county could impose any local sales tax without getting majority approval from local voters during a general election (held in even-numbered years when turnout is highest)1. The ballot would have to clearly state:
Exactly what's being taxed (e.g., "3% tax on prepared foods")
What the money will fund ("Road repairs along Main Street")
How long the tax lasts ("Expires December 31, 2029")
The maximum rate allowed ("Not to exceed 2%")
Tax Limits - The amendment slaps strict boundaries on local taxes:
Rate Cap: No local sales tax could exceed 2% (so combined state+local sales tax would max at 8% statewide)
Sunset Clause: Every local tax automatically expires within 4 years unless voters renew it
Specificity Requirement: Taxes can't be vague - ballots must name exact products/services taxed and specific spending purposes.
Exclusive Authority - The amendment makes clear this would be the ONLY way local governments could create sales taxes.
Current Status and Sponsors
Sponsor: Representative Britt Raybould (R-District 34) is the primary sponsor of this constitutional amendment proposal.
Committee: After introduction on March 6, 2025, HJR005 was referred to the Joint Rules Administration (JRA) Committee for printing.
Current Status: As of March 7, 2025, it was "Reported Printed; Filed in the Office of the Chief Clerk. The resolution is at the early stages (25% progression) of the legislative process.
