Idaho Bills
718 bills · 2021 Regular Session
Adds to existing law to establish provisions regarding the affected business entity tax.
This bill relates to federal income tax deductions for state and local taxes (SALT). Currently there is a $10,000 limitation on the federal deduction for SALT. In 2020, the IRS released Notice 2020-75 approving the availability and functionality of a SALT limitation workaround for pass-through entities (PTEs). This bill provides a workaround in the Idaho Code for owners, partners, members, and shareholders in partnerships, LLCs and S corporations in PTEs by allowing the PTE to elect to pay Idaho tax at the PTE level. This bill declares an emergency providing for retroactive application to January 1, 2021 for tax reporting purposes.
Amends existing law to provide that certain moneys shall be distributed to the Peace Officers Standards and Training Fund.
This proposal amends Idaho Code Section 23-404 to transfer eight hundred thousand dollars ($800,000) each fiscal year to the Peace Officers Standards and Training dedicated fund from the liquor account. Revenue in the POST Fund is insufficient to support the appropriation in the POST program and as revenues decline over time the problem continues to worsen. It is important to understand that POST is not over-appropriated, POST is under funded. Under funding related to inherent limitations in POST's funding sources has been a persistent concern for over a decade. POST has found it necessary to cut spending to compensate for shortfalls in available cash and has consequently reverted large amounts of appropriation over the last several fiscal years. POST's spending cuts impact state, county, and city stakeholders statewide, requiring those agencies to absorb additional costs themselves or opt to delay critical training. Without additional funding, POST will be unable to sustain its current level of services in future years. This will impact law enforcement agencies and public safety throughout the state of Idaho. The additional funding proposed would provide POST with revenue necessary to meet demand for services by sustaining appropriate staffing levels, maintaining operations, and providing for necessary repair, maintenance, and upgrades for POST facilities and equipment.
Amends existing law to revise provisions regarding the adjustable basis of depreciable property.
Bonusdepreciationisaccelerateddepreciationthatisallowedasadeductionforfederalincometaxpurposesbut is not allowed as a deduction for state income tax purposes. Accordingly, because federal taxable income is the starting point for calculating Idaho taxable income, the bonus depreciation taken as a deduction on the federal return is added back for Idaho income tax purposes. However, there are situations where a taxpayer cannot use the bonus depreciation on its federal return because of passive loss or similar limitations. In those situations, the Tax Commission has interpreted the law to require the add-back of the bonus depreciation even though that depreciation did not result in a current deduction at the federal level. That interpretation of the current statute creates what is known as “phantom income” and causes a tax to be due on income that is not in fact received by thetaxpayerandtoreverseadeductionthatthetaxpayerdidnotinfactreceive. Thecurrentstatutealsorequires a taxpayer’s basis in an asset for Idaho income tax purposes to be the same as for federal income tax purposes. This causes a taxpayer’s basis to be reduced by the amount of “extra” bonus depreciation that is not recognized in Idaho. When an asset is sold before it is fully depreciated this can result in a higher than appropriate capital gain since the taxpayer is forced to reduce its basis in the asset by an amount of “extra” depreciation that is not allowed in Idaho. This is another example of “phantom income” – an amount that is included in taxable income even though it did not result in any economic gain to the taxpayer. This legislation remedies these unintended outcomes by providing that Idaho taxable income would not include the bonus depreciation add-back where that depreciation could not be used currently on the federal return, and by permitting a taxpayer’s basis in an asset for state income tax purposes to be reduced only by that amount of depreciation that is actually allowed as a deduction
35 – 0
Amends existing law to revise provisions for determining whether a multistate corporation's transactions are included in Idaho taxable income.
This bill involves multistate income tax. This bill is updating a method of measuring the sales factor for sales other than tangible personal property or services. The current law says that the sales are counted in Idaho if the income producing activity takes place in Idaho or if the greater portion of the "costs of performance" take place in Idaho. This bill updates that measurement to what is referred to as "market based" sourcing or counting the salesbasedonthelocationofthecustomer. Theinternethasmadedeterminingthelocationoftransactionsmore difficult to determine. Idaho is the only state in the greater western region still using the costs of performance method. This is a modernization for income tax comparable to the economic nexus laws passed as a result of the Supreme Court Wayfair case. Idaho uses a three-factor apportionment formula to measure the Idaho portion of the income tax liability for any taxpayers that do business in Idaho and at least one other state. Idaho's apportionment factor is the ratio of payroll, property and sales in Idaho compared to everywhere else. This is found in section 63-3027(r). The sales are double weighted to balance the investment of capital and wages with the market return of the sales. The company's taxable income is then multiplied by the percentage representing the business's Idaho presence. Almost all states that have an income tax use some variation of this method.
Amends and repeals existing law to revise membership provisions regarding the Idaho State Soil and Water Conservation Commission and to revise provisions regarding changes to the number of district supervisors.
Revises provisions for how Commissioners are appointed to the Idaho Soil and Water Conservation Commission and repeals the ability to establish any new Soil and Water Conservation Districts.
Adds to existing law to provide state procedures for certain partnerships to report adjustments to federal taxable income.
This bill relates to income tax. This is to allow Idaho to comply with changes in the Internal Revenue Code that were made as part of the Bipartisan Budget Act of 2015, Public Law 114-74, as amended. Congress created a new efficient method option to avoid the time and expense of auditing large partnerships with 100 or more partners. If the IRS determines that the partnership has calculated their tax liability incorrectly in past years, they notify the partnership of the estimated liability. The partnership is given the option of paying a settlement amount based on that estimate and avoiding the cost and time of conducting the audit. This also saves the partnership the cost and effort of amending the prior year tax returns causing their partners to have to amend their tax returns. Idaho's income tax laws are based on federal taxable income and taxpayers are required to report changes in federaltaxableincome. Thisnewprocedureisn'ttechnicallyachangeinfederaltaxableincomebutnotadopting these changes would leave Idaho with no clear authority to collect the tax liability of large partnerships doing business in Idaho and their resident partners. This bill creates a parallel state option for partnerships to address the state tax liability in the case of a proposed change without the cost and time of the full traditional audit.
Amends existing law to revise the definitions of “disaster” and “disaster emergency account.”
This legislation clarifies the definition of the word “disaster” in Idaho Code § 46-1002(2). It also deletes the word “during” and replaces it with “arising out of” in Idaho Code § 46-2002(8) in order to address funding allocation into the Disaster Emergency Account.
Adds to existing law to establish the Idaho Promise Mentor Program.
ThislegislationauthorizesandcreatestheIdahoPromisementorprogramtobeadministeredbytheStateBoard of Education. Under the program, volunteer mentors will build relationships with Idaho high school students and their families, veterans, and other adults (“mentees”) to help them overcome financial and other barriers to earning postsecondary apprenticeships, job training certificates and associate and associate of applied science degrees. These career-ready credentials will qualify mentees for vacant, good paying Idaho jobs. The mentors will build relationships with mentees and their families and help mentees during the critical summer months following high school graduation when they no longer have access to high school counselors and have not yet connected with postsecondary program advisers. Current data show that about 4,000 graduating high school seniors who plan to enroll in postsecondary programs the following fall do not do so. The mentors will also help mentees and their families apply for Pell grants and other sources of funding, from which many will learn that programs they believed were beyond their financial ability are, in fact, within reach.
17 – 17
Amends existing law to prohibit certain local regulations and taxes relating to tobacco products and electronic smoking devices.
Thepurposeofthislegislationistoensureuniformlawsonthesaleoftobaccoproductsandelectroniccigarettes across the state by preventing local authorities from implementing varying regulations that are more restrictive than state law. It would not interfere with or limit any local unit of government from regulating public use or planning and zoning ordinances related to these products.
61 – 7
States findings of the House of Representatives and adds a new House Special Rule regarding participation within the House chambers.
SuspendstherulesrequiringamembertodebatefromtheirseatonthefloorandallowstheSpeakertodesignate analternatespotontheHousefloorforthetermoftheFirstRegularSessionoftheSixty-sixthIdahoLegislature to expire upon adjournment sine die.
Adds to existing law to establish provisions regarding school community councils.
This bill creates Community Councils at each public school in Idaho. Members consist of elected parents, teachers and the principal. Community Councils will provide parents of students an opportunity to participate in decision making at the school level. Councils will study school academic performance and funding, assist in creating continuous improvement plans, and will serve in an advisory capacity to school and district administrators and the school board.
Relates to the appropriation to the Executive Office of the Governor for fiscal year 2022.
This is the FY 2022 original appropriation bill for the Executive Office of the Governor. It appropriates a total of $4,305,500 and caps the number of authorized full-time equivalent positions at 21.00. This funding is an overall increase of 0.9% from the current year. For benefit costs, the bill maintains the current appropriated amount for health insurance at $11,650 per eligible FTP, extends the holiday for the employer's sick leave contribution rate for another year, and restores funding for the employer's unemployment insurance contribution rate. The bill also provides funding for the equivalent of a 2% change in employee compensation for permanent state employees and for adjustments to statewide cost allocation. This bill also includes exemptions from budget laws allowing movement of funding between object codes and programs. Lastly, there are no new line items in this budget.
35 – 0
Adds to existing law to provide for collective bargaining rights of peace officers in Idaho.
The intent of this legislation is to provide the courageous men and women of law enforcement an opportunity to be involved regarding decisions that directly affect their livelihoods, their safety, and their profession. It provides a framework for recognition of exclusive bargaining agents and collaborative problem solving with the goal of developing solutions to issues that may arise. Either party may seek non-binding fact-finding for the purpose of incorporating objective perspectives into their decision making process. Leadership and officers are expected to bargain in good faith, and any final decisions require the agreement of both parties. The obligation to bargain in good faith does not compel either party to agree to a proposal, make a concession or enter into a contract.
States findings of the Legislature and requests that the Department of Insurance consult with insurance industry leaders to determine how to make medically necessary prescription formula available to infants and children in Idaho.
Insurers in Idaho typically do not cover prescription formula for infants and children. This resolution calls for the Department of Insurance to consult with leaders in the insurance industry to determine how to make medically necessary prescription formula available for infants and children suffering from certain serious conditions, notably eosinophilic esophagitis, Crohn’s disease, malnutrition or failure to thrive, seizure disorders requiring a ketogenic diet, conditions requiring tube feeding, and other conditions in which medically necessary prescription treatment is a recommended treatment. The Department of Insurance is requested to collect data, ascertain the costs of such coverage, and report findings and recommendations, if any, to the Legislature.
Amends existing law to revise provisions regarding the expenditure of certain funds.
This bill suspends Section 67-3516(2), Idaho Code from the end of this legislative session until sine die adjournment next session. The noncognizable suspension does not apply to the Military Division for federal funds received in relation to the Federal/State Agreements Program, which includes Gowen Field and the Orchard Combat Training Center (OCTC). Section 67-3516(2) Idaho Code, allows the Governor, through the Division of Financial Management, and/or the Board of Examiners, to approve noncognizable adjustments for agencies for non-state funds at a time when the Legislature could not have appropriated those funds. Any non-state funds that would normally be approved for a noncognizable adjustment between legislative sessions would need to be addressed through an extraordinary (special) session or during the next legislative session as a supplemental appropriation.
56 – 9
Adds to existing law to establish a new retirement program for workers who do not have an employer-sponsored retirement program.
This act responds to a recent report issued by the Office of Performance Evaluation (OPE) overviewing the “Preparedness of Idahoans to Retire”. The act authorizes the state to develop a program that facilitates Idahoans voluntary enrollment into an auto payroll deduction retirement system if they do not have access to a workplace retirement plan. Administration and budgeting for the act is placed in the office of the state Treasurer and is advised by an appointed nine-member non-compensated board. The act directs the development and dissemination of employer-employee information and education materials to aid in voluntary enrollment. The act protects confidentiality of participant information and provides liability protection to the state. The act will provide for a phased in development and implementation schedule beginning July 1, 2021 with operation scheduled for June 30, 2022.
Repeals and adds to existing law to replace the Respiratory Care Practice Act.
This legislation completely reworks and updates the Respiratory Therapy Practice Act, which was enacted in 1992 and last updated in 2003. The Board aligned the Act better with current respiratory practice, streamlined the Act significantly, deleted outdated and redundant language, removed barriers to licensure for applicants, and provided a clearer, more efficient, and well-drafted Act to guide the licensure, regulation and practice of Respiratory Therapists and Polysomnographers.
67 – 0
Adds to existing law to provide that a school district or public charter school may use part of its salary-based apportionment to pay for its employees to be covered by the state employee health insurance plan.
This bill would allow the school board of an entire charter school or public district the autonomy to voluntarily enter into the State of Idaho employee benefit plan, including the optional use of up to one year of the career ladder allocations. Coverages will mirror the current state benefits plan. Certified as well as classified employees will be eligible for benefits. If opt-ing in, charters and districts must stay with the state insurance a minimum of 2 years. Premiums will be submitted to the Dept. of Administration. Rates will be set by the Dept. of Administration. "Disability" insurance includes all personal accident, health, hospital, surgical, and medical coverages, and "health care service" includes all services rendered for maintenance of good health and diagnosis, relief, or treatment of any injury, ailment, or bodily condition.
51 – 14
Commends Marquee Ricks for her accomplishment during the 2021 American Farm Bureau Federation's national Young Farmers and Ranchers Discussion Meet competition.
The purpose of this proclamation is to commend Marquee Ricks for her accomplishment at the American Farm Bureau Federation's Young Farmers and Ranchers Discussion Meet Competition.
Amends existing law to provide for city officer elections in even-numbered years, to provide for the transition of certain city elections from at large to by district, and to revise provisions regarding the redistricting of city council districts.
To increase voter participation in municipal elections, this legislation moves elections of all city officers, mayors, and municipal bonds and levies to even-numbered years on the November general election ballot.Voter turnout is significantly higher in even-year elections.
41 – 21
Amends existing law to revise provisions regarding Idaho taxable income.
This bill makes the Rebound Idaho Small Business Grants issued during 2020 nontaxable for state income tax purposes. This bill makes forgiven Paycheck Protection Program loans issued during 2020 nontaxable for state income tax purposes.
Adds to existing law to establish provisions regarding the prevention of a child's removal from the custody of a parent or guardian under certain circumstances.
The bill updates Idaho Code amending chapter 24 title 16 by adding a new section for the Child Protection Act 16-2426A serious behavioral health conditions to establish previsions regarding the prevention of removal from custody under certain circumstances.
35 – 0
Adds to existing law to provide that separate appropriation bills shall be prepared for each state college and university.
ThislegislationwouldamendIdahoCodesection67-3515byaddinganewsectionthatwouldrequireaseparate appropriation bill for each state institution of higher education.
Relates to the appropriation to the Catastrophic Health Care Program for fiscal year 2021.
This is an FY 2021 supplemental appropriation bill for the Catastrophic Health Care Program, also known as the CAT Fund. It provides $6 million to cover the estimated claims costs that remain in FY 2021. For the first six months of the fiscal year, the CAT Board has approved and expended just over $7 million in claims. The CAT Board estimates spending about the same amount in the second half of the fiscal year. Any amount appropriated in the bill that is unexpended at the end of the fiscal year will remain in CAT Fund and will be available for claims in FY 2022.
33 – 35
Amends and adds to existing law to provide for placement of juveniles in the custody of the Department of Health and Welfare in qualified residential treatment programs when appropriate and to provide for an extension of foster care.
This bill would update laws pertaining to qualified group homes for children in foster care. Specifically, it would: (1) set a shortened timeline for the department and courts to communicate and act on the child’s behalf; (2) prioritize the best interest of the child when determining such placement; (3) require the department more closely monitor the child when in a group home; and (4) require ongoing evaluation of potential alternative placements such as family reunification, placement with a relative or foster family, or adoption. Additionally, it would allow for extended care for youth aging out of the foster care system not to exceed age 21, under limited circumstances.
35 – 0