Idaho Bills

Amends House Bill 40, House Bill 304, and existing law to revise provisions regarding certain tax deductions, certain corporate income tax rates, certain protections for taxpayers, and certain sales tax distributions and to revise an effective date.

Amends existing law to provide for a certain exemption from school levies for certain properties.

This legislation will modify sections 63-602 to provide an exemption to education-related property tax levies fortheprimaryresidenceoffamilieswithaschool-agedchildwhodonotacceptanyeducationalfundsfromthe state. This allows families who bear the financial burden of their children’s education a property tax reduction to help offset their educational costs.

Amends existing law to revise provisions regarding the Child Tax Credit to apply to preborn children.

The Preborn Child Tax Credit extends the existing Child Tax Credit in Idaho to pregnant mothers. This upholds the sanctity of human life, as well as honoring courageous mothers who hold the next generation within them. Idaho recognizes the costs involved in pregnancy alongside those of raising children who are born.

Adds to existing law to establish an excise tax on commercial wind turbines.

Adds to existing law to provide for the Idaho Middle Income Property Development Tax Credit and the Middle Income Land Trust Tax Credit.

Amends and adds to existing law to exempt food from sales tax and to revise sales tax distributions.

Amends existing law to allow the income tax deduction of legal fees and medical expenses related to the acquisition of a donated embryo.

Amends and adds to existing law to establish provisions regarding the County Property Tax Relief Act to provide that a county may establish a sales tax on certain lodging to provide property tax relief to homeowners in the county and to revise a provision regarding certain duties of owners of short-term rental properties.

Adds to existing law to establish the Idaho Parental Choice Tax Credit.

The Idaho Parental Choice Tax Credit legislation provides for a refundable tax credit up to $9,500 for a parent or guardian that incurs qualified education expenses for an eligible student. "Qualified expenses" include but are not limited to kindergarten through twelfth grade tuition and fees related to attending a non-public school, tutoring, taking assessments used to determine college admission, costs for textbooks, curriculum, and transportation costs for the purposes of receiving academic instruction. It also means a micro school or learning pod that provides academic instruction. The Idaho State Tax Commission has the ability to audit records, receipts and documents similar to all tax filings to ensure accountability.

Amends existing law to revise provisions regarding the extension of time for certain filing deadlines.

This legislation updates the process for filing income tax extensions. The income tax process is complicated and many taxpayers, particularly those with complicated returns, routinely need to file extensions. This legislation simplifies the Idaho extension process and accomplishes the following: Gives every Idaho taxpayer an automatic extension to file a return, but not an extension for the payment of taxes due. Eliminates the failure-to-file penalty for returns not filed when originally due. Reduces the failure-to-pay penalty from 2% per month to 1% per month. The Idaho extended due date is the 15th day of the seventh month following the close of the taxable year.

Adds to existing law to establish the Idaho parental choice tax credit and Idaho Parental Choice Tax Credit Advance Payment Fund.

The Idaho Parental Choice Tax Credit legislation provides for a refundable tax credit up to $5,000 for a parent, guardian or foster parent that incurs qualified education expenses for an eligible student. “Qualified expenses” include kindergarten through twelfth grade tuition and fees related to attending a nonpublic school, tutoring, taking assessments used to determine college admission, costs for textbooks, curriculum, and transportation costs for the purpose of receiving academic instruction. The refundable tax credit is increased up to $7,500 for special needs students that require ancillary personnel to assist in academic instruction. All families may apply for the refundable tax credit during the application timeframe, but families whose income is less than 300% of the federal poverty level receive the highest priority and can also elect to have a one-time advance tax credit payment in their first year of participation in the program. The Idaho State Tax Commission will administer the program and has the ability to audit records, receipts and documents similar to all tax filings to ensure accountability. The Idaho State Tax Commission may refer suspected cases of fraud to the Attorney Generalforinvestigationandprosecution. TheTaxCommissionwillberequiredtoreportannuallytotheIdaho Legislature on the number of tax credits applied for and the average tax credit issued, the types and amounts of qualified education expenses, the income of households applying for the credit, and the geographic area of the parents applying for the tax credit.

Proposes an amendment to the state constitution to provide that the legislature may authorize cities and counties to adopt certain sales and use taxes.

Thisjointresolutionproposesaconstitutionalamendmentthatcreatestheoptionforcountiesandmunicipalities to levy a local sales and use tax. Any proposed levy must include a detailed description of the products or servicessubjecttothetax,theintendedpurpose,andaterminationdateofnolongerthan4years. Themaximum levy rate is 2%.

Amends and adds to existing law to provide an income tax credit for certain nonprofit pregnancy centers, to increase the limit on the percentage of income taxpayers can claim on certain credits, and to establish the Choose Life Idaho Fund.

Amends and adds to existing law to provide a tax on the sale and distribution of electronic smoking devices.