This bill amends various sections of the Idaho Code to revise tax provisions, particularly focusing on military retirement pay deductions, corporate income tax rates, and tax assessment limitations. It introduces new criteria for the deduction of military retirement benefits, allowing individuals who are disabled, over 62, or have sufficient income to file a federal return to deduct these benefits from their taxable income, with the maximum deductible amount aligning with the Social Security Act's retirement benefits. The corporate income tax rate will gradually decrease from 7.6% to 5.3% over the next several years, and the assessment period for tax deficiencies will be extended to seven years for individuals who fail to file a return unless they can prove no taxes were due.

Additionally, the bill establishes a Tax Relief Fund to support future tax relief initiatives, requiring the state controller to transfer $50 million annually to the school district facilities fund and $39 million to the state public defense fund. It also outlines the continuous appropriation and distribution of funds for various purposes, including education and public services, while deleting the public school income fund and inserting a general fund for educational support programs, which will receive $330 million annually starting in fiscal year 2024. The bill specifies the timing of its provisions, with some taking effect immediately and others starting July 1, 2025, to enhance funding for educational facilities and public defense.

Statutes affected:
Bill Text: 63-3633, 63-3045, 63-3068, 63-3638