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 allows individuals receiving military retirement benefits to deduct these from their taxable income under specific conditions, such as being classified as disabled or having reached a certain age. The bill also updates corporate income tax rates, reducing them from 7.6% to 5.3% over several years, and revises the period of limitation for tax assessments to a three-year period, with exceptions for fraudulent returns. Additionally, it clarifies procedures for notifying taxpayers of tax deficiencies and introduces provisions regarding the accrual of interest on deficiencies during audits.

Furthermore, the bill establishes a continuous appropriation and distribution of funds for various state programs, including a new general fund for public schools' educational support programs, which will receive $330 million annually starting in fiscal year 2024. It allocates $80 million annually to the in-demand careers fund and creates funds for school district facilities and modernization. Significant changes include the deletion of the public school income fund and the establishment of a tax relief fund, which will receive annual transfers for educational and public defense purposes. The act is set to take effect on July 1, 2025, with certain sections retroactively effective from January 1, 2025, aiming to streamline funding allocations while ensuring adequate support for essential services.

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