This bill amends various sections of the Idaho Code concerning taxation, focusing on market value assessments, military retirement pay deductions, corporate income tax rates, and the limitations on tax assessments and collections. It mandates that property assessments must reflect a median ratio of assessed value to market value within a range of ninety-five percent (95%) to one hundred five percent (105%). The bill also updates the criteria for military retirement pay deductions, specifying eligibility based on age and disability, and clarifies the maximum deductible retirement benefits. Additionally, it introduces a tiered reduction of corporate income tax rates, aiming for a final rate of five and three-tenths percent (5.3%) by 2025, and revises the limitations on tax assessments and collections, including provisions for retroactive application and an emergency declaration.

Moreover, the bill outlines the processes for issuing notices of deficiency and the collection of sales tax revenues, establishing clear timeframes for assessments and collections. It specifies that taxes must be assessed within three years of the return due date or filing date, with a six-year collection period following an assessment, and allows for a seven-year assessment period if a taxpayer fails to file a return. The bill also details the distribution of sales tax revenues, ensuring allocations to various funds, including a homeowner property tax relief account and a transportation expansion fund, while mandating that counties use these funds for election-related costs. Additionally, it sets forth requirements for annual transfers to specific funds, including $50 million to the school district facilities fund and $39 million to the state public defense fund, with certain provisions taking effect immediately and others on specified future dates.

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