This bill amends various sections of the Idaho Code concerning taxation, specifically addressing market value assessments, military retirement pay deductions, corporate income tax rates, and tax assessment limitations. 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, allowing individuals who are disabled or over sixty-two to deduct certain retirement benefits from their taxable income. Additionally, it gradually reduces corporate income tax rates from 7.6% to 5.3% over several years and revises the limitations on tax assessments and collections, including the accrual of interest on taxes.
Moreover, the bill clarifies the timelines for tax assessments and the issuance of notices of deficiency, establishing that assessments must occur within three years of the return due date or filing date, extending to seven years if a return is not filed. It also introduces provisions for taxpayers who have filed amended returns or received final federal determinations, allowing for adjustments within specified timeframes. The bill outlines the distribution of sales tax revenues, allocating funds to various accounts, including the homeowner property tax relief account and the transportation expansion fund, while also mandating annual distributions to support public schools and the state public defense fund. An emergency clause is included, making certain provisions effective immediately upon passage, while others will take effect in 2025 or 2026.
Statutes affected:
Bill Text: 63-3633, 63-3045, 63-3068, 63-3638