This bill amends several sections of the Idaho Code concerning taxation, particularly focusing on market value assessments, military retirement pay deductions, corporate income tax rates, and tax assessment limitations. It increases the acceptable median ratio of assessed value to market value from 90% to 95% and adjusts the upper limit from 110% to 105%. The bill also updates the eligibility criteria for deducting military retirement pay from taxable income based on age and disability status. Additionally, it proposes a gradual reduction of corporate income tax rates from 7.6% to 5.3% over the next few years and revises the period of limitation for tax assessments and collections, allowing for a longer assessment period of seven years for individuals who did not file a return.

Moreover, the bill clarifies the process for issuing notices of deficiency and the distribution of sales tax revenues. It specifies that the state tax commission must notify taxpayers of any deficiencies and outlines the rights of taxpayers during the redetermination process. The bill also details the allocation of sales tax revenues to various accounts, including funds for public schools and local highway projects, and establishes continuous appropriations for specific funds. Notably, it mandates annual transfers to the school district facilities fund and the state public defense fund. The effective dates for the bill's provisions are staggered, with some taking effect on July 1, 2025, and others retroactively effective from January 1, 2025.

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