This bill amends various sections of the Idaho Code to revise tax provisions, 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 certain conditions, such as being classified as disabled or having reached a specific age. The bill also establishes a tiered corporate income tax rate that will decrease from 7.6% to 5.3% over several years starting in 2025, and it modifies 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 for interest accrual and taxpayer representation during the redetermination process.

Furthermore, the bill establishes a Tax Relief Fund, which will receive funds from various sources, including federal grants, to support future tax relief initiatives. It mandates the transfer of $50 million from this fund to the school district facilities fund annually and outlines the distribution of remaining funds, capping transfers to the general fund at either the remaining balance of the Tax Relief Fund or $236 million. The effective date of the act is set for July 1, 2025, with certain sections taking effect retroactively to January 1, 2025. The bill emphasizes structured financial support for local governments and educational institutions while ensuring fair treatment of taxpayers in the tax assessment process.

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