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 the next 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.

Moreover, the bill outlines the continuous appropriation and distribution of various funds in Idaho, including allocations for the permanent building fund and the water pollution control fund. It establishes a new general fund for public schools' educational support programs, which will receive $330 million annually starting in fiscal year 2024, while also allocating $80 million to the in-demand careers fund. The bill creates a tax relief fund within the state treasury, mandating transfers to the school district facilities fund and the homeowner property tax relief account, and specifies that any remaining balance in the tax relief fund will be allocated to the general fund. Certain sections of the bill will take effect immediately upon passage, while others will be effective from July 1, 2025.

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