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 introduces new criteria for the deduction of military retirement benefits, allowing individuals who are disabled, over 62, or have sufficient income to file a federal return to deduct these benefits from their taxable income, with the maximum deductible amount aligning with the Social Security Act's retirement benefits. The corporate income tax rate will gradually decrease from 7.6% to 5.3% over the next several years, and the assessment period for tax deficiencies will be extended to seven years for individuals who fail to file a return unless they can prove no taxes were due.

Additionally, the bill establishes a Tax Relief Fund, which will receive funds from various sources, including federal grants, to support future tax relief initiatives. The state controller is required to transfer $50 million from this fund to the school district facilities fund and the homeowner property tax relief account by August 31 each fiscal year. The bill also allocates significant annual funding for educational support programs, including $330 million for public schools starting in fiscal year 2024, and establishes new funds for in-demand careers and school modernization. Overall, these amendments aim to streamline tax processes, enhance educational funding, and provide tax relief to Idaho residents.

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