HOUSE BILL NO. 390

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Daily Data Tracking History



H0390...............................................by REVENUE AND TAXATION
INTERNAL REVENUE CODE - Amends and adds to existing law to update
references to the Internal Revenue Code; to disallow the special allowance
for depreciation permitted by subsection (k) of section 168 of the Internal
Revenue Code; and to disallow the deduction of certain expenses of
elementary and secondary school teachers.
                                                                        
03/25    House intro - 1st rdg - to printing
03/26    Rpt prt - to Rev/Tax
04/02    Rpt out - rec d/p - Held at Desk
04/24    Filed for 2nd rdg
04/25    2nd rdg - to 3rd rdg
05/03    3rd rdg - PASSED - 46-19-5
      AYES -- Andersen(Guyon), Barraclough(Schanz), Barrett, Bauer, Bedke,
      Bell, Block, Bolz, Bradford, Campbell, Cannon, Collins, Crow, Deal,
      Douglas, Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett,
      Harwood, Henbest, Jaquet, Kellogg, Kulczyk, Lake, Langford,
      Martinez(Echohawk), McGeachin, McKague, Moyle, Nielsen, Raybould,
      Ring, Roberts, Robison, Rydalch, Schaefer, Shepherd, Skippen,
      Smith(24), Stevenson, Tilman, Wills, Mr. Speaker
      NAYS -- Bieter, Black, Boe, Cuddy, Eberle, Edmunson, Jones,
      Langhorst, Meyer, Miller, Naccarato, Ringo, Sali, Sayler, Shirley,
      Smith(30), Smylie, Snodgrass, Trail
      Absent and excused -- Clark, Denney, Mitchell, Ridinger, Wood
    Floor Sponsor - Moyle
    Title apvd - to Senate
05/03    Senate intro - 1st rdg - to Loc Gov
    Rpt out - rec d/p - to 2nd rdg
    Rls susp - PASSED - 31-4-0
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
      Goedde, Ingram, Kennedy, Keough, Lodge, Malepeai, Marley, McKenzie,
      McWilliams, Noble, Noh, Pearce(Banner), Richardson, Schroeder,
      Sorensen, Stennett, Werk, Williams
      NAYS -- Hill, Little, Stegner, Sweet
      Absent and excused -- None
    Floor Sponsor - Hill
    Title apvd - to House
05/05    To enrol - Rpt enrol - Sp signed
    Pres signed - To Governor
05/07    Governor signed
         Session Law Chapter 350
         Effective: 01/01/01 Section 2;
         01/01/03 Section 1

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 390
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAXES AND  THE  INTERNAL  REVENUE  CODE;  AMENDING  SECTION
  3        63-3004,  IDAHO  CODE,  TO UPDATE REFERENCES TO THE INTERNAL REVENUE CODE;
  4        AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
  5        TION 63-3022O, IDAHO CODE, TO DISALLOW THE SPECIAL ALLOWANCE FOR DEPRECIA-
  6        TION  PERMITTED  BY  SUBSECTION (k) OF SECTION 168 OF THE INTERNAL REVENUE
  7        CODE, AND TO DISALLOW DEDUCTION OF CERTAIN EXPENSES OF ELEMENTARY AND SEC-
  8        ONDARY SCHOOL TEACHERS; DECLARING AN EMERGENCY AND  PROVIDING  RETROACTIVE
  9        EFFECTIVE DATES.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION  1.  That  Section 63-3004, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        63-3004.  INTERNAL REVENUE CODE. (a)  The  term  "Internal  Revenue  Code"
 14    means  the Internal Revenue Code of 1986 of the United States, as amended, and
 15    in effect on the first day of January, 20023.
 16        (b)  Provisions of the Internal Revenue Code amended,  deleted,  or  added
 17    prior  to  the effective date of the latest amendment to this section shall be
 18    applicable for Idaho income tax purposes on the effective  date  provided  for
 19    such amendments, deletions, or additions, including retroactive provisions.
                                                                        
 20        SECTION  2.  That  Chapter  30,  Title 63, Idaho Code, be, and the same is
 21    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 22    ignated as Section 63-3022O, Idaho Code, and to read as follows:
                                                                        
 23        63-3022O.  ADJUSTMENT  FOR PROPERTY ACQUIRED AFTER SEPTEMBER 10, 2001. For
 24    taxable years commencing on and after January 1, 2001, in computing Idaho tax-
 25    able income:
 26        (1)  The adjusted basis of depreciable property, depreciation and  capital
 27    gains and losses shall be computed without regard to subsection (k) of section
 28    168  of  the Internal Revenue Code, as amended by section 101 of the "Job Cre-
 29    ation and Worker Assistance Act of 2002"; and
 30        (2)  No deduction shall be allowed relating to expenses of elementary  and
 31    secondary teachers otherwise allowable under section 62(a)(2)(D) of the Inter-
 32    nal  Revenue  Code,  as amended by section 406 of the "Job Creation and Worker
 33    Assistance Act of 2002."
                                                                        
 34        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 35    declared  to exist, Section 1 of this act shall be in full force and effect on
 36    and after passage and approval, and retroactively to January 1, 2003; and Sec-
 37    tion 2 of this act shall be in full force and effect on and after passage  and
 38    approval, and retroactively to January 1, 2001.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13219
This is the annual bill to update references to the Internal
Revenue Code (IRC).  It conforms the Idaho income tax to changes
made to the IRC after January 1, 2002, including the federal "Job
Creation and Worker Assistance Act of 2002."  However, no Idaho
deduction will be allowed relating to:
     1.  The special allowance for 30% first year "bonus
depreciation" permitted by subsection (k) of section 168 of the
IRC would not be deductible in computing Idaho taxable income. 
For computing Idaho taxable income, the adjusted basis of
depreciable property and capital gains or losses will be modified
to reflect the disallowance of the federal bonus depreciation.
                          FISCAL IMPACT
No fiscal effect.


Contact
Name: State Tax Commission
Phone: (208) 334-7530




STATEMENT OF PURPOSE/FISCAL NOTE                       H 390