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H0444aa.............................................by REVENUE AND TAXATION INCOME TAX - Amends existing law to delete the requirement that resident military members reduce deductions and exemptions in proportion to nontaxable military pay for state income tax purposes. 01/23 House intro - 1st rdg - to printing 01/24 Rpt prt - to Rev/Tax 02/15 Rpt out - to Gen Ord 02/16 Rpt out amen - to engros 02/17 Rpt engros - 1st rdg - to 2nd rdg as amen 02/20 2nd rdg - to 3rd rdg as amen 02/23 3rd rdg as amen - PASSED - 63-0-7 AYES -- Anderson, Andrus, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie(Luker), Snodgrass, Stevenson, Trail, Wills NAYS -- None Absent and excused -- Barraclough, Brackett, Deal, Field(23), Sali, Wood, Mr. Speaker Floor Sponsor - McKague Title apvd - to Senate 02/24 Senate intro - 1st rdg - to Loc Gov 03/02 Rpt out - rec d/p - to 2nd rdg 03/03 2nd rdg - to 3rd rdg 03/07 3rd rdg - PASSED - 33-0-2 AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- Burtenshaw, Pearce Floor Sponsor - Williams Title apvd - to House 03/08 To enrol 03/09 Rpt enrol - Sp signed 03/10 Pres signed 03/13 To Governor 03/14 Governor signed Session Law Chapter 63 Effective: 01/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 444 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO INCOME TAXES; AMENDING SECTION 63-3022, IDAHO CODE, TO DELETE THE 3 REQUIREMENT THAT RESIDENT MILITARY MEMBERS REDUCE DEDUCTIONS AND EXEMP- 4 TIONS IN PROPORTION TO NONTAXABLE MILITARY PAY; DECLARING AN EMERGENCY AND 5 PROVIDING RETROACTIVE APPLICATION. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 63-3022, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 63-3022. ADJUSTMENTS TO TAXABLE INCOME. The additions and subtractions 10 set forth in this section, and in sections 63-3022A through 63-3022Q, Idaho 11 Code, are to be applied to the extent allowed in computing Idaho taxable 12 income: 13 (a) Add any state and local taxes, as defined in section 164 of the 14 Internal Revenue Code and, measured by net income, paid or accrued during the 15 taxable year adjusted for state or local tax refunds used in arriving at tax- 16 able income. 17 (b) Add the net operating loss deduction used in arriving at taxable 18 income. 19 (c) (1) A net operating loss for any taxable year commencing on and after 20 January 1, 2000, shall be a net operating loss carryback not to exceed a 21 total of one hundred thousand dollars ($100,000) to the two (2) immedi- 22 ately preceding taxable years. Any portion of the net operating loss not 23 subtracted in the two (2) preceding years may be subtracted in the next 24 twenty (20) years succeeding the taxable year in which the loss arises in 25 order until exhausted. The sum of the deductions may not exceed the amount 26 of the net operating loss deduction incurred. At the election of the tax- 27 payer, the two (2) year carryback may be foregone and the loss subtracted 28 from income received in taxable years arising in the next twenty (20) 29 years succeeding the taxable year in which the loss arises in order until 30 exhausted. The election shall be made as under section 172(b)(3) of the 31 Internal Revenue Code. An election under this subsection must be in the 32 manner prescribed in the rules of the state tax commission and once made 33 is irrevocable for the year in which it is made. The term "income" as used 34 in this subsection (c) means Idaho taxable income as defined in this chap- 35 ter as modified by section 63-3021(b)(2), (3) and (4), Idaho Code. 36 (2) Net operating losses incurred by a corporation during a year in which 37 such corporation did not transact business in Idaho or was not included in 38 a group of corporations combined under subsection (t) of section 63-3027, 39 Idaho Code, may not be subtracted. However, if at least one (1) corpora- 40 tion within a group of corporations combined under subsection (t) of sec- 41 tion 63-3027, Idaho Code, was transacting business in Idaho during the 42 taxable year in which the loss was incurred, then the net operating loss 43 may be subtracted. Net operating losses incurred by a person, other than a 2 1 corporation, in activities not taxable by Idaho may not be subtracted. 2 (d) In the case of a corporation, add the amount deducted under the pro- 3 visions of sections 243(a) and (c), 244, 245 and 246A of the Internal Revenue 4 Code (relating to dividends received by corporations) as limited by section 5 246(b)(1) of said code. 6 (e) In the case of a corporation, subtract an amount determined under 7 section 78 of the Internal Revenue Code to be taxable as dividends. 8 (f) Subtract the amount of any income received or accrued during the tax- 9 able year which is exempt from taxation by this state, under the provisions of 10 any other law of this state or a law of the United States, if not previously 11 subtracted in arriving at taxable income. 12 (g) For the purpose of determining the Idaho taxable income of the bene- 13 ficiary of a trust or of an estate: 14 (1) Distributable net income as defined for federal tax purposes shall be 15 corrected for the other adjustments required by this section. 16 (2) Net operating losses attributable to a beneficiary of a trust or 17 estate under section 642 of the Internal Revenue Code shall be a deduction 18 for the beneficiary to the extent that income from the trust or estate 19 would be attributable to this state under the provisions of this chapter. 20 (h) In the case of an individual who is on active duty as a full-time 21 officer, enlistee or draftee, with the armed forces of the United States, 22 which full-time duty is or will be continuous and uninterrupted for one hun- 23 dred twenty (120) consecutive days or more, deduct compensation paid by the 24 armed forces of the United States for services performed outside this state. 25 The deduction is allowed only to the extent such income is included in taxable 26 income, and provided that appropriate adjustments shall be made in determining27the deductions and exemptions allowed pursuant to section 63-3026A(4), Idaho28Code. 29 (i) In the case of a corporation, including any corporation included in a 30 group of corporations combined under subsection (t) of section 63-3027, Idaho 31 Code, add any capital loss deducted which loss was incurred during any year in 32 which such corporation did not transact business in Idaho. However, do not add 33 any capital loss deducted if a corporation, including any corporation in a 34 group of corporations combined under subsection (t) of section 63-3027, Idaho 35 Code, was transacting business in Idaho during the taxable year in which the 36 loss was incurred. In the case of persons, other than corporations, add any 37 capital loss deducted which was incurred in activities not taxable by Idaho at 38 the time such loss was incurred. In computing the income taxable to an S cor- 39 poration or partnership under this section, deduction shall not be allowed for 40 a carryover or carryback of a net operating loss provided for in subsection 41 (c) of this section or a capital loss provided for in section 1212 of the 42 Internal Revenue Code. 43 (j) In the case of an individual, there shall be allowed as a deduction 44 from gross income either (1) or (2) at the option of the taxpayer: 45 (1) The standard deduction as defined in section 63, Internal Revenue 46 Code. 47 (2) Itemized deductions as defined in section 63 of the Internal Revenue 48 Code except state or local taxes measured by net income and general sales 49 taxes as either is defined in section 164 of the Internal Revenue Code. 50 (k) Add the taxable amount of any lump sum distribution excluded from 51 gross income for federal income tax purposes under the ten (10) year averaging 52 method. The taxable amount will include the ordinary income portion and the 53 amount eligible for the capital gain election. 54 (l) Deduct any amounts included in gross income under the provisions of 55 section 86 of the Internal Revenue Code relating to certain social security 3 1 and railroad benefits. 2 (m) In the case of a self-employed individual, deduct the actual cost of 3 premiums paid to secure worker's compensation insurance for coverage in Idaho, 4 if such cost has not been deducted in arriving at taxable income. 5 (n) In the case of an individual, deduct the amount contributed to a col- 6 lege savings program pursuant to chapter 54, title 33, Idaho Code, but not 7 more than four thousand dollars ($4,000) per tax year. If the contribution is 8 made on or before April 15, 2001, it may be deducted for tax year 2000 and an 9 individual can make another contribution and claim the deduction according to 10 the limits provided in this subsection during 2001 for tax year 2001, as long 11 as the contribution is made on or before December 31, 2001. 12 (o) In the case of an individual, add the amount of a nonqualified with- 13 drawal from an individual trust account or savings account established pursu- 14 ant to chapter 54, title 33, Idaho Code, less any amount of such nonqualified 15 withdrawal included in the individual's federal gross income pursuant to sec- 16 tion 529 of the Internal Revenue Code. 17 SECTION 2. An emergency existing therefor, which emergency is hereby 18 declared to exist, this act shall be in full force and effect on and after its 19 passage and approval, and retroactively to January 1, 2006.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006Moved by Smith (24) Seconded by Crow IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 444 1 AMENDMENT TO SECTION 2 2 On page 3 of the printed bill, in line 19, delete "2006" and insert: 3 "2005".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 444, As Amended BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO INCOME TAXES; AMENDING SECTION 63-3022, IDAHO CODE, TO DELETE THE 3 REQUIREMENT THAT RESIDENT MILITARY MEMBERS REDUCE DEDUCTIONS AND EXEMP- 4 TIONS IN PROPORTION TO NONTAXABLE MILITARY PAY; DECLARING AN EMERGENCY AND 5 PROVIDING RETROACTIVE APPLICATION. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 63-3022, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 63-3022. ADJUSTMENTS TO TAXABLE INCOME. The additions and subtractions 10 set forth in this section, and in sections 63-3022A through 63-3022Q, Idaho 11 Code, are to be applied to the extent allowed in computing Idaho taxable 12 income: 13 (a) Add any state and local taxes, as defined in section 164 of the 14 Internal Revenue Code and, measured by net income, paid or accrued during the 15 taxable year adjusted for state or local tax refunds used in arriving at tax- 16 able income. 17 (b) Add the net operating loss deduction used in arriving at taxable 18 income. 19 (c) (1) A net operating loss for any taxable year commencing on and after 20 January 1, 2000, shall be a net operating loss carryback not to exceed a 21 total of one hundred thousand dollars ($100,000) to the two (2) immedi- 22 ately preceding taxable years. Any portion of the net operating loss not 23 subtracted in the two (2) preceding years may be subtracted in the next 24 twenty (20) years succeeding the taxable year in which the loss arises in 25 order until exhausted. The sum of the deductions may not exceed the amount 26 of the net operating loss deduction incurred. At the election of the tax- 27 payer, the two (2) year carryback may be foregone and the loss subtracted 28 from income received in taxable years arising in the next twenty (20) 29 years succeeding the taxable year in which the loss arises in order until 30 exhausted. The election shall be made as under section 172(b)(3) of the 31 Internal Revenue Code. An election under this subsection must be in the 32 manner prescribed in the rules of the state tax commission and once made 33 is irrevocable for the year in which it is made. The term "income" as used 34 in this subsection (c) means Idaho taxable income as defined in this chap- 35 ter as modified by section 63-3021(b)(2), (3) and (4), Idaho Code. 36 (2) Net operating losses incurred by a corporation during a year in which 37 such corporation did not transact business in Idaho or was not included in 38 a group of corporations combined under subsection (t) of section 63-3027, 39 Idaho Code, may not be subtracted. However, if at least one (1) corpora- 40 tion within a group of corporations combined under subsection (t) of sec- 41 tion 63-3027, Idaho Code, was transacting business in Idaho during the 42 taxable year in which the loss was incurred, then the net operating loss 43 may be subtracted. Net operating losses incurred by a person, other than a 2 1 corporation, in activities not taxable by Idaho may not be subtracted. 2 (d) In the case of a corporation, add the amount deducted under the pro- 3 visions of sections 243(a) and (c), 244, 245 and 246A of the Internal Revenue 4 Code (relating to dividends received by corporations) as limited by section 5 246(b)(1) of said code. 6 (e) In the case of a corporation, subtract an amount determined under 7 section 78 of the Internal Revenue Code to be taxable as dividends. 8 (f) Subtract the amount of any income received or accrued during the tax- 9 able year which is exempt from taxation by this state, under the provisions of 10 any other law of this state or a law of the United States, if not previously 11 subtracted in arriving at taxable income. 12 (g) For the purpose of determining the Idaho taxable income of the bene- 13 ficiary of a trust or of an estate: 14 (1) Distributable net income as defined for federal tax purposes shall be 15 corrected for the other adjustments required by this section. 16 (2) Net operating losses attributable to a beneficiary of a trust or 17 estate under section 642 of the Internal Revenue Code shall be a deduction 18 for the beneficiary to the extent that income from the trust or estate 19 would be attributable to this state under the provisions of this chapter. 20 (h) In the case of an individual who is on active duty as a full-time 21 officer, enlistee or draftee, with the armed forces of the United States, 22 which full-time duty is or will be continuous and uninterrupted for one hun- 23 dred twenty (120) consecutive days or more, deduct compensation paid by the 24 armed forces of the United States for services performed outside this state. 25 The deduction is allowed only to the extent such income is included in taxable 26 income, and provided that appropriate adjustments shall be made in determining27the deductions and exemptions allowed pursuant to section 63-3026A(4), Idaho28Code. 29 (i) In the case of a corporation, including any corporation included in a 30 group of corporations combined under subsection (t) of section 63-3027, Idaho 31 Code, add any capital loss deducted which loss was incurred during any year in 32 which such corporation did not transact business in Idaho. However, do not add 33 any capital loss deducted if a corporation, including any corporation in a 34 group of corporations combined under subsection (t) of section 63-3027, Idaho 35 Code, was transacting business in Idaho during the taxable year in which the 36 loss was incurred. In the case of persons, other than corporations, add any 37 capital loss deducted which was incurred in activities not taxable by Idaho at 38 the time such loss was incurred. In computing the income taxable to an S cor- 39 poration or partnership under this section, deduction shall not be allowed for 40 a carryover or carryback of a net operating loss provided for in subsection 41 (c) of this section or a capital loss provided for in section 1212 of the 42 Internal Revenue Code. 43 (j) In the case of an individual, there shall be allowed as a deduction 44 from gross income either (1) or (2) at the option of the taxpayer: 45 (1) The standard deduction as defined in section 63, Internal Revenue 46 Code. 47 (2) Itemized deductions as defined in section 63 of the Internal Revenue 48 Code except state or local taxes measured by net income and general sales 49 taxes as either is defined in section 164 of the Internal Revenue Code. 50 (k) Add the taxable amount of any lump sum distribution excluded from 51 gross income for federal income tax purposes under the ten (10) year averaging 52 method. The taxable amount will include the ordinary income portion and the 53 amount eligible for the capital gain election. 54 (l) Deduct any amounts included in gross income under the provisions of 55 section 86 of the Internal Revenue Code relating to certain social security 3 1 and railroad benefits. 2 (m) In the case of a self-employed individual, deduct the actual cost of 3 premiums paid to secure worker's compensation insurance for coverage in Idaho, 4 if such cost has not been deducted in arriving at taxable income. 5 (n) In the case of an individual, deduct the amount contributed to a col- 6 lege savings program pursuant to chapter 54, title 33, Idaho Code, but not 7 more than four thousand dollars ($4,000) per tax year. If the contribution is 8 made on or before April 15, 2001, it may be deducted for tax year 2000 and an 9 individual can make another contribution and claim the deduction according to 10 the limits provided in this subsection during 2001 for tax year 2001, as long 11 as the contribution is made on or before December 31, 2001. 12 (o) In the case of an individual, add the amount of a nonqualified with- 13 drawal from an individual trust account or savings account established pursu- 14 ant to chapter 54, title 33, Idaho Code, less any amount of such nonqualified 15 withdrawal included in the individual's federal gross income pursuant to sec- 16 tion 529 of the Internal Revenue Code. 17 SECTION 2. An emergency existing therefor, which emergency is hereby 18 declared to exist, this act shall be in full force and effect on and after its 19 passage and approval, and retroactively to January 1, 2005.
REPRINT REPRINT REPRINT REPRINT REPRINT STATEMENT OF PURPOSE RS 15373 Current Idaho income tax law permits Idaho residents on active military duty outside Idaho for at least 120 consecutive days to deduct their military pay when computing Idaho taxable income. They are also required to reduce their exemptions and deductions in proportion to their exempt military income. This bill repeals the requirement to reduce their exemptions and deductions. FISCAL NOTE Loss to the general fund of $1.5 million. (Note: Expect the fiscal effect to diminish as mobilizations of Idaho National Guard and Reserve members declines.) CONTACT Name: Dan John Agency: State Tax Commission Phone: 334-7530 STATEMENT OF PURPOSE/FISCAL NOTE H 444 AA