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H0485...............................................by REVENUE AND TAXATION
INCOME TAX - Amends and adds to existing law to define "partnership" and to
clarify the definitions of "person" and "corporation" for the purposes of
the Idaho Income Tax Act.
01/20 House intro - 1st rdg - to printing
01/21 Rpt prt - to Rev/Tax
02/03 Rpt out - rec d/p - to 2nd rdg
02/04 2nd rdg - to 3rd rdg
02/05 3rd rdg - PASSED - 69-0-1
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
Clark, Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
Field(20), Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck,
Jaquet, Jones(9), Jones(22), Jones(20), Judd, Kellogg, Kempton,
Kendell, Kjellander, Kunz, Lake, Linford, Loertscher, Mader, Marley,
McKague, Meyer, Miller, Mortensen, Pischner, Pomeroy, Reynolds,
Richman, Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff,
Stone, Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Wood,
Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Newcomb
Floor Sponsor - Stubbs
Title apvd - to Senate
02/06 Senate intro - 1st rdg - to Loc Gov
02/12 Rpt out - rec d/p - to 2nd rdg
02/13 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Stennett, Sweeney,
Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Sorensen
Floor Sponsor - Ipsen
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/13 Pres signed
03/16 To Governor
03/17 Governor signed
Session Law Chapter 55
Effective: 01/01/98
H0485|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 485 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO INCOME TAXES; AMENDING SECTION 63-3005, IDAHO CODE, TO EXPAND THE 3 DEFINITION OF "PERSON" TO INCLUDE ASSOCIATIONS AND LIMITED LIABILITY COM- 4 PANIES; AMENDING SECTION 63-3006, IDAHO CODE, TO EXPAND THE DEFINITION OF 5 "CORPORATION" TO INCLUDE ENTITIES AS CLASSIFIED AND TAXED UNDER THE FED- 6 ERAL INTERNAL REVENUE CODE; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY 7 THE ADDITION OF A NEW SECTION 63-3006B, IDAHO CODE, TO DEFINE 8 "PARTNERSHIP"; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFEC- 9 TIVE DATE. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 63-3005, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 63-3005. PERSON. The term "person" means an individual, a trust or 14 estate, a partnership, an association, a limited liability company 15 or a corporation. 16 SECTION 2. That Section 63-3006, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 63-3006. CORPORATION. The term "corporation" includes any corporation 19 formed under the laws of any government, any common law trust and any associa- 20 tion of whatever kind other than a partnership. "Corporation" also 21 includes any entity classified or taxed as a corporation pursuant to section 22 7701 of the Internal Revenue Code and the regulations of the U.S. department 23 of the treasury issued thereunder. 24 SECTION 3. That Chapter 30, Title 63, Idaho Code, be, and the same is 25 hereby amended by the addition thereto of a NEW SECTION , to be 26 known and designated as Section 63-3006B, Idaho Code, and to read as follows: 27 63-3006B. PARTNERSHIP. "Partnership" shall be as defined in section 7701 28 of the Internal Revenue Code and shall include any entity classified as a 29 partnership pursuant to regulations of the U.S. department of the treasury 30 issued under section 7701 of the Internal Revenue Code. 31 SECTION 4. An emergency existing therefor, which emergency is hereby 32 declared to exist, this act shall be in full force and effect on and after its 33 passage and approval, and retroactively to January 1, 1998.
STATEMENT OF PURPOSE
RS07348
The Internal Revenue Service adopted new federal regulations allowing certain
organizations to elect if the organization pays income tax as a corporation or a partnership.
The election is available to limited liability companies and other unincorporated
associations. These regulations are commonly referred to as the "check the box rules."
This bill will conform Idaho's income tax to these newly adopted entity classification
provisions.
FISCAL IMPACT
No fiscal effect.
CONTACT
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
Statement of Purpose/Fiscal Impact
H 485