1999 Legislation
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HOUSE BILL NO. 190 – Income tax, grocery credit, adjust

HOUSE BILL NO. 190

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H0190...............................................by REVENUE AND TAXATION
INCOME TAX - GROCERY CREDIT - Amends existing law to provide an annual
adjustment to the grocery credit against income taxes allowed to
individuals to reflect the increase in the Consumer Price Index.

02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to Rev/Tax

Bill Text


H0190


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 190

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO INCOME TAXES; AMENDING SECTION 63-3024A, IDAHO  CODE,  TO  PROVIDE
 3        FOR  AN  ANNUAL  ADJUSTMENT IN THE CREDIT AGAINST INCOME TAXES PROVIDED TO
 4        INDIVIDUALS AND TO MAKE TECHNICAL CORRECTIONS.

 5    Be It Enacted by the Legislature of the State of Idaho:

 6        SECTION 1.  That Section 63-3024A, Idaho Code, be, and the same is  hereby
 7    amended to read as follows:

 8        63-3024A.  CREDITS  AND  REFUNDS. ( a  1 ) Any resi-
 9    dent individual not entitled to the credit  allowed  in  subsection  (  b
10      2  )(  1    a )  of this section
11    , who is required to file by law and who has filed an Idaho  income  tax
12    return, shall be allowed a credit against taxes due under the Idaho income tax
13    act  equal  to the amount of fifteen dollars ($15.00) for each personal exemp-
14    tion for which a deduction is permitted by  section  151(b)  and  (c)  of  the
15    Internal  Revenue  Code  if  such deduction is claimed on the taxpayer's Idaho
16    income tax return, and if the individual for whom the deduction is claimed  is
17    a  resident of the state of Idaho. If taxes due are less than the total credit
18    allowed, the taxpayer shall be paid a refund  equal  to  the  balance  of  the
19    unused  credit.  If the credit or refund is not claimed for the year for which
20    the individual income tax return is filed, the right thereafter to claim  such
21    credit  or refund shall be forfeited. The state tax commission shall prescribe
22    the method by which the refund, if any, is to be made to the taxpayer.
23        ( b  2 ) ( 1  a )  A  resident
24        individual  who has reached his sixty-fifth birthday before the end of his
25        taxable year, who is required to file by law and who has  filed  an  Idaho
26        income  tax  return, shall be allowed a credit against taxes due under the
27        Idaho income tax act equal to the amount of thirty  dollars  ($30.00)  for
28        each  personal  exemption  representing  himself, a spouse over the age of
29        sixty-five (65), or a dependent over the age of sixty-five (65), but shall
30        be allowed a credit against taxes due under the Idaho income tax act 
31        equal to fifteen dollars ($15.00)   as provided  in  subsection
32        (1)  of  this  section    for each personal exemption representing a
33        spouse or dependent under the age of sixty-five (65).  If  taxes  due  are
34        less  than  the  total credit allowed, the taxpayer shall be paid a refund
35        equal to the balance of the unused credit. If the credit or refund is  not
36        claimed  for the year for which the individual income tax return is filed,
37        the right thereafter to claim such credit or refund  shall  be  forfeited.
38        The  state  tax commission shall prescribe the method by which the refund,
39        if any, is to be made to the taxpayer.
40        ( 2  b )  A resident individual who has reached  his
41        sixty-fifth  birthday  and  is not required by law to file an Idaho income
42        tax return and who has received no credit or refund under any  other  sub-
43        section  of  this  section,  shall be entitled to a refund  of thirty


                                      2

 1        dollars ($30.00)   equal to the amount of  credit  provided  in
 2        subsection (2)(a) of this section . Any refund shall be paid to such
 3        individual  only  upon his making application therefor at such time and in
 4        such manner as may be prescribed by the state tax commission.
 5        ( c  3 )  A resident  individual  of  the  state  of
 6    Idaho who is:
 7        (  i    a )   b  B lind ,
 8         ;  or
 9        ( ii  b )   a    A    disabled
10        American  veteran  of  any war engaged in by the United States, whose dis-
11        ability is recognized as a service connected disability of a degree of ten
12         per cent   percent  (10%) or more,  or  who  is  in
13        receipt  of a pension for nonservice connected disabilities, in accordance
14        with laws and regulations  administered  by  the  United  States  veterans
15        administration,  substantiated  by  a  statement  as to status signed by a
16        responsible officer of the United States  veterans  administration  ,
17         ;  or
18        (  iii   c )   o  O ver sixty-
19        two (62) years of age, and has been allowed none, or  less  than  all,  of
20        the  credit   provided  by  subsection  ( a  1 )  or
21        subsection ( b  2 ) of this section, shall be  enti-
22        tled to a payment from the refund fund in an amount equal to  fifteen
23        dollars ($15.00), or  the balance of his unused credit , which-
24        ever  is less,  upon making application therefor at such time and in
25        such manner as the state tax commission may prescribe.
26        ( d  4  )  Any  part-year  resident  entitled  to  a
27    credit  under this section shall receive a proportionate credit, in the manner
28    above provided, reflecting the part of the year in which he was  domiciled  in
29    this state.
30        (  e  5 )  No credit or refund may be claimed for an
31    exemption which represents a person who has himself filed an Idaho income  tax
32    return  claiming  a  deduction for his own personal exemption, and in no event
33    shall more than one (1) taxpayer be allowed a credit or refund  for  the  same
34    exemption, or under more than one (1) subsection of this section.
35        (  f    6  )  The refunds authorized by this section
36    shall be paid from the state refund fund in the same  manner  as  the  refunds
37    authorized by section 63-3067, Idaho Code.
38        ( g  7 )  An application for any refund which is due
39    and  payable under the provisions of this section must be filed with the state
40    tax commission within three (3) years of:
41        ( i  a )   t  T he  due  date,
42        including  extensions,  of  the  return  required  under section  63-3030,
43        Idaho Code, if  the applicant   is  required   to  file  a  return  ,
44         ;  or
45        (  ii   b )   t  T he 15th day
46        of April of the year following the year to which the  application  relates
47        if the applicant is not required to file a return.
48          (8)  Commencing in tax years beginning after December 31, 1999, the
49    credit or refund  specified  in  subsection  (1)  of  this  section  shall  be
50    increased in an amount equal to 1.5 times the rate of increase in the consumer
51    price index (CPI), as reported by the U.S. bureau of labor statistics, for the
52    preceding  year,  until such time as the credit has reached a level equivalent
53    to twenty-five dollars ($25.00) in 1974 dollars, as determined  by  the  state
54    tax commission. Thereafter the credit specified in subsection (1) of this sec-
55    tion shall be increased each year in proportion to the rate of increase in the


                                      3

 1    CPI for the preceding year.
 2        (9)  Commencing in tax years beginning after December 31, 1999, the credit
 3    or  refund  specified  in subsection (2) of this section shall be increased in
 4    proportion to the rate of increase in the CPI as reported by the  U.S.  bureau
 5    of labor statistics for the preceding year.
 6        (10) All  credits  calculated pursuant to this section shall be rounded to
 7    the nearest whole dollar for purposes of the amount used  on  any  year's  tax
 8    return.  The minimum increase in credits calculated pursuant to subsection (8)
 9    or (9) of this section in any year shall be one dollar ($1.00). 

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                              RS08526

This bill increases the amount of the income tax grocery credit
by 1.5 times the rate of inflation (with at least a $1 increase
per year) until such time as the income tax grocery credit
reaches an inflation-adjusted level equivalent to $2s in 1974
dollars. In the case of the grocery credit for seniors (over
65) the credit is increased each year by the rate of inflation,
with a minimum increase of $1 per year.




                           FISCAL IMPACT

This bill will cause an estimated reduction in general fund
revenue of $1.1 million in FY 2001, $2.3 million in FY 2002,
$3.s million in FY 2003, and so on.











CONTACT
Names: Rep. Margaret Henbest and Rep. Wayne Meyer

Statement of Purpose/Fiscal Impact            H 190