Print Friendly 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
|||| 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
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
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
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.
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.
Names: Rep. Margaret Henbest and Rep. Wayne Meyer
Statement of Purpose/Fiscal Impact H 190