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H0707aaS,aaS........................................by REVENUE AND TAXATION
INCOME TAX - CREDIT - Adds to, amends and repeals existing law to provide
an income tax deduction for a self-employed taxpayer for the cost of
medical insurance for the taxpayer, spouse and dependents; to provide an
income tax credit, for tax years 2000 and after, of three percent of the
taxpayer's state income tax liability; to exclude from the calculation of
Idaho taxable income any marriage penalty that may exist in the basic
standard deduction; to provide for adjustments; and to increase the maximum
amount of the allowable tax credit of the investment tax credit.
03/01 House intro - 1st rdg - to printing
03/02 Rpt prt - to Rev/Tax
03/07 Rpt out - rec d/p - to 2nd rdg
03/08 2nd rdg - to 3rd rdg
03/09 3rd rdg - PASSED - 41-29-0
AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Callister,
Campbell, Cheirrett, Crow, Denney, Ellsworth, Field(13), Field(20),
Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23), Hornbeck,
Kellogg, Kendell, Kunz, Lake, Linford, Loertscher, McKague,
Mortensen, Moss, Moyle, Pearce, Pischner, Reynolds, Sali, Schaefer,
Smylie, Stevenson, Taylor, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Bieter, Black, Boe, Bruneel, Chase, Clark, Cuddy, Deal,
Hansen(29), Henbest, Jaquet, Jones, Judd, Kempton, Mader, Marley,
Meyer, Montgomery, Pomeroy, Ridinger, Ringo, Robison, Sellman,
Shepherd, Smith, Stoicheff, Stone, Tilman, Trail
Absent and excused -- None
Floor Sponsors - Crow, Moyle, Gagner, Lake
Title apvd - to Senate
03/10 Senate intro - 1st rdg - to Loc Gov
03/20 Rpt out - to 14th Ord
03/21 Rpt out amen - to 1st rdg as amen
03/22 To 14th Ord
03/27 Rpt out amen - to 1st rdg as amen
Rules susp - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--Davis
Floor Sponsor - Thorne
Title apvd - to House
03/29 House did not concur in Senate amen
03/30 Conference Committee Not in Agreement - hld at House desk
Conference rpt filed with Secretary of Senate
H0707
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 707
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAX POLICIES; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY
3 THE ADDITION OF A NEW SECTION 63-3022O, IDAHO CODE, TO PROVIDE AN INCOME
4 TAX DEDUCTION FOR A TAXPAYER WHO IS A SELF-EMPLOYED INDIVIDUAL TREATED AS
5 AN EMPLOYEE PURSUANT TO SECTION 401(c)(1) OF THE INTERNAL REVENUE CODE, AN
6 AMOUNT EQUAL TO THE AMOUNT PAID BY THE TAXPAYER DURING THE TAXABLE YEAR
7 FOR INSURANCE WHICH CONSTITUTES MEDICAL CARE FOR THE TAXPAYER AND THE
8 SPOUSE AND DEPENDENTS OF THE TAXPAYER WHICH IS NOT OTHERWISE DEDUCTIBLE BY
9 THE TAXPAYER FOR FEDERAL INCOME TAX PURPOSES BECAUSE THE APPLICABLE PER-
10 CENTAGE FOR THAT TAXABLE YEAR AS SPECIFIED PURSUANT TO SECTION 162(1) OF
11 THE INTERNAL REVENUE CODE IS LESS THAN ONE HUNDRED PERCENT; AMENDING CHAP-
12 TER 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-3022P,
13 IDAHO CODE, TO PROVIDE AN INCOME TAX CREDIT FOR TAX YEAR 2000 AND BEYOND
14 OF THREE PERCENT OF THE TAXPAYER'S STATE INCOME TAX LIABILITY; REPEALING
15 SECTION 63-3022N, IDAHO CODE; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE,
16 BY THE ADDITION OF A NEW SECTION 63-3022N, IDAHO CODE, TO PROVIDE FOR THE
17 ELIMINATION FROM THE CALCULATION OF IDAHO TAXABLE INCOME ANY MARRIAGE PEN-
18 ALTY THAT MAY EXIST IN THE BASIC STANDARD DEDUCTION PROVIDED IN THE INTER-
19 NAL REVENUE CODE, TO PROVIDE FOR ADJUSTMENTS, TO PROVIDE A DEFINITION OF
20 "THE MARRIAGE PENALTY" AND TO PROVIDE PROCEDURES; AMENDING SECTION
21 63-3029B, IDAHO CODE, TO INCREASE THE MAXIMUM AMOUNT OF THE ALLOWABLE TAX
22 CREDIT OF THE INVESTMENT TAX CREDIT AND TO MAKE TECHNICAL CORRECTIONS;
23 DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
24 Be It Enacted by the Legislature of the State of Idaho:
25 SECTION 1. That Chapter 30, Title 63, Idaho Code, be, and the same is
26 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
27 ignated as Section 63-3022O, Idaho Code, and to read as follows:
28 63-3022O. HEALTH INSURANCE COSTS. With respect to a taxpayer who is a
29 self-employed individual treated as an employee pursuant to section 401(c)(1)
30 of the Internal Revenue Code, an amount equal to the amount paid by the tax-
31 payer during the taxable year for insurance, which constitutes medical care
32 for the taxpayer and the spouse and dependents of the taxpayer which is not
33 otherwise deductible by the taxpayer for federal income tax purposes because
34 the applicable percentage for that taxable year as specified pursuant to sec-
35 tion 162(1) of the Internal Revenue Code is less than one hundred percent
36 (100%), shall be allowed as a deduction against taxable income.
37 SECTION 2. That Chapter 30, Title 63, Idaho Code, be, and the same is
38 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
39 ignated as Section 63-3022P, Idaho Code, and to read as follows:
40 63-3022P. INCOME TAX CREDIT FOR TAX YEARS 2000 AND BEYOND. For tax years
41 on and after 2000, there shall be allowed a credit equal to three percent (3%)
2
1 of the taxpayer's income tax liability for the tax year as computed by section
2 63-3024, Idaho Code.
3 SECTION 3. That Section 63-3022N, Idaho Code, be, and the same is hereby
4 repealed.
5 SECTION 4. That Chapter 30, Title 63, Idaho Code, be, and the same is
6 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
7 ignated as Section 63-3022N, Idaho Code, and to read as follows:
8 63-3022N. MARRIAGE PENALTY ADJUSTMENT. (1) To eliminate from the calcula-
9 tion of Idaho taxable income any marriage penalty that may exist in the basic
10 standard deductions provided in the Internal Revenue Code, basic federal stan-
11 dard deductions shall be adjusted as provided in this section.
12 (2) As used in this section, "the marriage penalty" means the difference
13 obtained by subtracting:
14 (a) The basic standard deduction for joint returns, from
15 (b) Two (2) times the basic standard deduction for an individual who is
16 not married and who is not a surviving spouse or head of household.
17 (3) For each taxable year beginning on and after January 1, 2000, the
18 standard deduction in section 63-3022(k)(1), Idaho Code, shall be: on a joint
19 return, the basic federal joint standard deduction plus the marriage penalty,
20 rounded to the nearest dollar, plus the amount of any additional standard
21 deduction for the aged or blind for which a taxpayer may qualify under section
22 63 of the Internal Revenue Code.
23 (4) The basic federal standard deduction for an individual for whom a
24 deduction under section 151 of the Internal Revenue Code is allowable to
25 another taxpayer shall not be reduced below the minimum adjusted basic stan-
26 dard deduction provided by section 63 of the Internal Revenue Code.
27 SECTION 5. That Section 63-3029B, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
30 of the taxpayer there shall be allowed, subject to the applicable limitations
31 provided herein as a credit against the income tax imposed by chapter 30,
32 title 63, Idaho Code, an amount equal to the sum of:
33 (a) tThe tax credit carry-overs carryovers; and
34 (b) tThe tax credit for the taxable year.
35 (2) The maximum allowable amount of the credit for the current taxable
36 year shall be three percent (3%) of the amount of qualified investments made
37 during the taxable year.
38 (3) As used in this section "qualified investment" means certain depre-
39 ciable property which:
40 (a) iIs eligible for the federal investment tax credit, as defined in
41 sections 46(c) and 48 of the iInternal rRevenue cCode subject to the limi-
42 tations provided for certain regulated companies in section 46(f) of the
43 iInternal rRevenue cCode and is not a motor vehicle under eight thousand
44 (8,000) pounds gross weight;
45 (b) iIs acquired, constructed, reconstructed, erected or placed into ser-
46 vice after December 31, 1981; and
47 (c) hHas a situs in Idaho.
48 (4) Notwithstanding the provisions of subsections (1) and (2) of this
49 section, the amount of the credit allowed shall not exceed forty-five fifty
50 percent (450%) of the tax liability of the taxpayer.
3
1 (5) If the sum of credit carry-overs carryovers from the credit allowed
2 by subsection (2) of this section and the amount of credit for the taxable
3 year from the credit allowed by subsection (2) of this section exceed the lim-
4 itation imposed by subsection (4) of this section for the current taxable
5 year, the excess attributable to the current taxable year's credit shall be an
6 investment credit carry-over carryover to the seven (7) succeeding taxable
7 years. In the case of a group of corporations filing a combined report under
8 section 63-3027, Idaho Code, or sections 63-3027B through 63-3027E, Idaho
9 Code, credit earned by one (1) member of the group but not used by that member
10 may be used by another member of the group, subject to the provisions of sub-
11 section (4) of this section, instead of carried over. The entire amount of
12 unused credit shall be carried forward to the earliest of the succeeding
13 years, wherein the oldest available unused credit shall be used first, so long
14 as the qualified investment property for which the unused credit was granted
15 still maintains Idaho situs. For a combined group of corporations, credit car-
16 ried forward may be claimed by any member of the group unless the member who
17 earned the credit is no longer included in the combined group.
18 (6) Any recapture of the credit allowed by subsection (2) of this section
19 on property disposed of or ceasing to qualify, prior to the close of its use-
20 ful life, shall be determined according to the applicable recapture provisions
21 of the iInternal rRevenue cCode. In the case of a unitary group of corpora-
22 tions, the increase in tax due to the recapture of investment tax credit must
23 be reported by the member of the group who earned the credit regardless of
24 which member claimed the credit against tax.
25 (7) For the purpose of determining whether property placed in service is
26 a "qualified investment" as defined in subsection (3) of this section, the
27 provisions of section 49 of the iInternal rRevenue cCode shall be disregarded.
28 (8) For purposes of this section, property has a situs in Idaho during a
29 taxable year if it is used in Idaho at any time during the taxable year. Prop-
30 erty not used in Idaho during a taxable year does not have a situs in Idaho in
31 the taxable year during which the property is not used in Idaho or in any sub-
32 sequent taxable year. No credit or carry-over carryover of credit is permitted
33 under this section if the credit or carry-over carryover relates to property
34 that does not have a situs in Idaho during the taxable year for which the
35 credit or carry-over carryover is claimed. The Idaho situs of property must be
36 established by records maintained by the taxpayer which are created reasonably
37 contemporaneously with the use of the property.
38 (9) In the case of property used both in and outside Idaho, the taxpayer,
39 electing to claim the credit provided in this section, must elect to compute
40 the qualified investment in property with a situs in Idaho for all such
41 investments first qualifying during that year in one (1), but only one (1), of
42 the following ways:
43 (a) tThe amount of each qualified investment in a specific asset shall be
44 separately computed based on the percentage of the actual use of the prop-
45 erty in Idaho by using a measure of the use, such as total miles or total
46 machine hours, that most accurately reflects the beneficial use during the
47 taxable year in which it is first acquired, constructed, reconstructed,
48 erected or placed into service; provided, that the asset is placed in ser-
49 vice more than ninety (90) days before the end of the taxable year. In the
50 case of assets acquired, constructed, reconstructed, erected or placed
51 into service within ninety (90) days prior to the end of the taxable year
52 in which the investment first qualifies, the measure of the use of that
53 asset within Idaho for that year shall be based upon the percentage of use
54 in Idaho during the first ninety (90) days of use of the asset;
55 (b) tThe investment in qualified property used both inside and outside
4
1 Idaho during the taxable year in which it is first acquired, constructed,
2 reconstructed, erected or placed into service shall be multiplied by the
3 percent of the investment that would be included in the numerator of the
4 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
5 for the same year.
6 (10) Only for the purposes of subsections (3)(a) and (7) of this section,
7 references to sections of the "iInternal rRevenue cCode" mean the sections
8 referred to as they existed in the iInternal rRevenue cCode of 1986 prior to
9 November 5, 1990.
10 SECTION 6. An emergency existing therefor, which emergency is hereby
11 declared to exist, this act shall be in full force and effect on and after
12 its passage and approval, and retroactively to January 1, 2000.
AH0707
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Thorne
Seconded by Cameron
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 707
1 AMENDMENT TO SECTION 5
2 On page 3 of the printed bill, in line 6, delete: "seven (7)" and insert:
3 "seven fourteen (714)".
4 CORRECTION TO TITLE
5 On page 1, in line 22, following the second "CREDIT" insert: ", TO
6 INCREASE THE NUMBER OF YEARS THE CREDIT MAY BE CARRIED OVER".
Moved by Risch
Seconded by Sandy
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 707
7 AMENDMENT TO THE BILL
8 On page 1 of the printed bill, delete lines 37 through 41, and on page 2,
9 delete lines 1 and 2; and renumber the subsequent sections accordingly.
10 CORRECTION TO THE TITLE
11 On page 1, delete lines 11 through 14 and insert: "THE INTERNAL REVENUE
12 CODE IS LESS THAN ONE HUNDRED PERCENT; REPEALING".
Moved by Risch
Seconded by Sandy
IN THE SENATE
SENATE AMENDMENTS TO H.B. NO. 707
13 AMENDMENT TO THE BILL
14 On page 1 of the printed bill, delete lines 37 through 41, and on page 2
15 delete lines 1 and 2 and insert:
16 "SECTION 2. That Section 63-3024, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 63-3024. INDIVIDUALS' TAX AND TAX ON ESTATES AND TRUSTS. For each taxable
19 year on and after January 1, 2001, a tax measured by Idaho taxable income as
20 defined in this chapter is hereby imposed upon every individual, trust, or
21 estate required by this chapter to file a return.
22 (a) The tax imposed upon individuals, trusts and estates shall be com-
23 puted at the following rates:
24 When Idaho taxable income is: The rate is:
25 Less than $1,000 Two percent (2.0%)
2
1 $1,000 but less than $2,000 $20, plus four percent (4.0%)
2 of the amount over $1,000
3 $2,000 but less than $3,000 $60, plus four and one-half percent
4 (4.5%) of the amount over $2,000
5 $3,000 but less than $4,000 $105, plus five and one-half percent
6 (5.5%) of the amount over $3,000
7 $4,000 but less than $5,000 $160, plus six and one-half percent
8 (6.5%) of the amount over $4,000
9 $5,000 but less than $7,500 $225, plus seven and one-half percent
10 (7.5%) of the amount over $5,000
11 $7,500 but less than $20,000 $412.50, plus seven and eight-tenths percent
12 (7.8%) of the amount over $7,500
13 Over $20,000 $1,387.50, plus eight and two-tenths percent
14 (8.2%) of the amount over $20,000
15 (b) In case a joint return is filed by husband and wife pursuant to the
16 provisions of section 63-3031, Idaho Code, the tax imposed by this section
17 shall be twice the tax which would be imposed on one-half (1/2) of the aggre-
18 gate Idaho taxable income. For the purposes of this section, a return of a
19 surviving spouse, as defined in section 2(a) of the Internal Revenue Code, and
20 a head of household, as defined in section 2(b) of the Internal Revenue Code,
21 shall be treated as a joint return and the tax imposed shall be twice the tax
22 which would be imposed on one-half (1/2) of the Idaho taxable income.
23 (c) The state tax commission shall compute and publish Idaho income tax
24 liability for taxpayers at the midpoint of each bracket of Idaho taxable
25 income in fifty dollar ($50.00) steps to fifty thousand dollars ($50,000),
26 rounding such calculations to the nearest dollar. Taxpayers having income
27 within such brackets shall file returns based upon and pay taxes according to
28 the schedule thus established. The state tax commission shall promulgate rules
29 defining the conditions upon which such returns shall be filed.
30 (d) For tax year 2001 and each year thereafter, the tax commission shall
31 prescribe a factor which shall be used to compute taxable income for purposes
32 of this chapter. The factor shall provide an adjustment in taxable income so
33 that inflation will not result in a tax increase. The taxable income shall be
34 computed as follows: multiplying the taxable income times the percentage (the
35 consumer price index for the calendar year 2000 divided by the consumer price
36 index of the calendar year for which the tax year shall be factored. For the
37 purpose of this computation, the consumer price index for any calendar year is
38 the average of the consumer price index as of the close of the twelve (12)
39 month period ending on July 1 of such calendar year). The consumer price index
40 shall mean the consumer price index for all U.S. urban consumers published by
41 the United States department of labor. The state tax commission shall annually
42 include the factor as provided in this subsection to multiply against taxable
43 income to arrive at that year's taxable income.".
44 AMENDMENT TO SECTION 6
45 On page 4, delete lines 11 and 12 and insert: "declared to exist, Sections
46 1, 3, 4 and 5 of this act shall be in full force and effect on and after its
47 passage and approval and retroactively to January 1, 2000. Section 2 of this
48 act shall be in full force and effect on and after January 1, 2001.".
49 CORRECTION TO TITLE
50 On page 1, in line 11, delete "CHAP-", delete lines 12 through 14 and
51 insert: "SECTION 63-3024, IDAHO CODE, TO PROVIDE THAT FOR TAX YEAR 2001 AND
52 EACH YEAR THEREAFTER, THE STATE TAX COMMISSION SHALL PRESCRIBE A FACTOR TO
53 COMPUTE TAXABLE INCOME SO THAT INFLATION WILL NOT RESULT IN A TAX INCREASE, TO
3
1 PROVIDE THE FORMULA AND TO PROVIDE DUTIES OF THE STATE TAX COMMISSION; REPEAL-
2 ING".
Moved by Davis
Seconded by Boatright
IN THE SENATE
SENATE AMENDMENT TO THE SECOND SET OF SENATE AMENDMENTS
ADOPTED BY THE SENATE TO H.B. NO. 707
3 AMENDMENT TO THE AMENDMENT
4 On page 1 of the printed amendment, delete lines 2 through 43 and on page
5 2 delete lines 1 through 25 and insert:
6 "On page 1 of the printed bill, delete lines 37 through 41, and on page 2
7 delete lines 1 and 2 and insert:
8 "SECTION 2. That Section 63-3024, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-3024. INDIVIDUALS' TAX AND TAX ON ESTATES AND TRUSTS. For each taxable
11 year on and after January 1, 2000, a tax measured by Idaho taxable income as
12 defined in this chapter is hereby imposed upon every individual, trust, or
13 estate required by this chapter to file a return.
14 (a) The tax imposed upon individuals, trusts and estates shall be com-
15 puted at the following rates:
16 When Idaho taxable income is: The rate is:
17 Less than $1,000 Two percent (2.0%)
18 $1,000 but less than $2,000 $20, plus four percent (4.0%)
19 of the amount over $1,000
20 $2,000 but less than $3,000 $60, plus four and one-half percent
21 (4.5%) of the amount over $2,000
22 $3,000 but less than $4,000 $105, plus five and one-half percent
23 (5.5%) of the amount over $3,000
24 $4,000 but less than $5,000 $160, plus six and one-half percent
25 (6.5%) of the amount over $4,000
26 $5,000 but less than $7,500 $225, plus seven and one-half percent
27 (7.5%) of the amount over $5,000
28 $7,500 but less than $20,000 $412.50, plus seven and eight-tenths percent
29 (7.8%) of the amount over $7,500
30 Over $20,000 $1,387.50, plus eight and two-tenths percent
31 (8.2%) of the amount over $20,000
32 For tax year 2000 and each year thereafter, the state tax commission shall
33 prescribe a factor which shall be used to compute Idaho income tax brackets
34 provided above. The factor shall provide an adjustment to the Idaho tax brack-
35 ets so that inflation will not result in a tax increase. The Idaho tax brack-
36 ets shall be adjusted as follows: multiply the bracket amounts by the percent-
37 age (the consumer price index for the calendar year immediately preceding the
38 calendar year to which the adjusted brackets will apply divided by the con-
39 sumer price index for calendar year 1998). For the purpose of this computa-
40 tion, the consumer price index for any calendar year is the average of the
41 consumer price index as of the close of the twelve (12) month period for the
42 immediately preceding calendar year as adopted by the state tax commission.
43 This adoption shall be exempt from the provisions of chapter 52, title 67,
44 Idaho Code. The consumer price index shall mean the consumer price index for
4
1 all U.S. urban consumers published by the United States department of labor.
2 The state tax commission shall annually include the factor as provided in this
3 subsection to multiply against Idaho taxable income in the brackets above to
4 arrive at that year's taxable income for tax bracket purposes.
5 (b) In case a joint return is filed by husband and wife pursuant to the
6 provisions of section 63-3031, Idaho Code, the tax imposed by this section
7 shall be twice the tax which would be imposed on one-half (1/2) of the aggre-
8 gate Idaho taxable income. For the purposes of this section, a return of a
9 surviving spouse, as defined in section 2(a) of the Internal Revenue Code, and
10 a head of household, as defined in section 2(b) of the Internal Revenue Code,
11 shall be treated as a joint return and the tax imposed shall be twice the tax
12 which would be imposed on one-half (1/2) of the Idaho taxable income.
13 (c) The state tax commission shall compute and publish Idaho income tax
14 liability for taxpayers at the midpoint of each bracket of Idaho taxable
15 income in fifty dollar ($50.00) steps to fifty thousand dollars ($50,000),
16 rounding such calculations to the nearest dollar. Taxpayers having income
17 within such brackets shall file returns based upon and pay taxes according to
18 the schedule thus established. The state tax commission shall promulgate rules
19 defining the conditions upon which such returns shall be filed.".
20 On page 4, delete lines 10 through 12 and insert:
21 "SECTION 6. An emergency existing therefor, which emergency is hereby
22 declared to exist, this act shall be in full force and effect on and after its
23 passage and approval and retroactively to January 1, 2000.".
24 CORRECTION TO TITLE
25 On page 1, in line 11, delete "CHAP-", delete lines 12 through 14 and
26 insert: "SECTION 63-3024, IDAHO CODE, TO PROVIDE THAT FOR TAX YEAR 2000 AND
27 EACH YEAR THEREAFTER, THE STATE TAX COMMISSION SHALL PRESCRIBE A FACTOR TO
28 COMPUTE IDAHO TAXABLE INCOME FOR TAX BRACKET PURPOSES SO THAT INFLATION WILL
29 NOT RESULT IN A TAX INCREASE, TO PROVIDE THE FORMULA AND TO PROVIDE DUTIES OF
30 THE STATE TAX COMMISSION; REPEALING".".
STATEMENT OF PURPOSE
RS10221C1
The purpose of this legislation is to provide that a self- employed person may
deduct medical insurance premiums from their state income tax which may not
otherwise be deductible for federal income tax purposes. Further, this legislation
provides an income tax credit of three percent(3%)for a taxpayer's state income
tax liability for the tax year 2000 and beyond. It further provides for elimination
from the calculation of Idaho taxable income any marriage penalty. This
legislation also increases the maximum amount of tax liability the investment tax
credit may be.
FISCAL IMPACT
The fiscal impact is projected as follows:
Health Insurance Deduction for Self-Employed 1,600,000
"Marriage Tax Penalty" fully funded 10,788,000
A 3% Individual Income Tax Credit 26,000,000
Investment Tax Credit Increase 2,100,000
Total: $40,448,000
CONTACT: Rep. Dolores Crow
Rep. Mike Moyle
Phone: 208) 332-1000
STATEMENT OF PURPOSE/ FISCAL IMPACT H 707