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H0802aaS............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing law to provide an income tax deduction for a
taxpayer who is a self-employed individual treated as an employee for
medical insurance for the taxpayer, spouse and dependents; to decrease the
individual income tax rates for taxable year 2000 only; to prescribe a
factor to compute Idaho income tax so that inflation will not result in a
tax increase; to provide for elimination from calculation of Idaho income
tax any marriage penalty that may exist in the basic standard deduction;
and to increase the maximum amount of the allowable tax credit of the
investment tax credit.
03/30 House intro - 1st rdg - to printing
Rpt prt - 2nd rdg - to 3rd rdg
Rls susp - PASSED - 49-16-5
AYES -- Alltus, Barraclough, Barrett, Black, Bruneel, Callister,
Campbell, Cheirrett, Clark, Crow, Deal, Denney, Ellsworth, Field(13),
Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
Hornbeck, Jones(Jones), Kellogg, Kempton, Kendell, Kunz, Lake,
Loertscher, Mader, McKague, Montgomery, Mortensen, Moss, Moyle,
Pearce, Pischner, Pomeroy, Sali, Schaefer, Sellman, Smith, Smylie,
Stevenson, Stone, Tilman, Trail, Wheeler, Zimmermann
NAYS -- Bieter, Boe, Chase, Cuddy, Hansen(29), Henbest, Jaquet, Judd,
Marley, Meyer, Ridinger, Ringo, Robison, Shepherd, Stoicheff, Wood
Absent and excused -- Bell, Linford, Reynolds, Taylor, Mr Speaker
Floor Sponsors - Crow, Moyle
Title apvd - to Senate
04/03 Senate intro - 1st rdg - to Loc Gov
Rpt out - rec d/p - to 2nd rdg
2nd rdg - to 14th Ord
04/04 Rpt out amen - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 31-4-0
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Ingram, Ipsen, Keough, King-Barrutia, McLaughlin, Noh, Richardson,
Riggs, Risch, Sandy, Sorensen, Stegner, Stennett, Thorne, Walton,
Wheeler, Whitworth, Williams
NAYS--Hawkins, Lee, Parry, Schroeder
Absent and excused--None
Floor Sponsors - Thorne, Hawkins, Frasure
Title apvd - to House
House concurred in Senate amens - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 68-0-2
AYES -- Barraclough(Barraclough), Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Cheirrett, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford,
Loertscher(Loertscher), Mader, Marley, McKague, Meyer, Montgomery,
Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds,
Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith,
Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Trail, Wheeler,
Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Alltus, Clark
Title apvd - to enrol
04/05 Rpt enrol - Sp signed - Pres signed
04/06 To Governor
04/17 Governor signed
Session Law Chapter 479
Effective: 01/01/00
H0802
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 802, As Amended in the Senate
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 SEC-
12 TION 63-3024, IDAHO CODE, TO PROVIDE THAT FOR TAXABLE YEAR 2000 ONLY, THE
13 RATE FOR INDIVIDUAL INCOME TAX SHALL BE DECREASED, TO PROVIDE THAT FOR TAX
14 YEAR 2000 AND EACH YEAR THEREAFTER, THE STATE TAX COMMISSION SHALL PRE-
15 SCRIBE A FACTOR TO COMPUTE IDAHO TAXABLE INCOME FOR TAX BRACKET PURPOSES
16 SO THAT INFLATION WILL NOT RESULT IN A TAX INCREASE, TO PROVIDE THE FOR-
17 MULA AND TO PROVIDE DUTIES OF THE STATE TAX COMMISSION; REPEALING SECTION
18 63-3022N, IDAHO CODE; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE
19 ADDITION OF A NEW SECTION 63-3022N, IDAHO CODE, TO PROVIDE FOR THE ELIMI-
20 NATION FROM THE CALCULATION OF IDAHO TAXABLE INCOME ANY MARRIAGE PENALTY
21 THAT MAY EXIST IN THE BASIC STANDARD DEDUCTION PROVIDED IN THE INTERNAL
22 REVENUE CODE, TO PROVIDE FOR ADJUSTMENTS, TO PROVIDE A DEFINITION OF "THE
23 MARRIAGE PENALTY" AND TO PROVIDE PROCEDURES; AMENDING SECTION 63-3029B,
24 IDAHO CODE, TO INCREASE THE MAXIMUM AMOUNT OF THE ALLOWABLE TAX CREDIT OF
25 THE INVESTMENT TAX CREDIT AND TO MAKE TECHNICAL CORRECTIONS; DECLARING AN
26 EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
27 Be It Enacted by the Legislature of the State of Idaho:
28 SECTION 1. That Chapter 30, Title 63, Idaho Code, be, and the same is
29 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
30 ignated as Section 63-3022O, Idaho Code, and to read as follows:
31 63-3022O. HEALTH INSURANCE COSTS. With respect to a taxpayer who is a
32 self-employed individual treated as an employee pursuant to section 401(c)(1)
33 of the Internal Revenue Code, an amount equal to the amount paid by the tax-
34 payer during the taxable year for insurance, which constitutes medical care
35 for the taxpayer and the spouse and dependents of the taxpayer which is not
36 otherwise deductible by the taxpayer for federal income tax purposes because
37 the applicable percentage for that taxable year as specified pursuant to sec-
38 tion 162(1) of the Internal Revenue Code is less than one hundred percent
39 (100%), shall be allowed as a deduction against taxable income.
40 SECTION 2. That Section 63-3024, Idaho Code, be, and the same is hereby
41 amended to read as follows:
2
1 63-3024. INDIVIDUALS' TAX AND TAX ON ESTATES AND TRUSTS. For each taxable
2 year 2000, a tax measured by Idaho taxable income as defined in this chapter
3 is hereby imposed upon every individual, trust, or estate required by this
4 chapter to file a return.
5 (a) (i) The tax imposed upon individuals, trusts and estates shall be
6 computed at the following rates:
7 When Idaho taxable income is: The rate is:
8 Less than $1,000 Two One and nine-tenths percent (2.01.9%)
9 $1,000 but less than $2,000 $2019, plus four three and nine-tenths
10 percent (4.03.9%) of the amount over $1,000
11 $2,000 but less than $3,000 $6058, plus four and one-half four-tenths
12 percent (4.54%) of the amount over $2,000
13 $3,000 but less than $4,000 $1052, plus five and one-half four-tenths
14 percent (5.54%) of the amount over $3,000
15 $4,000 but less than $5,000 $1560, plus six and one-half four-tenths
16 percent (6.54%) of the amount over $4,000
17 $5,000 but less than $7,500 $2250, plus seven and one-half four-tenths
18 percent (7.54%) of the amount over $5,000
19 $7,500 but less than $20,000 $412.5005, plus seven and eightseven-tenths
20 percent (7.87%) of the amount over $7,500
21 Over $20,000 $1,3867.50, plus eight and twoone-tenths
22 percent (8.21%) of the amount over $20,000
23 (ii) For taxable year 2001 and each taxable year thereafter, a tax mea-
24 sured by Idaho taxable income as defined in this chapter is hereby imposed
25 upon every individual, trust, or estate required by this chapter to file a
26 return.
27 The tax imposed upon individuals, trusts and estates shall be computed at
28 the following rates:
29 When Idaho taxable income is: The rate is:
30 Less than $1,000 Two percent (2.0%)
31 $1,000 but less than $2,000 $20, plus four percent (4.0%)
32 of the amount over $1,000
33 $2,000 but less than $3,000 $60, plus four and one-half percent
34 (4.5%) of the amount over $2,000
35 $3,000 but less than $4,000 $105, plus five and one-half percent
36 (5.5%) of the amount over $3,000
37 $4,000 but less than $5,000 $160, plus six and one-half percent
38 (6.5%) of the amount over $4,000
39 $5,000 but less than $7,500 $225, plus seven and one-half percent
40 (7.5%) of the amount over $5,000
41 $7,500 but less than $20,000 $412.50, plus seven and eight-tenths percent
42 (7.8%) of the amount over $7,500
43 Over $20,000 $1,387.50, plus eight and two-tenths percent
44 (8.2%) of the amount over $20,000
45 For taxable year 2000 and each year thereafter, the state tax commission
46 shall prescribe a factor which shall be used to compute the Idaho income tax
47 brackets provided in subsections (a)(i) and (a)(ii) of this section. The fac-
48 tor shall provide an adjustment to the Idaho tax brackets so that inflation
49 will not result in a tax increase. The Idaho tax brackets shall be adjusted as
50 follows: multiply the bracket amounts by the percentage (the consumer price
51 index for the calendar year immediately preceding the calendar year to which
52 the adjusted brackets will apply divided by the consumer price index for cal-
53 endar year 1998). For the purpose of this computation, the consumer price
54 index for any calendar year is the average of the consumer price index as of
55 the close of the twelve (12) month period for the immediately preceding calen-
3
1 dar year as adopted by the state tax commission. This adoption shall be exempt
2 from the provisions of chapter 52, title 67, Idaho Code. The consumer price
3 index shall mean the consumer price index for all U.S. urban consumers pub-
4 lished by the United States department of labor. The state tax commission
5 shall annually include the factor as provided in this subsection to multiply
6 against Idaho taxable income in the brackets above to arrive at that year's
7 taxable income for tax bracket purposes.
8 (b) In case a joint return is filed by husband and wife pursuant to the
9 provisions of section 63-3031, Idaho Code, the tax imposed by this section
10 shall be twice the tax which would be imposed on one-half (1/2) of the aggre-
11 gate Idaho taxable income. For the purposes of this section, a return of a
12 surviving spouse, as defined in section 2(a) of the Internal Revenue Code, and
13 a head of household, as defined in section 2(b) of the Internal Revenue Code,
14 shall be treated as a joint return and the tax imposed shall be twice the tax
15 which would be imposed on one-half (1/2) of the Idaho taxable income.
16 (c) The state tax commission shall compute and publish Idaho income tax
17 liability for taxpayers at the midpoint of each bracket of Idaho taxable
18 income in fifty dollar ($50.00) steps to fifty thousand dollars ($50,000),
19 rounding such calculations to the nearest dollar. Taxpayers having income
20 within such brackets shall file returns based upon and pay taxes according to
21 the schedule thus established. The state tax commission shall promulgate rules
22 defining the conditions upon which such returns shall be filed.
23 SECTION 3. That Section 63-3022N, Idaho Code, be, and the same is hereby
24 repealed.
25 SECTION 4. 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 63-3022N, Idaho Code, and to read as follows:
28 63-3022N. MARRIAGE PENALTY ADJUSTMENT. (1) To eliminate from the calcula-
29 tion of Idaho taxable income any marriage penalty that may exist in the basic
30 standard deductions provided in the Internal Revenue Code, basic federal stan-
31 dard deductions shall be adjusted as provided in this section.
32 (2) As used in this section, "the marriage penalty" means the difference
33 obtained by subtracting:
34 (a) The basic standard deduction for joint returns, from
35 (b) Two (2) times the basic standard deduction for an individual who is
36 not married and who is not a surviving spouse or head of household.
37 (3) For each taxable year beginning on and after January 1, 2000, the
38 standard deduction in section 63-3022(k)(1), Idaho Code, shall be: on a joint
39 return, the basic federal joint standard deduction plus the marriage penalty,
40 rounded to the nearest dollar, plus the amount of any additional standard
41 deduction for the aged or blind for which a taxpayer may qualify under section
42 63 of the Internal Revenue Code.
43 (4) The basic federal standard deduction for an individual for whom a
44 deduction under section 151 of the Internal Revenue Code is allowable to
45 another taxpayer shall not be reduced below the minimum adjusted basic stan-
46 dard deduction provided by section 63 of the Internal Revenue Code.
47 SECTION 5. That Section 63-3029B, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
50 of the taxpayer there shall be allowed, subject to the applicable limitations
4
1 provided herein as a credit against the income tax imposed by chapter 30,
2 title 63, Idaho Code, an amount equal to the sum of:
3 (a) tThe tax credit carry-overs carryovers; and
4 (b) tThe tax credit for the taxable year.
5 (2) The maximum allowable amount of the credit for the current taxable
6 year shall be three percent (3%) of the amount of qualified investments made
7 during the taxable year.
8 (3) As used in this section "qualified investment" means certain depre-
9 ciable property which:
10 (a) iIs eligible for the federal investment tax credit, as defined in
11 sections 46(c) and 48 of the iInternal rRevenue cCode subject to the lim-
12 itations provided for certain regulated companies in section 46(f) of the
13 iInternal rRevenue cCode and is not a motor vehicle under eight thousand
14 (8,000) pounds gross weight;
15 (b) iIs acquired, constructed, reconstructed, erected or placed into ser-
16 vice after December 31, 1981; and
17 (c) hHas a situs in Idaho.
18 (4) Notwithstanding the provisions of subsections (1) and (2) of this
19 section, the amount of the credit allowed shall not exceed forty-five fifty
20 percent (450%) of the tax liability of the taxpayer.
21 (5) If the sum of credit carry-overs carryovers from the credit allowed
22 by subsection (2) of this section and the amount of credit for the taxable
23 year from the credit allowed by subsection (2) of this section exceed the lim-
24 itation imposed by subsection (4) of this section for the current taxable
25 year, the excess attributable to the current taxable year's credit shall be an
26 investment credit carry-over carryover to the seven (7) succeeding taxable
27 years. In the case of a group of corporations filing a combined report under
28 section 63-3027, Idaho Code, or sections 63-3027B through 63-3027E, Idaho
29 Code, credit earned by one (1) member of the group but not used by that member
30 may be used by another member of the group, subject to the provisions of sub-
31 section (4) of this section, instead of carried over. The entire amount of
32 unused credit shall be carried forward to the earliest of the succeeding
33 years, wherein the oldest available unused credit shall be used first, so long
34 as the qualified investment property for which the unused credit was granted
35 still maintains Idaho situs. For a combined group of corporations, credit car-
36 ried forward may be claimed by any member of the group unless the member who
37 earned the credit is no longer included in the combined group.
38 (6) Any recapture of the credit allowed by subsection (2) of this section
39 on property disposed of or ceasing to qualify, prior to the close of its use-
40 ful life, shall be determined according to the applicable recapture provisions
41 of the iInternal rRevenue cCode. In the case of a unitary group of corpora-
42 tions, the increase in tax due to the recapture of investment tax credit must
43 be reported by the member of the group who earned the credit regardless of
44 which member claimed the credit against tax.
45 (7) For the purpose of determining whether property placed in service is
46 a "qualified investment" as defined in subsection (3) of this section, the
47 provisions of section 49 of the iInternal rRevenue cCode shall be disregarded.
48 (8) For purposes of this section, property has a situs in Idaho during a
49 taxable year if it is used in Idaho at any time during the taxable year. Prop-
50 erty not used in Idaho during a taxable year does not have a situs in Idaho in
51 the taxable year during which the property is not used in Idaho or in any sub-
52 sequent taxable year. No credit or carry-over carryover of credit is permitted
53 under this section if the credit or carry-over carryover relates to property
54 that does not have a situs in Idaho during the taxable year for which the
55 credit or carry-over carryover is claimed. The Idaho situs of property must be
5
1 established by records maintained by the taxpayer which are created reasonably
2 contemporaneously with the use of the property.
3 (9) In the case of property used both in and outside Idaho, the taxpayer,
4 electing to claim the credit provided in this section, must elect to compute
5 the qualified investment in property with a situs in Idaho for all such
6 investments first qualifying during that year in one (1), but only one (1), of
7 the following ways:
8 (a) tThe amount of each qualified investment in a specific asset shall be
9 separately computed based on the percentage of the actual use of the prop-
10 erty in Idaho by using a measure of the use, such as total miles or total
11 machine hours, that most accurately reflects the beneficial use during the
12 taxable year in which it is first acquired, constructed, reconstructed,
13 erected or placed into service; provided, that the asset is placed in ser-
14 vice more than ninety (90) days before the end of the taxable year. In the
15 case of assets acquired, constructed, reconstructed, erected or placed
16 into service within ninety (90) days prior to the end of the taxable year
17 in which the investment first qualifies, the measure of the use of that
18 asset within Idaho for that year shall be based upon the percentage of use
19 in Idaho during the first ninety (90) days of use of the asset;
20 (b) tThe investment in qualified property used both inside and outside
21 Idaho during the taxable year in which it is first acquired, constructed,
22 reconstructed, erected or placed into service shall be multiplied by the
23 percent of the investment that would be included in the numerator of the
24 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
25 for the same year.
26 (10) Only for the purposes of subsections (3)(a) and (7) of this section,
27 references to sections of the "iInternal rRevenue cCode" mean the sections
28 referred to as they existed in the iInternal rRevenue cCode of 1986 prior to
29 November 5, 1990.
30 SECTION 6. An emergency existing therefor, which emergency is hereby
31 declared to exist, this act shall be in full force and effect on and after its
32 passage and approval, and retroactively to January 1, 2000.
AH0802
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Danielson
Seconded by Stegner
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 802
1 AMENDMENT TO SECTION 2
2 On page 2 of the printed bill, delete lines 1 through 39 and insert:
3 "63-3024. INDIVIDUALS' TAX AND TAX ON ESTATES AND TRUSTS. For each tax-
4 able year 2000, a tax measured by Idaho taxable income as defined in this
5 chapter is hereby imposed upon every individual, trust, or estate required by
6 this chapter to file a return.
7 (a) (i) The tax imposed upon individuals, trusts and estates shall be
8 computed at the following rates:
9 When Idaho taxable income is: The rate is:
10 Less than $1,000 Two One and nine-tenths percent (2.01.9%)
11 $1,000 but less than $2,000 $2019, plus four three and nine-tenths
12 percent (4.03.9%) of the amount over $1,000
13 $2,000 but less than $3,000 $6058, plus four and one-half four-tenths
14 percent (4.54%) of the amount over $2,000
15 $3,000 but less than $4,000 $1052, plus five and one-half four-tenths
16 percent (5.54%) of the amount over $3,000
17 $4,000 but less than $5,000 $1560, plus six and one-half four-tenths
18 percent (6.54%) of the amount over $4,000
19 $5,000 but less than $7,500 $2250, plus seven and one-half four-tenths
20 percent (7.54%) of the amount over $5,000
21 $7,500 but less than $20,000 $412.5005, plus seven and eightseven-tenths
22 percent (7.87%) of the amount over $7,500
23 Over $20,000 $1,3867.50, plus eight and twoone-tenths
24 percent (8.21%) of the amount over $20,000
25 (ii) For taxable year 2001 and each taxable year thereafter, a tax mea-
26 sured by Idaho taxable income as defined in this chapter is hereby imposed
27 upon every individual, trust, or estate required by this chapter to file a
28 return.
29 The tax imposed upon individuals, trusts and estates shall be computed at
30 the following rates:
31 When Idaho taxable income is: The rate is:
32 Less than $1,000 Two percent (2.0%)
33 $1,000 but less than $2,000 $20, plus four percent (4.0%)
34 of the amount over $1,000
35 $2,000 but less than $3,000 $60, plus four and one-half percent
36 (4.5%) of the amount over $2,000
37 $3,000 but less than $4,000 $105, plus five and one-half percent
38 (5.5%) of the amount over $3,000
39 $4,000 but less than $5,000 $160, plus six and one-half percent
40 (6.5%) of the amount over $4,000
41 $5,000 but less than $7,500 $225, plus seven and one-half percent
42 (7.5%) of the amount over $5,000
43 $7,500 but less than $20,000 $412.50, plus seven and eight-tenths percent
44 (7.8%) of the amount over $7,500
2
1 Over $20,000 $1,387.50, plus eight and two-tenths percent
2 (8.2%) of the amount over $20,000
3 For taxable year 2000 and each year thereafter, the state tax commission
4 shall prescribe a factor which shall be used to compute the Idaho income tax
5 brackets provided in subsections (a)(i) and (a)(ii) of this section. The fac-
6 tor shall provide an adjustment to the Idaho tax brackets so that inflation
7 will not result in a tax increase. The Idaho tax brackets shall be adjusted as
8 follows: multiply the bracket amounts by the percentage (the consumer price
9 index for the calendar year immediately preceding the calendar year to which
10 the adjusted brackets will apply divided by the consumer price index for cal-
11 endar year 1998). For the purpose of this computation, the consumer price
12 index for any calendar year is the average of the consumer price index as of
13 the close of the twelve (12) month period for the immediately preceding calen-
14 dar year as adopted by the state tax commission. This adoption shall be exempt
15 from the provisions of chapter 52, title 67, Idaho Code. The consumer price
16 index shall mean the consumer price index for all U.S. urban consumers pub-
17 lished by the United States department of labor. The state tax commission
18 shall annually include the factor as provided in this subsection to multiply
19 against Idaho taxable income in the brackets above to arrive at that year's
20 taxable income for tax bracket purposes.".
21 CORRECTION TO TITLE
22 On page 1, delete lines 12 and 13 and insert: "TION 63-3024, IDAHO CODE,
23 TO PROVIDE THAT FOR TAXABLE YEAR 2000 ONLY, THE RATE FOR INDIVIDUAL INCOME TAX
24 SHALL BE DECREASED, TO PRO-".
STATEMENT OF PURPOSE
RS10343
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 decreases the individual income tax rates by one-tenth of one
percent(.1%).
It further provides for elimination from the calculation of Idaho taxable
income any marriage penalty. This legislation also increases the investment tax
credit maximum amount from 45 to 50 and includes the Individual Income Tax
CPI Bracket Adjustment for the tax year 2000.
FISCAL IMPACT
The fiscal impact is projected as follows:
Health Insurance Deduction for Self-Employed $ 1,600,000.00
"Marriage Tax Penalty" fully funded 10,600,000.00
Individual Income Tax Rate Reduction of .1% 12,500,000.00
Individual Income Tax CPI Bracket Adj (tax year 2000) 2,150,000.00
Investment Tax Credit Increase 2,100,000.00
Total: $28,950,000.00
CONTACT: Rep. Dolores Crow
Rep. Mike Moyle
Phone: (208) 332-1000
STATEMENT OF PURPOSE/ FISCAL IMPACT H 802