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H0370...............................................by REVENUE AND TAXATION
INCOME TAX - Amends, repeals and adds to existing law to reduce the
individual income tax rates for taxable year 2001 and thereafter; to
provide for rebates of 10.6% of the 1999 income tax paid by individuals,
subject to a $25.00 minimum and $25,000 maximum; to increase the grocery
tax credit for individuals; to increase the capital gains deduction; to
permanently reduce the corporate income tax rate by 0.4%; to provide income
tax credits for research and development expenditures and installing
broadband communications equipment; to provide an exemption from personal
property taxes for agricultural machinery and equipment; to provide an
income tax deduction for health insurance costs; and to provide for
remittance of moneys to counties and taxing districts to replace property
taxes on certain personal property exempt from taxation.
03/20 House intro - 1st rdg - to printing
03/21 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 370
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING SECTION 63-3024, IDAHO CODE, TO PROVIDE FOR A
3 REDUCTION IN RATES FOR TAXABLE YEAR 2001 AND THEREAFTER; AMENDING CHAPTER
4 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-3081, IDAHO
5 CODE, TO PROVIDE A REBATE OF INCOME TAXES PAID BY INDIVIDUALS FOR TAXABLE
6 YEARS BEGINNING IN 1999, TO DETERMINE THE RATE OF THE REBATE, TO SET MAXI-
7 MUM AND MINIMUM AMOUNTS, TO PROVIDE PROCEDURES, TO APPROPRIATE MONEYS AND
8 TO AUTHORIZE CONTRACTS; AMENDING SECTION 63-3022H, IDAHO CODE, TO INCREASE
9 THE DEDUCTION ALLOWED FOR QUALIFIED CAPITAL GAINS AND TO MAKE TECHNICAL
10 CORRECTIONS; AMENDING SECTION 63-3024A, IDAHO CODE, TO INCREASE THE INCOME
11 TAX CREDIT FOR SALES TAXES PAID BY INDIVIDUALS AND TO MAKE TECHNICAL COR-
12 RECTIONS; AMENDING SECTION 63-3025, IDAHO CODE, TO REDUCE THE CORPORATE
13 INCOME TAX RATE FROM EIGHT TO SEVEN AND SIX-TENTHS PERCENT FOR TAXABLE
14 YEAR 2001 AND THEREAFTER; AMENDING SECTION 63-3025A, IDAHO CODE, TO REDUCE
15 THE CORPORATE FRANCHISE TAX RATE FROM EIGHT PERCENT TO THE RATE OF THE
16 CORPORATE INCOME TAX AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
17 63-3029B, IDAHO CODE, TO PROVIDE THAT TAXPAYERS MAKING EXPENDITURES FOR
18 QUALIFIED BROADBAND EQUIPMENT ARE ENTITLED TO THE CREDIT AND TO REVISE
19 PROCEDURES FOR RECAPTURE; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY
20 THE ADDITION OF A NEW SECTION 63-3029G, IDAHO CODE, TO PROVIDE AN INCOME
21 TAX CREDIT FOR CERTAIN EXPENDITURES RELATING TO RESEARCH ACTIVITIES CON-
22 DUCTED IN IDAHO, TO PROVIDE A SUNSET, TO PROVIDE A CARRYOVER OF UNUSED
23 CREDITS, TO PROVIDE DEFINITIONS AND TO PROVIDE PROCEDURES; AMENDING SEC-
24 TION 63-3029H, IDAHO CODE, TO REDESIGNATE THE SECTION; AMENDING CHAPTER
25 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-3029I,
26 IDAHO CODE, TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN EXPENDITURES
27 RELATING TO HIGH SPEED BROADBAND COMMUNICATIONS ACCESS IN IDAHO, TO PRO-
28 VIDE A SUNSET, TO PROVIDE A CARRYOVER OF UNUSED CREDITS, TO PROVIDE DEFI-
29 NITIONS AND TO PROVIDE PROCEDURES; AMENDING CHAPTER 30, TITLE 63, IDAHO
30 CODE, BY THE ADDITION OF A NEW SECTION 63-3022P, IDAHO CODE, TO PROVIDE,
31 WITH RESPECT TO A TAXPAYER, AN AMOUNT EQUAL TO THE AMOUNT PAID BY THE TAX-
32 PAYER DURING THE TAXABLE YEAR FOR INSURANCE, WHICH CONSTITUTES MEDICAL
33 CARE FOR THE TAXPAYER AND THE SPOUSE AND DEPENDENTS OF THE TAXPAYER WHICH
34 IS NOT OTHERWISE DEDUCTED BY THE TAXPAYER FOR FEDERAL INCOME TAX PURPOSES
35 SHALL BE ALLOWED AS A DEDUCTION AGAINST TAXABLE INCOME, AND TO PROVIDE A
36 DEFINITION OF INSURANCE WHICH CONSTITUTES MEDICAL CARE; AMENDING CHAPTER
37 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-602EE, IDAHO
38 CODE, TO PROVIDE THAT CERTAIN TANGIBLE PERSONAL PROPERTY IS EXEMPT FROM
39 TAXATION; AMENDING SECTION 63-3067, IDAHO CODE, TO PROVIDE FOR REMITTANCE
40 OF INCOME TAX MONEYS TO REPLACE PROPERTY TAXES ON CERTAIN PERSONAL PROP-
41 ERTY EXEMPT FROM TAXATION, TO PROVIDE A FORMULA AND TO MAKE A TECHNICAL
42 CORRECTION; PROVIDING FOR NONSEVERABILITY OF CERTAIN PROVISIONS OF THIS
43 ACT; AND DECLARING AN EMERGENCY.
44 Be It Enacted by the Legislature of the State of Idaho:
2
1 SECTION 1. That Section 63-3024, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 63-3024. INDIVIDUALS' TAX AND TAX ON ESTATES AND TRUSTS. For taxable year
4 20001, and each taxable year thereafter, a tax measured by Idaho taxable
5 income as defined in this chapter is hereby imposed upon every individual,
6 trust, or estate required by 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 One and nine six-tenths percent (1.96%)
11 $1,000 but less than $2,000 $196, plus three and nine six-tenths
12 percent (3.96%) of the amount over $1,000
13 $2,000 but less than $3,000 $582, plus four
14 and four one-tenths
15 percent (4.41%) of the amount over $2,000
16 $3,000 but less than $4,000 $10293, plus five
17 and four one-tenths
18 percent (5.41%) of the amount over $3,000
19 $4,000 but less than $5,000 $15644, plus six
20 and four one-tenths
21 percent (6.41%) of the amount over $4,000
22 $5,000 but less than $7,500 $2205, plus seven
23 and four one-tenths
24 percent (7.41%) of the amount over $5,000
25 $7,500 but less than $20,000 $405383, plus seven and seven four-tenths
26 percent (7.74%) of the amount over $7,500
27 Over $20,000 $1,367.508, plus eight and one-tenth seven
28 and eight-tenths percent
29 (8.17.8%) of the amount over $20,000
30 (ii) For taxable year 2001 and each taxable year thereafter, a tax mea-
31 sured by Idaho taxable income as defined in this chapter is hereby imposed
32 upon every individual, trust, or estate required by this chapter to file a
33 return.
34 The tax imposed upon individuals, trusts and estates shall be computed at the
35 following rates:
36 When Idaho taxable income is: The rate is:
37 Less than $1,000 Two percent (2.0%)
38 $1,000 but less than $2,000 $20, plus four percent (4.0%)
39 of the amount over $1,000
40 $2,000 but less than $3,000 $60, plus four and one-half percent
41 (4.5%) of the amount over $2,000
42 $3,000 but less than $4,000 $105, plus five and one-half percent
43 (5.5%) of the amount over $3,000
44 $4,000 but less than $5,000 $160, plus six and one-half percent
45 (6.5%) of the amount over $4,000
46 $5,000 but less than $7,500 $225, plus seven and one-half percent
47 (7.5%) of the amount over $5,000
48 $7,500 but less than $20,000 $412.50, plus seven and eight-tenths percent
49 (7.8%) of the amount over $7,500
50 Over $20,000 $1,387.50, plus eight and two-tenths percent
51 (8.2%) of the amount over $20,000
52 For taxable year 2000 and each year thereafter, the state tax commission
53 shall prescribe a factor which shall be used to compute the Idaho income tax
54 brackets provided in subsections (a)(i) and (a)(ii) of this section. The fac-
3
1 tor shall provide an adjustment to the Idaho tax brackets so that inflation
2 will not result in a tax increase. The Idaho tax brackets shall be adjusted as
3 follows: multiply the bracket amounts by the percentage (the consumer price
4 index for the calendar year immediately preceding the calendar year to which
5 the adjusted brackets will apply divided by the consumer price index for cal-
6 endar year 1998). For the purpose of this computation, the consumer price
7 index for any calendar year is the average of the consumer price index as of
8 the close of the twelve (12) month period for the immediately preceding calen-
9 dar year as adopted by the state tax commission. This adoption shall be exempt
10 from the provisions of chapter 52, title 67, Idaho Code. The consumer price
11 index shall mean the consumer price index for all U.S. urban consumers pub-
12 lished by the United States department of labor. The state tax commission
13 shall annually include the factor as provided in this subsection to multiply
14 against Idaho taxable income in the brackets above to arrive at that year's
15 taxable income for tax bracket purposes.
16 (b) In case a joint return is filed by husband and wife pursuant to the
17 provisions of section 63-3031, Idaho Code, the tax imposed by this section
18 shall be twice the tax which would be imposed on one-half (1/2) of the aggre-
19 gate Idaho taxable income. For the purposes of this section, a return of a
20 surviving spouse, as defined in section 2(a) of the Internal Revenue Code, and
21 a head of household, as defined in section 2(b) of the Internal Revenue Code,
22 shall be treated as a joint return and the tax imposed shall be twice the tax
23 which would be imposed on one-half (1/2) of the Idaho taxable income.
24 (c) The state tax commission shall compute and publish Idaho income tax
25 liability for taxpayers at the midpoint of each bracket of Idaho taxable
26 income in fifty dollar ($50.00) steps to fifty thousand dollars ($50,000),
27 rounding such calculations to the nearest dollar. Taxpayers having income
28 within such brackets shall file returns based upon and pay taxes according to
29 the schedule thus established. The state tax commission shall promulgate rules
30 defining the conditions upon which such returns shall be filed.
31 SECTION 2. That Chapter 30, Title 63, Idaho Code, be, and the same is
32 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
33 ignated as Section 63-3081, Idaho Code, and to read as follows:
34 63-3081. REBATE OF INCOME TAX. (1) Subject to the limitations of this
35 section, in regard to each individual income tax return required to be filed
36 pursuant to section 63-3030, Idaho Code, and that is actually filed, for a
37 twelve (12) month taxable year beginning in 1999 for which tax is imposed by
38 section 63-3024, Idaho Code, on at least one dollar ($1.00) of Idaho taxable
39 income, the state tax commission shall, on a one-time basis, rebate to the
40 taxpayer named on the return the amount specified in subsection (2) of this
41 section. In the case of a joint return, the rebate shall be paid to both tax-
42 payers jointly.
43 (2) (a) The rebate provided by subsection (1) of this section shall be
44 ten and six-tenths percent (10.6%) of the amount of tax computed under
45 section 63-3024, Idaho Code, reduced by credits provided by:
46 (i) Section 63-3029, Idaho Code, relating to taxes paid to another
47 state;
48 (ii) Sections 63-3029A and 63-3029C, Idaho Code, relating to certain
49 charitable contributions;
50 (iii) Section 63-3029B, Idaho Code, relating to capital investments;
51 (iv) Section 63-3029D, Idaho Code, relating to qualified equipment
52 utilizing postconsumer waste or postindustrial waste.
53 (b) When the amount of a rebate payable under subsection (2)(a) of this
4
1 section is less than twenty-five dollars ($25.00), the amount of the
2 rebate shall be twenty-five dollars ($25.00). When the amount of a rebate
3 payable under subsection (2)(a) of this section is more than two thousand
4 five hundred dollars ($2,500), the amount of the rebate shall be two thou-
5 sand five hundred dollars ($2,500). In the case of married taxpayers fil-
6 ing separate returns, only one (1) minimum or maximum rebate shall be
7 paid.
8 (3) No rebate shall be paid pursuant to this section in regard to a
9 return described in subsection (1) of this section if the return is not filed
10 within three (3) years of the original due date of the return, without regard
11 to extensions. In the event that the amount of tax due on a return filed
12 within the time required by this subsection is amended by the taxpayer or
13 changed by the state tax commission the rebate provided by this section shall
14 be adjusted proportionally. The state tax commission may offset a rebate
15 against taxes assessed the taxpayer but unpaid.
16 (4) In the case of a short period return, the rebates provided by this
17 section shall be reduced in proportion to the portion of calendar year 1999 to
18 which the return applies.
19 (5) Except as provided in this subsection, no application for a rebate
20 provided in this section shall be required. The state tax commission shall
21 cause each rebate to be mailed to the taxpayer or taxpayers at the address
22 shown on the return, unless, as a result of a more recent return, a newer
23 address is shown on the commission's records. The state tax commission may
24 provide a procedure by which rebates that are returned or undeliverable may be
25 claimed.
26 (6) Any person aggrieved by any action of the state tax commission in
27 regard to the rebates provided in this section shall file a petition with the
28 state tax commission in the manner provided in section 63-3045, Idaho Code.
29 Such a petition shall be subject to administrative and judicial review in the
30 manner provided by sections 63-3045 through 63-3049, Idaho Code.
31 (7) Rebates authorized by this section shall be paid from the state
32 refund account established by section 63-3067, Idaho Code, from which the
33 amounts necessary to pay the rebates are hereby appropriated. In the event
34 that, at the time the rebates are paid, there is an insufficient balance in
35 the state refund account, the state board of examiners, upon application by
36 the state tax commission, shall transfer sufficient funds from the general
37 fund to make the rebate payments and any other refunds due and payable from
38 the state refund account.
39 (8) The state tax commission, the state treasurer and the state control-
40 ler may contract with a commercial bank for some or all of the services,
41 including issuing payments, relating to payment of the rebate provided in
42 this section.
43 SECTION 3. That Section 63-3022H, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 63-3022H. DEDUCTION OF CAPITAL GAINS. (1) If an individual taxpayer
46 reports a net capital gain in determining taxable income, sixty one hundred
47 percent (6100%) of the net capital gain from the sale or exchange of qualified
48 property shall be a deduction in determining taxable income.
49 (2) The deduction provided in this section is limited to the amount of
50 the net capital gain from all property included in federal taxable income. Net
51 capital gains treated as ordinary income by the iInternal rRevenue cCode do
52 not qualify for the deduction allowed in this section. The deduction otherwise
53 allowable under this section shall be reduced by the amount of any federal
5
1 capital gains deduction relating to such property, but not below zero.
2 (3) As used in this section "qualified property" means the following
3 property having an Idaho situs at the time of sale:
4 (a) Real property held at least eighteen (18) months;
5 (b) Tangible personal property used in Idaho for at least twelve (12)
6 months by a revenue-producing enterprise;
7 (c) Cattle or horses held for breeding, draft, dairy or sporting purposes
8 for at least twenty-four (24) months if more than one-half (1/2) of the
9 taxpayer's gross income (as defined in section 61(a) of the iInternal
10 rRevenue cCode) for the taxable year is from farming or ranching opera-
11 tions in Idaho;
12 (d) Breeding livestock other than cattle or horses held at least twelve
13 (12) months if more than one-half (1/2) of the taxpayer's gross income (as
14 defined in section 61(a) of the iInternal rRevenue cCode) for the taxable
15 year is from farming or ranching operations in Idaho;
16 (e) Timber grown in Idaho and held at least twenty-four (24) months;
17 (f) In determining the period for which property subject to this section
18 has been held by a taxpayer, the provisions of section 1223 of the
19 iInternal rRevenue cCode shall apply, except that when the holding period
20 includes any period during which the taxpayer held property other than the
21 property sold, all property held during the holding period must qualify
22 under this section.
23 (4) If an individual reports a capital gain from qualified property from
24 an S corporation or a partnership, a deduction shall be allowed under this
25 section only to the extent the individual held his interest in the income of
26 the S corporation or the partnership for the time required by subsection (3)
27 of this section for the property sold.
28 (5) If an individual reports a capital gain from an estate, no deduction
29 shall be allowed under this section unless the holding period required in sub-
30 section (3) of this section was satisfied by the decedent, the estate, or the
31 beneficiary, or a combination thereof.
32 (6) If an individual reports a capital gain from a trust, no deduction
33 shall be allowed under this section unless the holding period required in sub-
34 section (3) of this section was satisfied by the grantor, the trust, or the
35 beneficiary, or a combination thereof.
36 (7) As used in this section "revenue-producing enterprise" means:
37 (a) The production, assembly, fabrication, manufacture, or processing of
38 any agricultural, mineral or manufactured product;
39 (b) The storage, warehousing, distribution, or sale at wholesale of any
40 products of agriculture, mining or manufacturing;
41 (c) The feeding of livestock at a feedlot;
42 (d) The operation of laboratories or other facilities for scientific,
43 agricultural, animal husbandry, or industrial research, development, or
44 testing.
45 SECTION 4. That Section 63-3024A, Idaho Code, be, and the same is hereby
46 amended to read as follows:
47 63-3024A. CREDITS AND REFUNDS. (a) Any resident individual not entitled
48 to the credit allowed in subsection (b)(1), who is required to file by law and
49 who has filed an Idaho income tax return, shall be allowed a credit against
50 taxes due under the Idaho income tax act equal to the amount of fifteen twenty
51 dollars ($1520.00) for each personal exemption for which a deduction is per-
52 mitted by section 151(b) and (c) of the Internal Revenue Code if such deduc-
53 tion is claimed on the taxpayer's Idaho income tax return, and if the individ-
6
1 ual for whom the deduction is claimed is a resident of the state of Idaho. If
2 taxes due are less than the total credit allowed, the taxpayer shall be paid a
3 refund equal to the balance of the unused credit. If the credit or refund is
4 not claimed for the year for which the individual income tax return is filed,
5 the right thereafter to claim such credit or refund shall be forfeited. The
6 state tax commission shall prescribe the method by which the refund, if any,
7 is to be made to the taxpayer.
8 (b) (1) A resident individual who has reached his sixty-fifth birthday
9 before the end of his taxable year, who is required to file by law and who
10 has filed an Idaho income tax return, shall be allowed a credit against
11 taxes due under the Idaho income tax act equal to the amount of
12 thirty-five dollars ($305.00) for each personal exemption representing
13 himself, a spouse over the age of sixty-five (65) years, or a dependent
14 over the age of sixty-five (65) years, but shall be allowed a credit
15 against taxes due under the Idaho income tax act equal to fifteen twenty
16 dollars ($1520.00) for each personal exemption representing a spouse or
17 dependent under the age of sixty-five (65) years. If taxes due are less
18 than the total credit allowed, the taxpayer shall be paid a refund equal
19 to the balance of the unused credit. If the credit or refund is not
20 claimed for the year for which the individual income tax return is filed,
21 the right thereafter to claim such credit or refund shall be forfeited.
22 The state tax commission shall prescribe the method by which the refund,
23 if any, is to be made to the taxpayer.
24 (2) A resident individual who has reached his sixty-fifth birthday and is
25 not required by law to file an Idaho income tax return and who has
26 received no credit or refund under any other subsection of this section,
27 shall be entitled to a refund of thirty-five dollars ($305.00). Any refund
28 shall be paid to such individual only upon his making application therefor
29 at such time and in such manner as may be prescribed by the state tax com-
30 mission.
31 (c) A resident individual of the state of Idaho who is:
32 (i) blind, or
33 (ii) a disabled American veteran of any war engaged in by the United
34 States, whose disability is recognized as a service connected disability
35 of a degree of ten per cent percent (10%) or more, or who is in receipt of
36 a pension for nonservice connected disabilities, in accordance with laws
37 and regulations administered by the United States veterans administration,
38 substantiated by a statement as to status signed by a responsible officer
39 of the United States veterans administration, or
40 (iii) over sixty-two (62) years of age, and has been allowed none, or less
41 than all, of the credit provided by subsection (a) or subsection (b) of
42 this section, shall be entitled to a payment from the refund fund in an
43 amount equal to fifteen twenty dollars ($1520.00), or the balance of his
44 unused credit, whichever is less, upon making application therefor at such
45 time and in such manner as the state tax commission may prescribe.
46 (d) Any part-year resident entitled to a credit under this section shall
47 receive a proportionate credit, in the manner above provided, reflecting the
48 part of the year in which he was domiciled in this state.
49 (e) No credit or refund may be claimed for an exemption which represents
50 a person who has himself filed an Idaho income tax return claiming a deduction
51 for his own personal exemption, and in no event shall more than one (1) tax-
52 payer be allowed a credit or refund for the same exemption, or under more than
53 one (1) subsection of this section.
54 (f) The refunds authorized by this section shall be paid from the state
55 refund fund in the same manner as the refunds authorized by section 63-3067,
7
1 Idaho Code.
2 (g) An application for any refund which is due and payable under the pro-
3 visions of this section must be filed with the state tax commission within
4 three (3) years of:
5 (i) the due date, including extensions, of the return required under sec-
6 tion 63-3030, Idaho Code, if the applicant is required to file a return,
7 or
8 (ii) the 15th day of April of the year following the year to which the
9 application relates if the applicant is not required to file a return.
10 SECTION 5. That Section 63-3025, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 63-3025. TAX ON CORPORATE INCOME. For taxable years commencing on and
13 after January 1, 1987 2001, a tax is hereby imposed on the Idaho taxable
14 income of a corporation which transacts or is authorized to transact business
15 in this state or which has income attributable to this state. The tax shall be
16 equal to eight seven and six-tenths percent (87.6%) of Idaho taxable income;
17 provided, however, that the tax shall not be less than twenty dollars
18 ($20.00); provided further that the twenty dollar ($20.00) minimum payment
19 shall not be collected from nonproductive mining corporations. The tax imposed
20 by this section shall not apply to corporations taxed pursuant to the provi-
21 sions of section 63-3025A, Idaho Code.
22 SECTION 6. That Section 63-3025A, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 63-3025A. FRANCHISE TAX. For taxable years commencing on and after Janu-
25 ary 1, 1987 2001, a franchise tax shall be imposed upon any corporation for
26 the privilege of exercising its corporate franchise within the state during
27 such taxable year, including, but not limited to, corporations engaged in
28 business in Idaho for the exclusive purpose of performing contracts with the
29 United States department of energy at the Idaho national engineering and envi-
30 ronmental laboratory, which tax shall be measured by income which is attribut-
31 able to this state under the provisions of this chapter and which tax shall be
32 equal to eight percent (8%) of Idaho taxable income at the rate provided in
33 section 63-3025, Idaho Code; provided, however, that the tax shall not be less
34 than twenty dollars ($20.00); provided further that the twenty dollar ($20.00)
35 minimum payment shall not be collected from nonproductive mining corporations;
36 but the twenty dollar ($20.00) minimum tax shall apply to corporations quali-
37 fied to file returns and actually filing returns under the provisions of sub-
38 chapter "S" of the Internal Revenue Code.
39 SECTION 7. That Section 63-3029B, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
42 of the taxpayer there shall be allowed, subject to the applicable limitations
43 provided herein as a credit against the income tax imposed by chapter 30,
44 title 63, Idaho Code, an amount equal to the sum of:
45 (a) The tax credit carryovers; and
46 (b) The tax credit for the taxable year.
47 (2) The maximum allowable amount of the credit for the current taxable
48 year shall be three percent (3%) of the amount of qualified investments made
49 during the taxable year.
8
1 (3) As used in this section "qualified investment" means certain depre-
2 ciable property which:
3 (a) (i) Is eligible for the federal investment tax credit, as defined in
4 sections 46(c) and 48 of the Internal Revenue Code subject to the
5 limitations provided for certain regulated companies in section 46(f)
6 of the Internal Revenue Code and is not a motor vehicle under eight
7 thousand (8,000) pounds gross weight; or
8 (ii) Is qualified broadband equipment as defined in section 63-3029I,
9 Idaho Code; and
10 (b) Is acquired, constructed, reconstructed, erected or placed into ser-
11 vice after December 31, 1981; and
12 (c) Has a situs in Idaho.
13 (4) Notwithstanding the provisions of subsections (1) and (2) of this
14 section, the amount of the credit allowed shall not exceed fifty percent (50%)
15 of the tax liability of the taxpayer.
16 (5) If the sum of credit carryovers from the credit allowed by subsection
17 (2) of this section and the amount of credit for the taxable year from the
18 credit allowed by subsection (2) of this section exceed the limitation imposed
19 by subsection (4) of this section for the current taxable year, the excess
20 attributable to the current taxable year's credit shall be an investment
21 credit carryover to the fourteen (14) succeeding taxable years. In the case of
22 a group of corporations filing a combined report under section 63-3027, Idaho
23 Code, or sections 63-3027B through 63-3027E, Idaho Code, credit earned by one
24 (1) member of the group but not used by that member may be used by another
25 member of the group, subject to the provisions of subsection (4) of this sec-
26 tion, instead of carried over. The entire amount of unused credit shall be
27 carried forward to the earliest of the succeeding years, wherein the oldest
28 available unused credit shall be used first, so long as the qualified invest-
29 ment property for which the unused credit was granted still maintains Idaho
30 situs. For a combined group of corporations, credit carried forward may be
31 claimed by any member of the group unless the member who earned the credit is
32 no longer included in the combined group.
33 (6) Any recapture of the credit allowed by subsection (2) of this section
34 on property disposed of or ceasing to qualify, prior to the close of its use-
35 ful life the recapture period, shall be determined according to the applicable
36 recapture provisions of the Internal Revenue Code. In the case of a unitary
37 group of corporations, the increase in tax due to the recapture of investment
38 tax credit must be reported by the member of the group who earned the credit
39 regardless of which member claimed the credit against tax.
40 (7) For the purpose of determining whether property placed in service is
41 a "qualified investment" as defined in subsection (3) of this section, the
42 provisions of section 49 of the Internal Revenue Code shall be disregarded.
43 (8) For purposes of this section, property has a situs in Idaho during a
44 taxable year if it is used in Idaho at any time during the taxable year. Prop-
45 erty not used in Idaho during a taxable year does not have a situs in Idaho in
46 the taxable year during which the property is not used in Idaho or in any sub-
47 sequent taxable year. No credit or carryover of credit is permitted under this
48 section if the credit or carryover relates to property that does not have a
49 situs in Idaho during the taxable year for which the credit or carryover is
50 claimed. The Idaho situs of property must be established by records maintained
51 by the taxpayer which are created reasonably contemporaneously with the use of
52 the property.
53 (9) In the case of property used both in and outside Idaho, the taxpayer,
54 electing to claim the credit provided in this section, must elect to compute
55 the qualified investment in property with a situs in Idaho for all such
9
1 investments first qualifying during that year in one (1), but only one (1), of
2 the following ways:
3 (a) The amount of each qualified investment in a specific asset shall be
4 separately computed based on the percentage of the actual use of the prop-
5 erty in Idaho by using a measure of the use, such as total miles or total
6 machine hours, that most accurately reflects the beneficial use during the
7 taxable year in which it is first acquired, constructed, reconstructed,
8 erected or placed into service; provided, that the asset is placed in ser-
9 vice more than ninety (90) days before the end of the taxable year. In the
10 case of assets acquired, constructed, reconstructed, erected or placed
11 into service within ninety (90) days prior to the end of the taxable year
12 in which the investment first qualifies, the measure of the use of that
13 asset within Idaho for that year shall be based upon the percentage of use
14 in Idaho during the first ninety (90) days of use of the asset;
15 (b) The investment in qualified property used both inside and outside
16 Idaho during the taxable year in which it is first acquired, constructed,
17 reconstructed, erected or placed into service shall be multiplied by the
18 percent of the investment that would be included in the numerator of the
19 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
20 for the same year.
21 (10) Only for the purposes of subsections (3)(a) and (7) of this section,
22 references to sections of the "Internal Revenue Code" mean the sections
23 referred to as they existed in the Internal Revenue Code of 1986 prior to
24 November 5, 1990.
25 SECTION 8. 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 63-3029G, Idaho Code, and to read as follows:
28 63-3029G. CREDITS FOR RESEARCH ACTIVITIES CONDUCTED IN THIS STATE --
29 CARRY FORWARD.
30 (1) (a) Subject to the limitations of this section, for taxable years
31 beginning between January 1, 2001, and December 31, 2005, inclusive, there
32 shall be allowed to a taxpayer a nonrefundable credit against taxes
33 imposed by sections 63-3024, 63-3025 and 63-3025A, Idaho Code, for
34 increasing research activities in Idaho during any consecutive five (5)
35 year period beginning, at the election of the taxpayer, either:
36 (i) January 1, 2001, or
37 (ii) The first day of the taxpayer's taxable year beginning in 2001.
38 (b) The credit allowed by subsection (1)(a) of this section shall be the
39 sum of:
40 (i) Five percent (5%) of the excess of qualified research payments
41 for research conducted in Idaho over the base amount; and
42 (ii) Five percent (5%) basic research payments allowable under sub-
43 section (e) of section 41 of the Internal Revenue Code for basic
44 research conducted in Idaho.
45 (c) Subject to the limitation in subsection (3) of this section, a tax-
46 payer making the election permitted by subsection (1)(a)(i) of this sec-
47 tion, credit for research activities occurring prior to the beginning of
48 the taxpayer's taxable year beginning in 2001 shall be claimed on the
49 taxpayer's return for its taxable year 2001 in addition to credit relating
50 to activity in that year.
51 (2) As used in this section:
52 (a) The terms "qualified research payments," "qualified research," "basic
53 research payments" and "basic research" shall be as defined in section 41
10
1 of the Internal Revenue Code except that the research must be conducted in
2 Idaho.
3 (b) The term "base amount" shall mean an amount calculated as provided in
4 sections 41(c) and 41(h) of the Internal Revenue Code, except that:
5 (i) The base amount does not include the calculation of the alter-
6 native incremental credit provided for in section 41(c)(4) of the
7 Internal Revenue Code;
8 (ii) A taxpayer's gross receipts include only those gross receipts
9 attributable to sources within this state as provided in subsections
10 (q) and (r) of section 63-3027, Idaho Code; and
11 (iii) Notwithstanding section 41(c) of the Internal Revenue Code, for
12 purposes of calculating the base amount, a taxpayer:
13 (A) May elect to be treated as a start-up company as provided
14 in section 41(c)(3)(B) of the Internal Revenue Code, regardless
15 of whether the taxpayer meets the requirements of section
16 41(c)(3)(B)(i)(I) or (II) of the Internal Revenue Code; and
17 (B) May not revoke an election to be treated as a start-up com-
18 pany.
19 (3) The credit allowed by subsection (1)(a) of this section together with
20 any credits carried forward under subsection (5) of this section shall not
21 exceed the amount of tax due under sections 63-3024, 63-3025 and 63-3025A,
22 Idaho Code, after allowance for all other credits permitted by this chapter.
23 When credits earned in more than one (1) taxable year are available, the old-
24 est credits shall be applied first.
25 (4) In the case of a group of corporations filing a combined report under
26 subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
27 of the group but not used by that member may be used by another member of the
28 group. For a combined group of corporations, any member of the group may claim
29 credit carried forward unless the member who earned the credit is no longer
30 included in the combined group.
31 (5) The credit allowed by subsection (1)(a) of this section shall be
32 claimed for the taxable year during which the taxpayer qualifies for the
33 credit. If the credit exceeds the limitation under subsection (3) of this sec-
34 tion, the excess amount may be carried forward for a period that does not
35 exceed the next fourteen (14) taxable years.
36 (6) In addition to other needed rules, the state tax commission may pro-
37 mulgate rules prescribing, in the case of S corporations, partnerships, trusts
38 or estates, a method of attributing the credit under this section to the
39 shareholders, partners or beneficiaries in proportion to their share of the
40 income from the S corporation, partnership, trust or estate.
41 SECTION 9. That Section 63-3029H, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 63-3029HP. PRIORITY OF CREDITS. When a taxpayer subject to any taxes
44 imposed under this chapter is entitled to two (2) or more credits against such
45 taxes, the priority of credits shall be determined in the following order:
46 (a) Nonrefundable credits. Nonrefundable credits shall be applied to the
47 tax liability before application of refundable credits. If a taxpayer is enti-
48 tled to more than one (1) nonrefundable credit, the credits shall be applied
49 in the order in which the statutes authorizing the credits were enacted by the
50 legislature.
51 (b) Refundable credits. Refundable credits shall be applied to the tax
52 liability after application of any nonrefundable credits.
11
1 SECTION 10. That Chapter 30, Title 63, Idaho Code, be, and the same is
2 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
3 ignated as Section 63-3029I, Idaho Code, and to read as follows:
4 63-3029I. INCOME TAX CREDIT FOR INVESTMENT IN BROADBAND EQUIPMENT. (1)
5 Subject to the limitations of this section, for taxable years beginning
6 between January 1, 2001, and December 31, 2005, inclusive, there shall be
7 allowed to a taxpayer a nonrefundable credit against taxes imposed by sections
8 63-3024, 63-3025 and 63-3025A, Idaho Code, for qualified expenditures in qual-
9 ified broadband equipment in Idaho.
10 (2) The credit permitted in subsection (1) of this section shall be three
11 percent (3%) of the qualified investment in qualified broadband equipment in
12 Idaho and shall be in addition to the credit for capital investment permitted
13 by section 63-3029B, Idaho Code.
14 (3) As used in this section the term:
15 (a) "Qualified investment" shall be as defined in section 63-3029B, Idaho
16 Code.
17 (b) "Qualified broadband equipment" means equipment that qualifies for
18 the credit for capital investment permitted by section 63-3029B, Idaho
19 Code, and is capable of transmitting signals at a rate of at least two
20 hundred thousand (200,000) bits per second to a subscriber and at least
21 one hundred twenty-five thousand (125,000) bits per second from a sub-
22 scriber, and
23 (i) In the case of a telecommunications carrier, such qualifying
24 equipment shall be necessary to the provision of broadband service
25 and an integral part of a broadband network. "Telecommunications car-
26 rier" has the meaning given such term by section 3(44) of the commu-
27 nications act of 1934, as amended, but does not include a commercial
28 mobile service provider.
29 (ii) In the case of a commercial mobile service carrier, such quali-
30 fying equipment shall extend from the subscriber side of the mobile
31 telecommunications switching office to a transmitting/receiving
32 antenna, including such antenna, on the outside of the structure in
33 which the subscriber is located. "Commercial mobile service carrier"
34 means any person authorized to provide commercial mobile radio ser-
35 vice to subscribers as defined in section 20.3 of title 47, Code of
36 Federal Regulations (10-1-99 ed.), as amended.
37 (iii) In the case of a cable or open video system operator, such
38 qualifying equipment shall extend from the subscriber's side of the
39 headend to the outside of the structure in which the subscriber is
40 located. The terms "cable operator" and "open video system operator"
41 have the meanings given such terms by sections 602(5) and 653,
42 respectively, of the communications act of 1934, as amended.
43 (iv) In the case of a satellite carrier or a wireless carrier other
44 than listed above, such qualifying equipment is only that equipment
45 that extends from a transmitting/receiving antenna, including such
46 antenna, which transmits and receives signals to or from multiple
47 subscribers to a transmitting/receiving antenna on the outside of the
48 structure in which the subscriber is located. "Satellite carrier"
49 means any person using the facilities of a satellite or satellite
50 services licensed by the federal communications commission and oper-
51 ating a fixed-satellite service or direct broadcast satellite ser-
52 vices to provide point-to-multipoint distribution of signals. "Other
53 wireless carrier" means any person, other than a telecommunications
54 carrier, commercial mobile service carrier, cable operator, open
12
1 video operator, or satellite carrier, providing broadband services to
2 subscribers through the radio transmission of energy.
3 (v) In the case of packet switching equipment, such packet equip-
4 ment installed in connection with other qualifying equipment listed
5 in subsections (2)(b)(i) through (2)(b)(iv) of this section, provided
6 it is the last in a series of equipment that transmits signals to a
7 subscriber or the first in a series of equipment that transmits sig-
8 nals from a subscriber. "Packet switching" means controlling or
9 routing the path of a digital transmission signal which is assembled
10 into packets or cells.
11 (vi) In the case of multiplexing and demultiplexing equipment, such
12 equipment only to the extent that it is deployed in connection with
13 providing broadband services in locations between packet switching
14 equipment and the structure in which the subscriber is located.
15 "Multiplexing" means the transmission of two (2) or more signals over
16 a communications circuit without regard to the communications tech-
17 nology.
18 (vii) Any property not primarily used to provide services in Idaho to
19 public subscribers is not qualified broadband equipment.
20 (3) No equipment described in subsections (2)(b)(i) through (2)(b)(vi) of
21 this section shall qualify for the credit provided in subsection (1) of this
22 section until the taxpayer applies to and obtains from the Idaho public utili-
23 ties commission an order confirming that the installed equipment is qualified
24 broadband equipment. Applications submitted to the commission shall be gov-
25 erned by the commission's rules of procedure. The commission may issue proce-
26 dural orders necessary to implement this section.
27 (4) The credit allowed by subsection (1) of this section together with
28 any credits carried forward under subsection (6) of this section shall not, in
29 any one (1) taxable year, exceed the lesser of:
30 (a) The amount of tax due under sections 63-3024, 63-3025 and 63-3025A,
31 Idaho Code, after allowance for all other credits permitted by this chap-
32 ter; or
33 (b) Seven hundred fifty thousand dollars ($750,000).
34 When credits earned in more than one (1) taxable year are available, the old-
35 est credits shall be applied first.
36 (5) In the case of a group of corporations filing a combined report under
37 subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
38 of the group but not used by that member may be used by another member of the
39 group, subject to the provisions of subsection (6) of this section, instead of
40 carried over. For a combined group of corporations, credit carried forward may
41 be claimed by any member of the group unless the member who earned the credit
42 is no longer included in the combined group.
43 (6) If the credit allowed by subsection (1) of this section exceeds the
44 limitation under subsection (4) of this section, the excess amount may be car-
45 ried forward for a period that does not exceed the next fourteen (14) taxable
46 years.
47 (7) In the event that qualified broadband equipment upon which the credit
48 allowed by this section has been used ceases to qualify for the credit allowed
49 by section 63-3029B, Idaho Code, or is subject to recapture of that credit,
50 the recapture of credit under this section shall be in the same proportion and
51 subject to the same provisions as the amount of credit required to be recap-
52 tured under section 63-3029B, Idaho Code.
53 (8) (a) Subject to the requirements of this subsection, a taxpayer enti-
54 tled to the credit or to an unused portion of the credit allowed by this
55 section may transfer the unused credit to another taxpayer required to
13
1 file a return under this chapter.
2 (b) Before completing a transfer under this subsection, the transferor
3 shall notify the state tax commission of its intention to transfer the
4 credit and the identity of the transferee. The state tax commission shall
5 provide the transferor with a written statement of the amount of credit
6 available under this section as then appearing in the commission's records
7 and the number of years the credit may be carried over. The transferee
8 shall attach a copy of the statement to any return in regard to which the
9 transferred credit is claimed.
10 (c) In the event that after the transfer the state tax commission deter-
11 mines that the amount of credit properly available under this section is
12 less than the amount claimed by the transferor of the credit or that the
13 credit is subject to recapture, the commission shall assess the amount of
14 overstated or recaptured credit as taxes due from the transferor and not
15 the transferee. The assessment shall be made in the manner provided for a
16 deficiency in taxes under this chapter.
17 (9) In addition to other needed rules, the state tax commission may pro-
18 mulgate rules prescribing, in the case of S corporations, partnerships, trusts
19 or estates, a method of attributing the credit under this section to the
20 shareholders, partners or beneficiaries in proportion to their share of the
21 income from the S corporation, partnership, trust or estate.
22 SECTION 11. That Chapter 30, Title 63, Idaho Code, be, and the same is
23 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
24 ignated as Section 63-3022P, Idaho Code, and to read as follows:
25 63-3022P. HEALTH INSURANCE COSTS. With respect to a taxpayer, an amount
26 equal to the amount paid by the taxpayer during the taxable year for insurance
27 which constitutes medical care for the taxpayer and the spouse and dependents
28 of the taxpayer which is not otherwise deducted by the taxpayer for federal
29 income tax purposes shall be allowed as a deduction against taxable income.
30 As used in this section, "insurance which constitutes medical care" includes
31 any hospital or medical policy or certificate, any subscriber contract pro-
32 vided by a hospital or professional service corporation or mutual insurer, or
33 health maintenance organization subscriber contract, policies or certificates
34 of insurance for specific disease, hospital confinement indemnity, accident-
35 only, credit, dental, vision, medicare supplement, long-term care or disabil-
36 ity income insurance, student health benefits only, coverage for medical care
37 or treatment issued as a supplement to liability insurance, worker's compensa-
38 tion or similar insurance, automobile medical insurance or nonrenewable short-
39 term coverage issued for a period of twelve (12) months or less.
40 SECTION 12. That Chapter 6, Title 63, Idaho Code, be, and the same is
41 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
42 ignated as Section 63-602EE, Idaho Code, and to read as follows:
43 63-602EE. PROPERTY EXEMPT FROM TAXATION -- CERTAIN TANGIBLE PERSONAL
44 PROPERTY. The following property is exempt from taxation: class 2 property
45 that is agricultural machinery and equipment and is defined in section 63-204,
46 Idaho Code, and used solely in agriculture during the immediately preceding
47 tax year. For purposes of this section:
48 (1) "Agricultural machinery and equipment" shall mean any machinery and
49 equipment that is used in:
50 (a) Production of field crops including, but not limited to, grains, feed
51 crops, fruits and vegetables; or
14
1 (b) The grazing, feeding, or raising of livestock, fur-bearing animals,
2 fish, fowl, and bees to be sold or used as part of a net profit-making
3 agricultural enterprise or dairy.
4 (2) Buildings shall not be considered to be agricultural machinery and
5 equipment.
6 SECTION 13. That Section 63-3067, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 63-3067. REVENUE RECEIVED -- STATE REFUND ACCOUNT. (1) A sum equal to the
9 amount withheld under section 63-3035A, Idaho Code, shall be distributed fifty
10 percent (50%) to the public school income fund to be utilized to facilitate
11 and provide substance abuse programs in the public school system, and fifty
12 percent (50%) shall be distributed to the counties to be utilized for county
13 juvenile probation services. These funds shall be distributed quarterly to the
14 counties based upon the percentage the population of the county bears to the
15 population of the state as a whole.
16 (2) All moneys except as provided in subsection (1) of this section, and
17 except as hereinafter provided, received by the state of Idaho under this act
18 shall be deposited by the state tax commission, as received by it, with the
19 state treasurer and shall be placed in and become a part of the general
20 account under the custody of the state treasurer. Providing however, that an
21 amount equal to twenty percent (20%) of the amount deposited with the state
22 treasurer shall be placed in the "state refund account" which is hereby cre-
23 ated for the purpose of repaying overpayments, for the purpose of remitting to
24 counties and taxing districts for personal property exempt from taxation pur-
25 suant to section 63-602EE, Idaho Code, as provided in subsection (3) of this
26 section, for the purpose of depositing in the trust accounts specified in sec-
27 tion 63-3067A, Idaho Code, such amounts as may be designated by individuals
28 for the purpose of depositing in the Idaho ag in the classroom account an
29 amount as may be designated by the individual receiving a refund for such
30 overpayment, and for the purpose of paying any other erroneous receipts ille-
31 gally assessed or collected, penalties collected without authority and taxes
32 and licenses unjustly assessed, collected or which are excessive in amount.
33 Whenever necessary for the purpose of making prompt payment of refunds, the
34 board of examiners, upon request from the state tax commission, and after
35 review, may authorize the state tax commission to transfer any additional spe-
36 cific amount from income tax collections to the "state refund account." There
37 is appropriated out of the state refund account so much thereof as may be nec-
38 essary for the payment of the refunds herein provided. Claims for, and payment
39 of refunds under the provisions of this section shall be made in the same man-
40 ner as other claims against the state of Idaho.
41 (3) The state tax commission shall calculate the amount that each county
42 assessed in taxes in tax year 2000 on property that is exempt from taxation
43 pursuant to section 63-602EE, Idaho Code, and shall remit to the county trea-
44 surer for distribution to each taxing district in the county as follows:
45 The county commissioners in each county shall certify to the state tax
46 commission by July 1, 2001, the year 2000 tax charge, applicable to the prop-
47 erty exempt from taxation pursuant to section 63-602EE, Idaho Code, for the
48 portion of each taxing district or unit within the county. For nonschool dis-
49 tricts the state tax commission shall distribute one-fourth (1/4) of this
50 amount certified quarterly to each county beginning in October, 2001. For
51 school districts the state tax commission shall distribute one-fourth (1/4) of
52 the amount certified quarterly to each school district beginning in October,
53 2001. For nonschool districts, the county auditor shall distribute to each
15
1 district within thirty (30) calendar days from receipt of moneys from the tax
2 commission. Moneys received by each taxing district for replacement shall be
3 utilized in the same manner and in the same proportions as revenues from prop-
4 erty taxation. The moneys remitted to the county treasurer for replacement of
5 property exempt from taxation pursuant to section 63-602EE, Idaho Code, may be
6 considered by the counties and other taxing districts and budgeted at the same
7 time, in the same manner and in the same year as revenues from taxation on
8 personal property which these moneys replace. If taxing districts are consoli-
9 dated, the resulting district is entitled to an amount equal to the sum of the
10 amounts which were received in the last calendar quarter by each district pur-
11 suant to this subsection prior to the consolidation. If a taxing district is
12 dissolved or disincorporated, the state tax commission shall continuously dis-
13 tribute to the board of county commissioners an amount equal to the last
14 quarter's distribution prior to dissolution or disincorporation. The board of
15 county commissioners shall determine any redistribution of moneys so received.
16 If a taxing district annexes territory, the distribution of moneys received
17 pursuant to this subsection shall be unaffected. Taxing districts formed after
18 January 1, 2001, are not entitled to a payment under the provisions of this
19 subsection. School districts shall receive an amount determined by multiplying
20 .004 times the market value on December 31, 2000, in the district of the prop-
21 erty exempt from taxation pursuant to section 63-602EE, Idaho Code. For pur-
22 poses of the limitation provided by section 63-802, Idaho Code, moneys
23 received pursuant to this subsection as property tax replacement for property
24 exempt from taxation pursuant to section 63-602EE, Idaho Code, shall be
25 treated as property tax revenues.
26 (4) Any unencumbered balance remaining in the state refund account on
27 June 30 of each and every year in excess of the sum of one million five hun-
28 dred thousand dollars ($1,500,000) shall be transferred to the general account
29 fund and the state controller is hereby authorized and directed on such dates
30 to make such transfers unless the board of examiners, which is hereby autho-
31 rized to do so, changes the date of transfer or sum to be transferred.
32 SECTION 14. The provisions of Sections 7, 8 and 10 of this act are hereby
33 declared to be nonseverable from other provisions within each section and if
34 any provision of any of those sections or the application of such provision to
35 any person or circumstance is declared invalid for any reason, such declara-
36 tion shall render the entire section invalid but not other sections of this
37 act.
38 SECTION 15. An emergency existing therefor, which emergency is hereby
39 declared to exist, this act shall be in full force and effect on and after its
40 passage and approval.
STATEMENT OF PURPOSE
RS11280
This income tax and property tax relief bill reduces all
individual income tax rates by 0.4 percent Rebates 10.6% of 1999
income tax paid to individuals subject to a $25 minimum and $2,500
maximum. Permanently increases grocery tax credit $5 for everyone.
It permanently reduces the corporate income tax rate 0.4.
It expands the current capital gains exclusion from 60% to
100% for certain tangible assets. Provides for an income tax credit
for Research and Development expenditure and installing Broadband
Communications equipment. Exempts tangible personal property used
for agricultural purposes. It allows an income tax deduction for
individual health insurance.
FISCAL IMPACT
FY 2001 FY 2002
Reduce individual income tax rates $58.4
Reduce corporate income tax rates 6.8
Individual Rebate $91.0
Increase grocery tax credit 5.6
Research and Development 7.0
Broadband ITC 3.5
Capital Gains Tax (eliminate 40% portion) 8.7
Eliminate personal property tax on AG machinery 12.4
Inc. tax deduction for mdiv. Health insurance 4.5
TOTAL REDUCTION IN GENERAL FUND $91.0 $106.9
Contact
Name: Representative Dolores Crow
Representative Mike Moyle
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 370