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H0194aaS...............................................by REVENUE AND TAXATION
INTERNAL REVENUE CODE - Amends and adds to existing law to update references
to the Internal Revenue Code; to disallow the special allowance for
depreciation permitted by subsection (k) of section 168 of the Internal
Revenue Code; and to disallow the deduction of certain expenses of elementary
and secondary school teachers.
02/07 House intro - 1st rdg - to printing
02/10 Rpt prt - to Rev/Tax
02/13 Rpt out - rec d/p - to 2nd rdg
02/14 2nd rdg - to 3rd rdg
02/17 3rd rdg - PASSED - 41-29-0
AYES -- Barraclough, Barrett, Bauer, Bedke, Bell, Black, Block,
Bradford, Campbell, Cannon, Clark, Collins, Crow, Deal, Denney, Douglas,
Eberle, Eskridge, Field(23), Gagner, Garrett, Harwood, Kellogg, Kulczyk,
Lake, Langford, McGeachin, McKague, Miller, Moyle, Raybould, Ring,
Roberts, Robison, Rydalch, Schaefer(Schaefer), Skippen, Stevenson,
Tilman, Wood, Mr. Speaker
NAYS -- Andersen, Bieter, Boe, Bolz, Cuddy, Edmunson, Ellsworth,
Field(18), Henbest, Jaquet, Jones, Langhorst, Martinez, Meyer, Mitchell,
Naccarato, Nielsen, Ridinger, Ringo, Sali, Sayler, Shepherd, Shirley,
Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills
Absent and excused -- None
Floor Sponsor - Wood
Title apvd - to Senate
02/18 Senate intro - 1st rdg - to Loc Gov
03/06 Rpt out - to 14th Ord
03/10 Rpt out amen - to 1st rdg as amen
03/11 1st rdg - to 2nd rdg as amen
03/12 2nd rdg - to 3rd rdg as amen
03/13 3rd rdg as amen - PASSED - 26-8-1
AYES -- Andreason(Rouse), Bailey, Brandt, Bunderson, Burtenshaw,
Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
Ingram, Keough, Little, Lodge, McKenzie, McWilliams, Noble, Noh, Pearce,
Richardson, Stegner, Sweet, Williams
NAYS -- Burkett, Calabretta, Kennedy, Malepeai, Marley, Schroeder,
Stennett, Werk
Absent and excused -- Sorensen
Floor Sponsor - Hill
Title apvd - to House
03/14 Held at Desk
03/19 House did not Concur in Senate amens
Ret'd to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 194
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAXES; AMENDING SECTION 63-3004, IDAHO CODE, TO UPDATE REF-
3 ERENCES TO THE INTERNAL REVENUE CODE; AMENDING CHAPTER 30, TITLE 63, IDAHO
4 CODE, BY THE ADDITION OF A NEW SECTION 63-3022O, IDAHO CODE, TO DISALLOW
5 THE SPECIAL ALLOWANCE FOR DEPRECIATION PERMITTED BY SUBSECTION (k) OF SEC-
6 TION 168 OF THE INTERNAL REVENUE CODE, AND TO DISALLOW DEDUCTION OF CER-
7 TAIN EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS; DECLARING AN
8 EMERGENCY AND PROVIDING RETROACTIVE EFFECTIVE DATES.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 63-3004, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 63-3004. INTERNAL REVENUE CODE. (a) The term "Internal Revenue Code"
13 means the Internal Revenue Code of 1986 of the United States, as amended, and
14 in effect on the first day of January, 20023.
15 (b) Provisions of the Internal Revenue Code amended, deleted, or added
16 prior to the effective date of the latest amendment to this section shall be
17 applicable for Idaho income tax purposes on the effective date provided for
18 such amendments, deletions, or additions, including retroactive provisions.
19 SECTION 2. That Chapter 30, Title 63, Idaho Code, be, and the same is
20 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
21 ignated as Section 63-3022O, Idaho Code, and to read as follows:
22 63-3022O. ADJUSTMENT FOR PROPERTY ACQUIRED AFTER SEPTEMBER 10, 2001. For
23 taxable years commencing on and after January 1, 2001, in computing Idaho tax-
24 able income:
25 (1) The adjusted basis of depreciable property, depreciation and capital
26 gains and losses shall be computed without regard to subsection (k) of section
27 168 of the Internal Revenue Code as amended by section 101 of the "Job Cre-
28 ation and Worker Assistance Act of 2002"; and
29 (2) No deduction shall be allowed relating to expenses of elementary and
30 secondary teachers otherwise allowable under section 62(a)(2)(D) of the Inter-
31 nal Revenue Code, as amended by section 406 of the "Job Creation and Worker
32 Assistance Act of 2002."
33 SECTION 3. An emergency existing therefor, which emergency is hereby
34 declared to exist, Section 1 of this act shall be in full force and effect on
35 and after its passage and approval, and retroactively to January 1, 2003; and
36 Section 2 of this act shall be in full force and effect on and after its pas-
37 sage and approval, and retroactively to January 1, 2001.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
Moved by Hill
Seconded by Bunderson
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 194
1 AMENDMENT TO THE BILL
2 On page 1 of the printed bill, delete lines 19 through 37 and insert:
3 "SECTION 2. An emergency existing therefor, which emergency is hereby
4 declared to exist, this act shall be in full force and effect on and after its
5 passage and approval, and retroactively to January 1, 2003.".
6 CORRECTION TO TITLE
7 On page 1, delete lines 3 through 8 and insert: "ERENCES TO THE INTERNAL
8 REVENUE CODE; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.".
House Bill 194, As Amended in the Senate
STATEMENT OF PURPOSE
This is the annual Internal Revenue Code conformity bill.
This bill is to retain Idaho s policy of conforming Idaho Income
Tax Act with the definition of federal taxable income.
FISCAL NOTE
It is not possible to determine the fiscal impact to Idaho
tax revenues caused by the timing difference of depreciation
deductions allowed by the special 30% first year "bonus
depreciation" permitted by subsection (k) of section 168 of the
IRC. The provision will decrease tax revenues in early years and
increase revenues in subsequent years. Estimates for FY 2003
revenue decreases range from $8 million to $20 million. Assuming
level investments in qualifying property, Revenue decreases would
be 29% and 49% less than FY 2003 in FY 2003 and FY 2004,
respectively. FY 2005 and subsequent years would result in
increased revenues until the lost revenues are recovered.
It is estimated that tax revenues lost due to the allowance
of expenses of elementary and secondary teachers for purchases of
classroom supplies under the IRC for FY 2003 will be $240,000.
Statement of Purpose / Fiscal Impact H 194 aaS
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