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, 200 23. 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 REVISED REVISED REVISED REVISED REVISED REVISED REVISED