2006 Legislation
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HOUSE BILL NO. 457 – Income tax, resident redefined

HOUSE BILL NO. 457

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Bill Status



H0457...............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing law to provide that, for state income tax
purposes, a person who is a nonresident alien under the Internal Revenue
Code is excluded from the definition of "resident."
                                                                        
01/24    House intro - 1st rdg - to printing
01/25    Rpt prt - to Rev/Tax
02/14    Rpt out - rec d/p - to 2nd rdg
02/15    2nd rdg - to 3rd rdg
02/21    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
      Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson,
      Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood,
      Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher,
      Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo,
      Roberts, Rusche, Rydalch, Sali(Sali), Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Mr. Speaker
    Floor Sponsor - Moyle
    Title apvd - to Senate
02/22    Senate intro - 1st rdg - to Loc Gov
03/02    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason(Hatch), Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - McKenzie
    Title apvd - to House
03/09    To enrol
03/10    Rpt enrol - Sp signed
03/13    Pres signed
03/14    To Governor
03/15    Governor signed
         Session Law Chapter 90
         Effective: 01/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 457
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAXES; AMENDING SECTION 63-3013,  IDAHO  CODE,  TO  EXCLUDE
  3        FROM  THE  DEFINITION  OF  "RESIDENT"  A PERSON WHO IS A NONRESIDENT ALIEN
  4        UNDER THE INTERNAL REVENUE CODE; DECLARING AN EMERGENCY AND PROVIDING RET-
  5        ROACTIVE APPLICATION.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Section 63-3013, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
                                                                        
  9        63-3013.  RESIDENT.  (1)  The  term  "resident,"  for income tax purposes,
 10    means any individual who:
 11        (a)  Is domiciled in the state of Idaho for the entire taxable year; or
 12        (b)  Maintains a place of abode in this state for the entire taxable  year
 13        and  spends  in  the aggregate more than two hundred seventy (270) days of
 14        the taxable year in this state. Presence within the state for any part  of
 15        a  calendar day shall constitute a day spent in the state unless the indi-
 16        vidual can show that his presence in the state for that day was for a tem-
 17        porary or transitory purpose.
 18        (2)  An individual shall not be considered a resident, but may be  consid-
 19    ered  a  part-year  resident,  during  a  period  of  absence  from this state
 20    described as follows:
 21        (a)  The period begins with an individual leaving this state if the  indi-
 22        vidual  is  absent  from  this  state for at least four hundred forty-five
 23        (445) days in the first fifteen (15) months.
 24        (b)  During such period, but excluding the first fifteen (15) months,  the
 25        individual  was not present in this state for more than sixty (60) days in
 26        any calendar year.
 27        (c)  During such period, the individual did not maintain a permanent place
 28        of abode in this state at which his spouse (unless he and his  spouse  are
 29        legally  separated)  or  minor  or dependent children are present for more
 30        than sixty (60) days during any calendar year.
 31        (d)  The individual did not, during  such  period,  hold  an  elective  or
 32        appointive  office  of the government of the United States (other than the
 33        armed forces of the United States  or  career  appointees  in  the  United
 34        States foreign service).
 35        (e)  The  individual was not, during such period, employed on the staff of
 36        an elective officer in the legislative branch of  the  government  of  the
 37        United States; and
 38        (f)  The  individual  did  not, during such period, claim Idaho as his tax
 39        home for federal income tax purposes.
 40        (g)  The period ends with an individual returning to this  state  if  such
 41        individual remains or resides in the state for more than sixty (60) days.
 42        (3)  Any  individual who is a nonresident alien as defined in section 7701
 43    of the Internal Revenue Code is not a resident within the meaning of this sec-
                                                                        
                                           2
                                                                        
  1    tion.
                                                                        
  2        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  3    declared to exist, this act shall be in full force and effect on and after its
  4    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 15358

     Under the definition of "resident" in the Idaho Income Tax
Act, it is occasionally possible for an individual who is a
nonresident alien for federal income tax to be an Idaho resident. 
This bill prevents that result by expressly excluding a
nonresident alien from the Idaho definition of "resident."



                          FISCAL NOTE
     None.






CONTACT
Name:     Dan John
Agency:   State Tax Commission
Phone:    334-7530

STATEMENT OF PURPOSE/FISCAL NOTE                              H 457