2007 Legislation
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HOUSE BILL NO. 80 – Income tax credit, grocery

HOUSE BILL NO. 80

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Bill Status



H0080...............................................by REVENUE AND TAXATION
INCOME TAX CREDIT - GROCERY - Repeals and adds to existing law to provide
income tax credits or refunds to certain resident individuals with a
taxable income of twenty-six thousand dollars or less or to certain
resident individuals over sixty-five years old; and to provide procedures,
a method of payment and a statute of limitations.
                                                                        
01/31    House intro - 1st rdg - to printing
02/01    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 80
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAXES; REPEALING SECTION 63-3024A, IDAHO CODE, RELATING  TO
  3        THE  GROCERY TAX CREDIT; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE
  4        ADDITION OF A NEW SECTION 63-3024A, IDAHO CODE, TO PROVIDE FOR INCOME  TAX
  5        CREDITS  OR  REFUNDS TO CERTAIN RESIDENT INDIVIDUALS WITH A TAXABLE INCOME
  6        OF TWENTY-SIX THOUSAND DOLLARS OR LESS OR TO CERTAIN RESIDENT  INDIVIDUALS
  7        OVER  SIXTY-FIVE YEARS OLD, TO PROVIDE PROCEDURES, A METHOD OF PAYMENT AND
  8        A STATUTE OF LIMITATIONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE
  9        APPLICATION.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION 1.  That Section 63-3024A, Idaho Code, be, and the same is  hereby
 12    repealed.
                                                                        
 13        SECTION  2.  That  Chapter  30,  Title 63, Idaho Code, be, and the same is
 14    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 15    ignated as Section 63-3024A, Idaho Code, and to read as follows:
                                                                        
 16        63-3024A.  CREDITS  AND  REFUNDS.  (1)  Any  resident  individual  who  is
 17    required to file and who has filed an Idaho income tax return shall be allowed
 18    a  credit  against  taxes due under the Idaho income tax act for each personal
 19    exemption for which a deduction is permitted by section 151(b) and (c) of  the
 20    Internal Revenue Code, and which is claimed on the taxpayer's Idaho income tax
 21    return. The amount of the credit shall be as follows:
 22    When Idaho taxable income is:            The amount of credit for each
 23                                                 personal exemption is:
 24        $ 1,000 or less                                 $90.00
 25        $ 1,001 to $ 2,000                              $80.00
 26        $ 2,001 to $ 3,000                              $70.00
 27        $ 3,001 to $ 5,000                              $60.00
 28        $ 5,001 to $ 8,000                              $50.00
 29        $ 8,001 to $11,000                              $40.00
 30        $11,001 to $15,000                              $30.00
 31        $15,001 to $20,000                              $20.00
 32        $20,001 to $26,000                              $10.00
 33        Over $26,000                                    $ 0.00
 34    If  taxes  due  are  less than the total credit allowed, the taxpayer shall be
 35    paid a refund equal to the balance of the unused credit.
 36        (2)  A resident individual who is not required to file an Idaho income tax
 37    return and for whom no credit or refund is allowed under any other  subsection
 38    of this section shall, subject to the limitations of subsections (3), (4), (5)
 39    and  (6)  of  this  section, be entitled to a refund in the amount provided in
 40    subsection (1) of this section.
 41        (3)  A resident individual  who  has  reached  his  sixty-fifth   birthday
 42    before  the  end  of  his taxable year, in addition to any amount of credit or
                                                                        
                                       2
                                                                        
  1    refund due under subsection (1) or (2) of this section, shall be  entitled  to
  2    fifteen  dollars ($15.00) which shall be claimed as a credit against any taxes
  3    due under the Idaho income tax act. If taxes  due  are  less  than  the  total
  4    credit  allowed  or  if  the  individual is not required to file an income tax
  5    return, the individual shall be paid a refund equal  to  the  balance  of  the
  6    unused credit.
  7        (4)  Except  as  provided  in  subsection (7) of this section, a credit or
  8    refund under this section is only available if the individual for whom a  per-
  9    sonal exemption is claimed is a resident of the state of Idaho.
 10        (5)  In  no  event shall more than one (1) taxpayer be allowed a credit or
 11    refund for the same personal exemption, or under more than one (1)  subsection
 12    of this section.
 13        (6)  In  the event that a credit or refund is attributable to any individ-
 14    ual for whom assistance under the federal food stamp program was received  for
 15    any  month  or part of a month during the taxable year for which the credit or
 16    refund is claimed, the credit or refund allowed under this section shall be in
 17    proportion to the number of months of the year  in  which  no  assistance  was
 18    received.
 19        (7)  Any  part-year resident entitled to a credit under this section shall
 20    receive a proportionate credit reflecting the part of the year in which he was
 21    domiciled in this state.
 22        (8)  Any refund shall be paid to such  individual  only  upon  his  making
 23    application, therefor, at such time and in such manner as may be prescribed by
 24    the  state tax commission. The state tax commission shall prescribe the method
 25    by which the refund is to be made to the taxpayer. The refunds  authorized  by
 26    this  section  shall  be paid from the state refund fund in the same manner as
 27    the refunds authorized by section 63-3067, Idaho Code.
 28        (9)  An application for any refund which is due and payable under the pro-
 29    visions of this section must be filed with the  state  tax  commission  within
 30    three (3) years of:
 31        (a)  The due date, including extensions, of the return required under sec-
 32        tion  63-3030,  Idaho Code, if the applicant is required to file a return;
 33        or
 34        (b)  The fifteenth day of April of the year following the  year  to  which
 35        the application relates if the applicant is not required to file a return.
                                                                        
 36        SECTION  3.  An  emergency  existing  therefor,  which emergency is hereby
 37    declared to exist, this act shall be in full force and effect on and after its
 38    passage and approval, and retroactively to January 1, 2007.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16694

This legislation makes major changes to the Idaho Grocery
Tax Credit.  It increases the value of the regular credit from
$20 to $90 on a means-tested basis.  It removes the age
restrictions from the Form 24, making all Idaho residents
eligible for the credit (the Form 24 is the method that Idaho
residents can use to file for the Grocery Credit if their income
is below the income tax filing requirement, but it is currently
restricted to Idahoans who are either 62 years of age or older,
or blind, or a disabled American vet).  It provides that Idaho
residents participating in the Food Stamp program are ineligible
for the grocery credit during months that they receive food
stamps, meaning their credit amount is pro-rated to reflect only
the period they DO NOT receive food stamps.  The full credit is
available to Idaho residents whose taxable income is $1,000 or
less (equivalent to a gross income of $25,300 for a family of 4,
or 120% of the poverty level), and the credit is phased-down to
zero at taxable income levels in excess of $26,000 (equivalent to
a gross income of $50,300 for a family of 4, or 240% of the
poverty level).  The extra $15 credit for the Idaho residents
aged 65 or over is not changed, meaning it is not subject to the
means-test. 


                          FISCAL NOTE

The fiscal impact of this legislation is an estimated
reduction of $22 million to the General Fund starting in FY 2008. 
This is the full-year on going impact and is expected to increase
over time as the population of eligible recipients grows.


Contact
Name:  Michael Ferguson, Division of Financial Management 
Phone: 854-3071


STATEMENT OF PURPOSE/FISCAL NOTE                          H 80