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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
]]]] 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12 repealed.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
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