Print Friendly HOUSE BILL NO. 583
– Private school tuition, tax deductn
HOUSE BILL NO. 583
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H0583...............................................by REVENUE AND TAXATION
INCOME TAX DEDUCTION - Adds to existing law to provide an income tax
deduction for private school tuition payments for the qualified dependent
child of an individual taxpayer.
02/29 House intro - 1st rdg - to printing
03/03 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 583
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAX DEDUCTIONS; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-3022R, IDAHO CODE, TO PROVIDE AN
4 INCOME DEDUCTION FOR PRIVATE SCHOOL TUITION PAYMENTS FOR THE QUALIFIED
5 DEPENDENT CHILD OF AN INDIVIDUAL TAXPAYER, TO DEFINE "QUALIFIED DEPENDENT
6 CHILD" AND TO PROVIDE A PROCEDURE; DECLARING AN EMERGENCY AND PROVIDING
7 RETROACTIVE APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Chapter 30, Title 63, Idaho Code, be, and the same is
10 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
11 ignated as Section 63-3022R, Idaho Code, and to read as follows:
12 63-3022R. DEDUCTION FOR PRIVATE SCHOOL TUITION. (1) For taxable years
13 commencing January 1, 2008, there shall be allowed for individual taxpayers a
14 deduction for tuition paid by the taxpayer for each qualified dependent child
15 of the taxpayer who is attending a private, accredited school in Idaho offer-
16 ing instruction in grades K-12 during the taxable year. A school shall be
17 deemed accredited pursuant to this section if it has been accredited according
18 to the accrediting standards promulgated by the Idaho department of education,
19 the Idaho state board of education or a secular or religious accrediting asso-
20 ciation recognized by the Idaho department of education.
21 (2) As used in subsection (1) of this section, "qualified dependent
22 child" means an individual who:
23 (a) Qualifies as a dependent of the taxpayer under section 152, Internal
24 Revenue Code; and
25 (b) Is actually taken as an exemption on the taxpayer's Idaho income tax
26 return; and
27 (c) Is a child of the taxpayer, a stepchild of the taxpayer, an individ-
28 ual to whom the taxpayer has been appointed guardian or a descendant of a
29 child of a taxpayer; and
30 (d) To receive the full deduction, resides in Idaho for at least two hun-
31 dred seventy (270) days during the taxable year. If the qualified depend-
32 ent child resides in Idaho for at least one hundred eighty (180) days, but
33 less than two hundred seventy (270) days, the taxpayer shall be allowed a
34 partial deduction, on a pro rata basis pursuant to rules established by
35 the Idaho state tax commission.
36 (3) If the deduction for which the individual income tax return is filed
37 is not claimed for the taxable year, the right thereafter to claim such deduc-
38 tion shall be forfeited in subsequent taxable years. The deduction allowed by
39 this section shall not exceed five thousand dollars ($5,000) per taxable year
40 or the tuition paid by the taxpayer to an Idaho school, whichever is less.
41 SECTION 2. An emergency existing therefor, which emergency is hereby
42 declared to exist, this act shall be in full force and effect on and after its
1 passage and approval, and retroactively to January 1, 2008.
STATEMENT OF PURPOSE
The purpose of this legislation is to provide for a state
income deduction for Idaho taxpayers in regards to tuition payments
made to an accredited school within the state; to amend chapter 30,
title 63 of Idaho Code by addition to provide such a deduction and
to set a limit on the deduction; to specify who qualifies for this
deduction and the timeframe for claiming this deduction; and to
allow for taxpayers who choose not to use the public school system
saving the state the cost of educating their child, to be able to
deduct the tuition paid to the accredited schools.
Presently, approximately 12,000 students are in private
accredited schools. If all of these students were in public
education, it would cost the state of Idaho over $72,000,000 each
year to educate them.
This legislation will cost a maximum of $4,800,000 if all
students are from families that can take full advantage of the
deduction and if all students are from families that only have one
student in private school. The actual cost of this legislation is
not possible to predict, but it is expected to be substantially
less than the maximum cost.
Name: Rep. John Vander Woude, 208.332.1000
STATEMENT OF PURPOSE/FISCAL NOTE H 583