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H0588...............................................by REVENUE AND TAXATION
INCOME TAX - Repeals, adds to and amends existing law to provide for income
tax credits or refunds for certain resident individuals to offset the cost
of sales tax on groceries; to provide for adjustments to the credit until
the credit reaches one hundred dollars; and to provide for suspension of
the increase in the credit or refund if certain circumstances occur.
02/29 House intro - 1st rdg - to printing
02/29 Rpt prt - to Rev/Tax
03/04 Rpt out - rec d/p - to 2nd rdg
03/05 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 62-8-0
AYES -- Anderson, Andrus, Bayer, Bedke, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
Chew, Collins, Crane, Durst, Eskridge, Hagedorn, Henbest, Henderson,
Jaquet, Killen, King, Kren, Labrador, Lake, Loertscher, Marriott,
Mathews, McGeachin, Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart,
Patrick, Pence, Raybould, Roberts, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30), Smith(24),
Snodgrass, Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills,
Wood(35), Mr. Speaker
NAYS -- Barrett, Clark, Hart, Harwood, LeFavour, Luker, Ringo,
Wood(27)
Absent and excused -- None
Floor Sponsors - Bayer & Roberts
Title apvd - to Senate
03/07 Senate intro - 1st rdg - to Loc Gov
03/19 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
Rls susp - PASSED - 27-8-0
AYES -- Bair, Bastian, Bilyeu, Broadsword, Coiner, Davis, Fulcher,
Gannon, Geddes, Goedde, Hammond, Heinrich, Hill, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai(Sagness), McGee, McKague,
McKenzie, Pearce, Richardson, Schroeder, Stennett, Werk
NAYS -- Andreason, Burkett, Cameron, Corder, Darrington, Jorgenson,
Siddoway, Stegner
Absent and excused -- None
Floor Sponsor - Fulcher
Title apvd - to House
03/21 To enrol - Rpt enrol - Sp signed
03/24 Pres signed
03/25 To Governor
03/31 Governor signed
Session Law Chapter 316
Effective: 01/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 588 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, TO PROVIDE PROCEDURES, 6 TO PROVIDE A METHOD OF PAYMENT, TO PROVIDE A STATUTE OF LIMITATIONS, TO 7 PROVIDE FOR THE DONATION OF CREDITS, TO PROVIDE FOR CANCELLATION OF A 8 FUTURE ADJUSTMENT AND TO PROVIDE FOR A PROCEDURE WHEN A CREDIT ADJUSTMENT 9 SHALL NOT OCCUR; AND DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE 10 APPLICATION. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 63-3024A, Idaho Code, be, and the same is hereby 13 repealed. 14 SECTION 2. That Chapter 30, Title 63, Idaho Code, be, and the same is 15 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 16 ignated as Section 63-3024A, Idaho Code, and to read as follows: 17 63-3024A. FOOD TAX CREDITS AND REFUNDS. (1) Any resident individual who 18 is required to file and who has filed an Idaho income tax return shall be 19 allowed a credit against taxes due under the Idaho income tax act for each 20 personal exemption for which a deduction is permitted by section 151(b) and 21 (c) of the Internal Revenue Code, and which is claimed on the taxpayer's Idaho 22 income tax return. The amount of the credit for tax year 2008 shall be as fol- 23 lows: 24 When Idaho taxable income is: The rate is: 25 $1,000 or less $50.00 26 Over $1,000 $30.00 27 Subject to the limitations provided in subsections (13) and (14) of this 28 section, the credits allowed in this subsection shall be increased by ten dol- 29 lars ($10.00) in each tax year after tax year 2008 until such time as each 30 credit equals one hundred dollars ($100). 31 If taxes due are less than the total credit allowed, the taxpayer shall be 32 paid a refund equal to the balance of the unused credit. 33 (2) A resident individual who is not required to file an Idaho income tax 34 return and for whom no credit or refund is allowed under any other subsection 35 of this section shall, subject to the limitations of subsections (3), (4), 36 (5), (6), (7) and (8) of this section, be entitled to a refund in the amount 37 provided in subsection (1) of this section. 38 (3) A resident individual who has reached his sixty-fifth birthday before 39 the end of his taxable year and who has claimed the credit available under 40 subsection (1) of this section, in addition to the amount of credit or refund 41 due under subsection (1) of this section, shall be entitled to twenty dollars 42 ($20.00), which shall be claimed as a credit against any taxes due under the 2 1 Idaho income tax act. If taxes due are less than the total credit allowed, the 2 individual shall be paid a refund equal to the balance of the unused credit. 3 (4) Except as provided in subsection (9) of this section, a credit or 4 refund under this section is only available if the individual for whom a per- 5 sonal exemption is claimed is a resident of the state of Idaho. 6 (5) In no event shall more than one (1) taxpayer be allowed a credit or 7 refund for the same personal exemption, or under more than one (1) subsection 8 of this section. 9 (6) In the event that a credit or refund is attributable to any individ- 10 ual for whom assistance under the federal food stamp program was received for 11 any month or part of a month during the taxable year for which the credit or 12 refund is claimed, the credit or refund allowed under this section shall be in 13 proportion to the number of months of the year in which no assistance was 14 received. 15 (7) In the event that a credit or refund is attributable to any individ- 16 ual who has been incarcerated for any month or part of a month during the tax- 17 able year for which the credit or refund is claimed, the credit or refund 18 allowed under this section shall be in proportion to the number of months of 19 the year in which the individual was not incarcerated. 20 (8) No credit or refund shall be paid that is attributable to an individ- 21 ual residing illegally in the United States. 22 (9) Any part-year resident entitled to a credit under this section shall 23 receive a proportionate credit reflecting the part of the year in which he was 24 domiciled in this state. 25 (10) Any refund shall be paid to such individual only upon his making 26 application therefor, at such time and in such manner as may be prescribed by 27 the state tax commission. The state tax commission shall prescribe the method 28 by which the refund is to be made to the taxpayer. The refunds authorized by 29 this section shall be paid from the state refund fund in the same manner as 30 the refunds authorized by section 63-3067, Idaho Code. 31 (11) An application for any refund that is due and payable under the pro- 32 visions of this section must be filed with the state tax commission within 33 three (3) years of: 34 (a) The due date, including extensions, of the return required under sec- 35 tion 63-3030, Idaho Code, if the applicant is required to file a return; 36 or 37 (b) The fifteenth day of April of the year following the year to which 38 the application relates if the applicant is not required to file a return. 39 (12) The state tax commission shall provide income tax payers with the 40 irrevocable option of donating credited funds accruing pursuant to this sec- 41 tion. Any funds so donated shall be remitted from the refund fund to the coop- 42 erative welfare fund, created pursuant to section 56-401, Idaho Code, and 43 shall be used solely for the purpose of providing low-income Idahoans with 44 assistance in paying home energy costs. 45 (13) The credit adjustment required by subsection (1) of this section 46 shall not take place if a majority of the membership of each house of the leg- 47 islature adopts a concurrent resolution requesting that the governor issue an 48 executive order directing the state tax commission that the credit allowed in 49 this section remain unchanged for the tax year in which the requesting legis- 50 lature is meeting, and if the governor concurs and issues such an executive 51 order, the credit shall remain unchanged for that tax year. 52 (14) The credit adjustment required by subsection (1) of this section for 53 tax years subsequent to tax year 2008 shall not take place if all of the fol- 54 lowing conditions are met: 55 (a) The governor has ordered a temporary reduction of general fund spend- 3 1 ing authority, pursuant to section 67-3512A, Idaho Code, between July 1 2 and October 1 of the tax year for which the credit adjustment is to take 3 place; and 4 (b) The temporary reduction of general fund spending authority is still 5 in effect on October 1 of the tax year for which the credit adjustment is 6 to take place; and 7 (c) The amount of the temporary reduction in general fund spending 8 authority equals or exceeds one percent (1%) of the moneys that the legis- 9 lature has appropriated from the general fund for the fiscal year for 10 which the temporary reductions have been ordered; and 11 (d) The governor issues an executive order directing the state tax com- 12 mission that the credit allowed by subsection (1) of this section remain 13 unchanged for the tax year during which the temporary reduction of general 14 fund spending authority has been ordered and the executive order issued. 15 SECTION 3. An emergency existing therefor, which emergency is hereby 16 declared to exist, this act shall be in full force and effect on and after its 17 passage and approval, and retroactively to January 1, 2008.
STATEMENT OF PURPOSE
RS 18028
The income tax credit provided to Idahoans as an offset for the
sales tax they pay on food consumed at home has not kept up with changes
in the sales tax rate or inflation. Current law fails to provide even
this partial offset for the poorest Idahoans, since most are ineligible
to receive the credit unless their incomes are high enough to owe state
income taxes.
This legislation addresses the inadequacies of the current law, by
incrementally increasing this "Food Tax Credit", starting with an
increase to $50 for the poorest Idahoans, $30 for all other Idahoans, and
an additional $20 for seniors, for tax year 2008. The credit continues
to increase each tax year by $10 until reaching $100, eventually
offsetting, on average, the state sales tax on qualified foods.
This legislation also helps the poorest Idahoans by allowing
virtually all citizens fo file for the credit, even if incomes are too
low to incur an income liability.
FISCAL NOTE
The total fiscal impact is negative $22.3 million to the General
Fund for FY 2009. FY 2010 - $15.5M; FY 2011 - $15.5M; FY 2012 - $15.5M;
FY 2013 - $15.5M; FY 2014 - $15.5M; FY 2015 - $11.2M; FY 2016 - $11.2M.
Contact: Representatives Bayer, Vander Woude, Eskridge, Henderson,
Nonini, Anderson, Chadderdon, McGeachin, Mathews, Roberts, Labrador,
Kren, Hagedorn. Senators Fulcher, Keough, McKenzie, Goedde, Broadsword,
Hammond, Hill.
Phone: 332.1000
STATEMENT OF PURPOSE/FISCAL NOTE H 588