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HOUSE BILL NO. 583

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Bill Status

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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

Bill Text

                                                                       
  ]]]]              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

                                       2

  1    passage and approval, and retroactively to January 1, 2008.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 17552C1

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.


                             FISCAL NOTE

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.




Contact
Name: Rep. John Vander Woude, 208.332.1000


STATEMENT OF PURPOSE/FISCAL NOTE                             H 583