REVENUE AND TAXATION
63-3035A. State income tax withholding tax on lottery winnings. (1) Whenever the Idaho state lottery is required by the Internal Revenue Code to withhold, collect and pay over income tax on any prize, proceeds or winnings it shall, at the time of payment of such prize, proceeds or winnings to the recipient, withhold from the payment an amount equal to the maximum percentage applicable to individuals under section 63-3024, Idaho Code, of the prize, proceeds or winnings to be applied to Idaho income taxes due from the recipient.
(2) The state tax commission shall accept amounts withheld according to this section as payment by the recipient of the amount so withheld of income taxes imposed on the recipient for the taxable year in which the prize, proceeds or winnings are includable in the recipient’s Idaho taxable income.
(3) When the total amount withheld (along with other credits due, withholding or payments attributable to the taxpayer) exceeds the taxes due from the recipient, the state tax commission shall, after examining the state income tax return filed by the recipient, refund the amount of the excess withheld in the manner provided for refunds of withholding under section 63-3035, Idaho Code.
(4) The Idaho state lottery shall remit the amounts withheld to the state tax commission on or before the date similar payments and reports are due to the internal revenue service.
(5) The Idaho state lottery shall furnish to the recipient, not later than thirty (30) days after the end of the calendar year, a record of the tax withheld during that year and shall, not later than the last day of the following February, file a copy of the record with the state tax commission.
(6) The Idaho state lottery and the state tax commission may agree to different times and procedures for making the remittances or reports required in this section.
(7) Nothing in this section relieves any taxpayer from an obligation to file a return or pay taxes at the time and in the manner required by this chapter.
[63-3035A, added 1997, ch. 382, sec. 3, p. 1238; am. 2001, ch. 56, sec. 2, p. 103; am. 2004, ch. 30, sec. 6, p. 61.]