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ID H0454
Bill
Status
1/29/2010
Primary Sponsor
Phil Hart
Click for details
AI Summary
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Redefines Idaho income tax to exclude wages and salaries earned from labor or services, limiting income tax to dividends, interest, and profits from business and investment only.
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Increases sales tax rate from 6% to 8.25% and use tax rate from 6% to 8.25%, effective July 1, 2010.
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Eliminates credit for income taxes paid to other states on earned income that would be exempt under the new definition of Idaho taxable income.
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Revises revenue sharing distribution formula, reducing the percentage allocated to cities and counties from 11.5% to 8.36% of sales tax collections, effective August 1, 2010.
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Declares emergency provisions with retroactive application to January 1, 2010 for income tax changes and July 1, 2010 for sales and use tax changes.
Legislative Description
Amends existing law to delete the income tax on wages and salaries; to increase the rate of the sales tax; and to revise the revenue sharing formula to local units of government.
INCOME TAXATION
Last Action
to Rev/Tax
2/1/2010