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ID H0008
Bill
AI Summary
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Disallows nonresidents with additional Idaho taxable income (beyond pass-through entity income) from electing to have the pass-through entity report and pay their Idaho tax.
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Clarifies that gains or losses from sale of publicly traded partnership interests are determined using IRC Section 751 amounts multiplied by the apportionment factor for the year of sale.
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Modifies backup withholding requirements for pass-through entities to withhold tax on individual shareholders' share of income required to be included in Idaho taxable income, rather than only on actual distributions.
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Exempts publicly traded partnerships from withholding requirements if they agree to file annual information returns reporting unitholder names, addresses, taxpayer identification numbers, and other requested information for unitholders with more than $500 in Idaho-source income.
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Takes effect retroactively to January 1, 2011, with an emergency declaration.
Legislative Description
Amends existing law relating to income taxation to allow a nonresident with additional income from a pass-through entity to forego withholding; to clarify the computation of reportable income from the sale of a publicly traded partnership; to modify the requirement of withholding from actual distributions of income to when the income is required to be reported on the taxpayer's return; and to provide that publicly traded partnerships are not required to withhold income tax if conditions are met.
INCOME TAXATION
Last Action
Governor signed Session Law Chapter 3 Effective: 01/01/11
2/15/2011