HB 139 Summary

• Amends Section 63-3026A of Idaho Code to establish sourcing rules for partnership income, including guaranteed payments, for nonresident and part-year resident individuals, trusts, and estates.

• Partnership income and guaranteed payments are sourced to Idaho based on the partnership's Idaho apportionment factor, with exceptions for guaranteed payments to retired partners and individual partners.

• Guaranteed payments to individual partners up to $250,000 annually are sourced as compensation for services to the recipient's state of domicile; amounts exceeding $250,000 are sourced to Idaho based on the partnership's apportionment factor, with annual adjustments by consumer price index.

• Establishes that guaranteed payments to retired partners per federal tax code section 114(b)(1)(I) are sourced to the recipient's state of domicile.

• Declares an emergency and provides retroactive application to January 1, 2013.