HB 377 Summary

• Amends Idaho income tax code to define "individual" for pass-through entity taxation purposes to include natural persons, grantor trusts, qualified subchapter S trusts, and single-member LLCs treated as disregarded entities.

• Allows nonresident owners of pass-through entities to file composite returns with taxes paid at corporate rates instead of backup withholding, with pass-through entities required to report each owner's share of income and taxes paid on Form K-1.

• Requires pass-through entities transacting business in Idaho to withhold taxes on nonresident owners' income shares at the highest marginal rate, unless the entity files a composite return or other exemptions apply.

• Requires pass-through entities to pay a $10 filing fee per individual included on composite returns as an excise tax on income.

• Declares an emergency and makes the act effective retroactively to January 1, 2014.