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ID H0648
Bill
Status
3/24/2016
Primary Sponsor
Revenue and Taxation Committee
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AI Summary
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Creates a Tax Relief Fund to receive moneys from the Budget Stabilization Fund, general fund revenues, and tax exemption repeals, intended to fund future tax relief statutes enacted by the legislature.
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Authorizes automatic reduction of the highest and lowest income tax bracket rates by 0.1% when the Tax Relief Fund balance equals or exceeds 0.1% of current year revenues from those brackets, unless the governor issues an executive order and both legislative houses concur.
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Establishes a Budget Stabilization Fund to meet general fund revenue shortfalls and disaster expenses, with annual transfers from general fund equal to collections exceeding 4% growth (up to 1% cap), with any excess over 5% growth transferred to the Tax Relief Fund.
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Requires the state tax commission to annually report to the legislature on approximately 20% of Idaho Code sections providing sales tax exemptions or income tax credits and deductions, with the legislature deciding each year whether to extend or repeal each exemption.
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Mandates that 75% of estimated savings from repealed income tax deductions and 100% of savings from repealed sales tax exemptions be transferred to the Tax Relief Fund.
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Effective date: May 31, 2017.
Legislative Description
Repeals, amends and adds to existing law to provide for the transfer of funds to the Tax Relief Fund, to provide for its uses and to provide for exceptions, to provide for a reduction in certain income tax rates under certain circumstances; to provide for transfers from the Budget Stabilization Fund to the Tax Relief Fund; and to provide for the annual legislative review of income and sales tax exemptions, deductions and credits, and to further provide for transfers to the Tax Relief Fund.
TAX RELIEF
Last Action
Reported Printed and Referred to Revenue & Taxation
3/24/2016