House Bill 332 Summary

• Reduces individual income tax rates across all brackets, with reductions ranging from 0.325% to 0.625% depending on income level, effective retroactively to January 1, 2021.

• Reduces corporate income tax rate from 6.925% to 5.5% of Idaho taxable income, effective retroactively to January 1, 2021.

• Provides a one-time, nontaxable income tax rebate of approximately 9% of 2019 tax liability or $50 per taxpayer and dependent (whichever is greater) for full-year Idaho residents who filed returns in both 2019 and 2020, with total rebate funding capped at $220,000,000 less administrative costs.

• Creates a Tax Relief Fund to receive revenue from online sales taxes collected by marketplace facilitators and out-of-state retailers, with $110,000,000 annually transferred to the general fund beginning fiscal year 2022.

• Changes distribution of marketplace facilitator and out-of-state retailer sales tax revenue to the Tax Relief Fund starting July 1, 2024, instead of the general fund, except for refund claims which remain continuously appropriated.