Signed by Governor Brad Little

Vote Smart's Synopsis:

Vote to pass a bill that reduces tax rates and appropriates monies for education.

Highlights:

• Transfers up to $500 million to Tax Commission for individual rebates (Page 2).

• Extends such rebates through fiscal year 2023 (Page 2).

• Authorizes additional rebate checks (Page 3).

• Establishes flat individual tax rate of 5.8% of income over $2,500; 5.8% of income over $5,000 for joint filers; amends related provisions (Page 3).

• Establishes flat corporate income tax rate of 5.8%; amends related provisions (Page 4).

• Transfers monies to Public School Income Fund to be used for services relating to substance abuse and county juvenile probation (Page 5).

• Appropriates $330 million to Public School Income Fund and $80 million to In-Demand Careers Fund beginning in fiscal year 2024, each fiscal year thereafter (Page 13).

• Establishes question on 2022 general election ballot: “Do you approve or disapprove of the State of Idaho using the record budget surplus to refund $500 million back to hardworking Idaho taxpayers, cut ongoing income taxes by more than $150 million, and put more money in our classrooms by increasing education and student funding by a record $410 million? Your approval of this effort would combat historic inflation by returning money to taxpayers, creating a simple flat tax, and making the single largest investment in public education in Idaho history” (Page 14).

• Establishes effective date of January 3, 2023 for new tax rates (Page 14).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that reduces tax rates and appropriates monies for education.

Highlights:

• Transfers up to $500 million to Tax Commission for individual rebates (Page 2).

• Extends such rebates through fiscal year 2023 (Page 2).

• Authorizes additional rebate checks (Page 3).

• Establishes flat individual tax rate of 5.8% of income over $2,500; 5.8% of income over $5,000 for joint filers; amends related provisions (Page 3).

• Establishes flat corporate income tax rate of 5.8%; amends related provisions (Page 4).

• Transfers monies to Public School Income Fund to be used for services relating to substance abuse and county juvenile probation (Page 5).

• Appropriates $330 million to Public School Income Fund and $80 million to In-Demand Careers Fund beginning in fiscal year 2024, each fiscal year thereafter (Page 13).

• Establishes question on 2022 general election ballot: “Do you approve or disapprove of the State of Idaho using the record budget surplus to refund $500 million back to hardworking Idaho taxpayers, cut ongoing income taxes by more than $150 million, and put more money in our classrooms by increasing education and student funding by a record $410 million? Your approval of this effort would combat historic inflation by returning money to taxpayers, creating a simple flat tax, and making the single largest investment in public education in Idaho history” (Page 14).

• Establishes effective date of January 3, 2023 for new tax rates (Page 14).

Full Bill Text