BOISE, Idaho — The Idaho House and Senate have approved significant tax reforms that now await a signature or veto from Gov. Brad Little. The bill, House Bill 40, includes amendments to several provisions related to taxation within the state.
The new legislation seeks to adjust Idaho’s tax code in various key areas. Among the notable changes are the adjustments for capital gains and losses on precious metal bullion and monetized bullion sales. The bill proposes that these should be added to or subtracted from Idaho taxable income under certain circumstances.
H.B. 40 also amends provisions regarding the deduction of military retirement pay from taxable income, which aims to offer better tax conditions for retired military personnel.
Furthermore, the bill revises the Idaho income tax rate on individuals, estates, and trusts to try and ensure that it aligns with updated economic conditions. It also includes changes to the tax rate on corporations, reflecting a broader intent to stimulate business investments within the state.
The bill also contains a declaration of an emergency, which allows the changes to take effect immediately upon passage and approval. The measure is retroactive to January 1, 2025, ensuring that the tax changes will apply to the entirety of the current fiscal year.
