Idaho House Speaker Mike Moyle has introduced House Bill 40, aiming to reduce the state’s individual and corporate income tax rates from 5.695% to 5.3%. The bill also proposes eliminating the capital gains tax on gold and silver sales and expanding income tax exemptions for military pensions. This legislation is part of a broader initiative to cut taxes by over $400 million, including House Bill 74, which seeks to reduce property taxes by allocating $50 million annually to the state’s homeowners property tax relief fund and an additional $50 million each year for local school construction and renovation projects. (idahocapitalsun.com)
The House Revenue and Taxation Committee has advanced House Bill 40 to the full House with a recommendation for passage. The bill now awaits a vote on the House floor. If approved, it will proceed to the Idaho Senate for further consideration. Governor Brad Little has expressed support for tax relief measures, aligning with the proposed reductions. (idahocapitalsun.com)
While proponents argue that the tax cuts will stimulate economic growth, some legislators have raised concerns about the potential impact on the state budget, especially during uncertain economic times. The Joint Finance-Appropriations Committee has set the revenue projection for fiscal year 2026 at $6.4 billion, a 6.8% increase from the current fiscal year, to accommodate these proposed tax reductions. (idahocapitalsun.com)
As the legislative process continues, stakeholders await further developments regarding the implementation of these tax relief measures.
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