House Bill 380

2016 Freedom Index Score: (+1)

Analyst: Lindsay Russell Dexter
Date of analysis: February 1, 2016

ANALYST'S NOTE: If enacted, House Bill 380 would do four things; it would: 1) reduce
the top individual income tax bracket from 7.4 to 7.3 percent, 2) reduce the second
highest individual income tax bracket from 7.1 to 7 percent, 3) reduce the corporate
income tax rate from 7.4 to 7.3 percent, and 4) increase the annual grocery-tax credit for
the bottom five individual income-tax brackets, and for qualifying residents who have no
filing requirement, by $10 per exemption.
Point No. 5 Does it directly or indirectly create or increase any taxes, fees, or other
assessments? Conversely, does it eliminate or reduce any taxes, fees, or other
assessments?
ANALYSIS: This analysis reviews the four separate aspects of House Bill 380.There are
seven income tax brackets in Idaho. Marginal rates begin at 1.6 percent and reach 7.4
percent for earners in the top bracket. The income tax rate is 7.4% on the Idaho taxable
income of a corporation transacting business or authorized to transact business in Idaho,
or with income attributable to Idaho. House Bill 380 reduces the top two income
brackets by 0.1 percent, the income tax rate by .1 percent and increases the grocery-tax
credit for the bottom individual income earners. (+1)
Side Note: The grocery-tax credit is not a full sales tax reduction and only applies to some
Idaho taxpayers.