Institute on Taxation and Economic Policy

Idaho

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Measures on the November Ballot Could Improve or Worsen State Tax Codes

October 26, 2022 • By Jon Whiten

In a couple of weeks, voters in a handful of states will weigh in on several tax-related ballot measures that could make state tax codes more equitable and raise money for public services, or take states in the opposite direction, making tax systems less fair and draining state coffers of dollars needed to maintain critical […]

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Idaho Center for Fiscal Policy: 2022 Special Legislative Session: Understanding Impacts of the Tax and Education Bill

September 1, 2022 • By ITEP Staff

State surpluses and strong revenue growth are leaving many states with a big opportunity this year. Idaho is no exception and is faced with options to advance policies that directly improve people’s lives in education, health care, housing, child care, transportation, and other budget areas. A 2022 Special Legislative Session bill that reduces taxes and […]

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Idaho Center for Fiscal Policy: HB 436 Tax Cuts Benefit Wealthy Idahoans

February 7, 2022 • By ITEP Staff

The tax cuts proposed in HB 436 would benefit wealthy Idahoans the most. The bill would also collapse the state’s five tax brackets to four, and would lower the income tax rate on the wealthiest tax bracket from 6.5% to 6%. Read more

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Idaho Center for Fiscal Policy: Idaho Families Would Benefit From Move to Include More Children in State’s Child Tax Credit

February 7, 2022 • By ITEP Staff

From housing to child care, hard-working Idaho families face high costs in our growing state. Since 2018, Idaho’s tax code has supported families through the state Child Tax Credit (CTC). In the American Rescue Plan Act (ARPA), Congress approved a temporary change to expand the definition of “child” to include 17-year-olds in tax year 2021. […]

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Idaho Center for Fiscal Policy: House Bill 389 and Idaho’s Property Tax Circuit Breaker

May 4, 2021 • By ITEP Staff

House Bill 389 is a complicated bill that would affect many different components of the Idaho property tax statute. Revenue from property taxes, both for real property and business personal property, support local public services – such as roads, courts, and schools. Property taxes are regressive, meaning they fall harder on lower-income Idahoans than others. […]

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Idaho Center for Fiscal Policy: Analysis and Considerations Related to House Bill 380

April 26, 2021 • By ITEP Staff

The Idaho Legislature is considering a proposal that would reduce the number of income tax brackets from seven to five, cut income and corporate tax rates and provide a one-time tax rebate. HB380 is a revised version of HB332, with one significant change, the elimination of two tax brackets, which serves to make Idaho’s tax […]

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Idaho Center for Fiscal Policy: Analysis and Considerations Related to House Bill 332

March 18, 2021 • By ITEP Staff

The Idaho Legislature is considering a proposal that would cut income and corporate tax rates and provide a one-time tax rebate. Under the proposal, the tax benefits from this proposed legislation are heavily lopsided. Taking all provisions into account, households with very modest earnings would receive a $78 average tax cut, and the top 1 […]

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Idaho Press: Economic Study Finds That Poor Idahoans Pay More State and Local Taxes Than Rich Ones

November 3, 2018 • By ITEP Staff

The biggest drivers of the inequality in Idaho are the sales and property taxes. In every bracket of income measured by the Institute’s report, the amount that families paid in state and excise taxes went down as their total income increased. The lowest-earning 20 percent spent twice as much of their annual income on property taxes as the highest 20 percent, with an average of 3.3 percent paid on their property compared to 1.6 percent.

ITEP Work in Action  

Idaho Statesman: Poor Idahoans Pay Largest Share of Taxes, Study Finds

October 22, 2018 • By ITEP Staff

Low-income Idahoans were hit hardest by property and sales taxes, ITEP reported. The lowest-earning segment spent 3.3 percent of income on property tax and 6 percent of income on sales and excise taxes (the latter are sometimes known as “sin taxes”).