Welcome to the Summer 2024 Tax Update business community newsletter. This edition features articles about new tax laws, lower credit card and e-check payment fees, expanded call center hours, our free educational webinars, and Taxpayer Access Point (TAP) guidance.
New tax laws – What you need to know
The 2024 Idaho Legislature passed tax laws that lowered income tax rates, increased school facilities funding, clarified sales tax exemptions for structures and equipment used to store small grains, and more. For additional details about the legislation highlighted in this newsletter, visit the link to each bill below.
Income tax
Idaho conforms to the Internal Revenue Code for 2024
Idaho conforms to the Internal Revenue Code (IRC) as of January 1, 2024, with the following exception:
- IRC section 85, Unemployment Compensation, is applied as in effect on January 1, 2020.
House Bill 385 – Effective January 1, 2024
Changes to Idaho’s tax rate
Idaho’s tax rate is now 5.695% for all taxpayers. For individuals, the rate applies to taxable income over:
- $2,500 if you’re filing single
- $5,000 if you’re filing jointly
The base amounts of $2,500 and $5,000 are indexed for inflation. Since 1998, the Tax Commission has adjusted the income tax thresholds each year to account for inflation.
House Bill 521 – Effective January 1, 2024
Income earned on an American Indian reservation
Income earned by a nonresident who’s a registered member of an American Indian tribe isn’t subject to Idaho taxes when the member works on an Idaho Indian reservation. Income the member earns in Idaho outside a reservation is subject to Idaho taxes.
Note: This isn’t a new policy; it codifies the state’s understanding of existing federal law.
House Bill 410 – Effective January 1, 2024
Deduction/credit burden of proof
Evidence that shows a taxpayer’s right to claim a tax deduction or credit includes a credit card statement (or other document from a financial institution) along with a notarized, sworn statement that an expenditure was for an identified deduction purpose.
House Bill 488 – Effective July 1, 2024
Property tax
Homestead exemption penalties
Taxpayers claiming more than one homestead exemption for property tax are subject to a penalty. The first violation is a financial penalty; subsequent violations are misdemeanors.
The Tax Commission may share information with the Secretary of State to determine that a taxpayer is voting or running for office based only on the location of their primary residence.
House Bill 449 – Effective July 1, 2024
Sales tax
Grain bin exemption
The structures and equipment used to store small grains are exempt from sales taxes. These items include: grain bin structures, augers, dryers, fans, sweep augers, and other equipment and supplies used in quality control functions to prepare a crop for storage in a grain bin.
House Bill 751 – Effective January 1, 2024
School facilities funding
This law increases funding from existing sales tax revenue for school facilities projects.
House Bill 521 – Effective July 1, 2024
Other
Cash payments to state agencies
Cash is an acceptable payment method in Idaho state government. Any official, department, board, commission, or agency that accepts payments must accept cash without charging a fee.
Note: The Tax Commission has always accepted cash and has never charged fees for cash payments.
House Bill 417 – Effective July 1, 2024
Interest charged on tax deficiencies
The law changes how interest accrues during an audit.
House Bill 445 – Effective January 1, 2024
Lower credit card and e-check fees
E-payments are a convenient way to make tax payments and are now more cost-effective. As of May 1, 2024, processing fees are lower for e-checks, credit cards, and debit cards. The e-check fee is now $1, down from $5. The debit and credit card fees dropped from 3% to 2.5%. To learn more about e-payments or to make a payment, go to tax.idaho.gov/e-pay.
Expanded call center hours
We’ve expanded our call center hours in our ongoing efforts to provide excellent customer service. The new hours are 8 a.m. to 5:30 p.m. Mountain Time (7 a.m. to 4:30 p.m. Pacific Time) Monday through Friday.
For general tax questions, call (208) 334-7660 in the Boise area or toll free at (800) 972-7660. Deaf and hard of hearing callers can call the Idaho Relay Service at (800) 377-3529. We close the call center for training on the 2nd and 4th Wednesdays of the month from 8 a.m. to 9:30 a.m. Mountain Time.
We’re committed to protecting you. We’ll share your sensitive information only with you or your legal representative. So, we’ll ask for information to verify your identity when you call us.
Free tax and business webinars
Did you know the Idaho State Tax Commission offers free webinars on various tax-related topics? If you’re self-employed, a bookkeeper seeking guidance, or a new business owner looking for information about tax permits, we can help.
Join our free webinars to learn about these topics and more:
- Tax and business basics for small businesses.
- Tax and business basics for self-employed.
- Taxpayer Access Point (TAP) tips and tricks. (1 hour)
- The Idaho Business Registration (IBR) process for business permits. (1 hour)
- NEW: Open question-and-answer forum for business and tax-related questions with our experts. (1 hour)
Check out the events calendar on our website to see the webinar schedule. For more information and to sign up for a webinar, visit the Tax Commission’s Eventbrite page.
Taxpayer Access Point (TAP) guidance
Taxpayer Access Point (TAP) is a free, secure online platform for taxpayers who frequently file Idaho tax returns and make payments on certain tax types. Businesses are the primary users of TAP.
Why you should get a TAP account
Using TAP allows your business to electronically file returns for most permit-based taxes, make online payments, get tax due-date reminders, and schedule tax payments up to 90 days in advance. You can also print copies of filed returns, print certain letters we send you, and view your account history. You can’t e-file income tax returns through TAP.
Services that don’t require a TAP account.
You don’t need a TAP account to:
- Get the status of your income tax refund
- Verify your identity
- Pay through the Quick Pay tool
- Respond to our inquiry letters
- Request a Payment Plan (if you’ve received a letter from us in the past two years)
- Apply for property tax relief
- Request a temporary seller’s permit and register for an upcoming event
How do I get a TAP account?
Follow these instructions to register for a TAP account. The registration and approval process takes about 10 to 12 days.
Before registering for a TAP account, you’ll need a tax account with the Tax Commission. If you’re a business that wants to file and pay taxes through TAP, you first need a permit (account) for that tax type. If you’re new to Idaho, you must wait until we’ve received and processed your first income tax return before you register.
Learn more about TAP with our self-help tools in TAP Help.
Watch our videos, follow us on social media
Can I request a payment plan? What are estimated payments? How do I get copies of my tax records? Find those answers and more when you watch our videos.
Subscribe to idahostatetax on YouTube to see the latest videos or check out our recorded webinars.
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