Idaho taxpayers could end up paying roughly $100 million more next year as a result of the Republican tax overhaul that President Donald Trump signed into law last month.
However, that number is likely to fluctuate as lawmakers begin to prepare to dive into tax policy during the 2018 legislative session. Idaho State Tax Commission chairman Ken Roberts on Friday first revealed the fiscal impact of the tax reform law to lawmakers, saying that the impact on Idaho tax revenue will be a positive $97.4 million, referring to collections during fiscal year 2019.
The federal policy cuts tax rates and nearly doubles the standard income deduction. It also caps or eliminates some popular itemized deductions, and sets the personal exemptions to zero.
The Idaho Legislature typically syncs the state’s tax code with the federal version each year to make it easier for residents and businesses to do their taxes, as well as avoid having to keep separate accounting books to track the different rules. Yet this year, the issue of if and how Idaho will choose to conform has become a top priority for Idaho lawmakers, who must consider how much money will be available for possible tax cuts while still ensuring education and other budget needs don’t get shortchanged. (AP)
