Governor Brad Little signs major tax cut

BOISE, Idaho (KMVT/KSVT) — Governor Brad Little signed House Bill 40 on Thursday, the largest tax cut in state history.

The law would give back $253 million to Idahoans through income tax cuts, according to a release from the Governor’s office. It mainly reduces income tax rates for individuals and businesses from 5.695% to 5.3% and it would allow veterans to keep more of their military pensions.

H.B. 40 also removes capital gains and losses for both precious metal bullion and monetized bullion from the calculation of state income taxes, according to the bill’s statement of purpose.

“Idaho families and businesses need and deserve to keep more of their hard earned money. It is the right thing to do. Idaho’s continued strength comes from our focus on good government and the Idaho taxpayer. I appreciate my partners in the Legislature for sharing our goal of prioritizing tax relief while taking care of the needs of a growing state. As we continue to deliver historic tax relief, we must ensure our budget balances as the Idaho Constitution requires,” Governor Brad Little said.

“Time and time again, Idaho’s state leaders have demonstrated that in times of prosperity we will do the right thing and give the people back more of what they earned. Today’s tax cut benefits not just the families that need it but our valued military veterans who have sacrificed so much for our state and our nation. I am proud to work with my fellow legislators and the Governor to arrive at this historic moment,” Senate Pro Tem Kelly Anthon of Burley said.

House Bill 40 passed the full Idaho State House back on February 3 with a vote of 67-3 and then the State Senate on March 4 with a vote of 27-8.

You can find the full language of the bill here.