BOISE, Idaho — The state of Idaho has achieved its single largest tax cut in state history.
Gov. Brad Little signed House Bill 380 into law Monday, providing Idahoans $220 million in immediate one-time income tax rebates and $163 million in ongoing income tax relief.
The tax rebates will go out to all Idahoans who filed a state income tax return in 2019. You will get at least $50 per person or 9% of your 2019 taxes, whichever amount is greater.
Combined with another tax conformity bill earlier this session, lawmakers enacted more than $435 million in tax relief.
The governor says the move makes good on a commitment he made to Idahoans earlier this year to cut taxes and boost prosperity, while keeping the tax rates competitive and the business climate vibrant.
"Curbing government spending and returning taxpayer dollars should be the perpetual mission of public servants," Little said in his 2021 State of the State and Budget Address.
The one-time tax relief is a part of the governor’s "Building Idaho's Future" plan. The plan uses Idaho's record budget surplus to provide Idahoans historic tax relief and make strategic investments in transportation, education, broadband, water, capital construction, and other critical areas.
House Bill 380 also simplifies the tax code, cutting the number of income tax brackets from seven to five. It also lowers the top rate to 6.5 percent, which could make Idaho more attractive to businesses.
"I appreciate my partners in the Legislature for sharing my commitment to tax relief for our citizens," Little added. "In Idaho, we're able to achieve historic tax relief because we responsibly manage our budgets. The strength of our economy proves fiscal conservatism works."
Watch more Idaho politics:
See all of our latest political coverage in our YouTube playlist: