Idaho’s Top Earners Will Get A Tax Break

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The tax cut goes into effect as soon as the bill is signed.

Idaho corporations and top individual taxpayers will pay less to the state next year.

A plan to lower the top tax rates passed the Senate this afternoon.  It’s final stop will be a signature by Governor C.L. “Butch” Otter.

As soon as Otter signs the bill, which he is expected to, the new tax rates take effect.  The rates are also retroactive, which means the lower rates will be effective as of Jan. 1, 2012.

The individual rate will be lowered from 7.8 percent to 7.4 percent, the corporate tax rate from 7.6 percent to 7.4 percent.

The Associated Press has reported a family of four in the top tax bracket, with a gross income of $100,000 will see their annual tax bill go down by $71.  The Division of Financial Management says that will affect about 17 percent of Idaho taxpayers.

House Bill 563 passed the Senate along party lines, 28-7.