TAXATION – Amends, repeals, and adds to existing law to revise provisions regarding the rate of income taxes.

This bill revises Idaho's individual and corporate income tax rates. It lowers the individual income tax rate from 5.695% to 5.3% for taxable income over $2,500 (or $5,000 for joint returns), and reduces the corporate tax rate from 7.6% to 7.4% for taxable years starting in 2012. The bill also adds an automatic inflation adjustment mechanism: the state tax commission will annually update tax thresholds using the Consumer Price Index to prevent inflation from increasing tax burdens. These changes directly affect all Idaho residents and businesses filing income tax returns under state law.