Taxes / Fees Property Tax Property taxes are collected by individual counties for taxing districts which provide local services. These revenues are for local, not state, use. However, the state does have the responsibility of overseeing property taxing procedures to make sure they comply with Idaho laws. In addition, the State Tax Commission is responsible for centrally assessing utilities which, collectively, are called operating property. Taxable Property: Property taxes apply to homes (including manufactured housing), farms, businesses, industry, warehouses, offices and all privately owned real estate, operating property, and business personal property such as machinery and equipment, farm implements and office furniture and equipment. Most property is taxed on its full market value less eligible exemptions.Taxes on real and nonmovable personal property are due by December 20; however, they can be paid in two installments half by December 20 and half by the following June 20. Exemptions: Full exemptions from property tax include inventories, livestock, stored property in transit, pollution control facilities, household belongings, clothing, properly licensed motor or recreational vehicles, and religious, fraternal and educational organizations and institutions. Partial exemptions are available for residential improvements and agricultural land. Tax Credits: Tax credits are available to elderly, widowed and disabled homeowners through the Circuit Breaker Program Tax Rates: Tax rates are governed by the needs of taxing authorities and local economic conditions. County commissioners, city councils and school trustees hold public budget hearings and approve or adjust budgets annually. Voter approval is required to exceed certain limits. Kootenai Country Treasurer 208/446-1005, email: kctr©kcgov.us For further information, contact the Idaho State Tax Commission: Boise Coeur d’Alene 800 Park Blvd., Plaza IV (P.O. Box 36) 1910 Northwest Blvd., S Boise, ID 83722 Coeur d’Alene, ID 8381 208/334-7660 or 800/972-7660 208/769-1500 www2.state.id.us/tax Motor Vehicle Registration Fees For cars and pick-up trucks, depending on the year and model of the vehicle, the cost is generally between $30-$60. Commercial vehicles are charged by the gross weight, and are pro-rated every month. The cost may be as much as $147.15 plus a $6.00 plate fee for 26,000 GVW. Unemployment Insurance Idaho law requires all nonagricultural employers with payrolls in excess of $1,500 per quarter, or different weeks in a calendar year, to obtain an unemployment account number from Idaho Commerce and Labor. Rates are assigned on the basis of the employer’s own experience record and its relationship with all other employers. The experience rating is a special account maintained for each employer. This is a record of the accumulated contributions paid by an employer, accumulated benefit payments charged to the employer’s account and the employer’s four-year average payroll. Accumulated total benefit payments charged to the employer’s account are sub total of contributions paid. This amount is divided by the average annual payroll and the resultant as the experience factor. In 2005, unemployment premiums are collected on the first $28,000 of wages for each employee, and new employers pay an initial tax rate of 1.5%. The 2004 average tax rate on the total wage base (all wages paid) was 0.8%, the same as it has been since 1998. The 2004 average rate on the taxable wage base (which then was the first $27,600 of wages per employee) was 1.19%, the same as it has been since 1998. Workers Compensation Employers operating in Idaho are required to carry workers’ compensation insurance. To fulfill this requirement, a business can insure with one of almost 300 private providers in the state, or with the Idaho State Insurance Fund. In special cases, self-insurance is also permitted through the Idaho Industrial Commission. Rates and dividends may vary one should contact an insurance agent or company representative for information. The State Insurance fund is collectively owned by policy holders rather than state-owned, and has a history of returning very competitive dividends Idaho State Insurance Fund 2005 Rates: Code 8810 Clerical Office $0.42/$ 100 payroll Code 8742 Outside Sales $0.64/$ 100 payroll Code 3629 Precision Machining $2.67/$ 100 payroll Code 3681 Electronics mfg/assembly $0.671/$ 100 payroll Code 4484 Plastic molding (injection) $5.21/$I00 payroll Source: Idaho State Insurance Fund For further information on insurance requirements: Idaho State Insurance Fund, P.O. Box 83720, Boise, ID 83720-0044, 208/ 334-2370 www2.state.id.us/isif Idaho Industrial Commission, P.O. Box 83720, Boise, ID 83720-0041, 208/334-6000 www2.state.id.us/iic Incorporation Fees Certificate of Incorporation: $100; non-profit corporation: $30; annual incorporation fee: none For further information: Idaho Secretary of State, P.O. Box 83720, Boise, ID 83720-01 www.idsos.state.id.us Idaho state tax revenues are well balanced from three sources: income tax (corporate and personal), sales/use tax and property tax. Income Tax — Corporate/Business Idaho taxable income is taxed at the rate of 7.6%, with a $20 minimum. For corporations operating entirely within Idaho, taxable income is the same as that reported for federal purposes, subject only to modifications contained in Idaho law. Multi-state corporations must apportion their income using an equally weighted three-factor formula consisting of property, payroll and sales. Any C corporation required to file an Idaho income tax return must pay a $10.00 permanent building tax fund. Investment Tax Credit — Idaho offers a 3% credit for qualifying investments within the state. Other Credits — Corporations are allowed credit for certain nonbusiness-related contributions, e.g. education and rehabilitation. Additional qualifying credits include, but are not limited to: New Jobs Income Tax Credit, 5% Research and Development Income Tax Credit and 3% Broadband Telecom Tax Credit. Net Operating Loss (NOL) — You can carryback up to $100,000 of a net operating loss per tax not absorbed in two years (plus any amount in excess of $100,000) can be carried forward to offset income for up to 20 years. Income Tax — Personal A tax is imposed on Idaho taxable income of individuals, estates and trusts. Personal income tax range from 1.6% on the first $1,000 ($2,000 on a joint return) of net taxable income to 7.8% on net taxable income over $20,000 ($40,000 on a joint return). Credits include the Grocery Tax Credit, Investment Tax Credit and credits for certain contributions, e.g. education and rehabilitation. Permanent Building Fund — This $10 tax is paid by everyone required to file a tax return, except for people who are blind or receiving public assistance at the close of the tax year. Spouses filing joint returns do not have to pay double the amount Sales/Use Tax Retail sales and rentals of tangible personal property in Kootenai County are taxed at 6%. If a sales tax is not applied at the point of purchase, a 6% use tax is due from the consumer. Sales tax also applies to admission charges, recreation fees, hotel/motel/campground accommodations (except for stays of more than 30 consecutive days), subscriptions, intrastate charter flights, and fabricating and printing labor. Exemptions from the Idaho sales and use tax include, but are not limited to: • Production Exemption — This applies to farming, manufacturing, processing, mining and fabricating operations. Exempt items include materials that become part of the end product; chemicals used in the product, equipment that is necessary and essential to the production process and is primarily and directly used in that process. • Pollution Control — Equipment for pollution control is exempt if an authorized state or fed air and water quality standards. Other exemptions include: logging, utilities, heating materials, and irrigation. There are limitations on most of these exemptions. For more details on these or other exemptions from sales and use tax, contact any Idaho State Tax Commission office. | 
