TAXATION – Amends House Bill 40, House Bill 304, and existing law to revise provisions regarding certain tax deductions, certain corporate income tax rates, certain protections for taxpayers, and certain sales tax distributions and to revise an effective date.

H 412 amends multiple Idaho tax code sections to revise key provisions. It specifically updates rules allowing military retirement pay to be deducted from taxable income regardless of the recipient's age or disability status (amending Section 63-3022A), while also adjusting corporate income tax rates (Section 63-3025), tax assessment periods (Section 63-3633), interest accrual (Section 63-3045), and sales tax distribution rules (Section 63-3638). The bill directly affects Idaho taxpayers receiving military retirement benefits, corporations subject to income tax, and those dealing with tax assessments or sales tax distributions. These changes clarify deduction limits based on Social Security benefit calculations and adjust administrative procedures for tax collection and fund transfers.