Idaho Supreme Court Upholds Taxpayer’s Use of Reduced Corporate Tax Rate

The Idaho Supreme Court affirmed the district court’s grant of summary judgment in favor of the taxpayer, allowing application of the lower corporate tax rate to the entire fiscal year. Taxpayer filed its 2021 tax return using a blended rate because Idaho’s corporate tax rate was reduced from 6.925 percent to 6.5 percent effective Jan. 1, 2021, but the taxpayer’s fiscal year ran from Oct. 2020 to September 2021, straddling the effective date. The Tax Commission rejected the blended rate calculation and applied the higher 6.925% rate to the entire fiscal year. The court concluded that the plain language of ...