Idaho Income Tax Increases for Education Funding Initiative (2022)

Idaho Tax Increases for Education Funding Initiative
Election date November 8, 2022
Topic Taxes and Education
Status On the ballot
Type State statute	Origin Citizens

The Idaho Tax Increases for Education Funding Initiative is on the ballot in Idaho as an initiated state statute on November 8, 2022.

A "yes" vote supports this ballot initiative to: increase the state income tax for individuals, trusts, and estates with incomes above $250,000 and couples filing jointly with incomes above $500,000 to $16,097 plus 10.925%; increase the corporate income tax from 6% to 8%; create the Quality Education Fund where tax revenue would be allocated; and prohibit funds from being used to pay the salaries of superintendents, principals, or other administrators.

A "no" vote opposes this initiative to increase the state's income tax for certain income thresholds and the corporate tax rate.

Measure design

See also: Text of measure

Click on the arrows (▼) below for summaries of the different provisions of the initiative.

Income tax increase: Tax increase on individuals on corporations

The initiative is referred to as the "The Quality Education Act" by proponents. It would amend state statute to increase the state income tax for individuals, trusts, and estates with incomes above $250,000 and couples filing jointly with incomes above $500,000 to $16,097 plus 10.925%. The initiative would require that the new tax income bracket be changed annually by an adjustment factor equal to the consumer price index for the calendar year of 2024 divided by the consumer price index for the calendar year preceding the year to which the adjusted bracket would apply. The new tax brackets and tax rates would take effect on January 1, 2023. The tax bracket would not be adjusted for inflation until 2025.

The initiative would also increase the corporate income tax from 6% to 8%.

Quality Education Fund: Fund establishment and distribution

The initiative would also establish the Quality Education Fund. Revenues from the increased income tax would be deposited into the fund. The initiative states that the funds should be appropriated by the state board of education. It would prohibit funds from being appropriated to pay the salaries of superintendents, principals, or other administrators. It would also give the state board of education the power to promulgate rules to implement the initiative. The initiative requires that the funds be distributed to public school districts and charter schools according to their share of the state's average daily attendance during the previous school year.

Text of measure

Short ballot title

The short ballot title is as follows:

“

An Initiative Supplementing Funding For K-12 Education By Increasing The Individual And Corporate Income Tax Rates.

”

Long ballot title

The long ballot title is as follows:

“

An initiative relating to education and taxation; Amends Title 33, Chapter 9, Idaho code by adding a new section which creates a supplemental fund titled the quality education fund to be utilized by the state board of education for the betterment of K-12 public schools to achieve goals such as reducing class size, attracting and retaining highly qualified teachers and support staff, providing current and adequate classroom materials, providing full-day kindergarten, providing career technical education, providing art music and drama programs, etc. And provides that funds be distributed each year by August 31 to school districts and public charter schools, and directs the state board of education to promulgate implementing rules; Amends Title 63, Chapter 30, Idaho code by modifying the fifth individual income tax bracket and creates a sixth bracket for taxable income in excess of $250,000, taxing income in the sixth bracket at the tax rate of 10.925%, increasing the corporate income tax rate to 8%, and distributes revenue collected as a result of the increased rates to the newly created quality education fund; Declares the act effective January 1, 2023; And provides for severability.

”

Full text

The full text of the ballot measure is below:

Support

Reclaim Idaho is leading the campaign in support of the initiative.

Supporters

Candidates

• Terry Gilbert (D) - Candidate for Idaho Superintendent of Public Instruction

Unions

• Idaho Education Association

Arguments

• Terry Gilbert (D), candidate for Idaho Superintendent of Public Instruction: "Our schools are the heart and soul of our communities, the driver of our economy, and our last and best bulwark against tyranny. They are the glue that holds us together as citizens in a democracy. There is no more important investment we can make than in our children and grandchildren."
• Luke Mayville, cofounder of Reclaim Idaho: "Most people do not view education as political. They understand that quality education relies on government, and therefore relies on politicians to do their jobs and fund public schools, but they don’t view funding for education as a controversial political topic. They view it as a no-brainer."

Opposition

Ballotpedia did not locate a campaign in opposition to the ballot measure.

Opponents

Officials

• State Sen. Steven Thayn (R)
• State Rep. Lance Clow (R)

Arguments

• State Sen. Steven Thayn (R): "I am not supportive. First of all, I think it’s based on a false assumption that money will improve education, and that is not necessarily the case. The No. 1 need in education is not more money."

Campaign finance

See also: Campaign finance requirements for Idaho ballot measures

The campaign finance information on this page reflects the most recently scheduled reports processed by Ballotpedia, which covered through June 30, 2022. The deadline for the next scheduled reports is July 31, 2022.

One PAC—Reclaim Idaho—was registered in support of the initiative. It had reported $656,160.27 in contributions.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$656,160.27	$0.00	$656,160.27	$481,902.62	$481,902.62
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00

Support

The following table includes contribution and expenditure totals for the committees in support of the measure.

Committees in support of Idaho Income Tax Increases for Education Funding Initiative (2022)
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Reclaim Idaho	$656,160.27	$0.00	$656,160.27	$481,902.62	$481,902.62
Total	$656,160.27	$0.00	$656,160.27	$481,902.62	$481,902.62

Donors

The following were the top donors who contributed to the support committees.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Movement Voter PAC	$22,500.00	$0.00	$22,500.00
A.J. Balukoff	$10,000.00	$0.00	$10,000.00
Ellen Bush	$10,000.00	$0.00	$10,000.00
James M. Green	$10,000.00	$0.00	$10,000.00
C. Fred Cornforth	$5,000.00	$0.00	$5,000.00

Background

Personal income tax rates in Idaho

Idaho has a graduated individual income tax with rates ranging from 1% to 6%. The various brackets are listed below:

Idaho income tax brackets
Tax rate	Single filer bracket	Married filer bracket
1%	> $0	> $0
3%	> $1,588	> $3,176
4.5%	> $4,763	> $9,526
6%	> $7,939	> $15,878

As of 2022, 43 states tax individual income—41 taxed wages while New Hampshire taxes only dividend and interest revenue and Washington taxes the capital gains income of high earners. The remaining seven states did not tax personal income. Of the 41 states with an income tax, 11 states have a flat rate, and the other states have graduated rates that varied depending on different income brackets. The number of income tax brackets ranged from three in Kansas to 12 in Hawaii.

The tax rate applied to income within the highest bracket across the 43 states with income taxes ranging from 2.9% applied to income above $445,000 in North Dakota to 13.3% applied to income above $1,000,000 in California.

Corporate income tax rates in Idaho

Idaho's corporate income tax rate is 6.5%. In 2021, it was reduced by House Bill 380 (HB 380) from 6.925%.

Forty-four states levy a state corporate income tax. In 2022, the lowest rate was 2.5% in North Carolina and 11.5% in New Jersey. Nevada, Ohio, Texas, and Washington impose gross receipts taxes. South Dakota and Washington are the only states that do not levy a corporate income or gross receipts tax. Under the proposed initiative, Idaho would tie with Massachusetts for the twelfth-highest corporate income tax rate at 8%.

Education funding in Idaho

Public schools in Idaho are funded through the state general fund, state dedicated funds, federal dollars, and local funds. In 2022, the Idaho State Board of Education voted to allocate state K-12 funding based on enrollment rather than the default of average daily attendance.

As of March 2022, Idaho ranked 49th for K-12 spending. The state funds on average $5,854 per pupil ($1.84 billion total), and local governments fund on average $2,335 per pupil ($733.9 million total). The state received $838 per pupil ($263.5 million) from the federal government.

Path to the ballot

See also: Laws governing the initiative process in Idaho

The state process

In Idaho, the number of signatures required to qualify an initiated state statute for the ballot is equal to 6 percent of the registered voters as of the state's last general election. Petitions can be circulated for up to 18 months. Idaho features a distribution requirement that signatures equal to at least 6 percent of registered voters in 18 of the state's 35 legislative districts be included in petitions. Signatures for initiatives must be submitted by May 1 of the year in which the measure is to go on the ballot.

The requirements to get an initiated state statute certified for the 2022 ballot:

• Signatures: 64,945 valid signatures were required.
• Deadline: The deadline to submit signatures was May 1, 2022.

Initiative petition signatures are verified by county clerks and then sent to the secretary of state for certification.

Details about this initiative

• The initiative was filed by Reclaim Idaho.
• On February 3, 2022, the campaign announced that they had collected more than 50,000 signatures.
• On April 18, the campaign reported collecting 86,090 signatures.
• On May 2, Reclaim Idaho submitted more than 95,269 signatures for verification. The secretary of state's office gave campaigns until May 2 to turn in signatures since May 1 fell on a Sunday.
• On July 22, 2022, the Idaho Secretary of State announced that the initiative had qualified for the ballot.

How to cast a vote

See also: Voting in Idaho

Click "Show" to learn more about voter registration, identification requirements, and poll times in Idaho.

How to cast a vote in Idaho

Poll times In Idaho, all polls are open from 8:00 a.m. to 8:00 p.m. local time. In some instances, polls may open at 7:00 a.m., at the discretion of the local clerk. Idaho is split between Mountain and Pacific time zones. An individual who is in line at the time polls close must be allowed to vote. Registration To register to vote in Idaho, one must be a citizen of the United States, a resident of the Idaho county in which he or she is registering for at least 30 days before the election, and at least 18 years old. Registration in advance of election day may be completed online, in person at the county clerk's office, or by mail. Registration forms must be completed and postmarked at least 24 days prior to the election. First-time voters must either include a copy of one of the following forms of identification with the voter registration form or present it at the polls before voting: Current photo identification Utility bill Bank statement Government check Paycheck Any other government document including the voter's name and address Same-day voter registration is available in Idaho. Automatic registration Idaho does not practice automatic voter registration. Online registration See also: Online voter registration Idaho has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration Idaho allows same-day voter registration. Residency requirements Idaho law requires 30 days of residency in one of the state’s counties before a person may vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Idaho does not require proof of citizenship for voter registration. Verifying your registration The page Am I Registered to Vote?, run by the Idaho Secretary of State's office, allows residents to check their voter registration status online. Voter ID requirements Idaho requires voters to present photo identification while voting. The following list of accepted ID was current as of November 2019. Click here for the Idaho Secretary of State's page on accepted ID to ensure you have the most current information. “ An Idaho driver’s license or Idaho photo identification card. A U.S. passport or Federal photo identification card. A tribal photo identification card. A current student photo ID, issued by an Idaho high school or post secondary education institution. A license to carry a concealed weapon issued by a county sheriff in Idaho. ” If a voter is unable to present accepted ID, he or she is allowed to sign a personal identification affidavit swearing to his or her identity. After signing the affidavit, he or she is issued a regular ballot.

See also

2022 measures

• 2022 ballot measures
• Taxes on the ballot
• Education on the ballot
• 2022 legislative sessions

Idaho

• Idaho ballot measures
• Idaho ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Full text
• Idaho 2022 proposed ballot initiatives