Special session: A 'get Risch quick scheme' or tax relief?

Will the Aug. 25 special session of the Idaho Legislature provide much-needed tax relief for Idahoans, or is it just a "get Risch quick" scheme for a handful business leaders and farmers?

Depends who you talk with.

The Republican-dominated state Legislature is expected to shift $260 million off property tax rolls and into the general fund. The deficit from that shift will be paid with a 1 percent sales tax hike and surplus funds.

A University of Idaho associate professor has looked into the economic impact and discovered that low income people will see the biggest tax increase due to the sales tax increase but that every taxpayer will feel the pinch.

"It's safe to say all income groups will be paying more," said Stephen Cooke, associate professor of UI's agricultural economics.

Cooke estimates landlords will pass half of the property tax cuts, who will see a $26 million decrease in rents. Unfortunately, some renters won't see any reduction and those who receive a little help, will lose ground because the sales tax increase will force renters to pay $43 million more. That's a net loss of $17 million for those who can least afford it.

Businesses will make out the best. Retail businesses will see a $39 million decrease and agriculture will enjoy an $8 million decrease.

According to Cooke, the $210 million in sales taxes will not boost revenue to the state enough to cover the tax shift.

This could be a problem down the line.

The good news is, Idaho's governor is listening to the people and has made a bold move to address the property tax problem.

He has done more in a short amount of time than many previous governors did in a full term.

Risch's special session can't be called tax relief because it isn't. It's a textbook tax shift.

Risch is doing a good job as governor and has cleaned up many messes left for him.

We are split about the special session and whether this tax shift will really provide long-term tax relief.

At least Risch is listening and reacting to Idahoans. That's some sort of relief right there.

? David Keyes is publisher of the Bee.