Idaho's tax system

POCATELLO (AP) — Despite concerns about recent changes to Idaho's tax system that cut property taxes and boosted the state sales tax, the incoming chairman of the House Revenue and Taxation committee says he won't revisit the issue.

"We're out of the property tax business," said Rep. Dennis Lake, R-Blackfoot, who was appointed chairman of the committee earlier this month. "This is something we need to just sit. I think it needs time to cook."

All bills that affect the state tax system originate in that House committee.

At a meeting with the Idaho State Journal's editorial board this week, Lake said he anticipates legislation to remove the sales tax on groceries or to raise the state income-tax credit for groceries.

"I don't think we will remove the sales tax from groceries; the price tag is simply too big," he said. "Every time you do that, you're cutting funds from education."

Lake also said he hopes there will be more debate during committee sessions.

Some lawmakers say they're troubled about the tax changes of the past year — especially the decision to tie the homeowner's exemption on property taxes to the housing price index.

That connection reduced property taxes for residential homeowners by about $105 million overall, and those of vacation home and rental property owners by about $62 million.

Southeast Idaho lawmakers such as Sen. Bob Geddes, R-Soda Springs, say attaching the exemption to housing prices didn't do much for their communities, where home values are not rising rapidly, and that all the relief is concentrated in northern and central Idaho.

"I'm afraid we may have made a mistake on that," Geddes said. "We're helping Boise and we're helping Coeur d'Alene."