Legislators tackling roads, grocery tax issues
As you are all aware the Legislature has been in session since Jan. 7. We are now headed into week 12 and are all ready to be home with you. There are a number of issues left on the table which need to be addressed before we can adjourn for the year. Among those issues are transportation funding, personal property tax relief, and an increase in the grocery tax credit.
Sen. Shawn Keough has been working diligently for several months to try to find a solution to the transportation funding problem. Our state roads are in terrible shape as you well know. It would take a 25 cent per gallon increase in fuel tax to generate the additional $200 million shortfall Idaho Transportation Department estimates it would need to take care of the road projects on our statewide transportation plan.
We all agree that is not a reasonable solution, so she and Sen. Corder from Mt. Home are working on a package of bills to address the need. I appreciate her knowledge and leadership on this issue very much. The House has several bills developed as well, but as of yet they have not held hearings on them or passed them out of committee. Hopefully that will occur this week.
Increased Grocery Tax Credit - As one of the co-sponsors of the grocery tax credit bill last year and again this year, I am hopeful we have found a bill that can pass the Legislature and that Gov. Butch Otter will sign. HB 588 increases the credit from $20 to $30 for most Idahoans and $50 for those whose taxable income is $1,000 per year or less.
The bill allows for the credit to increase annually at $10 intervals until all taxpayers receive $100 per person - roughly the average paid in sales tax on groceries per year. Idahoans can apply for the credit even if they owe no income tax. The bill passed the Senate and is headed to the governor.
Personal Property Tax Relief - no one likes to pay tax on something they have already paid sales tax on, but that is what the state law allows. There have been several bills in recent years to amend the code and change the system. They have not passed.
HB 599 is this year's attempt to revise the law. The plan calls for the state general fund to make up the revenue lost by counties in the removal of personal property tax. The proponents say it will boost the economy and small businesses. The opponents say there may be years the state can't afford to keep the counties whole and the tax payer will suffer, it may harm school funding and that it will cause a tax shift to residential property owners. The bill is still being debated.
We are hoping for a speedy resolution to these issues so that we can return home. As always, I am eager to hear your thoughts. You can reach me at by phone at 800-626-0471 or e-mail jbroadsw@senate.idaho.gov.