Legislators discussing revenue and taxes

It is the second week of the legislative session and issues are coming to the forefront rapidly. I would like to address two of these in this week’s column.

The first is the question of what revenue estimate the legislature should use in preparing the budget for next year (Fiscal Year 2013). Sen. Shawn Keough in her article last week discussed the difficulty in making the right budget decisions for the long-term benefit of Idaho citizens. On Jan. 24, budget decisions were made even more difficult as a result of the revenue estimate released by the Joint Economic Outlook and Revenue Assessment Committee.

The revenue forecast for the upcoming Fiscal Year 2013 (FY-13) agreed upon by the committee resulted in an estimated 4.5 percent growth in revenues compared to the 5.8 percent used by Gov. Otter when he prepared his budget recommendations for the Legislature. The difference in numbers results in approximately $33.3 million less to work with when determining state spending in FY-13.

The Joint Finance and Appropriations Committee will be reviewing both estimates in arriving at their final decision on what revenue estimate to use when preparing state agency spending recommendations. Compound-ing the issue, JFAC may even decide upon a different revenue estimate before the committee starts it deliberations on spending amounts. The JFAC decision could be as late as the middle of February in order to take advantage of January revenue information before deciding on a final number.

The second issue is elimination of the personal property tax (not to be confused with real property tax). Under current tax law businesses have to report the value of almost every item they use in conducting their business operations. The tax is an unpopular one within the business community because it requires keeping records on almost all property, including chairs, computer equipment, staplers, and other property, large or small.

Oftentimes the value of the property is difficult to determine because of age and other factors, but the business owner still has to pay tax on the estimated value. Because it is difficult and burdensome to comply with the tax, the Idaho Association of Commerce and Industry, with support from chambers of commerce and other business groups, are lobbying to eliminate the tax.

These are only two examples of issues coming before the Legislature. Others include raising the cigarette tax, ethics reform, moving the primary election to August, legalizing marijuana and others.

I and my fellow legislators, Sen. Keough, Sen. Joyce Broadsword and Rep. Eric Anderson, will keep you informed of legislative action on these and other issues as we continue through the session.

As we work through legislative issues all four of us welcome your thoughts and value your input. I can be reached by phone at 1 (800) 626-0471, by email at geskridge@house.idaho.gov and by regular mail at P.O. Box 83720, Boise, Idaho 83720-0038.

George Eskridge holds the District 1B seat in the Idaho House of Representatives.