Legislative issues come into sharper focus

By the time you read this column we will be 50 days into the 2013 state legislative session and many issues are beginning to come into focus.

One issue identified early on was phasing out of the personal property tax. There has been a plan in place to phase it out for the last few years but it is tied to economic growth that has not yet occurred.

Getting rid of the personal property tax directly affects Idaho’s 1,105 taxing districts by reducing the taxes collected as personal property taxes makes up about a quarter of local government tax revenue in a given year. Keeping the tax in place effects taxpayers who are supposed to, by law, keep track of their personal property and submit payment of tax on it each year.

Many do so, and many do not if for no other reason than they do not know they are supposed to do so. It is a difficult tax to enforce and definitions of what is and is not ‘personal property’ are inconsistently applied across the state. In my view, that makes it a tax that should go away — it is arbitrary in nature and difficult to enforce fairly.

The bill currently being floated would phase out the tax over six years, but will send replacement funds from the state to local governments which stand to lose $140 million dollars otherwise. I supported the current phase out on the books and continue to support repealing personal property tax altogether, but only if the state replaces the income to the local taxing entities or removes the state mandates in place which help to spawn the justification for the tax. To not take these steps means that the local entities will be forced to shift that tax burden to the real property tax base.

After the “Students Come First” laws were voided in last fall’s election, some in the Idaho Legislature have started to bring back pieces of the education reform package regardless of the voters’ decision.

I remain supportive of Governor Otter’s leadership which has brought together representatives from all sides of this issue to discuss the elements and possible directions over the next year before taking the ideas up again. The process the Governor has lined up allows for the general public to have its say too. I think that is the best course of action, especially to respect the voters’ decision.

Another issue very important to northern Idaho has emerged and will soon be considered in Senate Bill 1117. This bill proposes to allow the Idaho Transportation Department, the counties, the cities, or the highway districts — whichever has jurisdiction over a particular roadway — to increase the weight limit of a semi-truck from 105,500 lbs to 129,000 lbs and to do so without the legislative approval or oversight that currently exists.

129,000-pound trucks have already been lawful on certain routes in southern Idaho since 2003 when the Legislature passed an initial pilot project to try to measure the effects of heavy trucks on roads. In my view that study is inconclusive. I’ve supported the heavier weights in the southern end of the state, but their road construction and climate (think spring break up and water!!!) are very different than ours in the north. And while we have made many gains in improving our roads, we’ve a long way to go.

And finally, the debate over the health insurance exchange has been resolved for now in the Senate with a 23 to 12 vote to set up a state exchange. The debate next moves to the House.  As a recap, this bill would create a state based web site for individuals to shop for health insurance plans. It is voluntary to use it. For those Idahoans who already have insurance on their own or through their employer they will likely never come in contact with the web site service.

It is important, in my view, to remember that the question is not whether we will have an exchange or not. The question is who will run the exchange — us or the feds. As of January 1st there will be an exchange. I always come down on the side of Idaho running programs instead of defaulting to the feds in D.C.

These issues are evolving and over the next six weeks, the legislature will reach conclusions and compromises, finish setting our state budget, wrap up the work for the year and come home. My email address is skeough@senate.idaho.gov and the toll free number to leave a message for me is 1-800-626-0471 and I welcome hearing from the people at home!  Follow all the work of the Legislature online at www.legislature.idaho.gov.