Idaho Gov. Butch Otter today released a review of Idaho State Tax Commission practices, prompted by a whistleblower’s allegations that the commission was signing illegal secret deals to excuse large, multistate corporations from paying millions in Idaho taxes. Otter’s review, conducted by accountant P. LaVern Gentry, concluded that the commission wasn’t acting illegally, but that its standards for when such settlements are appropriate is “ambiguous and undefined, contributing to a perception that it was acting arbitrarily and without justification,” the governor’s office said a news release. Otter directed the Tax Commission to clarify its process for handling disputes over out-of-state corporate tax collections, and to provide information to legislators to allow them to evaluate the process.

“These next steps reflect the shared commitment of the Legislature and my administration to building trust in our tax system and the public servants who administer it,” Otter said. “That requires ensuring taxes are apportioned and collected justly and consistently for everyone. Mr. Gentry is a highly respected accounting professional who found – as the Attorney General did before him – that the Tax Commission is not violating the law or rules. Both deserve our thanks, as do the commissioners whose skill, experience and judgment on complex tax cases provides an essential bridge between bureaucracy and common sense. However, I also welcome and want to assist the Legislature in asserting its oversight authority. It’s my hope that providing this additional information will help legislators determine whether the Commission’s practices are consistent not only with the letter but with the spirit of the law.” Here's a link to the Gentry report; click below to read an opinion piece from Senate Tax Chairman Brent Hill, R-Rexburg, about the whole thing titled "False Alarm."

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