A North Idaho legislator has filed a lawsuit against the state over secret tax deals that allegedly allowed some wealthy and politically connected taxpayers to get millions in breaks. Those deals violated the Idaho Constitution, said Rep. Shirley Ringo, D-Moscow, which requires taxing to be “uniform.” Examples listed in the lawsuit, filed this morning in 4th District Court in Boise:
* A wealthy Idaho resident was given a $1.6 million tax break before the audit report on that taxpayer’s case had been filed, and the case was removed from the Tax Commission’s auditors. Auditors had alleged the taxpayer was fraudulently claiming no substantial business operations in the state.
* One state tax commissioner “reversed an audit adjustment on a friend and individual who is prominent in Idaho politics.”
* A tax manager for a large Idaho company “told a commissioner in a protest hearing that his opinion was asked by the governor on all reappointments. This event occurred several months before the commissioner was up for reappointment and the taxpayer received a $100,000 discount.”
Ringo called the cases cited in the lawsuit “appalling.” “If those things have been going on, it just speaks to the need for reforms,” Ringo said. “I would put in on the emergency status, because I don’t want to accuse anybody of being corrupt, but I think it bears looking into.” You can read my full story here at spokesman.com.