After much debate, the House Revenue & Taxation Committee has voted down HB 326, a proposal from Rep. JoAn Wood, R-Rigby, to require reporting of sales tax paid on tires in Idaho. Wood said it’s data the state needs should it decide in the future to tap that source to fund roads; that money now goes to the state’s general fund. “We’re already paying it,” Wood told the committee. “Everybody who has a vehicle is buying tires, and that’s a lot of them across the state.” Retailers objected to the bill, saying it would create a big reporting burden for them; the state Tax Commission raised technical concerns.

Rep. Grant Burgoyne, D-Boise, moved to hold the bill in committee. “I think it’s time to consider raising the fuel tax,” he said. “It wasn’t the time in ‘09 when I voted against that.” He said of the bill, “Why are we limiting this to tires? ... If we want the data, if the data is somehow necessary, then why isn’t the data necessary for all auto parts, for all automobiles?”  

Rep. Stephen Hartgen, R-Twin Falls, said, “I think it’s a much broader issue we need to look at. … One in every six dollars in sales tax that we collect comes from the auto sector. … I think this bill is too narrowly crafted. We’re really not asking the data that we need.” He also questioned how other states are funding their roads “in a changing environment.” Burgoyne’s motion passed on an 11-5 vote.