For the past three months, one of Republican Idaho Gov. Butch Otter's departments has been headed by a Democrat and overseen by a majority-Democrat commission. It's the state Tax Commission, which is constitutionally required to have four commissioners, with not more than two of them from the same party. But since GOP commission Chairman Bob Geddes resigned in February, Democratic Commissioner David Langhorst has been the interim chairman, and the fourth commission seat remains vacant. That leaves the commission with two Democrats and one Republican.

“David Langhorst is doing a great job right now,” said Otter's spokesman, Jon Hanian. “We have not named anybody else at the moment; he's continuing to serve in that capacity.” Langhorst, a former Democratic state senator from Boise whom Otter first appointed to the commission in 2009, said, “These positions are public trust positions - they're not political.” You can read my full story here at spokesman.com.

Former Idaho state Senate President Pro-Tem Bob Geddes has gotten high marks since he took over as head of the Idaho State Tax Commission, but AP reporter John Miller reports that after a year, Geddes is looking to move on. Click below for his full report.

Idaho's newest state tax commissioner, longtime CPA and prominent Republican Rich Jackson, says he's going above and beyond legal requirements to step away from professional and political involvements as he moves into his new role. Among the positions he's resigning: He's withdrawing from his CPA partnership, Jackson and Coles in Boise, and said he'll recuse himself from any issues involving former clients, partners or employees of the firm. He's resigning as chairman of the Idaho Legislative Compensation Committee, treasurer of the Boise Metro Chamber PAC, a member of the Idaho Manufactured Housing Board, and treasurer of the Idaho House of Representatives Republican Caucus.

“How can a tax commissioner write checks and make decisions on who gets political funds and really be independent? Even if it's not there, it's implied,” Jackson said. “I just didn't even want to embarrass the governor or the Tax Commission or anybody, so I stepped aside.” He added, “I'm trying to be very methodical and complete, and if I miss something I'm going to fix it. … These economic times are too tough, and I'm fully aware of all the criticism.”

The Tax Commission has come in for much criticism in recent years, from whistleblowers' allegations that it was cutting secret deals with politically connected taxpayers to the resignation of former Chairman Royce Chigbrow in January amid a criminal investigation. Last week, the Ada County prosecutor announced he wouldn't bring charges against Chigbrow despite having found evidence of wrongdoing on at least one count involving mishandling of checks, because a statute of limitations had expired on that charge. Chigbrow had been accused by commission employees of intervening on behalf of his son's accounting firm and attempting to use his position to help a friend embroiled in a dispute with a former business partner.

Jackson is blunt about the impact of the Chigbrow scandal. “I think it tarnished not only the Tax Commission, but CPAs,” he said; Chigbrow, like Jackson, is a longtime certified public accountant. “I'm hurt over it, it's unfortunate,” he said. “But I will tell you the governor's office was very methodical and we've taken lots of additional steps so that can't happen again.” You can read my full Sunday column here at spokesman.com.

Idaho Gov. Butch Otter has appointed CPA Rich Jackson to the Idaho State Tax Commission, filling the vacancy created by Otter's appointment in June of Commissioner Sam Haws to head the Idaho Commission on Aging (replacing Kim Toryanski, now deputy administrator of the Idaho Division of Human Resources). Jackson, a prominent Republican and former chairman of the Gem County Republican Central Committee, said he'll withdraw from numerous other positions he holds - including chairman of the Idaho Legislative Compensation Committee, treasurer of the Boise Metro Chamber PAC, and treasurer of the Idaho House of Representatives Republican Caucus - to avoid any conflicts with his new role as a state tax commissioner. He's also withdrawing from his CPA partnership, Jackson and Coles in Boise, and said he'll recuse himself from any issues involving former clients, partners or employees of the firm.

“Rich Jackson is the model of an engaged citizen,” Otter said. “He and his wife Trudy have tirelessly stepped up time and again to express their civic virtue and to meet the needs of their community and our state. I’m grateful that Rich will be bringing his CPA skills and deep understanding of Idaho’s people and system of government to the Tax Commission. We all will be the beneficiaries.”

Jackson joins GOP Tax Commission Chair Bob Geddes and Democratic commissioners Tom Katsilometes and David Langhorst; click below for Otter's full announcement.

Ada County Prosecutor Greg Bower's office announced Friday it won't prosecute the former chairman of the Idaho State Tax Commission, the Associated Press reports, saying a statute of limitations expired on one complaint despite evidence of wrongdoing and that admissible evidence of illegal activity in other complaints was insufficient. Former Chairman Royce Chigbrow was investigated over several months by an Ada County Sheriff's Office detective on suspicion of failing to appropriately deposit checks from a taxpayer in 2010, providing confidential information to a friend and allegedly receiving stolen checks totaling more than $30,000; Chigbrow resigned in January as agency employees' complaints about these issues became public. Click below for the full report from AP reporter John Miller.

Tax-protesting Idaho state Rep. Phil Hart is taking his fight against paying his back state income taxes to the Idaho Supreme Court, despite already having lost four appeals. Hart lost his fourth round in March, when 1st District Judge John Mitchell rejected Hart's request that the judge reconsider his December 2010 decision tossing out the appeal. In a 13-page decision, the judge twice termed Hart's arguments “simply wrong,” and called his central argument – that he'd actually filed his appeal one day earlier than the state says - “patently wrong.”

Hart, whose first court appeal in November of 2010 charged that the state income tax is unconstitutional, also is arguing that he should have months longer to appeal his taxes than other citizens because of his status as a state legislator. Plus, he's claimed a requirement that he submit a 20 percent bond when filing his appeal is unconstitutional. You can read my full story here at spokesman.com, and see the latest court decision and Hart's notice of appeal here.

When new state Tax Commission Chairman Bob Geddes was appointed, he was in Boise serving as a ninth-term state senator; two years earlier, he'd sold his house in Soda Springs and bought a home in Meridian, but he was still renting a home in Soda Springs. Under state policies, Geddes was entitled to reimbursement for his moving expenses for the job, including one-way transport of two vehicles.

But since he was in Boise, he had to go back to Soda Springs in eastern Idaho each time he packed up and moved household items from there to Boise; as a result, the $1,861.66 in moving expenses he submitted violated the state's rules for two reasons: It included trips that weren't from the old to the new location (because they were round trips from Boise), and Geddes wanted to bill the state for another trip this spring to pick up and trailer back his antique car, a 1930 Model A Ford. The other vehicle he moved was his pickup; that's not counting his car, in which he and his wife drove to Soda Springs twice for the move and she drove back each time while he drove a rented U-Haul van one time and the pickup the other time.

Variances from the state's moving-expense policy for top workers can be approved by the state Board of Examiners; in submissions to the board, Geddes noted that he made his move affordable by packing and moving himself in a U-Haul, and said, “The timeliness of this move allowed me to save at least two months of home rental payments in Soda Springs.” The appointment came up unexpectedly in the  midst of the legislative session, he said.

“I know that this entire process seems like the old riddle of how to get a goat, fox, chicken and a rattle snake across the river in a canoe by making the least number of crossings and with nobody being eaten,” Geddes wrote. “My riddle was to go to Soda Springs, rent a moving van, move household belonging to Boise and two vehicles in the least number of trips. I believe I solved the riddle in the most cost-effective manner for the state of Idaho.” However, a subcommittee of the Board of Examiners determined that the antique car didn't qualify for a $526.20 moving expense reimbursement,  “because it is for the move of a non-household item.”

So Geddes submitted a revised request, and today, the Board of Examiners voted unanimously to approve reimbursement for the extra trip legs between Boise and Soda Springs, for a total of $436.80. That means Geddes' total state-reimbursed moving expenses came to $1,335.46, since the antique-car portion was removed. Idaho Attorney General Lawrence Wasden, who serves on the board, said, “There are some extenuating circumstances that justify the expenses,” including the “very short time frame” Geddes was given to switch jobs while required by his previous post to be in Boise for the legislative session. “So there is good justification for the exception from the standard policy.” Secretary of State Ben Ysursa, who also serves on the board, noted the exclusion of the other $526.20. “I think we've made the frugal choice and the wise choice on these exceptions,” he said.

Idaho State Tax Commission whistle-blower Stan Howland is now speaking in the Senate flex room, room WW17 in the Senate wing, on the lower level of the state Capitol. At least half a dozen legislators, from both parties, are among those in the audience. “Auditors are not against compromising taxes,” Howland told the group. “What we are concerned about is the legality of them, the process, and how often they should be used. … The Tax Commission currently does not have sufficient internal controls.”

Howland estimated that Idaho could lose $50 million to $100 million in state tax revenues in 2011 due to secret compromise deals, plus another $20 million to $30 million a year in future years. “It could be more,” he said. At the conclusion of his talk, he'll take questions from lawmakers and others.

Howland detailed a list of changes he said are needed in Idaho's tax-settlement process to end improper secret settlements, from less secrecy to restoring restrictions on when cases can be settled, rather than leaving that to the tax commissioners' discretion. “The fact is, folks, that the Tax Commission is broken,” he said. “You can't remove that commissioner and cure this problem, because unless you change the law, this problem will rear its head again.”

Senate President Pro-Tem Brent Hill said of Sen. Bob Geddes, the new chairman of the Idaho State Tax Commission, “He has truly been a statesman. He has been a resource for each of us. … One of the important institutions, the institution that collects our taxes, has had its integrity tarnished, and I can think of no better person, no one who's more respected by all people in this state … whether Republican or Democrat or anything else. … Even though we're going to miss him a great deal in the Idaho state Senate, he's going to provide some very important services to the citizens of the state, and I wish him all the best.”

Geddes said he's starting his new job as a tax commissioner today. “We want to make sure that as people come before the Tax Commission, that they are treated with respect, that they are treated fairly. … My job is going to be to make sure that that tax policy is implemented as all of us as citizens of the state would want it to be.”

“He has my total confidence and my appreciation,” Gov. Butch Otter said of Sen. Bob Geddes, his choice to be the next chairman of the state Tax Commission. “Bob has great respect in the Legislature, I think he has great respect all over Idaho. I have found that wherever I go, and a high level of confidence that not only comes from both sides of the rotunda but both sides of the aisle.”

Otter said, “Collecting taxes from people is one of the most important jobs and one of the most sensitive jobs we have in the state. People understand their responsibility in paying taxes, but they want to make sure it's fair, that it's equitable, and that it's done with respect.”

Geddes said, “I have accepted this position - I will do my very best.” He said he'll be retiring from his longtime position at Monsanto Corp.

Otter said possible reform of the Tax Commission still is under consideration. “I believe having Bob there will be very helpful in directing those issues or those questions or those ideas for change with the legislators,” Otter said. Geddes said, “I don't really have any preconceived notion of what really needs to be done at the Tax Commission at this point.” He said, “Certainly there is always room for improvements.”

Otter's previous Tax Commission chairman, Royce Chigbrow, who also was his longtime campaign treasurer, resigned a week and a half ago after allegations that he used his position to help a friend in a business dispute and to aid clients of his son's accounting firm.

Gov. Butch Otter is about to hold a press conference, the press is assembled, and his staff has just passed out the written announcement: He'll be naming Sen. Bob Geddes, R-Soda Springs, to be the next chairman of the Idaho State Tax Commission.

Gov. Butch Otter will hold a press conference tomorrow at 2 p.m. to announce his choice for a new chairman of the Idaho State Tax Commission. The press conference, in the governor's ceremonial office, will be streamed live here.

Meanwhile, former longtime state tax auditor and Tax Commission whistle-blower Stan Howland will appear Tuesday from 3:30 to 5:30 p.m. in the Senate flex room, WW17, to give a talk and answer questions from legislators. His appearance is sponsored by Rep. Shirley Ringo, D-Moscow, and the group Stop Unequal Taxation in Idaho.

Idaho State Tax Commission Chairman Royce Chigbrow has resigned. In a hand-delivered resignation letter sent to Gov. Butch Otter, Chigbrow wrote, “Our system of taxation is not perfect, but I tried to do my best on behalf of every Idahoan during my tenure, while treating taxpayers with the respect, fairness and dignity they deserve. … Despite all of this I know there needs to be a change.” You can read his letter of resignation here.
  

House Speaker Lawerence Denney said today that he supports an investigation into the actions of state Tax Commission Chairman Royce Chigbrow, amid allegations that he used his official position to help clients of his son's accounting firm and to help a friend in a business dispute. “Those are some very serious allegations against the chairman, and if he's found guilty I think the best he can hope for is to resign,” Denney told Eye on Boise. “But again, they are allegations.”  Click below for a full report from AP reporter John Miller.

The Associated Press reports that Idaho Tax Commission Chairman Royce Chigbrow allegedly tried to use his position to help a friend embroiled in a dispute with a former employer.  The allegations, revealed in emails and documents that the AP obtained under the Idaho Public Records Law, include that Chigbrow sought to provide his friend, Skip Hofferber, with confidential information about the firm's tax problems after the man had been fired from the company; ordered a forced tax collection against the firm; and then improperly handled two company cashier's checks totaling more than $30,000 that Hofferber gave Chigbrow at an Arid Club lunch - and that the firm later reported stolen. Click below to read the full report from AP reporter John Miller.

The Associated Press reports today that public records it obtained under the Idaho Public Records Act show Idaho State Tax Commission Chairman Royce Chigbrow intervened on behalf of clients of his son’s accounting firm, over the objections of Tax Commission employees, bringing the clients significant breaks on their taxes. “The heavily redacted documents were among those collected by the Idaho attorney general’s office while representing the Tax Commission in a pending lawsuit that alleges commissioners have given politically connected taxpayers secret sweetheart deals for years,” reports AP reporter John Miller. Click below to read his full story.

Among the incidents detailed in the documents: Chigbrow’s son’s firm sent the chairman an e-mail in February seeking to reduce a state-recommended payment plan of $2,000 monthly for a client to $500 per month to satisfy an estimated $50,000 tax bill. The firm later received the reduced plan, over objections from the commission’s staff. In November 2007, Chigbrow’s former accounting firm, now run by his son, sent him two e-mails asking him for help in waiving tax penalty payments of $931.20 and $644.04. “Can you forward this request to someone in the appropriate department,” the firm’s e-mail requests at 10:51 a.m. Nov. 15. Eight minutes later, Royce Chigbrow forwarded the message to an unidentified Tax Commission employee. “Would you follow up on this,” he asks. A third e-mail from an employee shows the taxpayer received the abatement the next day.

Chigbrow, former longtime campaign treasurer for Gov. Butch Otter, denied any wrongdoing and said he just passed along messages. Lawmakers from both parties are now talking about ways to restructure the state Tax Commission, which now is operated by four political appointees.

Here’s a news item from the Associated Press:  BOISE, Idaho (AP) — An Idaho prosecutor has declined to pursue a criminal case stemming from allegations that Idaho State Tax Commission leaders gave politically connected taxpayers inappropriate settlements. In a letter obtained by The Associated Press, Ada County Prosecutor Greg Bower told the Idaho attorney general’s office that even if the lawsuit’s allegations were true, “we do not see a criminal law violation.” Bower concluded the matter was best left addressed by the Legislature. Idaho Rep. Shirley Ringo had brought a civil case against tax commissioners. It’s since been dismissed, but Ringo’s lawyer, Robert Huntley, refiled claims after finding new plaintiffs who he says have court standing. When asked about Bower’s move not to pursue a criminal investigation, Huntley said Monday he’s still calling for an independent probe of the settlements.

4th District Judge Cheri Copsey on Thursday “reluctantly” granted the state’s motion to dismiss Rep. Shirley Ringo’s lawsuit over secret tax deals for lack of standing, but said in her decision that Ringo’s allegations were “very troubling” and should be addressed. Ringo’s attorney, former Idaho Supreme Court Justice Robert Huntley, said he’d anticipated the ruling, and already had filed a new version of the lawsuit on Tuesday with six new plaintiffs who he believes have clear standing: three education associations, a public school student, a parent of a student, and a public school employee. “I think we’ll be just fine with the case with the six new plaintiffs,” Huntley said in an email.

Ringo, D-Moscow, in her lawsuit, submitted sworn affidavits from eight current and former state Tax Commission employees saying the commission has been improperly cutting secret deals with influential taxpayers, letting them off the hook for millions in taxes due.

Three education groups are seeking to join Rep. Shirley Ringo, D-Moscow, in her lawsuit over secret tax deals at the state Tax Commission, saying the alleged deals are causing education funding in the state to suffer.     ”We take the allegations very seriously,” said John Rumel, general counsel for the Idaho Education Association, one of the three groups. “The representative’s allegations indicate that because of some sweetheart deals and corrupt practices, a substantial amount of funds that should be going into the coffers of the state are not getting there.”

In addition to the IEA, the Idaho Federation of Teachers and the American Federation of Teachers local from the University of Idaho all have filed motions to intervene in the case as plaintiffs. The UI group represents 65 professors and staffers at the university; the IEA is the state’s largest teachers union, with 13,000 members. You can read my full story here at spokesman.com, and read the latest filings in the case here.

Sen. Brent Hill, R-Rexburg, chairman of the Senate Local Government and Taxation Committee, said he doesn’t see great need to reform Idaho’s state Tax Commission. “We tried to address some of the concerns with compromises, and yet these whistleblowers keep claiming there should be no compromises, and I don’t agree with that concept,” said Hill, a CPA. “That’s why the Legislature stepped in and very clearly said, ‘Yes, there should be compromises under these circumstances,’ and we outlined those.” He added, “As far as I’m concerned, we have addressed this issue, we’ve taken care of it, but … we are certainly amenable to suggestions from the public, from other legislators, from anyone else of how we can run our government better, and that includes the state Tax Commission.”

Rep. Wendy Jaquet, D-Ketchum, is proposing sweeping reform legislation, aimed in part at taking politics out of the process; but Hill said issues like property tax rules and revenue forecasts ultimately are decided by the state Legislature. “How you depoliticize the Legislature I don’t know - politics is part of what makes representative democracy work,” he said. “I don’t think politics is a bad thing necessarily.” You can read my full story here at spokesman.com.