Hint Of Change Seen For Local-Option Taxing

Legislation that would let any city or county in Idaho ask voters to impose a local sales tax died in the House Revenue and Taxation Committee Wednesday.

But there was a glimmer of hope for North Idaho.

One of the bill’s staunchest opponents, Rep. Golden Linford, R-Rexburg, said the measure was different from those designed to “nail the tourists.” That, he said, “We can do with a clear conscience.”

That’s the stated aim of a bill that’s tailor-made for Coeur d’Alene, Post Falls and Kootenai County, and is up for a hearing next week.

The North Idaho bill allows “resort counties” to add a local sales tax if 60 percent of voters approve. At least half the new revenue would go to property tax relief. The idea is to get visitors to help pay for the strain they put on services - now funded entirely by local property taxes.

Wednesday’s action came on a broader bill proposed by the Association of Idaho Cities. It would have let any community vote in a local-option sales tax. The bill also included the 60 percent vote requirement and the rule that at least half the money go to property tax relief.

The association long has asked the Legislature to give local governments tax options besides the property tax. But the Legislature has consistently refused to loosen its hold over Idaho’s tax system.

Rep. Mark Stubbs, R-Twin Falls, argued that it’s time for that to change. Association of Idaho Cities director Scott McDonald included many changes in his legislation at the committee’s request, he noted.

“As a board of directors for tax policy in this state, we should set some good policy, then let the local people decide…let them vote,” Stubbs said.

But he was outvoted 9-7.

Rep. Jim Kempon, R-Albion, said, “I feel that a uniform tax policy in the state is the best.”

A bevy of North Idaho officials listened to the hearing, then filed out afterward.

“I’ve seen it here the same way before,” said Coeur d’Alene Mayor Al Hassell. “It goes nowhere when it comes to doing anything locally.”

“They want to tell you how to do it,” said Kootenai County Assessor Tom Moore.

“Wait ‘til next week,” said Kootenai County Administrator Tom Taggart.

That’s when North Idaho’s madeup bill is up for a hearing. Part of its appeal, supporters hope, is that it applies only to Kootenai County.

, DataTimes