Shifting Ed Funding To Sales Tax Urged

Rep. Maynard Miller, R-Moscow, is trying anew with a concept that the Legislature has rejected many times in the past - shifting the bulk of taxes for school operations from property tax to sales tax.

Miller on Monday introduced as a personal bill his legislation to increase the state sales tax by one-half percent, to 5.5 percent, and extend the tax to services now exempt from it. He estimates that would raise more than $100 million per year.

Miller would use the revenue to cut local property taxes for schools by two-thirds. To avoid a large impact on low-income families, people over the age of 70 and families with incomes under federal poverty guidelines would get a larger tax credit designed to offset the sales tax they pay.

“In total systems terms this is a tax restructuring which does not represent an overall tax increase, but in fact, over time will lead to a net tax reduction for our citizens,” according to the measure’s statement of intent.