Senate passes tax break bills

BOISE – Over the strong objections of three North Idaho lawmakers, the Senate easily approved legislation designed to attract large companies to Idaho by offering huge tax breaks.

“I acknowledge this is a noble cause,” said Coeur d’Alene Sen. Dick Compton, “but I wanted to convey the frustration we feel when people are marching the streets in our area because the Legislature is doing nothing on property taxes. … I’m compelled to vote no.”

Republican Sens. John Goedde of Coeur d’Alene and Mike Jorgenson of Hayden Lake joined Compton in protesting that the House Revenue and Taxation Committee killed numerous bills that would have given property tax relief to homeowners.

“I also want to express my frustration,” Goedde said. “I had assurance from the leader (of the House) that I would have a bill heard, and it died in a committee drawer.”

The tax committee decided earlier in the session to set up a special interim committee this summer to study the issue rather than act on the numerous relief measures that had been proposed.

Still, HB 306 quickly passed the full Senate on Tuesday on a 30-5 vote. Assistant Majority Leader Joe Stegner of Lewiston and Sen. Brad Little, R-Emmett, also voted against the measure.

The legislation now goes to the governor’s desk after overwhelmingly passing the House last week.

As one of the cornerstones of Gov. Dirk Kempthorne’s legislative agenda, the bill provides tax and job credits as well as state-paid property tax breaks to large companies that hire at least 500 new employees earning at least $50,000 annually, plus benefits. The companies also must invest $50 million in infrastructure in the state.

The Senate then unanimously passed a smaller measure, HB 323, that provides scaled-down tax breaks to companies that create at least 10 jobs that pay $40,000 annually.

Sen. Hal Bunderson, R-Meridian, acknowledged HB 306 is aimed, in part, at Albertson’s Inc., the Boise-based grocery chain that has taken criticism for helping to craft the bill. Yet he argued many other companies would also benefit.

“This has been popularly termed the ‘Albertson’s Bill,’ ” he said. “It doesn’t discriminate, however. … But it is clearly true Albertson’s is first in line.”

During debate, Compton asked Bunderson if a deal already had been struck with Albertson’s before the measure was proposed. “Is this after-the-fact legislation?” he asked.

Bunderson, however, said that wasn’t the case, arguing that the company could choose to go anywhere it wanted.

He and Sen. Tim Corder, R-Mountain Home, said if any corporation took advantage of the legislation, the economic boon to the state would be tremendous.

“We will see the benefits … come to reality,” Corder said.