Otter: Don’t repeal the grocery tax

BOISE – Gov. C.L. “Butch” Otter says Idaho lawmakers should not repeal the state’s grocery tax, adding that he sees no reason to change the current system.

Otter sent a letter to House Speaker Scott Bedke and Senate President Pro Tem Brent Hill Thursday stating his opposition just after the Senate surprised legislative leadership by rewriting a tax cut plan to repeal the 6 percent sales tax on groceries. The proposal still needs to clear both the House and the Senate before the Idaho Legislature hopes to adjourn by March 24.

Thirty-seven states currently do not tax groceries. In Idaho, the grocery tax is offset with a $100 credit available to families when they file their taxes.

The Republican governor stopped short of saying he would veto any grocery tax repeal proposal that came across his desk.