Legislation from the state Tax Commission that would have saved the state $25,000 by requiring paid tax preparers and large companies to file state tax returns electronically has been defeated in the House on a 25-44 vote. Among those arguing against the bill was freshman Rep. Heather Scott, R-Blanchard, who said, “This bill is forcing 10 small software companies to produce something that they obviously don’t want or don’t see a market for.”

The bill, HB 35, would have required electronic filing of income tax returns by paid tax preparers who file 25 or more returns. It also would have required large partnerships and large corporations to file their returns electronically. “Most of them already are filing electronically on the federal,” said Rep. Jeff Thompson, R-Idaho Falls. “This bill to me is about two things: It’s helping out the taxpayer, getting their money a little bit quicker; and it’s moving for smaller, more efficient government.”

Scott said “nudging is a nice word” for how the bill would have forced electronic filings.