Revenue Panel Approves Bill Changing State Sales Tax

Freshman Rep. Frank Bruneel, R-Lewiston, convinced the House tax committee Wednesday to allow the full House to vote on a bill that would make a fundamental shift in state tax policy.

The bill, which would increase the sales tax to provide much of the funding for public schools, was approved by the Revenue and Taxation Committee in a 10-8 vote and could come to a final vote in the House early next week.

The measure would impose a 25 percent increase in the state sales tax, from 5 percent to 6-1/4 percent, and eliminate about $149 million in local property taxes for school maintenance and operation.

For the current school year, school districts collected $149.1 million in local property taxes for maintenance and operations. Total school budgets, including operating expenses, bonds and plant facilities, amounted to $277 million, so Bruneel’s measure would mean more than half of public school funding would be provided by the state, not by local sources.

If the measure becomes law, Bruneel said, it might defuse support for tax activist Ron Rankin’s initiative to limit property taxes to 1 percent of market value.

Opponents argued the measure would undermine local control over schools.