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Controversial Pop Tax On Tap Hike Would Ease Property Tax Burden, Fund Community Colleges

By Betsy Z. Russell betsyr@spokesman.com(208) 336-2854

If Rep. Steve Antone has his way, Idaho will slap a 2-cent tax on cans of pop and Kootenai County will get a $4 million property tax break.

Antone’s plan would use a pop tax to replace the local property taxes that now help fund Idaho’s two community colleges. Residents of Kootenai, Jerome and Twin Falls counties are the only ones who pay those property taxes.

Antone, R-Rupert, the powerful chairman of the House Revenue and Taxation Committee, convinced his committee to support the plan Thursday, sending it to the full Senate for a vote. The same committee earlier killed a similar proposal that would have taxed liquor or beer and wine.

“Liquor is considered a luxury. So, I think, is carbonated beverages,” Antone told the committee.

Kootenai, Jerome and Twin Falls counties “are carrying a tremendous load to support those two community colleges that contribute so much to our educational system,” Antone said.

Idaho’s other colleges and universities, which offer similar programs, are entirely state-funded.

Several lobbyists argued against the bill. If Idaho starts imposing new taxes on specific businesses, “It’s Katie-bar-the-door after that,” said Steve Ahrens, president of the Idaho Association of Commerce and Industry. “There will be no consistent tax policy in the state of Idaho.”

“This is not good tax policy,” said Steve Thomas, representing the Soft Drink Association.

Soda pop doesn’t hurt society like liquor, Thomas said. “Clearly, we’ve never heard of driving under the influence of 7-Up. Domestic violence, we don’t hear that it’s linked to excessive consumption of root beer … There shouldn’t be a government policy to discourage consumption (of pop).”

The bill would raise $8 million to $10 million per year. If that money were divided equally between North Idaho College and the College of Southern Idaho, it would wipe out virtually all of CSI’s need for property tax. NIC still would need to levy some taxes.

In 1996, Kootenai County property taxpayers will pay about $5.8 million in property taxes to support NIC.

, DataTimes MEMO: This sidebar appeared with the story: WHAT IT MEANS Rep. Steve Antone’s proposal to apply a 2-cent tax to cans of pop would raise $8 million to $10 million per year. If that money were divided equally between North Idaho College and the College of Southern Idaho, CSI’s need for property tax would be virtually eliminated.

This sidebar appeared with the story: WHAT IT MEANS Rep. Steve Antone’s proposal to apply a 2-cent tax to cans of pop would raise $8 million to $10 million per year. If that money were divided equally between North Idaho College and the College of Southern Idaho, CSI’s need for property tax would be virtually eliminated.