House Oks Tax Cut For Idaho Counties

Members of the Idaho House used Oregon’s construction of a huge prison close to its border with Idaho as justification for a bill that would give special tax breaks to two counties.

The House voted 54-14 on Wednesday for a bill that would cut the sales tax rate in half for Washington and Payette counties, which border Oregon. Oregon has no sales tax, and sponsors from the Idaho counties say business is dying because everybody wants to shop across the border.

The bill heads to the Senate, where it faces uncertain prospects in the Local Government and Taxation Committee.

One of the bill’s sponsors argued that Oregon deliberately decided to locate its new state prison near the Idaho border so its employees could live in Idaho but pay income taxes and do all their shopping in Oregon.

Rep. Dorothy Reynolds, R-Caldwell, said the bill was unfair. She said some communities in her county, Canyon, border Oregon but don’t enjoy a tax break.

Sponsors estimate the state will lose $2.2 million per year in sales tax revenue, but contend increased economic activity in Payette, Weiser and other cities in the two counties will offset the tax loss. , DataTimes