Local Option Tax Clears First Hurdle, Faces Bleak Future Doubtful House Committee Votes To Introduce Measure Aimed At Property Tax Relief
A proposal to allow Idaho cities to impose local option sales taxes cleared its first hurdle Thursday, but its odds for final passage appear long.
The House Revenue and Taxation Committee voted 10-7 to introduce legislation from the Association of Idaho Cities. Still, many of the panel’s members seemed dubious about the idea.
Association Director Scott McDonald told lawmakers the measure requires half the revenue generated by up to 1 percent in additional sales tax to be used for property tax reduction.
It’s an issue that has been before the Legislature almost every year for decades.
Rep. Mark Stubbs, R-Twin Falls, called the bill “the great-great-great-grandson” of local option tax proposals because it has been around so long. Still, he said, the proposal should be introduced for more study.
“We don’t have legitimate property tax relief that I can see,” he said. “I think that people who want property tax relief would want the sales tax.”
Rep. Jim Kempton, R-Albion, said if any additional sales tax is authorized, there is wide support for using it to slash property taxes.
McDonald said the measure allows cities to cut property taxes, yet still come up with money needed to fund services. The bill is titled “City Property Tax Alternative Act of 1997,” and McDonald said it gives local residents a choice between funding services by property tax or sales tax.
The measure requires 60 percent voter approval of any tax hike, and the local option sales tax on top of the state’s regular 5 percent sales tax can last no longer than 10 years.
Past proposals have died because lawmakers were worried that if a city imposed the extra tax and a county did not, people living outside the city would pay the extra tax when shopping in the city but would get no benefit from it.
McDonald said this year’s plan encourages regional cooperation. A city can opt to ask voters for approval by itself, or it can decide that the additional sales tax won’t go into effect unless surrounding communities go along.
xxxx LEGISLATIVE ACTION Confirmed by Senate Robert Griffel, Ashton to the State Soil Conservation Commission.
Introduced in Senate SB1027 (Education) Revises school bus inspection requirements to once a year instead of before each school year begins. SB1028 (Education) Allows school districts to offer teachers one-year limited contracts that require no further notice for nonrenewal. SB1029 (Judiciary and Rules) Imposes a penalty of six months in jail and a $300 fine on adults procuring beer for minors. SB1030 (Judiciary and Rules) Requires that court orders in domestic violence cases be accompanied by the petition for a protection order. SB1031 (Judiciary and Rules) Expands arrest authority in drunken driving cases to include not only liquor but all alcoholic beverages. SB1032 (Judiciary and Rules) Eliminates curfew violations from automatic inclusion under the Juvenile Corrections Act. SB1033 (Judiciary and Rules) Increases the state reimbursement to counties for housing state prison inmates from $35 to $45 a day. SB1034 (State Affairs) Expands dates for 911 emergency telephone service elections to include all four statewide election days.
Introduced in House HB126 (Revenue and Taxation) Allows Tax Commission to grant extensions in filing deadlines for tax returns to people who were affected by natural disasters such as flooding. HB127 (Clark) Allows city officials to retain, store or reproduce documents by digital means including optical imaging. HB128 (Callister) Deletes the exemption granted elected officials from the need to obtain a license to carry a concealed weapon. HB129 (Agricultural Affairs) Changes formula for assessment on sale of peas, lentils, chickpeas and garbanzo beans to provide increased funding. HB130 (Transportation and Defense) Allows drivers who are limited to daylight only to drive from 6 a.m. to 8 p.m. even when daylight hours are less than 14 hours during winter. HB131 (State Affairs) Allows Idaho Housing and Finance Association to issue state and federal tax exempt bonds for nonprofit corporations. - Associated Press