Otter Plan Would Cost Locals $10.2M

Local agencies are anticipating a chomp into their budgets, now that Gov. Butch Otter is urging the legislature to scrap Idaho’s personal property tax this year. Losing that revenue source means taxing districts would have to cut services, officials predict, or compensate with other taxes. …  Many companies are touting for Idaho to eliminate the personal property tax, levied against business’ equipment and machinery. Otter spotlighted tossing the tax in his state-of-the-state speech. But local governments point to how the tax provides non-earmarked revenue to cities, counties, school districts and other taxing agencies. Statewide, taxing districts receive $141 million in revenue from the tax. Taxing districts across Kootenai County received roughly $10.2 million total from the tax in 2012, according to the Idaho State Tax Commission 2012 personal property tax analysis/ Alecia Warren , Coeur d’Alene Press. More here.

Thoughts?