Otter vetoes grocery tax repeal, saying costs ‘too high’

BOISE – The governor of Idaho has vetoed a legislative measure that would have repealed the state’s 6 percent sales tax on groceries.

The Idaho Statesman reports Gov. Butch Otter rejected the tax repeal Tuesday evening.

Otter wrote in his veto message that the costs of the proposal are too high and the potential for imminent financial need too great for the small amount of tax relief it would provide.

The governor had hinted at a veto during the session based on its impact on state revenues and said the state was facing additional financial pressure with at least $30 million in infrastructure damage from winter storms.

In his veto message, he cited an $80 million drop in revenue once the repeal took full effect next year.

The measure had won broad support among lawmakers.