Idaho Senate backs grocery tax repeal, 25-10

BOISE – Idaho would remove its 6 percent sales tax from groceries in June 2018, if legislation passed by the Idaho Senate on a decisive 25-10 vote Wednesday becomes law.

The bill still needs the House approval, plus Gov. Butch Otter’s signature – something that’s by no means assured, as Otter has spoken out strongly against the move.

Thirty-seven states, including Washington, don’t tax groceries, but Idaho has included groceries in its sales tax since the tax first was enacted in 1965.

“My question is: Should we tax our families to buy the necessary basics of providing food for their families?” asked Sen. Abby Lee, R-Fruitland. “This is, in my opinion, not an appropriate tax on our families.”

Lee noted that a new Waremart store, a division of Winco, just opened in Oregon across the river from her hometown. She tried to tell them that Idaho is more business-friendly and has lower income taxes than Oregon. But all that mattered was that shoppers would prefer to shop where they didn’t pay a 6 percent sales tax on their grocery purchases.

“This is for every Idaho citizen, low-income, middle-income, fixed income, all the way up through to the top,” said Sen. Lori DenHartog, R-Meridian. “This really matters. This is the right thing to do.”

Every North Idaho senator voted in favor of the bill; Sen. Steve Vick, R-Dalton Gardens, was the co-sponsor with Sen. Cliff Bayer, R-Boise, of amendments that earlier transformed the House-passed bill, from an income tax-cut bill to a grocery tax repeal bill.

Opponents said Idaho can’t afford the big hit to state revenues that would come if the grocery tax, a relatively stable source of revenue, went away. Sen. Jeff Siddoway, R-Terreton, noted that Idaho has committed to substantial, ongoing costs to fund a new teacher career ladder pay plan over five years, with next year as the third year.

“If we’re going to stay true to those principles, we’re going to have to come up with the money,” he said. “If we decide we’re going to compete with education and put some undedicated general fund money into our roads, we’re digging ourselves a hole, and we’re digging it pretty fast.”