This bill would reduce available funding for public schools across the state and force them to increase their reliance on supplemental levies, which in turn increases property taxes of homeowners when passed.
Description: This tax bill reduces all income tax brackets with the top income tax bracket changed from 6.93% to 6.5%; reduces sales tax rate from 6% to 5.3%; reduces the corporate income tax rate from 6.93% to 6.5%; and eliminates the $100 ($120 for Idahoans over 65) per person grocery tax credit.
On Feb. 22, 2011, the Idaho Center for Fiscal Policy (ICFP) reported in the “Analysis and Considerations Related to House Bill 199” that most tax benefits would go to households with an annual income above $103,000 and are minimal for Idahoans earning up to $66,000. In addressing the fiscal impact of the bill, ICFP estimates that the proposal will cost $102.1 million in fiscal year 2022 and $270.5 million each year thereafter. Corporate tax cuts ($17 million per year) would benefit shareholders of Idaho-based companies, with $13.8 million flowing to out of state shareholders. Sales tax cuts would also flow to out of state people/entities. Although the Tax Relief Fund is targeted to cover the costs of the bill, the balance of the legislation’s cost will be covered by the General Fund.
Bill status: 2/17 the bill was printed and referred to Revenue and Taxation Committee.
League position: Oppose – League opposes income tax cuts, because they lead to school districts needing supplemental levies. The supplemental levies, or lack thereof, make for unequal opportunities in education. League supports a tax structure which is balanced, progressive, i.e., based upon income, adequate, and which is administered in a thorough and cost-effective manner; support for greater understanding and involvement in the budgeting processes; support for increased taxation on extraction of mineral resources; support for revision of the state income, property, and sales taxes.” (LWVID Position on Idaho’s Tax Structure, Amended, February 2015) The LWVID believes that Idaho should maintain a balanced tax structure which includes a variety of broad-based taxes such as the property tax, income tax and sales tax. League supports measures which will make Idaho’s tax structure progressive, i.e., graduated based upon income, financially adequate for citizen needs, and which can be administered with thoroughness and fairness. (Principles of Taxation Adopted July 1977; amended May 1988, amended February, 2015)
Call to Action – Email, write to or phone your state representative. Find their contact information here: https://legislature.idaho.gov/legislators/whosmylegislator/?address=
