Idaho Examiner: Rebates, Taxes, Regulation -- OH MY!"Common Sense News"

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Reports

Rebates, Taxes, Regulation -- OH MY!

Posted on: March 20, 2007

By Becky Ponkow

As I look at the Legislature this year, the bottom line seems to be lack of action, which isn’t necessarily a bad thing. The session this year is short due to the necessity of getting the renovations to the Capital started on time; therefore it appears our lawmakers will truly adjourn on March 23rd as planned.

The Grocery Tax Rebate Bill which will give Seniors $70 in Income Tax Credit and everyone else $50 in Income Tax Credit. The Senate passed Bill H81aas unanimously while the house had 6 dissenters: Andrus, Bock, LeFavour, Luker, Ringo, and Wood(27). The Governor originally indicated that he would veto this bill because he wanted the income test included and a tiered credit. Time will tell if the Governor will follow through, however, it does appear that both the House and Senate would have the votes to overturn a Veto.

Personal Property Tax for businesses was not so lucky. Although the issue sailed through the House it has been sent to the Amending Order in the Senate – which at this late date will probably kill the bill. Much dialogue has been spewed on both sides of the isle. For me, I have to look at the fact that businesses pay 6% sales tax on their property just like everyone else. The rub is that they continue to pay property tax even after the item has long exceeded its value. Think of your computer . . . could you sell it to anyone? If you could would you receive much for it. Opponents point to the idea that the repeal of this tax benefits big business; however, 81% of the businesses in Idaho would have seen tax
relief from this bill. Most of us don’t realize that the mom and pop restaurant is paying taxes on its grill, the booths or chairs you sit in, the tables. How about your Dentist? Tired of paying high fees there? Consider that your dentist not only had to pay sales tax on the $100,000 dental chair you’re sitting in but also pays property tax every year on it and the dental tools and the x-ray machine and the . . .

One of the biggest misnomers is that removing the Personal Property tax will shift the burden unfairly to homeowners. Homeowners already enjoy the home owners exemption which businesses do not. In addition, most business property is valued far above residential meaning that businesses will carry their fair share. The real issue is that it is unfair to double tax anyone and it is unfair to single out one group for a specific tax.

Bannock County gets around 10% of its tax revenue from Personal Property tax so the cost to all property tax payers should be minimal. In addition, only the first $50,000 in Personal Property Tax would be shifted to all Property Tax Payers, any amounts over that would be covered by the State; therefore, most the tax from AMIS and other large firms would come out of the General Fund not property tax payer’s pockets.

The Urban Renewal bills largely failed in committee and will not be passed this year. The most problematic of the bills – H251 — would have kept districts from changing their boundaries. Although the bill passed the House it has been held in committee in the Senate and will not be voted on this session.

Social issues saw another bill for parental consent which even many Democrats voted for. The bill is on the Governor’s desk and expected to be signed. The school district consolidation bill also has passed into law. The bill will allow School Districts to consolidate without suffering financial set backs. Possibly one of the best bills to pass this session. Another bill that would have required background checks on daycare workers failed leaving the burden on parents and municipalities to decide what is appropriate. Thankfully, both Chubbuck and Pocatello have laws requiring background checks so we at least have more solid footing — knowing that daycares have to do the checks to be licensed.