LEGISLATIVE NEWS: Week Eight, 2007 - By Wendy Jaquet

 

The pace is in high gear this week as we try to move House bills from the House floor to the Senate.  We have had some great debates.  Today I even quoted from the Bible about paying your taxes. (Romans 13.7: Pay to all what is due them - taxes to whom taxes are due)  The bill passed.  I voted “no”, it was HB216.

 

There is so much action in the House Rev and Tax Committee.  Two bills have had a high degree of interest: repeal of the personal property tax brought by the Idaho Association of Commerce and Industry (House bill 245) and enabling legislation for a  local option transit sales tax (House Bill 246).  I voted “no” on the personal property tax.  I voted “yes” to introduce the local option transit tax and will support it in the Tuesday committee hearing.

 

Personal property tax is hard to administer, is burdensome for the taxpayer but the cost to the state budget of $92.8 million dollars  is too big of a hit.  The proposal phases in the repeal over an 8 year period, but initially it shifts the first $50,000 in value to other taxpayers like homeowners.  About 84% of personal property tax payers fall under the $50,000 value which is why democrats in the committee (joined by two Republicans) tried to amend the bill to gut the benefit for the remaining 16% of businesses.  Our amendment also held the local governments harmless; we would reimburse them for the lost $9.4 million dollars. I suspect that the Senate will not pass the IACI bill in its current form.

 

The local option transit tax was approved for introduction by the committee this week by a narrow margin.  The bill requires a 66 2/3 % approval to go into effect.  There must by an adopted public transportation plan in place prior to going to the voters.  The ballot question can only be on the ballot in the May or November elections and would ask to authorize a sales tax of not less than 0.1 percent or more than 0.5 percent.  The tax may be imposed to support the Regional Public Transportation Authority’s adopted plans and budgets.  The sales tax sunsets after 20 years unless it is re-authorized by a 66 2/3 % vote once again.  Sales taxes would be collected through the state tax commission.  The hearing is Tuesday, March 6 at 9:00 a.m.

 

Sales price disclosure: Senators Shawn Keogh and Lee Heinrich and I believe we have a good revised  bill which would benefit from tweaking over the interim.  We have involved bankers, title company representatives, the Realtors, contractors, assessors, county elected officials and the state tax commission.  The bill will go to the Senate State Affairs Committee for introduction on Monday, where it will get a new number and be on the internet for review.

 

The Ranch, Farm and Forest Protection Act was introduced in House Rev and Tax and will be held over the interim for further review with stakeholders.  The Act provides a tax credit to owners of agricultural and forest land who voluntarily agree not to develop lands important to fish and wildlife.  A criteria will be set by an advisory committee and the landowner will receive a transferable income tax credit.  Also introduced was legislation from the Bioscience Incentives Task Force which uses the incentive of state tax relief to investors willing to make high-risk investments in young, research based companies that have been prequalified by an experienced commission working with the Dept of Commerce and Labor.  The program projects 5000 new jobs at higher paying salaries to begin to deal with Idaho’s lower household income which is found to be 3/4 of the national average. 

 

Thank you so much for your e mails and phone calls about issues that you care about.  Please continue to contact me as we begin to focus on senate bills.  You can reach me at 800/626-0471 or e mail me at wjaquet@house.idaho.gov

 

Be sure to calendar pizza and politics the weekend of March 17:

 

3/17: Garden Valley 9:00 am - Location TBA
3/17: McCall 1:00 pm - Location TBA
3/17: Grangeville 6:00 pm - Location TBA
3/18: Weiser 1:00 pm - Idaho Pizza Factory
3/18: Nampa 4:00 pm - Langroise Auditorium, Albertson College

 

Rep. Wendy Jaquet
House of Representatives
House Democratic Leader
Work: (208) 332-1133
Home: (208) 726-3100
Work Fax: (208) 334-5397
Home Fax: (208) 726-0674