Tax Report: Exemptions Cost Idaho $2.4 Billion - East Idaho News
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Tax Report: Exemptions Cost Idaho $2.4 Billion

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Deborah Courson Smith

BOISE, Idaho – The 136 tax breaks on the books in Idaho should be reviewed, according to a new report.

Using state numbers, the study from the Idaho Center for Fiscal Policy estimated that $2.4 billion in tax breaks will be granted this year. Center director Lauren Necochea said many other states are scrutinizing whether tax exemptions bring benefits, and Idaho should do the same.

“These tax breaks mean fewer dollars for other priorities,” she said. “Every other part of the state budget gets scrutinized every year. Meanwhile, many of these tax breaks are on autopilot.”

The report found that Idaho forgoes collecting taxes to the tune of $1 billion more than it spends on public education. Recommendations include requiring proposed tax-break legislation to clearly identify goals and have them verified by nonpartisan analysts, reviews of tax breaks after they’re enacted to see if they are meeting the stated goals, and a review for every existing tax break every five years.

Necochea said weighing the costs versus the benefits of tax breaks is important for government transparency – just as other budget line-items are scrutinized.

“If we had a review process,” she said, “that would help ensure these tax breaks are working for the state of Idaho and accomplishing their intended goals.”

Sales-tax exemptions alone cost the state about $2 billion a year. Legislative study committees in previous years have recommended that tax breaks be reviewed, but the proposals haven’t made progress in the Legislature.

The report is online at idahocfp.org.

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