Idaho state reps talk about cutting taxes - East Idaho News
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Idaho state reps talk about cutting taxes

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REXBURG — Reps. Dell Raybould and Ron Nate, both R-Rexburg, gave updates on two tax bills going through the Legislature during the Rexburg Area Chamber of Commerce video conference Wednesday.

Both men sit on the Revenue and Taxation Committee.

Repeal of grocery tax

Nate said a bill repealing the “grocery tax” will be revealed this week.

He said the grocery tax repeal bill would repeal all taxes on food “as defined by the SNAP program.” (That’s the Supplemental Nutrition Assistance Program, also known as the Food Stamp Program.) It would also do away with the grocery tax credit.

“I think it’s the best and most robust for tax relief for Idahoans that we might see this session,” he said. “So I’m really excited about getting that going.”

Idaho is one of 13 states that charge sales tax on groceries, according to The Pew Charitable Trusts, with Idaho’s sales tax rate being 6 percent. The grocery tax credit attempts to offset the tax.

Nate said increasing the grocery tax credit instead of repealing the grocery tax would be a less accurate away to provide tax relief to Idahoans who need it.

“(The grocery tax credit is) lower than what some people pay in grocery taxes, it’s higher than what others pay in grocery taxes,” he said. “If we just repeal the grocery tax, then we know we’re doing what the tax credit was intended to do.”

Nate said the state would lose $30 million to $50 million in revenue if the grocery tax is repealed.

Forgiveness of property taxes to businesses

In an effort to entice new commercial and industrial businesses to come to Idaho, the Revenue and Tax committee passed a bill allowing tax districts to forgive businesses their property taxes if they make at least $500,000 worth of improvements.

The bill was just passed in committee, Raybould said.

Raybould said the bill only applies to commercial and industrial businesses and only on the building itself. Businesses that improve on already existing buildings would be eligible if they spend $500,000 or more on those improvements.

“That would give, I think, our communities an opportunity to attract people that might be locating in another state, or something, to come into our area,” Raybould said.

The loss of tax revenue for the state would be made up through the new people those businesses would bring to Idaho.

“You bring 100 or 200 workers in — look at the additional business that’s going to be for our local grocery stores, clothing stores, car dealers — things like that,” Raybould said. “It’s a real benefit to our communities.”

You can read the property tax bill here.

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