Posted on 03/06/2022 3:23:11 PM PST by mac_truck
BOISE, Idaho — A House committee on Friday introduced sweeping tax legislation that would raise Idaho’s sales tax to the highest in the nation while eliminating most property taxes on owner-occupied homes.
The House Revenue and Taxation Committee approved a possible hearing on the bill that also uses some of the increased sales tax money to raise the grocery sales tax credit from $100 to $175.
The move will bump Idaho’s sales tax from 6% to 7.85%, the highest in the nation, according to the nonprofit Tax Foundation group that analyzes tax policy. California currently has the highest sales tax at 7.25%.
City and county taxes would be eliminated on primary residences in Idaho, but voter approved bonds and school levies would remain.
“The beauty of this is you’re taking a narrow tax and you’re replacing it with the broadest possible tax,” said Republican Sen. Jim Rice. “So people that don’t live in the state of Idaho that come visit in our state, vacation here, drive through, will help pay for the services that they get the benefit of in our state.”
Many lawmakers appeared to have a hard time digesting the 41-page bill.
“Everything on this looks good, sounds good, but I just have this niggling feeling that it may not be as good as it all looks,” said Republican Rep. Linda Hartgen.
(Excerpt) Read more at oregonlive.com ...
Yeah but people who live there full time, will they be better off? Its going to stifle purchases as well.
That’s what most of my property tax is. Screw this idea.
Time to steal.
Texas’ real sales tax is 8.25%. Cities, counties and such add on another 2% to the state tax.
We already have a sales tax of 8.5% in Texas. Property taxes are through the roof!
When I retire I have my eye on Tennessee. Low property tax and low sales tax.
California’s sales tax is way more than 7.25 % because each county and city can jack it up further. It’s 10.25% in Alameda County.
So if you live just inside the Idaho border, you’ve got it made.
Exactly. Just an excuse to raise taxes.
Inflation is raising the cost of everything, so increasing the sales tax will put the double-whammy on people living paycheck to paycheck, while filling the state’s coffers.
It’s nice they put it to the voters. A legislator cannot promise one thing and not deliver. Like the initiative process in Calif. I guess. Otherwise there’s no representative government. Vote them in and they do what they want. Put your kid in the public school and they’re not yours for the day.
Yes, please!
That’s where I’m moving back to when I retire. I had a sweet deal on a little over 200 acres outside of Knoxville. Check on getting the land green belted and you’ll save even more. I moved down to TX from TN for work, but will be heading back at some point. I seriously miss the mountains. Good people too.
“Everything on this looks good, sounds good, but I just have this niggling feeling that it may not be as good as it all looks,” said Republican Rep. Linda Hartgen.
where is the discussion on reduced spending?
>>Texas with the third highest property taxes in the nation, will follow suit.<<
Right? Texas, supposedly the conservative bastion hasn’t been able to rid us of these punitive property taxes for decades.
What a hoot. Pay off your home mortgage and the state still owns your home.
Low sales tax ? It’s 9.25%.
“The move will bump Idaho’s sales tax from 6% to 7.85%, the highest in the nation..”
Pfft...Chicago is 10.25%. Pikers.
My thoughts exactly. $3600 a year for property taxes on my $175,000 home is just too big a bite in the butt.
Could be worse though. I could live in California.
Sales tax is HIGHER in and around New York City. It's just that some of it is State Sales Tax and some is County Sales Tax. So, e.g. Nassau County where I grew up is 8.625%, which is probably more than the profit on whatever item is being sold. (It was ZERO until August 1, 1965, and somehow we had everything that the folks who live in my house get now.) The NYC boroughs are all 8.875%.
ML/NJ
Whenever govt engages in a gimmick like this — we will eliminate one tax but raise another, the net benefit is to government.
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