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Idaho proposes to eliminate most property taxes for main homes, raise sales tax to nation’s highest
Oregonian ^ | 3/6/22 | AP Staff

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 ...


TOPICS: Business/Economy; Extended News; US: Idaho
KEYWORDS: idaho; propertytaxes; salestax; taxes
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To: thegagline

You maybe want to read further. The bulk of property tax as it is in Texas goes to fund the school system and in Idaho *they will continue to have a property tax for that*.

So, small property tax reduction, large sales tax increase so you’re likely to actually pay more overall. SURPRISE!


21 posted on 03/06/2022 3:53:52 PM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: thegagline
Hopefully, Texas with the third highest property taxes in the nation, will follow suit.

The real question is why people cannot seem to get control of school spending.

My wife was educated in eastern Europe in the 70s with only books and a blackboard and got an excellent education, and probably far less Communist indoctrination than American kids get now.

22 posted on 03/06/2022 3:55:08 PM PST by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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To: libh8er
Whenever govt engages in a gimmick like this...

They never completely "eliminate" the old tax. They "reduce" it. For a few years.

It is a bait-and-switch that always increases net tax collections.

23 posted on 03/06/2022 3:58:03 PM PST by flamberge (Believe half of what you see, and none of what you hear)
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To: mac_truck
The wealthy will love it since sales taxes are such a low percentage of taxes they pay.

The working class and poor will be ravaged.

24 posted on 03/06/2022 3:59:28 PM PST by fso301
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To: mac_truck

I like that there are no escapees from the tax burden.


25 posted on 03/06/2022 4:06:56 PM PST by Still Thinking (Freedom is NOT a loophole!)
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To: unixfox

No sales tax in New Hampshire and the tax on interest & dividends is being phased out as of 2026.


26 posted on 03/06/2022 4:07:10 PM PST by MSF BU
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To: mac_truck

I’m at 7.5% where I live (Escambia County, Florida). This is not that much higher, with much in the way of property tax being eliminated as well.


27 posted on 03/06/2022 4:10:02 PM PST by Tolerance Sucks Rocks (Florida: America's new free zone.)
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To: mac_truck

Buy a home on the Wyoming border and do your shopping there at 5% sales tax.

Or better yet...buy a home on the Montana border and pay no sales tax at all!


28 posted on 03/06/2022 4:11:13 PM PST by Beagle8U ("Per DNC instructions...Joy Reid is busy packing marbles up her @$$.")
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To: Flash Bazbeaux

Long Beach Ca has 10.5%sales tax


29 posted on 03/06/2022 4:14:41 PM PST by BigEdLB (Let’s go Brandon!)
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To: fso301

The wealthy psychopaths running the government don’t care.


30 posted on 03/06/2022 4:15:39 PM PST by TheDon (Resist the usurpers)
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To: mac_truck

A little late. Most Idahoans have already been taxed off the beautiful north Idaho lakes, and been replaced by Californicators.


31 posted on 03/06/2022 4:17:39 PM PST by D Rider ( )
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To: Responsibility2nd

“$3600 a year for property taxes on my $175,000 home is just too big a bite in the butt.”

I envy you. I pay nearly 8 grand a year on a 200,000 dollar house. And we pay 8% sales tax too.


32 posted on 03/06/2022 4:19:41 PM PST by Nik Naym (It's not my fault... I have compulsive smart-ass disorder. )
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To: mac_truck

So how much do the locals add to the sales tax in Idaho. And what amount will this make the actual sales tax paid?

I would think that would be a good thing for a real journalist to add to an article like this.


33 posted on 03/06/2022 4:23:40 PM PST by Revel
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To: pierrem15

Unions. Retirement pensions.


34 posted on 03/06/2022 4:25:36 PM PST by Ladysforest (Racism, misogyny, bigotry, xenophobia and vulgarity - with just a smattering of threats and violence)
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To: mac_truck

I would make that swap any day of the week...

All these “nicies” are being funded by the homeowner.
City busses, parks and schools are all funded by the homeowner.
Spread the responsibility around so everyone pays into it.
It will also be very difficult to raise the tax if everyone is paying attention to it.


35 posted on 03/06/2022 4:27:10 PM PST by joe fonebone (And the people said NO! The End)
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To: Secret Agent Man
Its going to stifle purchases as well.

You would be surprised, I live in the Nashville area with all it's bedroom communities. It has about a 9-10% sales tax, The area has an unbelievable run away growth, so I could say the sales tax has no effect in the area, but probably no income tax and a low property tax off sets the high sales tax, don't really know, I've been in Tennessee for about 30 years now and I don't even think about sales tax anymore when buying anything. I don't think I ever did.

36 posted on 03/06/2022 4:28:41 PM PST by ReformedBeckite (1 of 3 I'm only allowing my self each day)
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Sales taxes are the best way to make poor people pay their fair share


37 posted on 03/06/2022 4:42:56 PM PST by dsrtsage ( Complexity is just simple lacking imagination)
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To: mac_truck

we have no state income tax here in Washington state but we have a very high sales tax and huge property tax....we’ll loose our house not to sickness nor death, but to taxes..


38 posted on 03/06/2022 4:44:31 PM PST by cherry (;)
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To: mac_truck

Start buying Commercially zoned land in Ontario Oregon if this passes.
Ontario Oregon is less than an hour away from Boise Idaho.
Oregon has no sales tax.
Start building strip malls and structures to lease first grocery stores etc.


39 posted on 03/06/2022 4:45:09 PM PST by NoLibZone (Ruling class noticed our total lack of pushback for how the election & Covid was handled.)
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To: mac_truck
I own two houses in Idaho. The "main" home has property taxes that I just have to suck up because my state income tax tops $15000. The 2nd house is rented. The taxes get deducted from the rental income. This proposal might help a bit, but the school district taxes are still a significant amount and I have no children in the schools.

The grocery tax is one item I dislike in Idaho. Food wasn't taxed in CA, but sometimes the prices were equal or higher in CA vs ID due to operational costs.

My large purchases tend to be firearms, so I would see some impact there. Getting extra revenue from out of state travelers is a May to September burst of activity. I'm not sure the extra sales tax is going to be revenue neutral.

40 posted on 03/06/2022 4:45:17 PM PST by Myrddin
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