Idaho budget writers breach delaying grocery tax relief
By JOHN MILLER
Associated Press
Tuesday, February 10, 2009 10:07 AM PST
BOISE — Legislative budget writers are considering delaying an increase in the credit meant to offset Idaho’s 6 percent sales tax on groceries. At a hearing Monday, Sen. Dean Cameron, R-Rupert and co-chairman of the Joint Finance-Appropriations Committee, broached the idea with state Tax Commission Chairman Royce Chigbrow as a way of saving Idaho $14.5 million, the projected cost of the credit increase for the fiscal year that starts July 1. Cameron and Rep. Maxine Bell, R-Jerome, who also chairs of the committee, both said the worsening budget outlook could make delaying the credit expansion unavoidable. Preliminary estimates indicate tax revenue after January is about $42 million behind the state’s already reduced estimates, though final figures won’t be out until later this week at the earliest.
‘’We’re trying to find every single dime we can, every single dollar, to make cuts in 2010 less onerous and to reduce the impact on education,’’ Bell told The Associated Press.
Under the measure passed by the 2008 Legislature after two sessions of rancorous debate, members of a family of four earning less than $25,000 each get $50, while members of families earning more each get $30. Rebates for each resident would rise by $10 each year to a maximum of $100 and $120 for seniors. The proposal cost Idaho state government about $22 million in the current fiscal year, a figure that would rise to about $122 million annually by 2015 if nothing is done to delay the expansion. In his Jan. 12 State of the State speech, Gov. C.L. ‘’Butch’’ Otter said he favored pressing on with the credit expansion this year. Otter was due to meet with Bell and Cameron Monday afternoon to discuss a possible delay, among other things.
‘’I haven’t heard any discussion about reversing course,’’ said Jon Hanian, Otter’s spokesman. ‘’He’s still committed to it.’’
House Democrats, meanwhile, also said they were skeptical of plans to slow grocery tax relief, especially for low-income residents, though there’s no official caucus position yet. With Otter’s plan to raise taxes and fees for gas and registration on cars and trucks, grocery tax relief will help poor families, said Rep. Wendy Jaquet, D-Ketchum and a budget-writing committee member.
‘’I would be very uncomfortable’’ with delaying expansion, Jaquet said. House Assistant Minority Leader James Ruchti, D-Pocatello, also favors expanding the credit. At Monday’s hearing, some lawmakers were perturbed that it’s costing the Tax Commission more money than originally forecast to administer the expanded credit.
