2008 Woodie Awards
Letter to the Editor: State Taxes
Issue date: 3/19/08 Section: Opinion
Following the advice of IACI lobbyists, from 1990 to 2005 the legislative majority rejected all attempts to adjust the upper limit on the homeowner exemption for inflation. This shifted millions in property taxes to homes and led to a tax revolt.
The upper limit was finally increased in 2006 but the inflation adjustment did not catch up to inflation in home values. After declining $66 million in 2006 total homeowner taxes increased $46 million in 2007 and are only $20 million less than in 2005.
Over the last 10 years total revenue from taxes paid primarily by individuals, the sales tax, individual income tax and taxes on owner-occupied homes, are up $1.5 billion, 105 percent. Revenue from taxes paid primarily by business, corporate income tax and commercial property taxes, is up $131 million, 28 percent.
There is a good alternative to the $120 million tax shift. The legislature could eliminate the personal property tax for 80 per- cent of Idaho businesses at a cost of only $10 million by exempting the first $50,000 of personal property.
Some legislators favored another alternative, to reduce or eliminate other business tax breaks to pay for the personal property phaseout. This was rejected in committee.
So now the plan is to shift more millions in taxes to individual taxpayers.
Thank you,
Ken Robison
kenneth.robison@worldnet.att.net
(Ken Robison is a former legislator.)
The upper limit was finally increased in 2006 but the inflation adjustment did not catch up to inflation in home values. After declining $66 million in 2006 total homeowner taxes increased $46 million in 2007 and are only $20 million less than in 2005.
Over the last 10 years total revenue from taxes paid primarily by individuals, the sales tax, individual income tax and taxes on owner-occupied homes, are up $1.5 billion, 105 percent. Revenue from taxes paid primarily by business, corporate income tax and commercial property taxes, is up $131 million, 28 percent.
There is a good alternative to the $120 million tax shift. The legislature could eliminate the personal property tax for 80 per- cent of Idaho businesses at a cost of only $10 million by exempting the first $50,000 of personal property.
Some legislators favored another alternative, to reduce or eliminate other business tax breaks to pay for the personal property phaseout. This was rejected in committee.
So now the plan is to shift more millions in taxes to individual taxpayers.
Thank you,
Ken Robison
kenneth.robison@worldnet.att.net
(Ken Robison is a former legislator.)
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