Idaho House Passes Tax Bill Overhaul, Hikes Fuel Tax 7 Cents

Mar 30, 2015

An aggressive three-part proposal to eliminate sales tax on groceries, lower income taxes on Idaho's top earners while hiking the fuels tax by 7 cents per gallon has passed the Idaho House.

House lawmakers voted 53-17 Monday to send the bill to the Senate for approval.

Majority Leader Mike Moyle says the bill will boost Idaho's economy by attracting more businesses and providing families with more money they would have spent on grocery taxes.

Democratic representatives countered by questioning the constitutionality of the bill and arguing that the plan will hurt Idaho's dwindling middle-class.

Under the tax plan, Idahoans in the top income tax bracket would see their rate drop from 7.4 percent to 6.7 percent. The plan would also remove the grocery sales tax credit.