Tax Cuts

Emilie Ritter Saunders / Boise State Public Radio

An Idaho House panel has endorsed expanding cuts to Idaho's personal property tax, a move that supporters say will help county officials attract companies while competing with other regions.

The House Revenue and Tax Committee approved the new measure Monday. 

According to the proposal, counties would no longer be restricted to giving tax breaks solely to manufacturing plants with $3 million worth of investments.

Predicting what lawmakers will focus on during the Idaho legislative session is a bit of a gamble. But after eight terms in office, Brent Hill, R-Rexburg, has a good idea of the Legislature's priorities -- after all, he has a big influence in shaping that agenda. Hill, who is the President Pro-Tem of the Senate, points to education and gay rights issues as topics  front and center for lawmakers this year.

calculator, taxes
401(K)2013 / Flickr Creative Commons

Business leaders worried Idaho's tax rates are too high compared to its neighbors notched an initial victory when the House Revenue and Taxation Committee approved a bill aiming to make the state more competitive.

The Republican-led panel voted Thursday to back the Idaho Chamber Alliance's proposal to cut corporate and individual income tax rates by a percentage point annually over the next six years, for an eventual $125 million cost.

Once completed, it would leave Idaho's top tax rate at 6.8 percent, lower than Montana's 6.9 percent.

StateImpact Idaho

This story was updated at 2:15 p.m.

Gov. C.L. "Butch" Otter would consider a proposal from House Speaker Scott Bedke to shift money from a popular grocery tax credit to individual and corporate income tax cuts.

"Convince me," Otter told The Associated Press Wednesday, on how he's approaching Bedke's proposal.

Idaho residents now claim the grocery credit, worth up to $100 for each person in a household, or $120 for those over 65.

Butch Otter
Idaho Statesman

Gov. C.L. “Butch” Otter is spending part of his week in Coeur d’Alene at Idaho’s largest business lobby’s annual convention. Gov. Otter’s spokesman says one of the administration’s main goals for the next legislative session is to pass a third-consecutive year of tax cuts.

Mike Chakarun
Molly Messick / StateImpact

A left-leaning tax policy group recently put out a short little report about the state corporate income taxes paid by IDACorp. That’s the holding company of Idaho’s largest electric utility, Idaho Power. 

The report claims IDACorp paid no state income taxes nationwide from 2007 through 2011.

Mike Crapo

Republicans are proposing their own plan to avoid the "fiscal cliff" at the end of this month. That's when Bush-era tax cuts will expire and automatic spending cuts begin.

The GOP plan would raise the eligibility age for Medicare, lower cost-of-living hikes for Social Security benefits and add $800 billion in higher tax revenue. The White House unveiled a plan last week. 

Tom Kelly / Flickr

The 2012 Legislature adjourned late last week, accomplishing its only constitutional duty, which is to pass a balanced budget.  StateImpact Idaho’s Emilie Ritter Saunders has watched the budget process closely.  Saunders told Samantha Wright there weren’t many surprises this session, but there were a couple of things that didn’t pan out, including creating a state health care exchange.


Aaron Kunz / EarthFix

Governor “Butch” Otter said Friday the legislature had “81 very successful days.”  That’s how long it took to wrap up this session. 

Samantha Wright / Boise State Public Radio

Idaho lawmakers wrapped up the 2012 session Thursday.  The House of Representatives adjourned first.  The Senate took much longer as lawmakers signed off on key pieces of legislation and said their goodbyes.