Idaho lawmakers are stepping up their efforts to repeal the state sales tax on groceries.
Eighteen senators and representatives gathered for a news conference in Boise Thursday to push for repealing the 6 percent sales tax on food. The measure would phase out the tax over two years, with the majority of the cost being covered by the elimination of the state’s grocery tax credit, which Idahoans claim on their state income tax returns to offset a portion of the sales tax they pay on food.
Boise Republican Senator Cliff Bayer noted that when Idaho first enacted its grocery tax credit, it was seen as an “incremental” way of phasing out the tax. That credit has now grown to 100 dollars or more per person per year. Democrats also have expressed interest in repealing taxes on groceries. 37 states – including Washington, Oregon, and Montana – do not charge sales tax for groceries.
The bill was delivered to House Revenue and Taxation Committee Chairman Gary Collins’ office Thursday. Although he has not taken a position on the current proposal, Collins says he supports repealing sales taxes on groceries. He said the issue is whether now is the right time.
The hit to the state general fund would be $18.6 million in fiscal year 2018, and $26 million in fiscal year 2019. (Spokesman-Review)
