Idaho state tax revenues fell below forecasts in October for the first time this fiscal year, due in large part to a snafu over an Ada County project.
When Idaho’s monthly General Fund Revenue Report came out last week, it noted that state tax revenues were 2.8 percent below forecasts for the month. A good chunk of the $8 million shortfall was due to an unexpectedly large one-time payment of $2.7 million to the developer of a Meridian retail project.
Idaho lawmakers in 2007 passed legislation to allow retailer Cabela’s to front the money for a new $40 million interchange on I-90 at Post Falls, and be paid back over the years through refunds of the sales tax revenues generated at the complex. The legislation was amended in 2009 and then applied to the Meridian project, in which the developer agreed to front the money for $25 million in transportation improvements. However, the Idaho state Tax Commission mistakenly thought it had paid off the Ada County project in June, and recently was made aware that there were more claims coming to be paid out and had to catch up.
All major areas of tax receipts contributed to the shortfall, with revenue from corporate income taxes, individual income taxes, and sales tax coming in below forecasted levels. However, sales taxes would have hit the forecast for October, but for the single payment to the Meridian project.
Idaho’s still 1.8 percent ahead of forecasts for state tax revenue for the fiscal year to date. (Spokesman-Review)
