Democrats 
Letters To The Editor
TAXES: Republican Plan Would Mean More Total Published in Coeur d'Alene Press The result of the Republican tax plan to be considered in a special
legislative session would be more total taxes for most Idahoans. There would be
a huge tax shift with a higher sales tax to pay for property tax cuts for large
property-owning corporations that need no tax relief. The plan does nothing to remedy the basic property tax problem and
continued inflation in the taxable value of homes. With no further adjustment of the homeowner exemption to offset inflation,
most homeowners would get little relief with the GOP school levy replacement
plan. In a year or two, any property tax savings would be offset by further
increases in the taxable value of the home. But homeowners would continue to pay
more sales tax. The Legislature could provide more help to homes by further updating the
$75,000 upper limit on the homeowner exemption or by removing the limit. This
would require no state revenue and no sales tax increase. But the primary purpose of the proposed plan is not to help homeowners,
but to satisfy the campaign of the industry lobby, the Idaho Association of
Commerce and Industry, for tax cuts for its corporate members. IACI is the
primary sponsor of this plan. IACI wants more tax cuts for its members even though commercial and
utility property has paid less property tax in recent years because homeowners
have paid more. Residential taxes have increased four times as fast as
non-residential property taxes. Total commercial, utility and farm taxes have
increased just 13 percent in five years, nearly all of that with new commercial
construction. Inflation in the taxable value of commercial property has averaged only 1
percent, total utility property taxes have gone down in each of the last three
years. In addition, IACI members have benefited from business tax cuts approved
by the Legislature. With the proposed plan: • Homeowners get no net tax relief. They would pay $104 million less
property tax, but $105 million more sales tax. Property tax savings would
average $275, but most would pay $200 to $400 more sales tax. • With further increases in taxable value, property taxes on homes would
be just as high or higher in a year or two. • Renters would lose, paying more sales tax but receiving no
corresponding benefit. • Most businesses would lose, paying more in sales tax on
business-related purchases than their property tax benefit. This applies
particularly to businesses that lease space or are home-based. • Schools would lose. The legislative majority would gain more control
over school funding at the expense of local control. IACI helped kill every bill in the Legislature to update the homeowner
exemption from 1992 to 2005. The result of the industry lobby's influence with
the Republican majority was a huge tax shift and outrageous increases in taxes
on homes. During the regular 2006 session, IACI opposed even the modest $25,000
update in the homeowner exemption that eventually passed. And, the Republican
majority refused to consider a more realistic update. IACI's officers and directors represent many of the major companies doing
business in Idaho, including Idaho Power Co., Avista, Intermountain Gas Co.,
Qwest, J.R. Simplot Co., Micron Technology, Monsanto, Potlatch, Washington Group
International, Albertsons, Hewlett Packard, Union Pacific Corp., Bank of Idaho
and Wells Fargo. While most Idahoans would lose with the proposed tax shift, those
companies would gain. Ken Robison
by Ken Robison
August 11, 2006
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