Idaho News (Boise, Driggs: income tax, tuition, educational)

[Mister Torgue]

Originally Posted by banjomike

I don't know what to think about the sweeping state tax reform bill that was just introduced.

It reduces property taxes on owner-occupied homes down to close to nothing, but it increases our sales tax from 6% to 7.8%, which would be the highest in the nation.

While this tax would help me somewhat, I own other property that will still be taxed, and since I already claimed my Homeowner's deduction long ago, the decrease in my home taxes really won't relieve the increase in the sales taxes I'll be paying.

...I think. I won't know until I read the bill and study it closely.
My first impression is this is a shell game that won't actually help very many folks. I don't think I'll make up the cost of the sales tax on a new car from the savings break I'll get on my house's tax.

But I'm pretty sure the sales tax increase will make it harder for Idahoans who don't own a home now to buy a home in the future.
I also think that in this time of severe cost inflation of everything, this is a poor time for such a steep rise, as groceries and other necessities will cost us all even more than they do now.

Sales tax on buying a home averages over 8% (around 8.2%). I will be monitoring this as well since it will impact us—though I personally don’t care since we will move there regardless of this.

I do agree that this is not a good time to raise/change taxes. We should wait until the nation recovers from *cough* “our situation” and reverses the ridiculous decisions made since Jan. 20, 2021 (being purposely ambiguous here for brevity).

Originally Posted by Clark Fork Fantast

Mike, is there anything in the bill about taxing 2nd (vacation) homes higher than full-time owner-occupied homes? They're planning on doing that in Colorado. That would make it harder on us until our retirement (plus, the cost of driving to North Idaho! Ouch!).

“ You must spread some Reputation around before giving it to Clark Fork Fantast again.”

[oregonwoodsmoke]

Originally Posted by banjomike

......It reduces property taxes on owner-occupied homes down to close to nothing, but it increases our sales tax from 6% to 7.8%, which would be the highest in the nation......

This is a mighty harsh way to treat the working folks. Reducing the property tax on owner occupied means that the income has to be made up somewhere and that means increasing the property tax on rentals.


When the tax on rentals goes up, the rent goes up to cover it.


So the working class people will pay more for rent and more for their sales tax on the groceries that they have no option about buying because they need to feed their kids.


A lot of the homeowners of the expensive homes who will not be paying property taxes are incomers. So the incomers get a tax break and the locals get taxed to starvation level.


Whose bright idea was this?

[nowhereman427]

https://www.kxly.com/dollar-general-...tore-in-athol/

[Syringaloid]

"who runs Idaho"

A bunch of incompetent people who continually take away our rights and are dead set on pushing through new laws to make their 6 constituents happy while punishing the rest of the state.
I realize some people out of state might be all starry eyed about Idaho, but beware the state government here is corrupt and being brainwashed by the IFF.

[cleosmom]

Originally Posted by Heron31

Who runs Idaho?

Here's the scoop https://idahocapitalsun.com/2022/03/...eduction-bill/

[banjomike]

I haven't learned if the property tax relief will extend to business property yet.

When I owned a small business, I was taxed every year on my shop and all it's contents; the tools, working materials, and job consumables.

Counting the inventory always cost me money, and paying for things like hand drills over and over after I had already paid sales tax on them really bugged me. The tax rate wasn't the same as for my home, and it was due at an earlier date than all my other taxes.

There were many items I could purchase I didn't have to pay sales tax on, but I had to add use tax to the customer's bill. I would do that on larger items, but not on the smaller ones that were more labor than materials.
There were times when I needed a tool while working on a job, and I would just go buy one and pay the sales tax, as that
faster and less hassle.
Trying to get that tool off the taxable inventory, though, was really a hassle. Especially when a tool only cost $20 or less.
But if I didn't go through the trouble of getting it off the inventory, that $20 tool could end up costing $120 in $5 tax bites year after year.

The tax went to the county, and was a primary source of revenue. I always understood the need, but it was always painful to pay it.

[AnythingOutdoors]

Originally Posted by banjomike

I haven't learned if the property tax relief will extend to business property yet.

It would only apply to properties that qualify for the homestead exemption, i.e. a homeowner's primary residence: https://www.idahostatesman.com/news/...259077383.html

Assuming this change is revenue neutral (one of the goals), owner occupied properties would likely pay a lot less in taxes, which means the difference has to be paid by everyone else. The biggest beneficiaries would be owners of expensive homes. For example, a homeowner living in a $1M house currently paying around $10k/year. Their property taxes drop to almost $0. If the sale tax increases to 7.85% (a 1.85% increase), that homeowner would need to spend $500,000/year to pay an additional $10k in sales tax ($10,000/0.0185). Almost no one living in a $1M house is spending $500k/year, so renters and owners of less expensive properties will end up picking up the slack.

I would personally benefit from this big time, but the more I think about it, the more I think this a terrible proposal.

[banjomike]

Originally Posted by AnythingOutdoors

It would only apply to properties that qualify for the homestead exemption, i.e. a homeowner's primary residence: https://www.idahostatesman.com/news/...259077383.html

Assuming this change is revenue neutral (one of the goals), owner occupied properties would likely pay a lot less in taxes, which means the difference has to be paid by everyone else. The biggest beneficiaries would be owners of expensive homes. For example, a homeowner living in a $1M house currently paying around $10k/year. Their property taxes drop to almost $0. If the sale tax increases to 7.85% (a 1.85% increase), that homeowner would need to spend $500,000/year to pay an additional $10k in sales tax ($10,000/0.0185). Almost no one living in a $1M house is spending $500k/year, so renters and owners of less expensive properties will end up picking up the slack.

I would personally benefit from this big time, but the more I think about it, the more I think this a terrible proposal.

Yup.
The heaviest sales tax burden is always on the ones who are the poorest, but the middle class would carry almost as much of it if the bill passes.

After the homestead exemption passed, I can't recall anyone griping about their property taxes who used the exemption.

I think this is another bill that's looking for a solution to a problem that doesn't exist.

[Syringaloid]

Originally Posted by cleosmom

Here's the scoop https://idahocapitalsun.com/2022/03/...eduction-bill/

The Capital Sun is a great new source within the state and it calls out the shenanigans of the extreme far right radicals in our government.

https://idahocapitalsun.com/2022/03/...-free-economy/

White nationalism is morally abhorrent and runs counter to a free economy
Not only is AFPAC abhorrent and disgusting, it’s anti-business, and Idaho’s economy will suffer if its adherents grow their influence over our state politics, writes guest columnist Tara Malek.

Idaho’s extremist Lieutenant Governor, Janice McGeachin, disgraced herself, the office she holds, and our state yet again by speaking at AFPAC last week. AFPAC is a white nationalist conference founded by Nick Fuentes and attended by those who promote exclusionary practices that harm both our economy and republic, including antisemitism, sexism and homophobia. In addition to featuring antisemitic speakers who espouse political violence against many groups, many attendees who streamed the event online used racial and antisemitic slurs and anti-Catholic and anti-Mormon rhetoric.

[cleosmom]

Originally Posted by Syringaloid

The Capital Sun is a great new source within the state and it calls out the shenanigans of the extreme far right radicals in our government.

https://idahocapitalsun.com/2022/03/...-free-economy/

White nationalism is morally abhorrent and runs counter to a free economy
Not only is AFPAC abhorrent and disgusting, it’s anti-business, and Idaho’s economy will suffer if its adherents grow their influence over our state politics, writes guest columnist Tara Malek.

Your link and comments are irrelevant to what I was posting about