After minimal discussion, the Senate Local Government and Taxation Committee gave unanimous approval to the personal property tax proposal that sailed through the House early this week.
Chairman Jeff Siddoway (R-Rexburg) noted, to laughter, that all of those signed up to testify on the bill were in favor of it. “As I look through the agenda here, there are no cons. Everyone’s a pro. So don’t blow this!” he said.
The bill, HB 315, is effectively a $20 million tax cut for Idaho businesses, backed by the Idaho Association of Counties. Among other provisions, it establishes an exemption for the first $100,000 worth of personal property owned by every business in the state, in every county of operation.
It’s a less dramatic tax cut than the one favored by the Idaho Association of Commerce and Industry. IACI pushed to eliminate the tax on business equipment and machinery. That proposal met resistance from local government and taxing districts, some of which rely heavily on the tax.
The full Senate still has to vote on the bill.