Tax relief proposal advances in Idaho legislature

BOISE — Rep. Steven Harris (R-Meridian) spoke to Idaho’s House Revenue & Taxation Committee — which he chairs — to discuss the tax-cut bill on Friday, March 12, 2021.

In the statement of purpose, the goal is to reduce all income tax brackets, setting top individual and corporate tax bracket to 6.5% retroactive to Jan. 1, 2021.

The bill would provide Idahoans with $169.4 million in ongoing tax relief and provide a one-time sales/income tax rebate returning $220 million to Idaho taxpayers.

A rebate check will be sent to 2020 personal income tax filers providing a minimum amount of $50 for each taxpayer and dependent or 9% of income taxes paid in 2019, whichever is greater.

Rep. Tammy Nichols (R-Middleton) expressed concern about the recent federal coronavirus relief that Congress passed, but if Idaho gave tax cuts to Idahoans, it could potentially violate rules for COVID-19 funding.

Rep. Lauren Necochea (D-Boise) stated her concerns that tax relief will benefit Idaho’s wealthier residents and reiterate her concerns on social media.

“On top of permanent tax cuts overwhelming benefiting the rich, this new GOP tax plan has a stunning one-time rebate,” Necochea said, “A couple earning $1 million will get $6,000, a couple earning $50k will get $100. How does this help our economy or middle-class Idahoans?”

Rep. Greg Chaney's motion to introduce the bill passed on a voice vote. The proposed legislation will be assigned a bill number and will have the first reading on the house floor.