[Vision2020] Little support for Risch tax plan

[Mark Solomon]

 From Betsy Russell's (Spokesman Review Boise reporter) blog. The 
Legislature convenes in special session next Friday.

Mark

********

Demos say Idahoans prefer their plan, Risch discounts poll

Idaho Democrats have conducted a statewide poll that shows 60.5 
percent of Idahoans prefer their property tax relief plan, and only 
10.5 percent like Gov. Jim Risch's proposal better, with 17 percent 
undecided and 12 percent refusing to say. Risch dismissed the poll, 
saying it mischaracterized his plan.

It's a hot topic, as we're just a week out from when the Legislature 
will gather in a rare, one-day special session with just one bill on 
the agenda: Risch's tax reform bill. It would eliminate the school 
operations property tax levy to cut property taxes for all taxpayers 
by $260 million; raise the sales tax a penny to 6 percent to make up 
$210 million of the lost school funding; and take $50 million from 
the state's $203 million budget surplus to make up the last bit. The 
Risch plan also would put $100 million from the surplus into a 
savings account for schools to hedge against future revenue 
shortfalls. The Democrats are pushing an alternative plan, to 
eliminate the school levy only for homeowners, and take $104 million 
from the surplus to replace the lost school funding. That plan 
wouldn't increase the sales tax, but assumes the $104 million in 
surplus money still would be available in future years to continue 
funding schools. If not, it could force a future tax increase. The 
Risch plan assumes that $50 million of the surplus would be available 
in future years for school funding.

Here's how the poll, conducted by GSI Research of San Francisco on 
Monday, characterized the two plans:

"Next week, the Legislature will convene for one day to talk about 
property tax relief. There are two plans currently being discussed: 
The first plan would use the surplus and raise the sales tax to 6 
percent. Forty percent of the property tax relief would go to Idaho 
homeowners, the other 60 percent would go to big businesses and 
out-of-state property owners. The second plan would use the surplus 
to target 100 percent of the relief to Idaho homeowners without 
raising the sales tax. Big businesses and out-of-state property 
owners would receive no benefit. If you were asked to vote, which 
plan would you support?"

Brad Hoaglun, communications director for Risch, said, "If that were 
presented to me, why would I want to pay sales tax? 'Yeah, let's tax 
those out-of-staters, I don't want to be taxed.' That's too easy, and 
it's a mischaracterization of both plans." Chuck Oxley, spokesman for 
the Idaho Democratic Party, disagreed. "When you tell people, do you 
want this plan or this plan, they choose having a plan that gives all 
the relief to the homeowners," he said.

According to state Tax Commission figures, the Risch plan would 
divide its $260 million in property tax reductions like this: 40 
percent to homeowners, 24 percent to other residential property 
owners, and 36 percent to owners of non-residential property, 
including industry, commercial operations, farms, timber, mining and 
utilities. Both sides shift those numbers around to support their 
arguments. Risch says owners of residential property, whom he 
maintains are mainly middle-income Idahoans, get 64 percent of the 
benefit under his plan, because he counts non-homeowner residential 
property into that total. The Democrats lump that group in with 
businesses to get to 60 percent.

Boise State University political science professor emeritus Jim 
Weatherby said the use of the terms "big business" and "out of state" 
in the poll question are "hot-button items that would give a negative 
connotation to the Risch plan."

"They are beneficiaries," Weatherby said. "I think the problem is 
trying to explain in two lines a piece of complex tax legislation." 
However, he said, "If these results are anywhere near correct, it 
does show that Gov. Risch and the Republicans have a real selling job 
to do among the electorate."

http://www.spokesmanreview.com/blogs/boise/
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