[Vision2020] thanks Shirley and Tom

[Bill London]

Great tax plan for Idaho: drop the sales tax rate from 6% to 5% and eliminate many of the existing sales tax exemptions to raise about $370 million annually.  Thanks Shirley Ringo, and her co-sponsor Tom Trail, for this proposal.   BL
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Ringo wants to raise revenue by eliminating sales tax exemptions
By [author]William L. Spence[/author] of the [org]Tribune[/org]
January 26, 2011


BOISE - Moscow Rep. Shirley Ringo introduced a bill this week that would solve the state's revenue shortfall, but legislative colleagues aren't exactly beating a path to her door.

Ringo's bill would eliminate several major sales tax exemptions, reduce the overall sales tax rate and raise an estimated $371 million in revenue.

Although the bill has no chance in its current form, she feels there's good reason to tilt at this windmill.

"I'm always trying to stretch people's imagination," Ringo said. "In my opinion, we're getting into ground we shouldn't tread on in terms of cuts to education and other critical state services. My hope is that by providing information about the (cost) of each of these exemptions, someone might see one or two that they can embrace."

Moscow Rep. Tom Trail co-sponsored the bill. It proposes eliminating the sales tax exemption for a variety of goods, including broadcast equipment, commercial aircraft, railroad rolling stock, drivers education vehicles, ski lifts and snow-grooming equipment, heating materials, utility sales, precious metal, telecommunications equipment and vehicle trade-in value, as well as vending machine sales, outfitter and guide sales and vehicles sold to family members.

The bill also applies the sales tax to certain services currently exempt, including professional services, personal services, business services, construction, transportation, repairs, lottery tickets and media measurement services.

Eliminating these tax exemptions would generate about $574 million in new revenue. The overall sales tax rate for all goods and services would be reduced from 6 percent to 5 percent, at a cost of about $200 million. The net revenue generated by the bill would be about $371 million.

"I'm hoping people will find something to love about this," Ringo said. "My main motivation is to try and pique interest in looking for pockets of revenue to meet our needs. I'm trying to make it clear that we do have options."

Ringo's bill was referred to the House Revenue and Taxation Committee, where it may well be buried without even getting a public hearing.

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Spence may be contacted at
bspence at lmtribune.com or (208) 848-2274.
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