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<H1><FONT face="Times New Roman">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</FONT></H1>
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<H1><FONT face="Times New Roman">Ringo wants to raise revenue by eliminating
sales tax exemptions</FONT></H1>
<P><FONT face="Times New Roman">By [author]William L. Spence[/author] of the
[org]Tribune[/org]<BR>January 26, 2011</FONT></P>
<P><BR><FONT face="Times New Roman">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.</FONT></P>
<P><FONT face="Times New Roman">Ringo's bill would eliminate several major sales
tax exemptions, reduce the overall sales tax rate and raise an estimated $371
million in revenue.</FONT></P>
<P><FONT face="Times New Roman">Although the bill has no chance in its current
form, she feels there's good reason to tilt at this windmill.</FONT></P>
<P><FONT face="Times New Roman">"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."</FONT></P>
<P><FONT face="Times New Roman">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.</FONT></P>
<P><FONT face="Times New Roman">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.</FONT></P>
<P><FONT face="Times New Roman">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.</FONT></P>
<P><FONT face="Times New Roman">"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."</FONT></P>
<P><FONT face="Times New Roman">Ringo's bill was referred to the House Revenue
and Taxation Committee, where it may well be buried without even getting a
public hearing.</FONT></P>
<P><FONT face="Times New Roman">---</FONT></P>
<P><EM><FONT face="Times New Roman">Spence may be contacted
at<BR>bspence@lmtribune.com or (208)
848-2274.</FONT></EM></P></DIV></DIV></BODY></HTML>