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Tax plan dies on Senate floor

From staff and wire reports | Hagadone News Network | UPDATED 9 years, 10 months AGO
by From staff and wire reports
| April 1, 2015 9:00 PM

COEUR D'ALENE - The Idaho Senate has spiked a broad tax plan backed by House Republican leadership, claiming the sweeping proposal had insufficient support to survive the chamber.

Some lawmakers expect to see a new version of the bill emerge today, focused only on raising the gas tax.

The original bill would have eliminated sales tax on groceries, lowered income taxes for high-income earners, and increased the fuel tax by 7 cents.

Senate Majority Leader Bart Davis announced the bill's fate just hours after a legislative panel endorsed sending the proposal to the Senate floor, but didn't attach a do-pass recommendation.

Sen. Bob Nonini, R-Coeur d'Alene, was one of two senators who were against sending the bill from the Senate Transportation Committee.

"I thought it was a rush to get it to the Senate floor," Nonini said. "We didn't have a chance to hear any of the testimony on this bill."

Nonini said he hopes the Legislature will still address transportation funding before adjourning.

"But I am not sure we will have enough time to do it," he said, adding the leadership of the House and Senate will be meeting this morning to discuss next steps.

Sen. Mary Souza, R-Coeur d'Alene, said she wasn't thrilled to see the bill killed on the Senate floor.

"But it was the best decision at the time," she said, adding she thinks there will be another proposal today that would simply call for a gas tax increase.

"I think we will see a tax increase bill without the tax relief portions of the original bill," she said. "A number of senators were concerned with the multiple aspects of this bill."

Souza said the tax relief portions of the bill are likely to be addressed during the next legislative session, but the transportation funding is likely to be addressed this week.

Legislative leaders have agreed all session that they must address Idaho's $262 million annual revenue shortfall for transportation.

However, the conflict has remained in finding a compromise that provides transportation relief and boosts economic development - typically in the form of a tax cut in the Republican-controlled Statehouse.

The tension peaked this week as lawmakers have begun itching to adjourn the legislative session but were unwilling to leave without some sort of solution.

While still smiling Tuesday evening after the turn of events, House Majority Leader Mike Moyle described the Senate's process on rejecting HB 311 as a "joke," adding he would not be submitting another proposal to the Senate.

"The ball is in their court," he said. "They still have two other bills, let's see what they do next."

Moyle was referring to two proposals approved by the House earlier this week that would raise an estimated $45 million through increasing vehicle registration fees and funneling more dollars to the local and state highway funds. The bills have been assigned to the Senate Transportation Committee but have not been scheduled a hearing.

Senate President Pro Tem Brent Hill says he sees the two proposals transforming to include more revenue streams for transportation - possibly through a gas tax hike - but remained mum on whether the Senate will endorse an aggressive restructuring on grocery and income taxes.

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