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No fast lane for grocery tax relief

CRAIG NORTHRUP | Hagadone News Network | UPDATED 5 years, 3 months AGO
by CRAIG NORTHRUP
Staff Writer | February 16, 2020 1:00 AM

This week saw an end to three bills devoted to helping residents pay for their groceries, dimming Gov. Brad Little’s hopes to shepherd relief to local shoppers.

Two bills that would have provided for the repeal of the 6-percent tax on all groceries while eliminating the related grocery tax credit died in the House Revenue and Taxation Committee on Monday. One bill, introduced by White Bird Rep. Priscilla Giddings, would have prohibited the collection of taxes on foods defined by the federal Supplemental Nutrition Assistance Program, also known as SNAP. The bill was estimated to cost just under $64 million. The role of the state to define what prepared foods in a deli would qualify as was cited as one of the reasons behind its demise.

“My concern is,” Pocatello Rep. Robert Anderst said, “I don’t know we can start this path without getting into it. Ultimately, my concern is, there’s no way to avoid having those conversations every single year. If we leave the definition as broad — even as it is in this — we’re still pitting restaurants against grocery stores. We’re still pitting the Wendy’s salad versus the Pop-Tarts at WinCo. That’s a pretty difficult balancing act for the state of Idaho moving forward.”

A second bill introduced by Inkom Rep. Randy Armstrong spelled out a more narrow legislation that would have, on top of the SNAP guidelines, kept taxes on candy, sugar drinks and soda, among other items. Armstrong estimated the cost burden to reach $70 million.

“I’m just curious, in here,” Rep. Tammy Nichols of Middleton asked, “why frozen vegetables are OK but not frozen fish? How were the decisions made on what constitutes a grocery?”

A follow-up bill to push for the grocery tax removal was promptly withdrawn the same day.

That leaves House Bill 494, which would increase the current grocery tax credit to $135. HB 494 was printed and sent to Revenue and Taxation Thursday. On Friday, the committee scheduled a Monday hearing for Speaker Scott Bedke’s bill.

“I have long supported tax relief for Idahoans on the most basic of needs: groceries,” Little said. “… I believe our people have greater opportunities to prosper when government limits regulatory hurdles, respects taxpayers by spending their money as efficiently as possible, and focuses as much on the needs of tomorrow as the needs of today.”

HB 494 is the first bill slated for discussion Monday.

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