[Vision2020] Legislative Update 11 from Rep. Trail - March 4-7

[ttrail at moscow.com]

LEGISLATIVE NEWSLETTER XI --MARCH 4-7/08
 
 
Constituents:
 
Legislators are getting restless as we try to wrap the session.  I heard
that we will be out of here sometime between the 21st to the 31st of the
month.  We've even heard that we may be coming back the next two Saturdays
to vote on bills because we are really getting jammed up on the reading
calendar.   JFAC has set the budget and we will be voting on various budget
bills the next couple of weeks.  Here are some of the week's highlights.
 
 1.  Grocery Tax Credit  --  It appears that we may finally get a grocery
tax credit bill passed this session.   The House passed this legislation by
a 61-8 vote.  This was a bill that many did not like.  There are those who
prefer to simply take the tax off at the till for groceries.   Then there
was a problem according to some just what constituted the definition of
groceries.   The tax credit team finally won the day with the pitch that
only Idaho citizens would benefit from this tax relief.   The Governor will
probably support the bill, and it now goes to the Senate.
 
      The bill allows each member of a family of four earning $25,000 or
less per year to claim $50 credit on their state income tax.  Families
earning more would be entitled to $30 credit.  These amounts will increase
by $10 a year and be capped once reaching $100/year.  It is estimated that
more than 200,000 Idaho families earn less than $25,000/year.   Seniors
will get $50/year and this figure will go up to $100 over time.  The total
estimated cost by 2015 will be around $150 million which includes the cost
of the current exemption.
 
 2.  Elimination of the Business Personal Property Tax  --  This
legislation will be before the Rev and Tax Committee this next week.   I
talked with Representative Dennis Lake who is Chair of the Rev and Tax
Committee.  We reviewed the figures for Latah County.  There are about
2,300 businesses in Latah County who would benefit from the elimination of
the personal property tax on equipment.  The way the legislation is written
the fiscal impact on the county would be neutral and would not have to
increase property taxes to pay for the loss of the personal property income
tax.   This should be a good piece of legislation.
 
 3.   Highway Construction  --  Governor Otter withdrew his proposal to
hike the fee for all car registrations up to $150.   A storm of protests
from citizens and legislators axed the idea.   There are some legislators
who are drawing up proposals for an increasing car registration fees but on
a tiered system.   Other ideas for coming up with about $200,000,000 for a
deficit in the transportation budget are being explored.
 
 4.   Reducing Property Taxes  --  A bill that would override county and
city budgets was approved Friday on a 38-29 vote.   The bill will give
voters the right to reduce the budget for any taxing district where
property tax revenue exceeded $250,000/year.
 
 5.   Field Burning  --  HB557 is the bill that should resolve a 10 year
struggle between Idaho's blue grass growers and health oriented groups who
were concerned with smoke related health issues.   After over a year of
mediation HB557 was agreed to by all parties and it is on the fast track to
the Governor's Office.  Under the legislation growers will be able to grow
20,000 acres of grass a year.  DEQ will monitor the program.
 
 6.   Big Tax Breaks for AREVA  --  The House voted 41-27 to give millions
of tax breaks to a French Nuclear Company.   The plan is to build a new
uranium enrichment facility near the INL facility in Eastern Idaho.   I
voted against the bill simply because we have been stung several times by
voting in big tax breaks for special interest companies.
 
 7.  Salaries  --  State Employees will receive about a 3% salary increase
based on merit.   Teachers will on the average receive about a 2.5% salary
increase. The salary for new teachers will be hiked up to $31,750/year. 
When taking into consideration that the inflation rate is over 3%, many
state employees and teachers will actually be falling behind.
 
That's all for this week.   The days will be getting longer as we head down
the final two to three weeks of the session.   Candidates will be filing to
run in the primaries starting March 10th.  I plan on running for another
term.   Please send me your comments and observations.   My e mail is
ttrail at house.idaho.gov and telephone
is 208-332-1184.
 
Representative Tom Trail



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