[Vision2020] legislative report

[Shirley Ringo]

>From the Legislature

February 27, 2009

 

Dear Friends:

 

Greetings from the Idaho Legislature.  

 

We've had two sessions of Stimulus 101 - it is very complex and we are working to understand how these funds can best be used to benefit Idaho.

 

Undoubtedly all this talk about revenue and taxes is somewhat dry, but that's where most of the action is now.  If I tell you I am finding it interesting, you will probably think my life here in Boise isn't very exciting.

 

There has been lively debate concerning whether to raise the beer and wine tax.  Those lobbying against this increase have been extremely aggressive in organizing folks to correspond with legislators about their opposition to the idea.  At this time, I am happy that my assignment does not include the Revenue and Taxation Committee.  Those legislators received hundreds of messages opposing House Bill 140.  (To raise the beer and wine tax.)  Communication with individuals who delivered these messages, determined that many of them did not fully understand certain aspects of the legislation.

 

The tax on beer has not seen an increase since 1961.  The tax on wine has not been changed since 1971.  The tax increase would mean an additional $10.92 each year for someone who drinks a six-pack per week, and approximately an additional $13.42 each year for a wine drinker who drinks six glasses of wine a week.  The revenue would be roughly $19 million, and $14 million of that would fund substance-abuse treatment.

 

I did not receive many messages concerning this legislation, and I will not have the opportunity to vote on it this year.  Yesterday the bill was defeated in the Revenue and Taxation Committee by a vote of 13 - 5, so it will not come to the full House for a vote.  However, there are rumors that another version of the bill may surface this session.

 

A recent audit of the Department of Transportation showed that revenue for the department is not adequate to properly maintain existing roads.  As you probably know, Governor Otter put forth proposals to increase taxes and fees for the purpose of obtaining funds to properly support road maintenance.  Yesterday (Thursday) the Transportation Committee heard three proposals to raise gas taxes.  Governor Otter's proposal would raise the gas tax an additional two cents a gallon each year for five years.  Transportation Committee Chair JoAn Wood's bill would provide an ongoing increase of two cents per gallon, and committee member Leon Smith's bill would provide an ongoing increase of five cents per gallon.  At this time, the increase of five cents per gallon seems most intriguing to me.  The legislation specifies that the additional funds must be used on maintenance of existing pavement.  Since vehicles differ in their efficiency and individual family needs for travel differ, it is not possible to say exactly how a family would be affected.  However, it would appear that a ballpark number would be increased expenditures of about $2 to $2.50 per month per vehicle.  I am curious to hear your opinions on this.

 

As we move ahead and begin the budgeting process, I will do my best to protect Latah County's interests.  As always, please keep me informed regarding issues of concern to you.  I may be contacted at 208-301-2272, ringoshirl at moscow.com, or sringo at house.idaho.gov.

 

Sincerely,

 

 

 

Representative Shirley Ringo

 
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