We have been trying to wrap our brain around the property tax relief Gov. Jim Risch bullied through the legislature. We think the law of unintended consequences may come into play since nobody had a plan that could be understood or endorsed without reservation.
The shift from property tax to sales tax may not be good news to retailers and consumers, but big business and homeowners will get SOME tax relief. If the GUARDIAN got the decimal in the right place we figure the owner of a $200,000 house with a homeowners exemption will see a tax savings of about $425. On the downside the INCREASED sales tax on a $25,000 car will be $250.
The “proposition one” slated for the November ballot to raise sales tax another 1 percent for schools is probably doomed. Supreme Court of Idaho has pretty much given the legislators free rein to repeal ANY law passed by citizens anyway.
The increase in sales tax could prompt consumers to head west to Oregon for high end purchases. A $1,000 bill spent in Oregon means you save $60 in Idaho sales tax. Technically you aren’t supposed to do that, but you are also supposed to tell the Idaho Tax folks you bought your new GPS on the internet and saved 6% taxes over the Cabela’s store price.
That may be unlikely given the “NEWS” reports print and broadcast media devoted to new store openings like Costco and Cabela’s. You’d think Krispy Kreme had come to town! The daily paper’s outdoor team will have a rough time being taken seriously in the future after turning tricks at Cabela’s.
With a softening of the housing market we could see an end to increased values–and taxes. The speculation continues forever, so let’s hear from some “experts.”
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