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BOISE, Idaho (AP) — The Idaho Senate has spiked a broad tax plan backed by House Republican leadership, claiming that the sweeping proposal did not have enough support to survive the chamber.
The bill would have eliminated sales tax on groceries, lowered income taxes for high-income earners, and increased the fuel tax by seven 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.
Legislative leaders have agreed all session that they must address Idaho's $262 million transportation annual revenue shortfall. 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 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 that 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.
-Associated Press reporter Ryan Struyk contributed to this report.
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