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BOISE, Idaho (AP) — An Idaho committee is examining the state's complicated tax code to try to come up with policy fixes for when lawmakers return to Boise come January.
Tuesday's meeting was the first time the 12-member panel had gathered in public after various members had met privately to discuss state tax policy over the summer. Known as the Tax Working Group, the committee held its first meeting in September, but it wasn't publicized except for a paper notice in the state Capitol. The group has since agreed to abide by the state's open meeting laws and eventually plans on holding a public hearing.
Sen. Jeff Siddoway, a Republican from Terreton who is co-chairing the working group, said lawmakers are still trying to figure out what the group wants to accomplish. "Seems like we always have a bit of a wreck when it comes to tax policy," Siddoway said.
Efforts to push more tax breaks and incentives have been common in Republican-dominated Idaho in election years, which will be the case during the 2016 Idaho Legislature. Yet it's not unusual for sweeping tax breaks to become derailed in the final hours of a legislative session.
During this year's session, an elaborate tax plan backed by House Majority Leader Mike Moyle from Star promptly failed once it hit the Senate after House lawmakers rushed it through. The move outraged lawmakers and contributed to the delaying the legislative session's adjournment.
However, it's still unclear if and what kind of tax reforms Idaho needs, several people told the panel.
Jeff Sayer, outgoing director of the state's Department of Commerce, told the committee that Idaho's largest hurdle in attracting new businesses was not nestled in the tax code. Rather, he said Idaho needs to spend more money attracting talented employees to the state.
Idaho is estimated to face a employee shortage in 10 years of more than 95,000 people, Sayer said. But he pointed to Boise State University's computer science department as a program other companies are eyeing to hire their possible graduates because they have competitive skills.
"We do need lower taxes someday, but not this day," Sayer said. "If the intent of this committee is to optimize the tax processes, I salute you. But if the intent is to lower taxes, there are better places to spend our money right now."
Meanwhile, Republican Rep. Dell Raybould from Rexburg, who heads the House Tax and Revenue Committee, poised the question of whether Idaho's tax system needed fixing at all. "I can tell you, it's too darn complicated, but that's my sheepherder answer," Siddoway said.
Other lawmakers cautioned that they would not support tax relief plans for the rich that ended up putting more of a financial burden on middle class families.
The group will meet at least two more times on Oct. 14 and Nov 3.
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