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Poll of Idaho Small Business Owners Shows Them Still Against Local Sales Tax Option
01/28/2008

CONTACT: Suzanne Budge, 208-345-6632 or Tony Malandra, 415-664-9685

Economic uncertainty adding to big opposition to raising other taxes for transportation

BOISE, Idaho -- A poll of Idaho small business owners released today by their leading representative group shows them with seat belts firmly fastened against any tax increase as the nation's economy heads into the possible turbulence of a recession.

Each year, the National Federation of Independent Business/Idaho polls its small business members on issues vital to their survival as entrepreneurs. The results from the polls are considered by many policymakers to be the true voice of small business. NFIB/Idaho has more than 5,500 members and releases the results of its annual poll after a 5 percent return. Today's poll was released after the first 345 ballots.

When asked if local governments should be allowed to impose local sales taxes to fund transportation projects, 84 percent of NFIB/Idaho-member, small business owners said 'No,' 11 percent were in favor of it, and 5 percent were either undecided or did not respond.

"Proponents of a local sales tax for transportation projects tried pushing a bill through the Legislature last year giving local governments this authority," said Suzanne Budge, NFIB/Idaho state director. "But small business succeeded in killing it when it was showed to lawmakers that they would bear the brunt of these taxes and not out-of-state corporations. NFIB members continue to oppose local option taxes, even when the question is specific to transportation funding. Our survey results are consistent with another recent poll which indicated a lack of majority support for local option taxes to fund transportation."

In three other responses to the four-question poll, 85 percent of respondents opposed the state raising its per-gallon fuel tax (11 percent were in favor, 4 percent were undecided); 95 percent of small business owners were opposed to the state adding a sales tax on fuel in addition to the per-gallon tax it already has on it (2 percent were in favor, the rest were undecided); and 71 percent of entrepreneurs opposed raising vehicle registration and fees to fund transportation projects (18 percent were in favor; 11 percent were undecided).

"No one is questioning the importance of keeping the state's transportation infrastructure up to par," said Budge, "but the tax increases needed to do so are being weighed against other costs such as health care, workers' compensation and unemployment insurance, just to name a few of the many things small business owners especially have to worry about."

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