Allowing Local Option Taxing Authority to Fund Transportation
Issue Overview: With only a few specific exceptions, local governments, such as cities and counties, don't have the authority to impose local sales taxes. For the past several years, local governments have sought to change state law to allow them to impose local sales taxes, with the approval of the voters, to fund transportation and other projects.
Issue Background: Advocates for a local sales tax again propose a bill giving local governments authority to impose local sales taxes to fund transportation projects. House Bill 688, and its companion legislation, House Joint Resolution 004, would have allowed a regional public transportation authority to levy a local sales tax for two purposes: to finance the construction and maintenance of highways; and to finance, construct, operate and maintain public transportation systems.
NFIB Position: NIFB/Idaho members, by a vote of more than 84 percent, oppose allowing local governments to impose their own sales taxes to fund transportation projects (2008 ballot). NFIB members have long opposed local option taxes in general (by 69 percent in a 2005 ballot) for these essential reasons: they would be paid by local residents, not tourists; they would create competitive disadvantages by driving business into other counties or states that don't have the tax; and they would force small businesses to bear the burden of paying for a benefit mostly big businesses would enjoy.
Issue Status: H 688 stalled in the Senate Local Government committee and JHR004 also died in the Senate.
