Twin Falls, Idaho (KMVT-TV) The personal property tax is shaping up to be one of the key issues of the 2013 legislative session in the gem state.
What is the personal property tax?
Idaho’s personal property tax only applies to personal property used for business purposes.
"The personal property tax is collected on every business in the state annually and much of the revenue goes to the cities and counties it's about 130-million dollars annually across the state. Many businesses find this difficult to comply with, there is a lot of paperwork involved and they find it difficult because they already pay sales tax on particular items” said Reprehensive Stephen Hartgen, (R) Idaho District 23.
Bakehouse owner Aaron Adams stresses being a small business owner is about investment and taxing doesn't help.
"As a starting businessman I need all the money to invest back into my business to keep it going. What I would like to see is a two-year exception for small businesses on property tax” said Aaron Adams, High Country Bakehouse.
Taxable personal property includes items used commercially for convenience, decoration, service, storage, furniture and much more.
Hartgen said, "The problem isn't repealing it, we can probably do that. The problem is making up the revenue that the cities and counties need and some counties it's a large portion of their revenue."
City of Twin Falls officials are concerned they'll lose a large amount of money if the tax is repealed.
"What we do know is if they do eliminate the personal property tax and we aren't able to replace it with another form of tax then the City of Twin Falls would lose approximately 950-thousand dollars” said Josh Palmer Public Information Officer, City of Twin Falls.
A future decided upon by lawmakers in the New Year.