High: 77º Low: 56º
High: 81º Low: 54º
High; 77º Low: 56º
The Latest On The Personal Property Tax
Twin Falls, Idaho ( KMVT-TV / KTWT-TV ) The personal property tax is a controversial issue that Governor Otter wants to repeal.
However, are lawmakers on the same page, and what does this bill mean for local businesses?
Governor Otter released a draft proposal on the personal property tax.
Otter’s plan would eliminate the $140 million tax on business equipment over six years.
"The pain will be spread out among local governments. It would not replace all the money lost on the personal property tax,” said Representative Lance Clow.
Idaho cities, counties, and schools rely on money from the state's personal property tax, if that money goes away, what would it be replaced with?
"There is two aspects to it, one is a replacement cost that the state would step forward and help replace part of that money with general revenue. Cities and counties have no place to get the money from unless they change the taxes. Individuals do not pay the personal property, which means real estate taxes would go up.”
Lawmakers say the goal is to eliminate the tax.
"I would not say we're all on the same page, many of us don't see how we can afford it. It's a very tight budget this year and we haven't appropriated all the money we see, most of the money is already accounted for."
A bill legislators are feeling pressure from, local government and businesses.
Clow explains it's a tax related issue, which means the revenue and taxation committee will review the bill first.