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House Democrats support food tax rebate with new bill changes
Monday, March 3, 2008
Contact: Chuck Oxley
(208) 871-4976 (office)
“We voted for this
bill
because we felt it was the best option in
front of us,” said the Democratic
leader. “However, we are going to continue to
work on this.”
House Bill 588 was
approved in
the House Revenue and Tax Committee on Monday
morning. It would raise the
current $20 per year tax credit to $30 for
most people. Low-income families
would be allowed a $50 credit. Those who don’t
claim enough income to file a tax
return would be able to file a separate claim
for the money.
The current grocery
tax law
disallows any credit for people who do not
file a state income tax return,
Jaquet said, noting that includes married
couples filing jointly with an annual
income of less than $17,500 (unless they are
elderly, blind or a disabled
veteran).
The bill passed in
committee
Monday also would require an additional $10
increase per year for five years, so
long as economic conditions allow the state to
release the revenue. After five
years, the rate would settle at $100 per year
for everyone.
“At
the end of
the five years, the amount of the credit to
the general fund will be close to
the amount it would cost the state to take the
sales tax off groceries,”
Jaquet said. “By then,
we should be fully prepared to eliminate this
tax at the cash register instead
of making people wait to file their tax
return.”
Jaquet said she has
tried to
reach across the aisle to other Republicans
who wanted the tax eliminated
completely, but they would not join with
Democrats to remove the tax completely.
The bill passed the
committee
12-5, with Democrats Jaquet,