Idaho House passes bill to raise state’s grocery tax credit. Some say it’s not enough
House members on Thursday approved a bill to increase Idaho’s grocery tax credit, despite facing opponents from both sides of the aisle who said it didn’t go far enough.
Introduced by Rep. Jim Addis, a Coeur d’Alene Republican, the bill would increase the food tax credit for Idaho residents by $20 — from $100 to $120, and from $120 to $140 for seniors.
Repealing the grocery tax altogether is priority for many conservative lawmakers and Democrats this session. Thursday’s 40-27 vote showed members from both parties divided over whether Addis’ bill provided enough relief to address the tax on food. Opponents said Idahohans are looking for more, especially as inflation continues to rise.
State legislators in the future “have the complete freedom to modify” the tax credit and increase it, Addis said. “Right now, with where we are, it’s simply an attempt to help get more money back to our taxpayers.”
The tax credit increase would start during the 2023 tax year, meaning it could be claimed starting in 2024. The estimated cost to the state’s general fund is $32.4 million annually.
Majority Caucus Chair Rep. Megan Blanksma, a Hammett Republican, noted the bill will not provide tax relief for visitors or “people who might not want to be here” — as a complete repeal of the food tax would.
“It only provides tax relief to taxpaying Idahoans, which, I think, is an excellent focus,” Blanksma said.
Rep. Tammy Nichols, a Middleton Republican, said she feared passing this bill would put an end to discussions of further grocery tax relief, after a large chunk of the state’s $1.9 billion surplus was gobbled up by an income tax cut and rebates. The Legislature passed Gov. Brad Little’s $600 million income tax relief package this month.
“How can we call this the best thing we can give our constituents?” Nichols said.
House Minority Leader Ilana Rubel, a Boise Democrat, called the tax credit increase a “crumb.”
But Pocatello Democrat Rep. James Ruchti framed it differently. The representative from Pocatello said the Legislature put itself in this position by passing the income tax relief package.
“I agree it’s not much, it doesn’t make up for inflation, but this is what we got,” he said before voting in favor of the bill.
House shoots down motion to amend bill
Before passing the bill, the House shot down a motion from Rep. Ron Nate, a Rexburg Republican, to send the bill to general orders, where it could be amended.
“You’re getting hundreds of emails like I am. They’re not going to be happy with the $20 tax credit two years from now,” Nate said. “We need to amend it in the right way.”
Earlier this week, Nate attempted to bypass a committee hearing and bring his own grocery tax repeal bill to the full House. That motion failed as well.
House Assistant Minority Leader Lauren Necochea, a Boise Democrat, also has a bill on the same issue that’s been held in the same committee.
Addis’ grocery tax credit increase bill now heads to the Senate.
This story was originally published February 10, 2022 at 1:32 PM.
