SE Idaho leaders examine possible impacts of tax elimination
Updated On: Mar 08 2013 11:55:18 AM CST
If some state legislators have their way, personal property tax could be a thing of the past.
Elected officials and community leaders in Bannock County met together to figure out just what kind of impact this could have on local government finances.
A bill championed by governor butch otter's administration would completely do away with personal property tax over a seven year span.
"We believe that there are businesses who currently will not come to Idaho and our communities because of the personal property tax,” Pocatello Chamber of Commerce President Matt Hunter said.
That could have some big ramifications for local governments, Pocatello for example, gets 11 percent of its tax revenue from personal property tax.
But, in the legislation being considered, the state would likely pledge to pay back at least some of that lost revenue to the cities and counties.
That still leaves local governments with some tough decisions to make.
"We are concerned about that. Because if they pass a tax cut that comes down the school districts and the cities and the counties, we're going to reduce service or we're going to raise local property taxes,” Pocatello City Councilman Gary Moore said.
Those who support getting rid of the tax, say it will entice businesses into the area and more than make up for what cities lose.
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