The 2007 Legislative Session
This was a good year for Idaho and its citizens. Idaho’s economy is strong and growing—due in part to our sound tax policy and friendly business environment. Because of our success, we were able to increase funding for public education and drug treatment programs. Just as important are changes we made in the law to protect victims of child abuse and rein in those auto insurance carriers that try to take advantage of their customers. Unfortunately, we failed to increase the Grocery Tax Credit that was targeted to all citizens and to repeal the personal property tax on business equipment.
Representative Mack Shirley and I were the sponsors of two pieces of legislation that will help protect our children from sexual abuse and make it easier for authorities to prosecute child molesters. Idaho now has statutes every bit as tough as “Jessica’s Law”. We never want Idaho to become a “safe haven” for sexual predators. This legislation will not return the innocence to a little boy or girl who has been defiled and degraded, but it will hold the wicked accountable for their nefarious acts of violence.
I spent a great deal of my time this session passing legislation making it much more difficult for insurance companies to evade paying legitimate claims. One bill prohibits a “family step-down” where the insurance company inconspicuously excludes spouses, children and others from full coverage. Another bill that was vetoed by the governor required insurance companies to offer “underinsured” in addition to the “uninsured” coverage already available. This coverage would have been completely optional to the policy holder, but notification of its availability was required.
I co-sponsored legislation that would have phased out the personal property tax businesses must pay on everything from office staplers to forklifts. This onerous tax was repealed decades ago for property owned by individuals (yes, the furniture in your home was once subject to property tax) and for farm equipment in 2001. Lost property tax revenues to local governments would have been reimbursed by the state. But even though the phase-out was over an eight-year period, the overall cost was too much for the Legislature to swallow. If we are going to get relief from personal property taxes in the future, the business sector will probably have to make concessions to help fund it. One possibility is to trade the personal property tax for the investment tax credit allowed on business equipment purchases—a credit discontinued years ago by the federal government, but lingering in state law. I will be working with business interest groups and other legislators this summer to negotiate a repeal of the personal property tax to help make Idaho an even more business-friendly state. The Legislature established a committee to analyze Idaho’s overall tax policy and provide suggestions to the Legislature. Representative Dennis Lake (chair of the House Revenue and Taxation Committee) and I will chair the committee as we meet during the summer months. We plan to establish principles regarding sound tax policy that will help the Legislature evaluate and enact tax laws.
Senator Brent Hill
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