Idaho Rejects Streamlined Sales Tax Again
- Mar 27, 2013 | Gail Cole
The Idaho House has quashed a proposal to consider joining the Streamlined Sales and Use Tax Agreement. In fact, the House Committee on Revenue and Taxation refused to introduce the bill by a 10 to 5 vote.
The measure was brought forward by Representative Lance Clow, (R-Twin Falls), a freshman responding to the "exponential increase" in Internet sales. Clow told the Idaho Spokesman that Idaho citizens are spending approximately $1.08 billion on Internet sales. "E-commerce is growing at two to three times faster than traditional retail sales, therefore it's going to become a much more significant issue."
Streamlined States will presumably be well-poised to require remote vendors to collect and remit sales tax if the federal government enacts the Marketplace Fairness Act this year. Rep. Clow wanted the bill on the books "so if something does happen, we'll be ready to go."
Rep. Clow points out that many Idahoans are interested in streamlined sales tax. The Idaho Association of Counties, the Association of Idaho Cities, the Idaho Association of Commerce and Industry, the Idaho Chamber Alliance and the Idaho Retailers Association all support the bill.
Yet the bill does not have much support among state lawmakers, some of whom see it as a tax increase. Similar legislation died last year in the House Revenue and Taxation Committee.
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