Federal tax overhaul could cost Idaho taxpayers $100M - Spokane, North Idaho News & Weather KHQ.com

Federal tax overhaul could cost Idaho taxpayers $100M

Posted: Updated:
BOISE, Idaho -

Idaho taxpayers could end up paying roughly $100 million more next year as a result of the Republican tax overhaul that President Donald Trump signed into law last month, according to a recent analysis from the head of Idaho’s tax commission.

That number, however, is likely to fluctuate as lawmakers begin to prepare to dive into tax policy during the 2018 legislative session — which kicks off Monday.

Ken Roberts, chairman of the Idaho State Tax Commission, first revealed the fiscal impact of the tax reform law to lawmakers during Friday’s Economic Outlook and Revenue Assessment Committee meeting.

“All told, we believe the impact on Idaho (tax revenue) will be a positive $97.4 million,” Robert said, referring to collections during fiscal year 2019 — which doesn’t start until July and goes until the end of June 2019.

The federal policy cuts tax rates and nearly doubles the standard income deduction. It also caps or eliminates some popular itemized deductions, and sets the personal exemptions to zero.

“I think the perception was that this was going to be a tax decrease,” Roberts said. “But when Idaho doesn’t have as many provisions as other states, and you eliminate the exemptions, the standard deduction only gets you so far. Then you start paying more tax.”

The Idaho Legislature typically syncs the state’s tax code with the federal version each year to make it easier for residents and businesses to do their taxes, as well as avoid having to keep separate accounting books to track the different rules.

The typically mundane request comes from the Idaho Tax Commission at the beginning of each legislative session to ensure Idaho’s definition of adjusted gross income matches the Internal Revenue Code.

Yet this year, the issue of if and how Idaho will choose to conform has become a top priority for Idaho lawmakers. That’s because how lawmakers handle conformity will be the driving factor on how much money will be available for possible tax cuts while still ensuring education and other budget needs don’t get shortchanged.

State lawmakers are already tossing around ideas, but many of the details are not quite fleshed out.

For example, Senate President Pro Tem Brent Hill, R-Rexburg, said last month the state could consider keeping a personal exemption or offering a state child tax credit after citing concern the new state revenue would come disproportionately from larger families because of the elimination of the exemption.

Meanwhile, Gov. C.L. “Butch” Otter declined to address the topic during The Associated Press annual legislative preview on Friday and instead said he would talk about it during Monday’s State of the State address.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Most Popular StoriesMost Popular StoriesMore>>

  • Gonzaga Official: Chick-Fil-A not coming to Spokane

    Gonzaga Official: Chick-Fil-A not coming to Spokane

    Sunday, August 19 2018 12:53 PM EDT2018-08-19 16:53:47 GMT

    SPOKANE, Wash. - The rumor that was quickly spread Saturday about a Chick-Fil-A franchise coming to Gonzaga University is false, according to a Gonzaga official. Mary Joan Hahn, the Senior Director of Community & Public Relations at Gonzaga, tells KHQ that this information is inaccurate. She wasn't able to explain how the information got out in the first place, but Gonzaga is looking into it.

    >>

    SPOKANE, Wash. - The rumor that was quickly spread Saturday about a Chick-Fil-A franchise coming to Gonzaga University is false, according to a Gonzaga official. Mary Joan Hahn, the Senior Director of Community & Public Relations at Gonzaga, tells KHQ that this information is inaccurate. She wasn't able to explain how the information got out in the first place, but Gonzaga is looking into it.

    >>
  • Defense DNA request denied in deaths of Colorado mom, kids

    Defense DNA request denied in deaths of Colorado mom, kids

    Saturday, August 18 2018 8:33 PM EDT2018-08-19 00:33:15 GMT

    FREDERICK, Colo. (AP) - A Colorado judge has denied a request by a defense attorney for a man accused of killing his wife and two daughters to require a coroner to collect DNA from the necks of the young girls. KMGH-TV and the Daily Camera newspaper in Boulder reported the judge said in an order he would not tell the medical examiner's office involved in the case how to do its job. 

    >>

    FREDERICK, Colo. (AP) - A Colorado judge has denied a request by a defense attorney for a man accused of killing his wife and two daughters to require a coroner to collect DNA from the necks of the young girls. KMGH-TV and the Daily Camera newspaper in Boulder reported the judge said in an order he would not tell the medical examiner's office involved in the case how to do its job. 

    >>
  • Air quality to worsen in Northwest as smoke returns

    Air quality to worsen in Northwest as smoke returns

    Forecasters are warning of unhealthy air parts of the Pacific Northwest as winds push smoke from surrounding wildfires into the region.>>
    Forecasters are warning of unhealthy air parts of the Pacific Northwest as winds push smoke from surrounding wildfires into the region.>>
HD DOPPLER 6i
/
  • Top Stories from KHQHomeMore>>

  • The new alternative facts: 'Truth isn't truth'

    The new alternative facts: 'Truth isn't truth'

    Sunday, August 19 2018 6:34 PM EDT2018-08-19 22:34:34 GMT

    BRIDGEWATER, N.J. (AP) - Move over, alternative facts. Now, truth isn't truth. President Donald Trump's personal attorney Rudy Giuliani used the line Sunday on NBC's "Meet the Press" with Chuck Todd.  Giuliani was trying to make the case that having Trump sit down for an interview with special counsel Robert Mueller's team wouldn't accomplish much because of the he-said-she-said nature of witnesses' recollections. 

    >>

    BRIDGEWATER, N.J. (AP) - Move over, alternative facts. Now, truth isn't truth. President Donald Trump's personal attorney Rudy Giuliani used the line Sunday on NBC's "Meet the Press" with Chuck Todd.  Giuliani was trying to make the case that having Trump sit down for an interview with special counsel Robert Mueller's team wouldn't accomplish much because of the he-said-she-said nature of witnesses' recollections. 

    >>
  • Police: Man angry about loud music waves gun at school dance

    Police: Man angry about loud music waves gun at school dance

    Sunday, August 19 2018 6:25 PM EDT2018-08-19 22:25:20 GMT

    THATCHER, Ariz. (AP) - A 72-year-old man has been arrested on suspicion of waving a gun at a high school dance in Arizona because he didn't like the loud music. Police in the small southeastern Arizona town of Thatcher say Robert Layton drove to the high school parking lot around 11:45 p.m. Friday and complained about the loud music. Witnesses say Layton pulled a 9mm handgun out of his pocket and waved it around before pulling wires to disable the music. 

    >>

    THATCHER, Ariz. (AP) - A 72-year-old man has been arrested on suspicion of waving a gun at a high school dance in Arizona because he didn't like the loud music. Police in the small southeastern Arizona town of Thatcher say Robert Layton drove to the high school parking lot around 11:45 p.m. Friday and complained about the loud music. Witnesses say Layton pulled a 9mm handgun out of his pocket and waved it around before pulling wires to disable the music. 

    >>
  • Air quality worsening in Northwest as smoke returns

    Air quality worsening in Northwest as smoke returns

    Sunday, August 19 2018 5:50 PM EDT2018-08-19 21:50:40 GMT

    SEATTLE (AP) - Forecasters are warning of unhealthy air in parts of the Pacific Northwest as winds push smoke from surrounding wildfires into the region. The National Weather Service has issued air quality alerts for much of Washington state. The service says air quality in Western Washington is expected to worsen starting Sunday. Some improvement is expected by Wednesday. An air quality alert is also in place across Eastern Washington and North Idaho. 

    >>

    SEATTLE (AP) - Forecasters are warning of unhealthy air in parts of the Pacific Northwest as winds push smoke from surrounding wildfires into the region. The National Weather Service has issued air quality alerts for much of Washington state. The service says air quality in Western Washington is expected to worsen starting Sunday. Some improvement is expected by Wednesday. An air quality alert is also in place across Eastern Washington and North Idaho. 

    >>