Grocery tax credit increase advances

BOISE — A bill that would increase the grocery tax credit to $155 per person is headed to the House floor after a unanimous vote Thursday.

The vote came after a failed attempt to provide a bigger credit of up to $225 per person.

Majority Leader Rep. Jason Monks, R-Meridian, brought the bill, which was originally House Bill 61 but was replaced with a new version with a slight wording change Thursday. The House Revenue and Taxation Committee unanimously sent the bill to the House floor.

Monks said that he “doesn’t necessarily like” taxes, but that sales tax isn’t highest on his list of taxes to dislike.

“Sales tax is one that I tolerate because I think it’s a consumption tax that individuals have the ability to control a little bit, more than they can an income or property tax,” Monks said.

However, he said, given inflationary pressures, residents were asking for relief. He said he opted for an increase to the credit rather than repeal of the sales tax applied to food because he still wanted out-of-state visitors to pay that tax on food purchased in Idaho.

The current tax credit, meant to offset the sales tax paid on food for the year, is $120 per year per person or $140 for individuals 65 or older. The bill sets one tax credit rate for everyone at $155.

There would be an option to provide itemized receipts for certain food products, which may not include candy or pre-prepared food among other restrictions, to receive up to $250 in credit.

House Assistant Minority Leader Rep. Steve Burch, D-Boise, repeatedly questioned the feasibility of submitting a years’ worth of grocery receipts and ensuring everything claimed fell within the definition of what can be collected, calling it “unworkable.”

Four people spoke Thursday, all in favor of the bill.

Meridian resident Mark Johnson said he thought calls to repeal the sales tax on food “oversimplified the issue,” and thought it probable that grocery stores might raise their prices anyway.

Lupe Wissel, state director of AARP Idaho, said she was in favor of the bill because many seniors are facing food insecurity.

Rep. John Gannon, D-Boise, asked her about the fact that seniors would only receive $15 more annually under the bill.

“Do you think we should do better?” Gannon asked.

Wissel responded, “It would always be better if it was more, but any increase is helpful.”

Gannon later made the motion to increase the credit to $225 a person.

“If we’re really serious about inflation, and inflation is a huge issue out there I think, then I think we need to look at a substantial and generous increase of this credit to really, really help folks deal with not just inflation and food … I look at it as helping a lot of related items,” Gannon said.

Rep. Rick Cheatum, R-Pocatello, debated against the motion, saying he thought the original motion was a fair amount, returning sales tax paid on about $49 worth of groceries a week. Gannon’s motion would have returned sales tax paid on about $72 of groceries a week.

Monks said it was a “hostile motion,” and he opposed it.

Gannon’s motion died largely on party lines. After it failed, the Democrats on the committee said they would support the original bill, both expressing a desire to do something.

Gannon said, “something is better than nothing at all.”

Berch said that while he hears from constituents a desire to repeal the sales tax applied to food, the bill is the option in front of him.

“This is the best opportunity I have to provide some grocery tax relief to my constituents,” Berch said.

The bill now heads to the full House for consideration.

Guido covers Idaho politics for the Lewiston Tribune, Moscow-Pullman Daily News and Idaho Press of Nampa. She may be contacted at lguido@idahopress.com and can be found on Twitter @EyeOnBoiseGuido.