The car tax has been in the news recently in Connecticut and Virginia, the only two states that levy it. It’s important to distinguish this tax, which is a property tax on actual cars, from a sales tax that affects the...
- The Tax Policy Blog
- Idaho Governor Calls for Eliminating Tax on Business Assets
Idaho Governor Calls for Eliminating Tax on Business Assets
Idaho Gov. “Butch” Otter (R) used his State of the State Address yesterday to call for repealing the state’s personal property tax. Despite its name, the tax actually applies to business assets and equipment:
Business leaders have urged lawmakers to dump the personal property tax, levied against everything from office desks to transmission lines and machinery in semiconductor factories. They say the tax prevents them from growing their businesses and hiring more workers.
To make up for the money local governments would lose out on, Otter set aside $20 million to pay cities, counties and school districts. The Republican governor also advocated giving local leaders more flexibility to raise sales or income taxes in their districts to help fund courts, public safety, education and roads.
"My preference is granting local-option taxing authority that enables county voters to decide for themselves how to address their most-pressing needs," Otter told nearly all the 105 representatives and senators.
Our review of personal property taxes found that states are increasingly moving away from this archaic tax on business investment.
Buy this blogger a cup of coffee!
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.