Ways possible tax increases could impact Idahoans

Idaho lawmakers are trying to figure out how to to fund highway and bridge repairs. They are looking at a bill increasing the fuel tax.

Lawmakers are also looking at possibly bumping up the state sales tax and moving to a flat rate income tax. Financial experts say these taxes will impact idahoans the most.

The bill that would increase the gas tax would bring it up eight cents.

“So it would end up being about and $8 increase. I think the people who are going to be paying for it are the people who are travelling a lot going on vacation have a lot of recreational vehicles,” said registered investment advisor Jennifer Landon.

Another idea being talked about is raising the sales tax from six to seven percent while getting rid of the sales tax on groceries.

“It would have the most wide sweeping effect on Idahoan families because everybody pays for it and it’s a consumption tax,” Landon said.

Income tax could change from a graduated rate to a flat rate of 6.6 percent.

“Well the people who can afford an increase in taxes are probably not going to be burdened by it much. In fact, it might come to benefit them, so the average Idahoan might see an increase in their taxes if that were to be accepted,” said Landon.

The important thing to remember right now is this is just a discussion.

“They are just throwing ideas on ways to fix the problem or the deficit for road repair. None of the options they are throwing out there are going to be lasting at this point. They’re just saying ‘hey let’s have a conversation, so here’s a few different ideas on ways we can get this done,'” Landon said.

While a bill on raising the gas tax has been proposed in the house, the talk about changing the sales tax is just a conversation right now.

If the gas tax does pass both the house and the senate it will be the first time in about 20 years the gas tax has been raised in idaho