Idaho senate approves legislation to repeal the state’s tax on groceries

Idaho may become one of the many states that do not put tax on groceries.

The Idaho senate has approved legislation to repeal the state’s tax on groceries, however, Governor C.L. “Butch” Otter’s opposes this.

Chair of the department of economics at Brigham Young University-Idaho, Allen Walburger, explains there is a downside but not for consumers.

He sayed the government will have to come up with a revenue from some other source.

“They’re going to lose a revenue that was fairly secure source of revenue for them.” Walburger said.

On the plus side consumers are essentially getting more money.

“It allows them to have money back into their pockets that they would otherwise spend on food, particularly groceries,” Walburger said.

Walburger adds when you tax or remove tax at a retail level it changes the way people purchase.

“Indicating that they’ll spend a little more on grocery items than they would before because it’s relatively cheaper,” Walburger said.

Gov. Otter is expected to repeal the bill.