Ammon mayor cheers sales tax formula

BOISE, Idaho (KIFI/KIDK) - On a 30-4 vote, the Idaho Senate has approved a bill sponsors say will more fairly redistribute sales tax revenues to cities.

Supporters said the state's current distribution formula was unfair because it used inequitable formulas, like property values, to share revenue with city government. As a result, sponsors said some cities received ten times the amount than other cities, if they were calculated solely on population.

Ammon Mayor Sean Coletti is applauding the action. He said the bill makes sales taxes track more closely to growth in those cities, like Ammon.

The new formula establishes a new base amount, using the previous year's distribution to each city. If collections increase, the first 1% is divided amongst all cities. If it is more than a 1% increase over the previous year, the excess funds are distributed to cities that receive less than others based on per capital calculation.

The new formula establishes a new base amount, using the previous year's distribution to each city. If collections increase, the first 1% is divided amongst all cities. If it is more than a 1% increase over the previous year, the excess funds are distributed to cities that receive less than others based on per capita calculation.

The bill passed the Idaho House last week.