Idaho bill would end most property taxes on main residences

BOISE, Idaho (AP) — A House committee has introduced sweeping tax legislation raising Idaho’s sales tax to the highest in the nation as part of a plan to eliminate most property taxes on owner-occupied homes.

The House Revenue and Taxation Committee on Friday approved a possible hearing on the bill that also uses some of the increased sales tax money to raise the grocery sales tax credit from $100 to $175.

The move will bump Idaho’s sales tax from 6% to 7.85%, the highest in the nation, according to the nonprofit Tax Foundation.

City, county, and other taxes would be eliminated on primary residences, but voter approved bonds and school levies would remain.