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Lawmakers, governor say sales tax increase not likely

06:54 PM MST on Friday, December 26, 2008

Associated Press

KTVB

BOISE -- An economic slump that sapped Idaho tax revenue in 2003 prompted then-Gov. Dirk Kempthorne and the state Legislature to levy a temporary one-penny sales tax increase.

But lawmakers say the current recession won't lead to a renewed hike.

House taxation committee chairman, Rep. Dennis Lake, a Blackfoot Republican, says the existing sales tax rate of 6 percent is as high as most Idaho residents will accept.

And Brent Hill, the Senate's taxation panel leader, added that state government still has $320 million in reserves to help cover what could be a 10 percent revenue slump in fiscal year 2010.

Gov. Butch Otter has said belt tightening, not revenue augmentation, will be the mantra of 2009.

Rep. John Rusche, the House Democratic leader, wants inevitable cuts to be targeted, to preserve matching federal funding.

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