BOISE, Idaho — 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 bill would boost Idaho’s sales tax from 6% to 7.85%. The Tax Foundation group says that would make Idaho's the highest state sales tax in the nation, above current No. 1 California. However, local-option sales taxes imposed by counties and cities in many other states, Washington, for example, push the sales tax above 7.85% by a significant margin in some areas.
Idaho city, county, and other taxes would be eliminated on primary residences.
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