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Constitutional amendment for local-option sale tax passes House: The legislation moves to the Senate where it faces an uncertain future.

Sat. March 22, 2008; Posted: 03:56 PM
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Mar 22, 2008 (The Idaho Statesman - McClatchy-Tribune Information Services via COMTEX) -- NO MATCHES FOUND. | news | PowerRating | PR Charts -- Cities and counties are closer to having the ability to raise sales taxes for local projects, but not in the way that many transit proponents in Ada County support.

The House passed a constitutional amendment Friday to allow cities and counties to seek voter approval of tax increases for local projects with a two-thirds majority in November general elections. If approved by the Senate, the amendment would go to voters in November and require a simple majority to pass.

Proponents say the amendment correctly makes raising taxes difficult, while opponents say it hamstrings cities and counties. Gov. Butch Otter supports the amendment.

"We need to watch out for the taxpayers," said Rep. Marv Hagedorn, R-Meridian. "This constitutional amendment does exactly that."

The amendment, House Joint Resolution 4, would mean cities and counties could raise sales taxes for local projects like a beefed-up transit system in the Treasure Valley. The resolution requires cities and counties approval from the Legislature, but House Majority Leader Mike Moyle, R-Star, said a new bill is in the works to allow cities and counties to raise taxes without legislative approval.

Under the bill cities and counties could raise sales taxes for any project -- not just roads and public transit -- but votes would have to be county by county or city by city, not a single overall vote across multiple counties or cities. Public transit advocates say a regional vote is key to improving transit in the Treasure Valley, because any effective transit system would have to cross county lines. They worry that Ada County might reach the two-thirds threshold for a tax to expand transit, but Canyon might not.

The bill passed 51-19 on a mostly party line vote. Rep. Leon Smith, R-Twin Falls, was the only Republican to vote against it. Rep. Mary Lou Shepherd, D-Prichard, who often votes against her party, was the only Democrat to vote for it. Because it involves a constitutional amendment, the bill required two-thirds support, or 47 votes.

Requiring two-thirds of voters to pass a tax makes it too difficult for cities and counties to address local issues, said Rep. Bill Killen, D-Boise.

"In effect, we are saying we want to put more restrictions on the cities, more restrictions on their elected officials," he said.

Because the bill allows only November votes, the earliest any city or county would be able to raise sales tax is in November 2009.

By requiring a two-thirds vote in each county, the bill impedes the ability of the Treasure Valley to solve its problems, including bumping up against federal limits for air pollutants like ozone, said Matt Stoll, executive director of COMPASS, a Treasure Valley transportation planning agency.

"We have an immediate need right now in the Treasure Valley, especially when we have hanging over our heads ozone non-attainment," he said.

The bill now goes to the Senate, where it faces an uncertain future.

"I don't know that (a constitutional amendment is) necessary, but if that's what it takes to get that authority, then we'll have to take a look at it," said Sen. John McGee, R-Caldwell.

Cynthia Sewell contributed to this report.

Heath Druzin: 373-6617

To see more of the Idaho Statesman, or to subscribe to the newspaper, go to http://www.idahostatesman.com Copyright (c) 2008, The Idaho Statesman, Boise Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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