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Urgent: Please Oppose HB 259 on Diversion of Sales Tax Revenue from Revenue Sharing

Posted By Johanna M. Bell, Wednesday, March 13, 2019

Legislation introduced to facilitate collecting sales tax revenue from Internet marketplace facilitators like Ebay and Fulfillment by Amazon would negatively impact cities’ future revenue sharing distributions.  We ask city officials to contact their local legislators and respectfully ask that they oppose House Bill 259.  You can find your legislators here

House Bill 259 fulfills the positive purpose of collecting sales and use tax revenue from Internet marketplace facilitators in accordance with the U.S. Supreme Court’s South Dakota v. Wayfair decision, bringing new sales and use tax revenue to Idaho. 

However, the bill would dedicate this new revenue to the state Tax Relief Fund, which would not go through revenue sharing.  The legislation provides no specificity on what this revenue—amounting to about $30 million annually—would be used for.  The bill also provides that marketplace facilitators would not be required to collect local option sales taxes.

House Bill 259 would mean that local governments would not receive $3 million annually through revenue sharing.  Local governments face real challenges keeping up with growth and costs of maintaining their infrastructure, and this revenue is much needed at the local level. 

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