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Please Contact Senators to Ask they Protect Revenue Sharing in Amendments to HB 259

Posted By Johanna M. Bell, Thursday, March 21, 2019

On Thursday, the Senate Local Government & Taxation Committee voted to send House Bill 259, the legislation that would ensure online sales and use tax is collected on purchases made through Internet marketplace facilitators, to the amending order for changes. 


We ask city officials to contact your Senator as quickly as time allows and respectfully ask that they protect local government revenue sharing in the amendments that are made to House Bill 259.  You can find a list of Senators here.  You can find your Senator using this tool on the Legislature’s website. 


House Bill 259 fulfills the important and needed 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 all of this new revenue to the state Tax Relief Fund, which would not go through revenue sharing.  The legislation provides no specificity on how this revenue would be used.  The bill also provides that marketplace facilitators would not be required to collect local option sales taxes.


AIC is asking for amendments that ensure online sales and use taxes will be collected and that local governments don’t lose out on this revenue indefinitely.   


Local governments are facing unprecedented rates of growth in some communities, and most are struggling to fund public safety services like police and fire, street maintenance and other costs. 


It is anticipated that sales and use tax collections from Internet marketplace facilitators will grow into the future, making it very important that this vital source of revenue go through the revenue sharing formula.

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