vision2020
RE: Idaho sales tax exemptions
Greetings Visionaires -
According to the July 30, 2002 edition of the Spokesman Review (Handle
Section):
"Idaho's sales tax was set up in 1965 to focus on goods, rather than
services. In the 37 years it's been in place, the economy has shifted from
mostly goods to mostly services. In addition to most services, Idaho's
sales tax law also exempts specific goods, uses and entities. Here are some
of Idaho's sales tax exemptions and their annual cost:
- Professional services such as those of lawyers and barbers: $163 million
- Canal company purchases: $706,000
- Commercial aircraft: $1.6 million
- Utility sales: $48 million
- Prescription drugs and durable medical equipment: $14 million
- Funeral caskets: $837,000
- Sales through vending machines: $1.5 million
- Hospital purchases: $12.7 million
- Forest protective association purchaes: $31,000"
I hope that this answers your questions. This sounds like a viable
alternative to further educational cuts next year.
Take care,
Tom Hansen
Moscow, Idaho
***********************************
Work like you don't need the money.
Love like you've never been hurt.
Dance like nobody's watching.
- Author Unknown
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-----Original Message-----
From: bill london [mailto:london@moscow.com]
Sent: Wednesday, July 31, 2002 10:12 AM
To: Vision2020
Subject: Idaho sales tax exemptions
This morning's Lewiston Tribune (Wed. July31, page 5A) includes a story
about a proposal to raise enough money to fix the state's dilapidated
school buildings. The proposal is to cut the state's sales tax from 5%
to 3% while eliminating the present exemptions to the sales tax.
Amazing to me that the state could cut the tax rate almost in half and
still raise more money just by ending the present exemptions.
It seems like the exemptions must be many and huge.
What are those exemptions?
What groups do those exemptions benefit? (farmers? manufacturers?)
Can someone answer these questions????????
BL
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