re: Idaho sales tax exemptions

["Dan Carscallen" <predator75@moscow.com>]

Bill,

 

From what limited knowledge I have, all government agencies are exempt from sales tax.

 

I thought the plan was to tax *services* which are not currently taxed, like labor charges.  But I see after reading the article this is just a proposal from Mr. Slaughter, and from what I gather in the article he talks about every entity paying the sales tax.

 

Wouldn't that be a "double tax" on resale items and to government entities?  I could support the taxing of services, and a cut in sales tax (of course!), but I'm not sure taxing government entities is a good idea.

 

Looks like it's all theory for now, anyway.

 

Trying to limit posts,

 

Dan

-----Original Message-----
From: bill london <london@moscow.com>
To: Vision2020 <vision2020@moscow.com>
Date: Wednesday, July 31, 2002 10:17 AM
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