The Idaho Senate Wednesday approved a plan that would require lawmakers to examine every state sales tax exemption once every five years. The proposal from Sen. Chuck Winder, R-Boise, would set up an annual legislative review of exemptions. The Senate voted 27-7 in favor of the plan, which now heads to the House.
Sales taxes exemptions account for $1.7 billion in potential tax revenue this year, according to the Legislature’s Fiscal Facts. That’s more than the $1.2 billion the sales tax is expected to bring in this year. Most of the exemptions are for services. It’s unclear whether lawmakers would repeal some of the largest exemptions, including those on health and medical services, construction, or production equipment.