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Raybould introduces constitutional amendment and implementing bill to let local voters adopt targeted local option sales‑use taxes
Summary
Representative Britt Raybould introduced two related proposals to allow jurisdictions to ask voters for targeted local option sales‑or‑use taxes and to provide implementing legislation that would apply if a constitutional amendment passed.
BOISE, March 6 — Representative Britt Raybould introduced a pair of related proposals — RS 32531 (a proposed constitutional amendment) and RS 32532 (implementing legislation) — that would create a voter‑approved local option sales‑or‑use tax mechanism for cities and counties and, if adopted, phase out some existing local sales/use taxes and special taxing districts.
Raybould told the House Revenue & Taxation Committee the constitutional change would permit local option levies that must specify the goods or services subject to the tax and state the levy’s intended purpose. The implementing resolution would only take effect if the constitutional amendment passed. The sponsor said the approach was intended to give local governments a flexible alternative to property taxes while ensuring voters choose whether to adopt such taxes.
Under the draft parameters discussed in committee, a local option levy would carry a statutory cap (discussed in testimony as 2 percent), be limited in duration (committee discussion referenced a maximum of four years), and require voter approval. Raybould said the local governing body would identify the scope (for example, an option to tax hotel room nights or other targeted goods and services) and that the electorate in the jurisdiction would decide whether to adopt it.
Several members asked questions about boundaries and interactions with existing taxing districts. Representative Hill asked about whether targeted items could include alcohol, firearms, shooting ranges or hotel rooms; Raybould repeatedly said the voters would set the scope and the sponsoring local authority would propose the covered items. Representative Cheatham raised concerns that the proposals could negate or phase out existing auditorium districts; Raybould and a committee member explained that existing districts would be allowed to continue to their expiration date but the proposed mechanism would be the available option going forward.
Committee members expressed interest in the proposals as discussion starters; Raybould said his intent was to put options on the table and solicit stakeholder discussion rather than move immediate substantive legislation this session. The committee voted to introduce both RS 32531 and RS 32532 for further consideration.
