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There’s an old saying in politics that there’s nothing more permanent than a temporary tax.
Well, merchants in Idaho, particularly the sellers of big-ticket items like diesel pusher motorhomes, are hoping the state will lower its sales tax, which was “temporarily” raised last year, according to TV station KBCI of Boise, Idaho.
To give an idea of the impact of the tax, Joe Boyd, manager of Bodily RV in Garden City, Idaho, told KBCI the dealership collects $12,000 in taxes every time it sells a $200,000 diesel engine Class A motorhome. If the temporary tax increase is repealed, the tax on the same motorcoach would fall by $2,000, enough to close a deal, Boyd said.
Idaho retailers became hopeful when, earlier this month, Gov. Dirk Kempthorne, in his annual state budget message, repeatedly used the phrase “budgetary restraint,” according to the TV station.
Conservative Republican members of the Idaho hope the governor’s words were a hint that he might agree to roll back the sales tax increase.
However, Kempthorne also said the higher sales had tax raised an additional $170 million since being enacted and that it would be tough to find another source of cash that big.