SENATE BILL REPORT

SB 5956

BYSenators West, Stratton, Warnke and Bauer

Authorizing counties bordering Idaho to impose an excise tax on nonresidents working in Washington state.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 5, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Cantu, Tanner, Vognild, West, Williams, Wojahn.

Senate Staff:Jean Meyn (786-7472)

                  March 13, 1987

AS PASSED SENATE, MARCH 13, 1987

BACKGROUND:

For the last four years, Idaho has assessed state income tax on Washington residents who work for Burlington-Northern railroad and travel through Idaho.  The employees are still involved in court proceedings to stop payment of the income tax.  More recently, Idaho also began assessing income tax on truckers who pass through Idaho.

A retaliatory county taxing measure of Idaho residents employed in Washington is proposed.

SUMMARY:

Counties bordering Idaho may impose an excise tax for use of county services on Idaho residents who are employed in the Washington county.

Fiscal Note:      none requested

Effective Date:July 1, 1988

Senate Committee - Testified: Tom Retterrath; Ron Robinson; Bob Blangeres, United Transportation Union