SENATE BILL REPORT

SJM 8012

BYSenators West, Stratton, Warnke and McCaslin

Requesting Congress to change tax laws affecting employees of common carriers who cross state lines.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 5, 1987

Majority Report:  That Substitute Senate Joint Memorial No. 8012 be substituted therefor, and the substitute memorial do pass.

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

Senate Staff:Jean Meyn (786-7472)

                  March 5, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 5, 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 action to stop payment of the income tax.  More recently, Idaho also began assessing income tax on truckers who pass through Idaho.

A recommendation is made to send a Senate Joint Memorial to President Reagan and Congress in protest.

SUMMARY:

A memorial is transmitted to President Reagan and Congress.  Residents of Washington who work for Idaho common carriers should not have to pay Idaho state income tax.  The individuals impose no tax burden.  Their employers pay a substantial share of state and local taxes in Idaho.

EFFECT OF PROPOSED SUBSTITUTE:

Taxing nonresidents raises the issue of Congress' exclusive power to regulate interstate commerce.

Fiscal Note:      none requested

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