SENATE BILL REPORT

SJM 8013

BYSenators West, Stratton, Warnke, McCaslin and Bauer

Requesting Idaho to exempt certain nonresident employees of common carriers from its state income tax.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 5, 1987

Majority Report:  That Substitute Senate Joint Memorial No. 8013 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 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 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 the Governor and Legislature of Idaho in protest.

SUMMARY:

A memorial is transmitted to the Governor and Legislature of Idaho.

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