Idaho House Minority Leader Wendy Jaquet, D-Ketchum is working to help orchestrate a late-summer joint meeting of the House Revenue and Taxation and the Senate Local Government and Taxation committees.
Earlier this month Jaquet and other lawmakers expressed concern over a May 27 report from Idaho State Tax Commission Auditor Stan Howland. The report focuses on how the commission resolves disagreements on income tax payments due between the state and multi-state corporations, and it points to illegal inequities.
"For many years the Tax Commission has allowed many large corporations to pay less income tax than that required by Idaho law," Howland wrote in his report. "The Commission relies upon various public disclosure laws, and the illegal use of resolution options to keep this information from the general public. This allows these companies to avoid paying millions of dollars of income tax that are properly due the state of Idaho, and to do so in complete secrecy."
Senate President Pro-Tem Bob Geddes, R-Soda Springs, authorized on June 20 an interim meeting of the Senate Local Government and Taxation Committee.
Jaquet said that as a member of the House Revenue and Taxation Committee she has real concerns about what was raised in Howland's report.
"I think that actions should be taken now, not after the Tax Commission finishes its internal investigation," she said. "Waiting until next January to craft legislation, if necessary, will be too late."
The state's four tax commissioners, Royce Chigbrow, Sam Haws, Coleen Grant and Tom Katsilometes issued a formal response in late June, to dispute Howland's report.
"The Commission, and the individuals involved, reject as completely untrue any allegation that cases are illegally or inappropriately compromised," the commissioners wrote. "What Mr. Howland deplores as unjustifiable secrecy, others regard as laudable confidentiality designed to protect privacy."
Howland fired back on Wednesday of this week, with a letter to Gov. C.L. "Butch" Otter asking him to initiate a thorough investigation into the commission's practices.
"The Commissioner's response to my report is reminiscent of the Commission's response provided to the legislative auditors in 1996," Howland wrote. "It is devoid of honesty, and deserves the anger of the general public that is now being displayed. These Commissioners exhibit arrogance in their refusal to accept accountability and suggestions that may improve internal controls.
Jaquet said she supports a fair and accountable system of taxation, and she also supports making sure there is "sunshine" on the process.
"I want to make sure that policies being implemented are fair to all the taxpayers of our state," she said.
Indications are that a late-summer joint meeting will occur, she said.
"Things don't look good, but if things are really OK but things from the outside don't look OK, let's go have an impartial third person look at it."
Jaquet said she and most Idahoans pay their taxes.
"Why are they cutting deals when I pay my taxes?" she asked. "Why aren't these businesses paying their taxes?"
