Idaho lawmakers are proposing an income tax cut and providing guidance on future sales and property taxes. c

BOISE, Idaho (AP) — Idaho lawmakers will consider a significant cut in income taxes this year, which is expected to result in a $253 million drop in revenue — with more tax cuts on the way.

House Speaker Mike Moyle, R-Star, introduced the bill Thursday, which would lower the flat income tax rate for individuals and corporations from 5.695% to 5.3% and expand income tax exemptions on U.S. military retirement income for disabled veterans 62 years old are employed, and all veterans are 62-64 years old. In addition, the capital gains tax on metal bars will be abolished.

Moyle said once subsequent tax legislation is proposed, which includes cuts to sales and property taxes, he expects the total proposed revenue reduction to be nearly $400 million.

“If you looked at the state of Idaho, we’ve been trying to do everything we can to give money back over the last few years,” Moyle said.

The House Finance and Taxation Committee voted to advance the bill, clearing the way for a public hearing. Only Rep. Steve Berch, D-Boise, voted against the rollout, saying he would like to see a more comprehensive analysis of the overall impact of such a large reduction in state revenue.

The reduction in income and corporate taxes would reduce overall state fund revenues by about $240 million, the expanded exemptions for military pensions would reduce revenues by about $12 million, and the elimination of the capital gains tax on mining metals would reduce approximately $1 million less.

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