Legislators finish up ‘going home’ bills

Idaho lawmakers headed home on Wednesday after approving a last-minute deal to eliminate some of the taxes that businesses pay on equipment.

A partial elimination of the taxes that companies pay on everything from couches to computers turned out to be one of the Legislature’s “going home” bills this session.

A joint House and Senate committee hashed out a compromise bill on the 87th day of the session, nearly a week after Senate lawmakers dramatically scaled back a package passed by the House.

The measure, now headed to the desk of Gov. C.L. “Butch” Otter, will exempt the first $100,000 of equipment in each county for nearly all businesses in the state. It would kick in the first year that state revenue grows by 5 percent and would cost about $17 million annually in reimbursements to local governments.

Here’s how some other issues of interest to the business community fared this session:

• Transportation funding: Otter and lawmakers ended up in a bitter public dispute over funding to pay for improvements to Idaho’s deteriorating roads. Otter asked the Legislature to raise an additional $240 million for roads, but a compromise package of $65 million in registration fee hikes and an increase in the gas tax died in the House.

• Local option sales tax: An effort to pass a constitutional amendment that would have allowed counties to ask voters to approve sales tax increases for transportation needs, including mass transit, died in a Senate committee. House leaders pushed the idea of a constitutional amendment, and the proposal passed the House. However, the idea split a coalition pushing for mass transit in the Treasure Valley, unsure whether it would provide a clear funding mechanism or impede public transportation projects.

• Non-compete agreements: The governor signed legislation that lays out guidelines for non-compete agreements between businesses and workers that supporters say will help more of the agreements hold up in court.

• STAR financing: A bill that would have expanded a law passed in 2007 that allows developers to fund major road projects by recouping the costs later through sales taxes died in the Senate. Supporters say it would have helped fund improvements to Eagle Road near the intersection with Fairview Avenue.

• Community Infrastructure Districts: Lawmakers passed a bill to allow developers to organize taxing districts to sell bonds to pay for roads, bridges and sewers.

• Vehicle emissions: The governor signed a bill that would let state regulators establish vehicle emission testing programs in regions where pollution levels are approaching federal health standards. It’s designed to establish a testing program in Canyon County.

• Uranium enrichment: The governor signed legislation aimed at encouraging French company Areva Inc. to build a uranium enrichment plant near Idaho Falls. The
measure would provide millions of dollars in tax breaks if the company came to Idaho.

• Film industry bill: The governor signed a bill that would provide rebates to filmmakers who come to Idaho and spend at least $200,000 in the state.