Idaho lawmakers eye sales tax increase, flat tax on income

BOISE, Idaho (AP) — Idaho lawmakers are considering bumping the state sales tax to 7 percent with a 1-penny increase.

Lawmakers are also looking at replacing the state's graduated income tax rate with a flat rate of about 6.6 percent for individuals and corporations.

The Idaho Statesman reports (http://bit.ly/1Di4vvc) that lawmakers say the plan will create economic stimulus while boosting money for roads and bridges.

The plan would eliminate the sales tax on groceries.

The comprehensive plan emerging in the House would meet goals outlined by Gov. C.L. "Butch" Otter in his State of the State address. Legislative leaders say Otter is aware of the plan.

Backers say the plan would raise $150 million for transportation in the coming fiscal year.

Lawmakers are waiting on final projections from the Tax Commission before moving forward.