Senate panel approves road materials tax bill

BOISE (AP) - Legislation seeking to exempt public road materials from the Idaho sales tax is one step closer to making it to the governor's desk.

A Senate panel approved HB 95 Thursday, clearing the way for it to be debated on the Senate floor after surviving the House last Friday.

The legislation, if passed, would remove the tax on materials used on public roads. Doing so, however, would remove an estimated $15 million to $20 million from the Idaho general fund.

Republican Sen. Jim Rice, who is backing the legislation, said the bill would help lower the cost of Idaho's transportation projects.

However, Democratic Sen. Grant Burgoyne -who voted against the measure- argued that the bill does not create any new revenue to address the state's transportation funding shortfall.