Sales tax ripoff … yes!

As an advocate of fair taxation in real estate assessed values for many years, I want to make very public an issue of unfair sales taxes levied by some local retailers.

As a user of propane for heating and cooking in Idaho, by state law this is a non-taxable item but some local retailers, primarily in Rathdrum, Post Falls and Coeur d’Alene that I am aware of, include and charge sales tax on propane when you bring in your tanks for refilling. Rural customers who have large propane tanks are not charged sales tax.

Idaho code is very clear that propane used for heating and cooking is non-taxable, PERIOD! I have even contacted the State Tax Commission about this practice and was given a very lame excuse that they, the Tax Commission should educate their retailers about this practice. Bureaucracy at its best … LOL!

Another non-taxable item in Idaho is tax on labor. This is particularly evident in regard to tire sales at some tire shops and retailers.

As a former tire dealer many years ago, I never charged sales tax on mounting and balancing tires as this was labor and not actual product sales. Many local dealers charge sales tax on the complete package and state that mounting and balancing is included and free! Actually they just add those extra charges into the final bill and tax the whole amount. With today’s tire prices, that tax can easily be $20-$40 of extra sales tax that you pay!

Again, a call to the State Tax Commission on this revealed that if the retailer does not itemize the invoice and separate out the labor charges for mounting and balancing which is non-taxable, they are allowed to tax the total amount! Tax rip-off you bet and the state is very happy to get the extra sales tax revenue that you are charged.

I personally know of several local tire retailers that do this and refuse to separate the labor out of the invoice so the labor amount is not taxed. Obviously I was not able to do business with them and was even asked not to come back because that’s the way they do business.

I believe the public needs to be made very aware of these unfair practices of charging sales tax on non-taxable services and question what they are really paying tax on or just be happy paying unnecessary taxes! The old saying that "The Squeaky Wheel gets the Grease” is more than appropriate here. Only you can effect change … that is if you are willing to stand up for what is right and fair!

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Tim Herzog is a Post Falls resident.