Bill filed on Friday would provide relief, increase food tax credit by 50%

BOISE, Idaho (CBS2) — In a statement released on Friday, Representative Gannon said a bill filed on Friday would increase the food tax credit by 50%.

The bipartisan House Bill 371 has been around for a month, but there has been no hearing. It was filed with 23 House co-sponsors.

"Increasing the food tax credit from $120 to $180 will give Idahoans substantial help with their food purchases,"Representative Gannon said. "A family of 4 would get an additional $240 credit on their Idaho income tax return. This is way overdue. People are hammered by food inflation."

Representative Kevin Andrus said, "Many House Republicans support food tax relief. This bill provides that relief in one of the few ways that Idaho lawmakers can address out of control inflation that is occurring in our state."

The two representatives noted that, according to the Legislative Services Office, only $150 million in food taxes are being returned to Idaho taxpayers, yet, in fiscal year 2023, $375 million will be collected. House Bill 371 returns an estimated additional $75 million.

"Some have said the tax on food should be repealed, but there is no way to ensure that food sellers won't just raise their prices 6%," Gannon added. "In addition, many people buy their food at restaurants and fast food stores, and a repeal in accord with the SNAP program wouldn't give them any relief. The credit also ensures that out of state visitors pay some kind of tax in support of our State expenses."

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