BOISE — A proposal to increase by $20 the amount Idaho residents can recover on taxes paid on food through the grocery sales tax credit headed to the full Senate on Thursday.
The Senate Local Government & Taxation Committee voted to approve the bill that boosts the annual maximum credit from $100 to $120 for people under 65 and from $120 to $140 for people 65 and over.
The change would take effect starting with food purchased in 2023.
Idaho residents get the credit to recover the state’s 6 percent sales tax on groceries. The current $100 tax credit covers sales taxes on about $139 spent monthly per person on groceries.
Backers said the increase is meant to more accurately reflect the amount the tax costs a typical person. If passed, the bill would cut about $32 million from state revenues. That would be replaced by using a fund that collects online purchase sales taxes.
Opponents said the increase is not enough to cover the increasing cost of food, and would rather the grocery tax be eliminated entirely.
The measure has already passed the House.