The personal property tax on business equipment, which Idaho’s largest businesses are pushing hard to repeal this year, is something “nearly everyone agrees is an unfair drag on our economy,” Gov. Butch Otter told lawmakers in his State of the State message. He said, “Whether the tax is eliminated all at once or phased out over a few years is less important to me than an exit strategy that considers our counties’ financial stability.”

He said, “That isn’t necessarily about using state revenues to make counties ‘whole.’ In fact, my preference is granting local-option taxing authority that enables county voters to decide for themselves how to address their most pressing needs.”

Otter added, “However, I also have set aside $20 million in my budget for easing counties’ transition. I look forward to hearing your debate and considering your alternatives.”