The House has voted 39-31 in favor of HB 252a, legislation from Rep. Lynn Luker, R-Boise, to change how Idaho treats sales taxes on sales of vehicles to out-of-state purchasers, collect up-front the portion of the tax that’s higher than what the purchaser would pay at home, and divert half of the collections to the state highway fund. Rep. Kathy Sims, R-Coeur d’Alene, a car dealer - she noted that fact for the record - urged the House to reject the measure. “This bill is penny-wise and pound-foolish,” she said. “I urge you to vote ‘no’ and stop potential border wars.” She added, “The auto dealers association strongly opposes this legislation.” Rep. Janet Trujillo, R-Idaho Falls, a co-sponsor of the bill, countered that the association backed the bill earlier.

Rep. Dan Rudolph, D-Lewiston, said, “Not only are the auto dealers in Idaho competitive, they’re smart.” If they sell a car in Idaho but deliver it to the purchaser in Washington, the sale still would be exempt from Idaho’s sales tax, he said. “So what we have done is require all of our border dealers to go through this unnecessary step.”

Rep. Stephen Hartgen, R-Twin Falls, said, “This creates a tax war in a commonly purchased item.” But the House narrowly supported the bill, sending it the Senate side for consideration.