In letter six I talked about shell games that exist. In letter seven I spoke of conservative moderates being set up by pending legislation. I have two more good examples for you this week of how that all comes together.

Before I get that off my chest though I want to say again that I love this job and I love working for you. You are a great and generous employer and I am honored to be your voice in the Senate. This rant is not a complaint – just a perspective.

Senate bill 1353 and House bill 391as amended. Freedom of Conscience and the Idaho Health Freedom Act. Respectively, that is what the titles of the bills define them as. Great names and who wouldn’t want to restrict government encumbrance of conscience or choice? Those who are keeping score will, however, score the votes as how one voted on Abortion and Sovereignty respectively.

For perspective I should tell you about the little known Idaho Code I.C., § Chapter 4, Title 73, Free Exercise of Religion Protected. This act says that the government, and by extension actions of the government, may not “substantially burden” ones exercise of religion. There are only two conditions whereby burden is lawfully accommodated; 1) “Essential to further a compelling government interest; and, 2) “The least restrictive means of furthering that compelling government interest.” The government or anyone else, on the basis of law, may not force us to take actions against our religion. To succeed in the claim one must actually demonstrate that the precepts of the religion have had application and confirmation in one’s life.

Individuals may exercise their rights of conscience based upon their religion under the above code. The Freedom of Conscience bill goes further by saying that health care professionals with “sincerely held” beliefs may not be forced (except in case of emergency however that may be construed) to offer health care services. An employee must serve advance notice to their employer of the “sincerely held” or the “religious, moral, or ethical” objections they may have to certain health care services. Having served notice the employee may not be disciplined or terminated for refusing to perform the specified health care services. The health care services listed are “an abortion, dispensation of anabortifacient drug, human embryonic stem cell research, treatmentregimens utilizing human embryonic stem cells, human embryo cloning or end of life treatment and [care].” (Emphasis added)

I find it ironic that those who would be concerned about the “property rights” of employers if this bill was about an expansion of human rights employer sanctions, for example, have found a different perspective on those same property rights in this bill. Individuals are free to exercise their individual freedom, under current law, but they may risk their jobs when they act within their “sincerely held” beliefs. Let me be clear; I am opposed to abortion, abortifacient drugs, human euthanasia, and embryonic cell research. But this is not about me. This bill is not about abortion or any of the other services listed. The test: if the legislation is successful not one abortion or health care service will be eliminated – not one. Physicians will continue to prescribe and patients will continue to receive those lawful services from someone – as distasteful as they may be to some. This is about the rights of all of us; patient, employer, and employee. When the rights of any of us are diminished, the rights of all of us are at greater risk.

Large health care employers are already voluntarily accommodating employee’s conscience. Large employers are able to do that without risking patient care. Small hospitals, rural clinics or pharmacies will not be so fortunate and, under this bill, will not be able to replace staff. Employers cannot even enquire of an applicant for a job about such “sincerely held” beliefs. Patients in rural and remote areas will have other “health care professionals” such as hospice workers and clinicians second guessing and substituting physician’s prescribed and informed care for their own “sincerely held” beliefs.

It is true that some people (single moms and dads) may not have the ability to find a different job to accommodate their conscience and may not have a choice. It is also true, at least to me, that patient and health care worker have exactly the same constitutional rights. Diminishing the rights of the most vulnerable who may have no choice to enhance the rights of the least vulnerable is something I could not do.

This is America. I thank God for that while others are content to honor the wisdom of our founders. Each of us is free to make our choices. Each of us is free to exercise our rights now –under the law. The exercise of our liberties often results in risk for us. How much should a government mitigate a risk to conscience?

Yesterday the Senate Local Government and Taxation Committee voted 5 to 4 to send HB599 to the floor with a do pass recommendation. The four hours of hearings included perhaps forty-five minutes of those in favor and each of those was a lobbyist or represented a lobby firm. The balance of the time was testimony from school districts and county officials demonstrating factually the negative impact of this shift and the long term outcome. I received more email on this subject than any other during this session. I can safely say that 90% of those messages were opposed to passage. I also received, I believe via NFIB members, a list of businesses in favor of the passage.

The questions that were asked of Chambers and other business owners, went something like this: Is Personal Property Tax an unfair tax? Would you rather not pay the PP tax? What would you use the money for if not paid to the government? Huh – I wonder what the answers were.

I am sending this response to those business owners via mail and to all of you email news groups to help you understand the implications of this exemption. That’s right it is an exemption. The tax paying base just gets narrower with the passage. No matter what else happens in the economy. No matter how much business is generated by the tax dollars rolling through the economy, the fact remains; the tax paying base is smaller and the required services to sustain life, as businesses and we know it, maintain the same old demands.

History first. At one time everyone paid some personal property tax. Individuals were exempted first then in the 90’s agriculture was exempted from personal property tax. It really is a terrible tax paid by honest people and the dishonest pay little or none. I have advocated for its removal. I have also insisted this exemption come with a funding source – the removal of other exemptions. It would still be a shift to other tax payers but we would know who they are and it would be a surgical precise shift. HB 599 shifts the tax to every remaining tax payer. The remaining tax payer is not big business because they do not pay tax.

The remaining tax payers are individuals, homeowners, small business, construction workers and farmer/ranchers. Here is an example of how this shift works: a small business with $50000 in personal property might pay $600.00 in tax on that personal property. The county still needs and will receive the $600. The school and library, cemetery and urban renewal district and highway district all get pieces of that $600. Over time under current law the $600 is allowed to grow by 3% each year. Even with that, schools are pressed to pass maintenance and other supplemental levies to make ends meet and comply with regulations. By law, for your protection, there is a maximum that taxing districts can levy; termed a levy limit or levy cap.

HB599 freezes the tax ($600) as of January 1, 2008 and substitutes that value with sales tax dollars from the state incrementally over time using a 5% growth trigger. The $600 is no longer allowed to grow. In fact, changes within the county, positive or negative, are never reflected in the value of that $600 ever. The value of Personal Property Tax in the county and city becomes fixed perpetually as of the 2008 date. The value of PPT is different in each county. Boise County has less than 6% and Elmore a little over 17% of total value in the county.

Because values can not grow over time by the 3% they shrink or are devalued by at least the same 3%. As the value shrinks in the taxing district the levy rate (the number you multiply times your own value to calculate how much tax you owe) begins to climb. Everyone begins immediately to pay more on their value in each of the taxing districts. As the levy rate climbs it reaches the statutory maximum (levy limit) and no more levies can be acquired. Did I hear someone say – good my taxes will stop going up. Remember the levy rate will continue to go up because of the deflating value and as it does your taxes continue to climb. Ordinarily as assessed values go up the levy rate falls because of the 3% budget limitation. Enactment of HB599 will change that so that potentially values and levy rate may rise. You are not permitted to bring in new values from personal property. In fact, other exemptions granted have limited your ability to broaden your tax base and pickup new value to offset the annual loss. The state may be in no position to help because their obligation to offset revenues was frozen and according to HB599 in year 2014 the entire 120 million dollars must be offset. Food Tax credit and Personal Property tax exemption combined equals a quarter billion dollar bill coming due to the state. The state can’t help. Back home your schools and counties are up against the levy caps and they can not raise budgets more than the 3%. Their alternative – you go ask them yourself. A step, I might add, that was prudent when the subject first came up. I think the result will be non-compliance for the schools, leaky roofs, declined services, law suits and ultimately the remaining tax payer will pay the bill. So how much will your $600 dollar saving cost you? I honestly do not know. If the economy continues to grow at historical levels you might break even or not. If not, the schools will need funding and we will withdraw from the rainy day fund. Prisons and health care and social programs will have grown well above the rate in the economy. The state will be forced to look at increasing the sales tax and or income tax to balance budgets.

There is a pattern. We have seen it before and we see the continuing slide to crisis. In 2004 the total exempted property value was $28,751,537,870 and today that value is$54,596,266,318. If we keep working at this we will get down to the last ten people paying taxes – and they will be on food stamps.

So – come on crisis. I have used my best debate. I have used logic, reason, cajoling and finger pointing. A good crisis is just what we need to set things right.

The following letter was written in 2007 and is offered for historical perspective. I appreciate the input from several of you regarding the increase of fees. I agree the increase to $150.00 is a huge increase. If that were the only increase in fees or taxes you were facing it might not be so bad – but it is not. However, let me offer some mitigating factors for your consideration. Please remember this is far from a done deal. Many other ideas have yet to be discussed.

The Need:

• The Idaho Transportation Department is falling behind on maintenance, repair and construction jobs more than $240 million per year and the number is growing larger each year.
• Department of Commerce report companies are citing poor quality transportation infrastructure as a leading cause of not locating in Idaho.
• Local highway jurisdictions are increasingly unable to maintain and repair the roads in our counties.
• Each year increases in the cost of construction occur without increasing the revenue stream.
• Revenue diversification is needed (less reliance on fuel taxes that are a continually diminishing source of revenue because of new technology vehicles).
• Trucks of all sizes must pay their fair share. (Truck portion $52 million)
• Each passing month places more of our roads in jeopardy. We must protect our investment. Doing nothing is not an option. Doing too little is not an option.
  

History/Facts:

• Registration fees have not been increased since the sixties.
  
• Idaho has the 4th lowest registration fees for cars in the nation.
  
• 67% of highway funding already comes from fuel taxes.
  
• Only one of our neighboring states (Oregon) charges a lower registration.
  
• If the $150.00 were enacted only one of our neighboring states would be lower (Oregon) all the other neighbors will still be more.
  
• American Trucking Assn. sued Idaho and won in early 2000 alleging unfair registration pricing between intrastate and interstate trucks.
• The resulting change created an unfair imbalance in registrations that has not kept pace with costs.
• Some classes of vehicles have been receiving exemptions for portions of their registration.
  Roads do not care if the four tires are on a new vehicle or an old one.
  
• Pay per mile is the fairest but is administratively difficult for cars. Oregon is experimenting with electronic chips in vehicles.
• Registration fees are permission to use the roads, gas taxes are the ongoing user fees.
  

Constituent Suggested Solutions:

1. Additional sales tax on new cars.
   
   • Sales tax dollars must go to the General Fund and be appropriated elsewhere by the legislature. 
     
   • Sales tax on new cars would at a minimum triple thus seriously impacting the entire industry  and negatively amending buying habits.
     
   • Could not charge enough tax to raise the $240 million.
     
2. Lottery surcharge.
   
• Dedicated destination for these dollars. Insufficient revenues.
  
3. Cut unnecessary programs.
   
   • Which ones?
     
4. If we can’t afford the roads don’t repair or build them.
   
   • The alternative is gravel and losing Federal funds.
     
5. Raise the fees in increments.
   
   • Administratively impractical and would end with the same result.
     
6. 15-25% increase is enough.
   
• That is not enough increase to raise the necessary funds.
  
7. Put a fee on bicycles.
   
8. Increase gas taxes.
   
• Further exacerbates the revenue diversification placing even more requirement on a technology driven declining source.
  
9. Take registration fees to $50.00 per year and increase gas tax $.15 per gallon.
   
   • A vehicle driving 30000 miles per year getting 15 MPG would pay an additional $300.00 per year in gas tax and $50.00 per year in registration fees ($300. + $50. = $350.00) or alternatively $150.00 per year.
     
10. Make trucks pay more.
    
    • See below.
      

Governor's Plan:

• Every one pays the same.
  
• Balances revenue stream.
  
• Puts dollars on our roads in our neighborhoods beginning year one after implementation.
  
• Simplifies administration – fewer dollars spent away from roads.
  
• Takes the entire hit in one blow rather than extend the pain to subsequent years.
  
• Automobiles will generate $134 million.
  
• Does not increase motorcycle or trailers fees.
  
• Idaho will rank 21st in the nation combining registration and gas tax.
  
• Idaho will still be 2nd lowest among our neighboring states.
  
• Local highway jurisdictions get 37% of those revenues.
  

The Truck Piece:

• County licensed trucks will have only one category and eliminate exempted registration fees. 8000 GVW – 16000 GVW will be the same fee as cars. 16001 – 60000 GVW have steps by weight class. Add $22 million income to the revenue.
  
• All other trucks 60001-129000 pounds GVW will pay $660.00 each for registration and will pay $.045 surcharge per mile. Add $35 million income to the revenue.

Misunderstandings:

• Motorcycles will pay the same as cars. Wrong – motorcycles are not scheduled for increase in the Governor’s plan.
  
• Registration fees only benefit Canyon County. No - All state highways and local highways will receive the benefit.
  
• Heavy trucks do all the damage. No - Time does the damage. Large trucks have less weight per square inch of tire than a pickup loaded with wood or for camping.
  

I have a question.   What do the trucks pay currently and how much increase in registration and road tax will they incur?

Great question. 

Trucks in the county group have two categories with part of them partially exempted.  For brevity they now range from 48.00- 515.00 in the non-exempted category and 48.00 to 311.88 in the exempted category.  They will be combined and will all be priced between 150.00 to 714.00 based on weight.  Increased revenues 22 million

Trucks from 60001 – 129000 GVW have likewise many different categories.  Some of them (6000 more or less) now pay 255.00.  Others are on a sliding scale based on both weight and miles traveled with 50000 miles the maximum fee.  An example: a truck registered for 12 months at 106000 gvw declaring >50000 miles will pay $4600.00 plus $550.00 federal fees.  There are at least five pages of fee charts to cover all the alternatives.  The proposed method would have one line.  Every truck pays 660.00 registration fee and $.045 per mile every mile. Increased revenues 35 million.

Hope that helps and I am sorry it is so confusing.

Bill ID	Bill	Sponsored	Co-Sponsored	Made Into Law
H0091	Motor Vehicles, Loads Loads to be secured
H129	Daycare Policy Provisions Revised
S1015	F&G Motorized Vehicle/Transport ATV usage on trails
S1016	Fish and Game ATV Usage
S1017	Employment Security Law/Military Duty Veteran employers experience ratio upon deployment
S1052	Use Tax, Military Personnel Vehicle use tax exclusion for
S1053	Property Taxation Certification date for agricultural exemption
S1080	Early Childhood Intervention Services Early Childhood Coordinating council administration
S1116	Motor Vehicles Driving without privileges-removal of mandatory minimums
S1143	Dogs, Regulation of Identifying Dogs at Risk and Dangerous Dogs
SCR101	Aquatic Nuisance Species, Threat To create an awareness that felt soles can harbor water-borne invasive species
SCR103	Year of Idaho Food Make people aware of the different types of food grown in Idaho

Bill ID	Bill	Sponsored	Co-Sponsored	Made Into Law
SB 1287	Homeowner’s Liens A recorded lien from a homeowners association shall be served on the owner no later than 5 days
SB 1288	Child Custody Determinations in certain cases relating to active duty service members shall not be made prior to the expiration of a specified time period
SB 1298	Vehicle Registration Temporary permit
SB 1316	Humane Slaughter of Equines Specified law shall not be construed as interfering with humane slaughter of equines
SB 1317	Cruelty to Animals Revises violations and penalty provisions relating to cruelty, torture and animal fights
SB 1326	Annuity Contracts An annuity sold to a person age 60 or older may not impose any surrender charge
SB 1327	Annuity Contracts Defines terms and provides disclosure requirements for annuity sales to consumers
SB 1331	Livestock Care Boards Establishment of Livestock Care Standards Board
SB 1332	Pesticides and Chemigation A professional applicator's license will be required before someone can act as a professional applicator
SB 1336	Motor Vehicles/Road No vehicle shall be operated on any public highway unless such vehicle's load is securely fastened or covered
SB 1337	Motor Carrier Safety All motor carriers will be subjected to a safety inspection
SB 1344	Invasive Species Boats shall be inspected for aquatic invasive species
SB 1346	Beef CAFOS The Department of Agriculture shall have the authority to administer water quality laws
SB 1411	Swine and Poultry Establishes poultry environmental control act, swine control act and the local option extra large swine operations
HCR 40	Local Food Productions Preservation of Idaho's agricultural history
SP 103	Rose Claire Hart Wetherall Commending Rose Wetherell for her years of service and for her humanitarian and philanthropic endeavors
HB 675	Raw Milk Use of raw milk by the owner's family shall not constitute sale of raw milk.

Bill ID	Bill	Sponsored	Co-Sponsored	Made Into Law
SB 1112	Basic Daycare License
SB 1055	Motor vehicles, materials on highways
SB 1060	Library districts/dissolution/election
SB 1130	Motor vehicle regulations, permit limits
SB 1072	Motor carrier inspections, exemptions
HB 213	Vessels, additional fees, stickers
SB 1213	Local government, dairy farms/air quality
SB 1052	Farm produce dealers, repeal
SCR 109	Quagga and Zebra mussel prevention

Bill ID	Bill	Sponsored	Co-Sponsored	Made Into Law
HB 680	Community infrastructure Dist
SB 1460	MV temporary trip permits
SB 1376	Daycare facilities
SB 1323	Human rights law, sexual orientation
SB 1426	Mentally ill, care/commitment
SB 1360	Local transportation benefit projects
SB 1394	Insurance, dependent, age
HB 603	MV, over 8,000 lbs, registration fee
SB 1368	State employee/retire/sick/leave
HB 385	College/university students, residency
SB 1406	Early childhood development/education
SB 1404	School age, revised
SB 1315	Sales/income tax exemptions/credits
SB 1509	Transportation BD access plan
SB 1276	Commodities, bulk, sales/delivery

Bill ID	Bill	Sponsored	Co-Sponsored	Made Into Law
SB 1153	Small lawsuit resolution, dollar amount
Res 119	Tax exemption, credit
SB 1075	Speed limits, interstate highways
SB 1154	Civil actions, dollar amount, attorney fees
SB 1051	MV, single tires/single axle
SB 1045	Civil action, attorney  fee, exception
SB 1147	Children’s mental health/at risk teens

Bill ID	Bill	Sponsored	Co-Sponsored	Made Into Law
SB 1345	PERSI retirees, reemployment
SB 1349	MV, commercial, speed limits
SB 1357	Civil actions, maximum amount, costs
SB 1489	Tax exemptions/credits, study
HB 510	Property tax exemption, rural homesites
SB 1396	Animal cruelty, penalties, treatment
SB 1348	Highway district comm., vacancy
HB 615	State employee insurance/mental health
SB 1389	Regional mental health services
SB 1400	Small claims/allowable claim/raised

Bill ID	Bill	Sponsored	Co-Sponsored	Made Into Law
SB 1136	Unclaimed property, sheriff/police sell
SB 1084	Trailers, certain, reflector requirement
SB 1096	Agency rules/fiscal impact/effective
SB 1161	Agency rules, fiscal impact
SB 1124	Agency rules, fiscal impact
SB 1108	PERSI, retirees, reemployment
SB 1104	Volunteer fire department, service charge
SB 1097	Agency rules, fiscal impact, when
SB 1183	Transportation infrastructure/finance
SB 1125	Agency rules, fiscal impact