FOR IMMEDIATE RELEASE -

DEMOCRATS URGE TAX COMMISSION REFORM

At a time when the Idaho legislature is cutting budgets and funds for schools and medical assistance to the disabled, current audit protests before the Idaho State Tax Commission involve a potential of more than $75 million in lost revenue.

In the past, there have been some questionable outcomes of matters before the State Tax Commission.

A few examples documented in affidavits filed in a recent lawsuit are:

- Without any legal basis, the Commission wrote off $1.2 million dollars to a large multistate taxpayer.

- With no justification given, a wealthy Idaho taxpayer was granted a $1.6 million dollar tax break before an audit report was issued.

- With no appropriate reason given, a Commissioner forgave a taxpayer an $80,000 assessment.

- Although an audit on a golf course indicated a liability of $700,000 to $900,000, the entire amount was forgiven in its entirety for no apparent or legal reason.

- A taxpayer was permitted to receive a $50,000 Idaho Investment Tax credit on property that the taxpayer could not demonstrate was ever used in Idaho.

- A taxpayer was granted a $100,000 reduction in tax assessment in a situation where there is no basis for the discount.

- A taxpayer with a long history of refusing to provide legally required documentation to support its tax returns and where the Commission had actually entered a decision supporting the audit, was given a discount by a Commissioner of over $400,000.

Therefore, the Idaho Democratic Party urges that all Legislators, regardless of party, strive to achieve a tax system that is clear and fair to the businesses and citizens of Idaho, and a tax commission that reinforces those values to the full extent allowed by law.