Last May Stan Howland, a veteran corporate income tax auditor for Idaho Tax Commission, delivered a startling 17-page report on what he argued was an inappropriate activity at the commission: Making secret (as in not disclosed to the public) deals with out of stat corporations that allow them to pay to the state a fraction of the taxes they owe. The argument in favor of this approach is that the legal action needed to collect the taxes might, at least in some cases, exceed what could be collected.
The report caused a flurry of discussion, most of which seemed to lead to three conclusions: (1) the activity he describes does in fact go on; (2) it appears to be legal; and (3) nothing more seemed likely to come of it, since the commission is arguing it is doing the right thing, and no one else in a position to impose their clout seems interested in forcing them to do otherwise.
But is the current economic crunch, alongside the crunch in state revenues, leading to a reconsideration of that outcome?
The subject came up Thursday at the state Senate Local Government and Taxation Committee, and the upshot didn't look so good for the commission. From the Idaho Statesman's Kevin Richert blog post on the meeting: (more…)