BOISE METRO CHAMBER OF COMMERCE 2017 WHERE WE STAND Legislative Agenda Policy Positions WWW.BOISECHAMBER.ORG 208.472.5205 boise metro chamber of commerce Chamber Advocacy 2017 Organization for Advocacy Team BOARD OF DIRECTORS Board of Advisors EXECUTIVE COMMITTEE Bill Connors POLICY COMMITTEE President & CEO Scott Madison Brad Street Intermountain Gas Albertsons Company Chair-Elect Bruce Newcomb Chairman Boise State University Health Food & Ag Travel Financial Small Care Industry Industry Services Business Board Board Board Board Advisory Ray Stark Council Senior Vice President, Government & Community Relations/Events Scott Kreiling Tracy Hitchcock Sandy Clark Gerald Hunter Martin Ackerman Regence BlueShield Create Common Lamar Airport Idaho Housing and Signs By Tomorrow of Idaho Good Advertising Finance Association Caroline Merritt Government Education/ Transportation Nonprofit Director, Public Affairs Workforce Committee Council Relations Committee Committee Marnie Packard Molly Lenty Kate Eldridge Steve Woodworth SelectHealth Wells Fargo HDR, Inc. Idaho Youth Ranch Bank, N.A. John Watts Partner Paul Powell Lisa Grow ENERGY Veritas Advisors Petroglyph Energy, Inc. Idaho Power Company TASK Co-Chair Co-Chair Idaho Chamber FORCE Alliance Lobbyist *Through May 2017 2017 LEGISLATIVE AGENDA Business Happens Here. ® SUPPORT FUNDING FOR THE STATE’S CAREER SUPPORT AN IDAHO HEALTH TECHNICAL EDUCATION PROGRAM INSURANCE SOLUTION An appropriation of $3.7 million will continue to increase To avoid cost shifting to the talent pipeline for current openings in high demand businesses with health insurance, jobs in health care, information technology, manufacturing adequate reimbursement for the and many other careers. This will continue the reduction delivery of medical services is of student waiting lists and provide trained workers for important for Idaho hospitals and Idaho business. the healthcare community, as well as businesses that provide coverage to their employees. SUPPORT FUNDING FOR BOISE STATE’S CENTER The Chamber appreciates the efforts of the interim FOR MATERIALS SCIENCE legislative work group and will review proposals during the Legislative Session. Support $10 million from the Permanent Building Fund for the Center for CONTINUE REDUCTION OF THE STATE’S Materials Science Building at Boise State University. A facility for CORPORATE INCOME TAX materials science will elevate the The corporate income tax of 7.4% is still higher than program to national prominence surrounding states. Idaho has been eliminated from and enhance the growth of high-tech consideration for economic development projects based science in Idaho. With $40 million on this tax rate alone. The rate could gradually be reduced from university and private donations, the over several years. One innovative approach could be to total project cost would be $50 million. “buy down” the tax rate only after state government is funded at a certain level and the savings accounts are SUPPORT ECONOMIC DEVELOPMENT TOOLS FOR replenished. INVESTMENT SUPPORT ADDITIONAL TRANSPORTATION The Chamber supports maintaining Tax Reimbursement FUNDING Incentive (TRI) legislation that has directly led to thousands of new jobs in Idaho. The Chamber will review The Chamber thanks the 2015 new proposals for bonding infrastructure using voter- Legislature for increasing the motor approved local option and review the recommendations fuel tax and registration fees to of the Legislature’s Urban Renewal Interim Committee to partially address maintaining the protect this tool for future urban investment. State’s roads and bridges. Since the 2-year ‘surplus eliminator’ CONTINUE SUPPORT FOR IMPROVING will sunset, the 2017 Legislature EDUCATION should approve additional revenue proposals to fund the state’s To be competitive in the world- transportation system. wide economy and skilled labor for Idaho businesses it REVIEW EARLY LEARNING INITIATIVES is important in meeting the statewide goal of 60% of high The Chamber supports pre-kindergarten legislation and school graduates eventually will review early learning proposals in the 2017 Legislature. acquiring a certificate, 2-year More Idaho children need to be ready to learn when or 4-year degree. The Chamber they enter kindergarten under a program that features supports the Legislature’s continued parental choice, local control and collaborative funding. implementation of education improvements. The Chamber supports the State Board of Education’s request for $10 WWW.BOISECHAMBER.ORG million for Outcomes-Based Funding. This phased approach will allocate funds based on students’ successful completion 208.472.5205 of college programs, such as degrees and certificates. 3 pay and government to collect. Nearly 6,000 businesses continue to pay ECONOMIC DEVELOPMENT & TAX this onerous and inefficient tax. Increasing the exemption to $500,000 would be an important next step in the process to completely eliminate POLICIES AND INITIATIVES the tax. Personal property consists of items used by business, such as furniture, machinery, tools, desks, computers, etc. Personal property 1. ECONOMIC DEVELOPMENT TOOLS FOR INVESTMENT: exempt from taxation includes household items, personal The Chamber supports maintaining the Tax Reimbursement Incentive vehicles, livestock, medical equipment and many other items. (TRI) legislation that has directly led to thousands of new jobs in Idaho. The Legislature should take into account the revenue impact to local The Chamber will review new proposals for bonding infrastructure using governments when continuing the phased elimination. voter-approved local option taxation. The Chamber supports protecting tax increment financing as a tool for urban investment. The Chamber 8. PRODUCTION EXEMPTION: Support retention of the sales tax supports the Idaho Opportunity Fund to provide financial assistance for exemption on tangible personal property used in the production infrastructure and equipment to local governments which are working process. This pertains to materials, supplies and equipment used with new or existing companies to grow jobs and investment in the directly in the production process by manufacturers, farmers and other state. producers. 2. CONTINUED REDUCTION OF THE CORPORATE INCOME TAX: 9. SALES TAX EXEMPTIONS: Support the preservation of essential Idaho’s corporate income tax rate has been reduced sales tax exemptions that benefit the economy, including removing to 7.4% but is still considered too high to be the sunset for the exemption for parts for repair of out-of-state competitive with other states for some aircraft. The Chamber opposes the expansion of sales tax on services business attraction projects. Idaho has while continuing to analyze the changing nature of the economy been eliminated from consideration and the trend toward more service transactions and Internet sales. for economic development projects based on this tax rate alone. The rate 10. MULTI-USE SPORTS AND ENTERTAINMENT FACILITY: could gradually be reduced over several A multi-use facility near downtown years. One innovative approach could Boise is important for economic be to “buy down” the tax rate after state development, sports and government is funded at a certain level and the entertainment. Such a facility savings accounts are replenished. could be used for a minor league baseball franchise, youth sports 3. AN IDAHO HEALTH INSURANCE SOLUTION: To avoid cost tournaments for soccer, baseball, shifting to businesses with health insurance, adequate reimbursement football and lacrosse, musical for the delivery of medical services is important for Idaho hospitals and concerts, special events, corporate the healthcare community, as well as businesses that provide coverage events, ceremonies and festivals. to their employees. The Chamber appreciates the efforts of the interim legislative work group and will review proposals during the Legislative 11. BOISE LIBRARIES: The City of Boise’s has completed four branch Session. libraries from a combination of renovations of existing buildings and new construction. 4. STATE-OPERATED HEALTH INSURANCE EXCHANGE: In the future, the Chamber looks An insurance exchange is a one-stop marketplace for individuals and forward to reviewing a proposal for small employers to shop for and buy health insurance policies, in a downtown main library facility. response to a federal mandate. The Chamber supports maintaining the state operated exchange rather than a federal operated and 12. LOCAL OPTION TAXATION: controlled exchange so that Idaho can maintain primacy over the state’s In the past, the Chamber has private health insurance market. This ensures a meaningful role for supported legislation to allow a independent brokers and an open competitive market to help increase voter-approved, local option sales the number of Idahoans insured through private insurance. tax to fund regional public transportation and other transportation improvements. In 2008, the House of 5. IDAHO WORKFORCE DEVELOPMENT TRAINING FUND: Representatives approved a general local option constitutional The training fund is an important economic development tool amendment for cities and counties but it was held in a Senate in the state of Idaho. Its objectives are to 1)provide funding committee. The Chamber opposed this constitutional amendment to help train new employees as being unnecessary and unduly stringent. The Governor’s for expanding companies; and 2) Transportation Task Force included local option as a mechanism to provide upgraded skill training