For the third time in 2010, the Idaho Board of Examiners has approved money to be transferred from the state general fund to the state’s tax refund account to meet the state’s financial obligations to taxpayers.
The three-member panel consisting of the governor, attorney general, and secretary of state green-lighted the $11 million transfer after officials with the Idaho State Tax Commission told board members this week that the funds are necessary to prevent the state from accruing additional expenses.
The tax commission says the money is vital to ensure that taxpayer refunds are returned on time and without the state paying interest on those refunds. Idaho has a specific time frame in which to issue refunds – failing to do so would force the state to pay interest on all refunds not returned.
Without oard approval of the funds transfer, Idaho would accrue an estimated $113,000 in interest payments to taxpayers. The state will only lose about $4,500, the cost of the commission’s use of the money until the end of the month.
At the end of May, the commission had approximately $689,000 in the refund account, an amount insufficient to cover all refunds in June. State officials say lower-than-expected tax revenues were mostly to blame for the commission’s third request for funding.
In February, the board approved a $30 million loan to the commission, and in April, an additional $15 million was approved. (IdahoReporter.com)
