Idaho Bill Eliminating Grocery Tax Leaves House

BOISE, Idaho (AP) — A three-part tax bill that would eliminate the grocery sales tax and lower income taxes on top earners has passed an Idaho House panel.

The bill by House Republican leadership would also include a 7-cent fuel tax increase, which would raise $65 million per year to address Idaho's transportation funding shortfall.

Under the tax plan, Idahoans in the top income tax bracket would see their rate drop from 7.4 percent to 6.7 percent. The House Revenue and Taxation Committee endorsed the sweeping bill on a party line vote Friday.