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Governor signs grocery sales tax credit boost

Gov. Brad Little has signed into law a $20 increase in the amount Idaho residents can recover on taxes paid on food through the grocery sales tax credit.

The Republican governor signed last week the measure that boosts the annual maximum credit from $100 to $120 for people under 65 and from $120 to $140 for people 65 and over.

The change takes effect starting with food purchased in 2023.

The increased grocery tax credit cuts about $32 million from state revenues. That will be made up by tapping a fund that collects online purchase sales taxes.

The measure passed the House 40-27 and the Senate 35-0.

Opponents said the increase was not enough to cover the increasing cost of food, and sought to have the grocery tax eliminated entirely.

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