BOISE, ID – A bill was proposed Tuesday to expand an existing sales tax rebate program for highway improvements on new retail developments, increasing the maximum reimbursement by more than 185%.

House Majority Leader Rep. Jason Monks, R-Meridian, introduced the bill in the House Revenue and Taxation Committee. The proposed legislation would increase the limits on the State Taxation Anticipated Revenue, or STARS, program.

The program allows for developers to receive a rebate of sales taxes collected by the retailers within the complex to reimburse 60% of expenses related to certain transportation projects, such as highway improvements or the installation of an interchange.

The minimum cost of a project to enter the program is currently $6 million, and the proposed bill would increase this to $10 million. The maximum total reimbursement per project is currently $35 million, the bill would increase it to $100 million.

Monks said the change was to keep up with the rising costs to do these projects. He said it acts like an “interest-free loan” for the state, as the developer fronts the cost for the highway projects that benefit the state.

He emphasized that the program doesn’t use existing sales tax revenue, only the future revenue from the retailers.

“We would never receive (that revenue) had the project not moved forward, or had to put the money in for that infrastructure ahead of time anyway,” he said.

House Assistant Minority Leader Rep. Steve Berch, D-Boise, said he’d vote to introduce the bill, but had concerns about potentially limiting the state’s future revenue.

The committee unanimously voted to introduce the legislation, which will allow it to come back for a full public hearing.

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