Boise business files suit to fight tax break

Posted at 9:55 AM, Mar 24, 2016
and last updated 2016-03-24 11:55:49-04

BOISE, Idaho (AP) -- A Boise business is fighting a $6.5 million tax incentive by the state for a technology company planning to expand to the city, saying the break could help the new competition lure his workers away.

The Idaho Statesman reported that Employers Resource CEO and owner George Gersema said in court Wednesday that the Illinois-based Paylocity could use its reimbursed tax money to offer higher salaries than Employers Resource can afford.

Gersema says he also hopes his lawsuit will challenge the Tax Reimbursement Incentive the state created in 2015.

The lawsuit names Idaho Department of Commerce Director Megan Ronk as defendant and claims the constitution grants the Legislature alone the power to determine how to use tax dollars.

Ronk declined to comment.