Sun Valley gives tax increase final approval

On Jan. 1, the city of Sun Valley will put into effect a 3-percent tax-- an increase of 1 percent-- on liquor by the drink, property subject to state sales tax and rental transactions.

The new local option tax, which is in addition to state sales tax, was passed by voters on Nov. 3. The vote was validated by the Sun Valley City Council last Wednesday. It will remain effective for five years.

Under wording approved after heated debate between the council and builders and the council and resort owner Sun Valley Company, newly created city ordinance 307 excludes building materials and ski lift tickets from the tax.

Resort areas, under state law, are allowed to institute a local option tax to offset the impacts of seasonal tourists on their infrastructure.

As outlined in the new ordinance, the tax revenue will be used for parks and recreation, municipal transportation and roads, fire protection and law enforcement, property tax relief, public information, education and several other city needs.

According to Sun Valley city administrator Bob Van Nort, there were some concerns regarding the adoption of the ordinance. He said past votes on proposed taxes had been landslides, whether for or against. However, he said, this tax won by a relatively slim 63 percent super majority.

That and other issues will be discussed at the Mayor’s Night Out, to be held in the Limelight Room at the Sun Valley Inn on Jan. 20.