For the week of July 24 - 30, 2002

Why increase sales tax?

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Teenagers know that when they ask parents for money they need to be prepared to answer the question that will come shooting back as sure as the sun will rise: "Why?"

Teenagers know that asking to double their allowance is a sure ticket to a parental inquisition. They know they must be ready to fill in the blank in the following statement: "I need more money to __________." Wise teenagers know answers like "buy bus passes to get to my new a) job, b) volunteer position at the park, or c) college strategies class, are winners.

Why doesn’t Ketchum Mayor Ed Simon know this?

The mayor proposed that the city double the 1-percent local-option sales tax. He’s even scheduled a public hearing on the proposal. Yet, he hasn’t even hinted at why the city should increase the tax.

The present tax, approved in 1997, was designated for: a) municipal transportation; b) open space acquisition and recreation; c) capital improvements—roads, water, sewer, parking, ore wagon museum; d) emergency services—police, fire, ambulance; e) city promotion, visitor information and special events f) property tax relief; and g) direct costs to collect and enforce the tax.

The tax has worked well and has been spent on the items approved by voters in 1997. The $2.3 million LOT revenues collected every year make up 24 percent of the city’s $9.8 million budget and slightly exceed property tax revenues.

The city’s budget may be lower than it should be given property values, growth pressures and infrastructure needs.

Apparently, the mayor thinks the city needs more money. Before asking people to show up and offer opinions on increasing the LOT, the mayor should do what every teenager knows is necessary. Explain why.

 

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