Ketchum may study new groceries tax
Council appears split; mayor leaning against idea
By GREGORY FOLEY
Express Staff Writer
Ketchum residents might soon be asked what they think of a possible new city sales tax on groceries.
Yet, it is still unclear whether the concept will ever make it out of the starting gate.
Ketchum City Council members Monday, Aug. 16 engaged in a brief debate over whether the city should pursue a 1 percent local-option tax on the sales of groceries in the city lim-its.
The discussion came after council members conducted a public hearing on the city?s proposed 2004-2005 budget, which has been characterized as ?lean? and ?tight.?
On numerous occasions in the last year, Ketchum officials have dis-cussed ways to bolster the city?s revenues.
In the discussion of a possible new sales tax on groceries, the council appeared to be split on whether they want to pursue a study of how much revenue the tax might yield.
Council President Randy Hall and Councilman Baird Gourlay both indi-cated they would be willing to con-sider the matter if the city could gather reliable data on how much revenue the tax might yield.
However, Councilwoman Terry Tracy said she is strongly opposed to any such taxation plan, saying that she thinks it would be ?unconscion-able? to impose a new tax upon resi-dents with fixed incomes.
?Food is not going to be part of my way of nickeling and diming peo-ple to death,? Tracy said.
Although Councilwoman Chris-tina Potters was absent form the meeting, council members noted that?based on her previous com-ments?she would almost certainly join Tracy in opposing a new food tax.
Hall said he would like to see the city gather data on a groceries tax so?if the council agreed?the matter could then be brought before the pub-lic for reaction and comment. He said the city will almost certainly be looking for ways to increase its tax revenues in the future.
?Is that more painful than raising property taxes?? he asked.
Currently, Ketchum levies a 1 percent LOT on retail items and con-struction materials, as well as a 2 percent LOT on lodging rentals and by-the-drink liquor sales.
Prepared meals?such as those in restaurants and take-out venues?are subject to the tax. All sales of gro-ceries, motor-vehicle sales and medi-cine are exempt from the tax.
The city sales tax?which is es-sentially a resort tax employed to recover the costs of providing serv-ices to tens of thousands of visitors each year?accounts for 25 percent of all city revenue.
If the council were to vote on whether to send the issue to voters?who must approve LOTs?Mayor Ed Simon would be asked to break any tie.
Simon said it would be very diffi-cult for the city to openly discuss data on grocery sales in Ketchum because the sales figures of local grocery stores could not be publicly disclosed. Simon ultimately said he ?leans both ways? in the matter but tends to lean more strongly against the tax, noting that it seems to be ?more effort than it?s worth.?
