Wednesday, September 22, 2004

Hailey continues LOT talks

McCall chamber director discusses campaign options


By MATT FURBER
Express Staff Writer

The Hailey Chamber of Commerce sponsored an ad hoc meeting this week to discuss the validity of engaging in a campaign to push for a local option tax in Hailey.

Chamber Executive Director Tom Smith invited McCall Chamber Director Tracey Smith to speak to the group of about a dozen community leaders about her community?s efforts to adopt a tax as an additional revue stream for the largely tourist-based economy.

Smith said McCall is making its third attempt to pass such a measure. If passed, the McCall LOT will impose a 3 percent tax on hotel and motel rooms.

Smith explained that people who stay longer than 30 days, like construction workers are exempt from the tax.

The McCall campaign failed twice, Smith said, because it takes time to inform the public about the purpose of such a tax to help cover the costs associated with tourism related impacts on city infrastructure and services. Citizens were also not in support of including liquor in the tax.

Under the Idaho statute governing LOT taxes, Smith said, there are few restrictions. But for a campaign to be successful, he added, it must be palatable to the local community that will also have to live with the tourism tax.

Smith explained that if business owners understand the purpose of the tax and if they know that some of the collected funds can go to marketing their businesses to the world, members of the community become more supportive of the idea.

Povey Pensione B&B proprietor Terry Davis, who provided room and board for Smith and her husband during their visit to Hailey, said she would like to be able to tell her clientele specifically what the taxes would be used for.

Smith recommended that in any campaign Hailey could benefit from establishing a committee independent of either the chamber or the City Council to be responsible for determining how the tax would be collected and how the money should be used.

Establishing new taxes is a political boondoggle for city council members and a burden on chambers of commerce, whose best capacity is to market the idea and the recreational amenities of the community, Smith said. In any case the purpose of the tax and the marketing campaign is to bring more tourists into the community and create a vehicle for paying for the impact.

Tom Smith said the chamber is still collecting a survey from the community The survey asks questions about what should be taxed, what the percentage should be and how revenues should be spent.

The final questions ask if those who fill out the survey would be willing to help with the campaign and when the best time would be to put the measure on a ballot.

A LOT tax initiative must pass with a super majority of voters to be approved.

Surveys can be picked up at the Hailey Chamber of Commerce.




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