Wednesday, December 20, 2006

Yellow light on transportation tax


The Sun Valley City Council is the first city to endorse a new countywide local option tax to be collected to fund a valley-wide transit system.

Such a tax would have to be authorized by the Idaho Legislature and approved by the governor. It would also have to be authorized by the Blaine County Commissioners, and approved by voters. Those are big hurdles, to say the least.

There's no question that the Wood River Valley needs to find a way a to pay for a good valley-wide mass transit system. There's no question that other cities, such as Boise, have the same need.

As each year passes, the traffic on state Highway 75 from Timmerman Hill to Ketchum becomes more congested and more frustrating for commuters.

Even though a new highway is in the works, it will take years to construct. When completed, it will relieve commuter frustration—for a time.

However, in other places where highway expansions have relieved congestion, planners found that when travel became easier, people began to live even farther away from work centers.

In short, easier commutes triggered more development, after which the new highways became as clogged, as frustrating, and as dangerous as the old ones.

At some point, the need for mass transit will be clear to everyone, and short of enduring eternal gridlock, unavoidable. Other areas, such as Aspen, which have managed to preserve some semblance of mountain character in the face of intense growth pressure, have shown that planning for transit sooner than later is cheaper than putting it off.

Nonetheless, the valley should proceed cautiously if the Legislature opens the door to a tax for development of mass transportation systems.

For example, the difference between Ketchum's 1 percent tax on retail sales and Sun Valley's 2 percent tax has Sun Valley retailers concerned that the disparity is driving away business.

Local lodging operators are painfully aware of the effect of sales tax piled upon sales tax. If the total gets too high, it can adversely affect the area's ability to attract convention groups—an important part of the local tourist economy. Hotel and condominium operators now collect total taxes of 9 percent and 10 percent respectively. Only Park City, Utah, collects more.

Of course, price isn't everything if the area is attractive to people who want to visit, but it's an important factor.

Taxation is easy. Maintaining the balance between taxation and economic success is trickier.

Local government needs the ability to tax for special local needs, but it should do so only with extreme caution.




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