Idaho Gov. Butch Otter and 13 Republicans on the House Revenue and Taxation Committee are hatching a plan that could kick the Wood River Valley's balanced local tax structures off a cliff.
Last week, all of the committee's Republican members supported a constitutional amendment that would require a 66 percent voter approval for imposing any kind of local-option sales taxes.
Currently, resort cities like Ketchum, Sun Valley and Hailey must muster 60 percent voter approval to impose local sales taxes. Ketchum, Sun Valley and Hailey collect local sales taxes on items primarily purchased by tourists.
The increase to 66 percent doesn't sound like a lot, but it puts significantly more power into the hands of minority naysayers. They would wield twice as much power in the voting booth as supporters of any local tax measure.
The committee opened this can of worms when it addressed Boise's desire to generate revenue for mass transit and highway repair.
That desire ran smack into the "no-tax-is-a-good-tax" belief system of the Republicans. It also ran into their apparent belief that citizens cannot be trusted to vote in their own interest when it comes to taxes.
The committee members backing this tyranny of the minority come from Blackfoot, Nampa, Challis, Star, Twin Falls, Rexburg, Donnelly, Rigby, Hayden Lake, St. Maries, Oakley and Athol—nice towns, but not resorts by any means.
Their cities' populations don't swell every summer and winter along with demands on services and infrastructure. Their cities and counties primarily use property tax revenues to serve permanent residents.
The constitutional amendment could devastate city budgets in Blaine County, produce a big tax shift from local sales taxes to property taxes or demolish public services essential to the economy.
Currently, the city of Sun Valley collects $1.4 million annually in local sales taxes while collecting $1.3 million in property taxes. Ketchum collects $2.1 million in sales taxes annually compared to $2.8 million in property taxes. Both have some of the lowest property tax levies in the state.
Imagine Ketchum and Sun Valley without 24-hour police, fire and ambulance care. Imagine going back to the "good old days" when fire departments saved foundations and people died before an ambulance could reach them.
Think these changes would adversely affect tourism? You bet they would.
The constitutional amendment could unfairly throttle Blaine County's resort cities whose citizens have been prudent in imposing local sales taxes.
It's a body blow the Wood River Valley does not deserve.
