The city of Hailey is projecting that local-option-tax revenues for the current fiscal year will exceed those of last year, making it the most lucrative collection period in the city's short history of assessing the taxes.
In its September newsletter, the city reports that it has collected $277,000 in LOTs from October 2007 through July 2008, the first 10 months of the 2008 fiscal year. The city further reports that it expects to take in an additional $100,000 in the final two months of the fiscal year, bringing the year's total to about $377,000.
If that estimate is reached, the final tally would eclipse 2007 fiscal year LOT revenue of just over $368,000.
LOTs were first implemented in Hailey in July 2006. From July through September 2006, the city collected just under $93,000.
Since their inception, the total of all collected LOTs in the city is just over $738,000. Of those funds, rental car and lodging taxes account for about $431,000, taxes on alcohol by the drink account for $93,000, and restaurant food taxes account for about $214,000.
So far, the city has spent:
· About $343,900 for snow removal equipment.
· About $220,000 for police officer salaries for traffic enforcement.
· About $92,000 for a lighted crosswalk project for pedestrian safety on Main Street.
· $61,000 to the Hailey Chamber of Commerce to promote tourism.
· $38,000 to Wood River Rideshare to facilitate public transportation.
· $30,000 for parks maintenance.
· About $27,000 for a fire-truck lease payoff.
· About $22,500 to the Woodside Boulevard striping project.
· $2,500 to Hailey Public Library for a restroom remodel.
Under the Hailey LOT, the following taxes are collected:
· A rental-vehicle tax of 3 percent.
· A hotel and motel room tax of 3 percent.
· A liquor-by-the-drink tax of 2 percent.
· A restaurant tax of 1 percent.
The taxes are provided for by a state law that allows small resort cities to tax selected services to offset the cost of providing them to visitors. In Hailey, the taxes are scheduled to remain in effect through June 2010.
