A quick scan through the classified section in the Mountain Express or on the Internet reveals plenty of short-term rental accommodations in Ketchum and Sun Valley.
While visitors see these listings as potential vacation destinations, city officials are seeing potential, and deserved, revenue.
Both cities charge a local-option tax on overnight lodging, 3 percent in Sun Valley and 2 percent in Ketchum, but collecting the tax revenue can prove difficult.
While accommodation owners are required to pay the tax, it is up to the owners to submit the appropriate LOT forms to the cities.
"Our first effort is education," Ketchum City Administrator Gary Marks said. "There's a substantial number of people that just aren't aware of the LOT law."
Marks said the city clerk's office is assembling a list of properties that have been advertised in the newspaper or online and have not paid LOT fees. The city will send letters to the owners in April to inform them of the LOT law.
About 35 properties have been identified so far, but a quick look on www.vrbo.com, which stands for Vacation Rentals by Owner, lists nearly 100 properties in Ketchum, many with out-of-state owners.
Should a significant proportion of these property owners skirt the LOT fees, the city is losing out on revenue intended to offset the impacts of tourism on city services and infrastructure.
"Even a modest amount of LOT revenue is important because the money will be invested in the services that are being used by those properties as well," said Carol Waller, executive director of the Sun Valley-Ketchum Chamber & Visitors Bureau.
Marks echoed Waller, saying that although the city does not yet have an estimate of the potential revenue, it is needed now more than ever.
"This issue has been on our radar for a while now, but the turndown in the economy has really given us additional impetus to collect," Marks said. "Every little bit helps in this environment."
Marks said that any property owner found not to be in compliance could face punitive action, ranging from a 1 percent increase in the fee if payment is more than a month overdue to a financial audit and legal action if necessary.
Sun Valley City Administrator Sharon Hammer said education is the main goal in her city as well.
"Most people don't do it intentionally," Hammer said. "We're aware that we need to increase awareness of it as we go into our next budget season."
Unlike its neighbor, however, Sun Valley isn't taking quite as aggressive a stance toward LOT offenders, as Hammer said that there isn't a specific penalty in place for those who aren't in compliance.
"We want to make sure that we're making the collections we can make, but it could end up cost-prohibitive to try and enforce," Hammer said. "The amount of money we're missing isn't going to break us."
Both Hammer and Marks recommended that property owners with questions about local-option tax requirements get in touch with their respective city clerks.
Jon Duval: jduval@mtexpress.com
Gary Marks
