Wednesday, April 8, 2009

Ketchum LOT down 21 percent at mid year

Retail, condo receipts take big hit


By JON DUVAL
Express Staff Writer

After the first six months of the 2009 fiscal year, Ketchum's local-option tax receipts have decreased 21 percent compared to the same period last year.

The $143,481 collected in February marked the sixth consecutive month in which the LOT experienced a year-over-year drop, falling 22.5 percent, or $41,740, from the amount collected in February 2008.

This brought total LOT revenue to $829,071 for the first half of the year, $258,754 less than what was budgeted by the city at the beginning of the fiscal year, which runs from September through August for LOT.

Ketchum imposes a 2 percent sales tax on lodging and by-the-glass liquor sales, and a 1 percent tax on retail sales and building materials, with the goal of offsetting the impacts of tourism on city services and infrastructure.

February saw a drop in every revenue category, with condominium receipts leading the way with a 50 percent fall from February 2008. Retail sales receipts experienced the greatest monetary decrease, bringing in nearly $25,000 less than in February of last year.

Building materials have fallen sharply over these six months as a result of the economy's crash and associated drop in home construction. February receipts decreased by 19.6 percent and the first half year's receipts decreased by 28.4 percent.

Liquor sales have been the most resilient in the economic decline, falling only 9.5 percent in February and 14.4 percent for the year to date.

Despite the drop in LOT, Ketchum Mayor Randy Hall said the city's budget remains balanced and maintains reserves in line with the recommendation of the Government Finance Officers Association.

However, Hall said the LOT income will be key in determining any further action on the budget.

"We maintain the business hub for Ketchum, Sun Valley and all surrounding areas, and we do so with much lower property taxes for operations than nearby municipalities," Hall said. "In addition to LOT, we also continue to seek additional diversified sources of income for the city."

Jon Duval: jduval@mtexpress.com




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