Local-option taxes
Ketchum’s local-option taxes for the last year have fallen short of the previous year most of the time. But this summer saw a growth in business, bringing collections above last year. However, a large gap still separates Ketchum businesses from their 11-year average.
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August wasn't just the most lucrative month of the year for Ketchum businesses—as is usually the case—but it posted the largest economic growth in four years, when comparing a month to the same month of the previous year.
Ketchum businesses made 9 percent more money last August than in August 2009—an achievement unmatched for any month dating all the way back to October 2006, which saw 12 percent growth over the previous October. The average change during the past four years has been a 10 percent decrease in business compared to the same month of the previous year.
Ketchum's economic well-being can be measured using local-option taxes, which are collected monthly. LOT—commonly called the "tourist tax"—is a 2 percent sales tax on lodging and by-the-glass liquor sales, and a 1 percent tax on retail sales and building materials. Because LOT pertains to Ketchum's main industries, it's a simple gauge for reading the city's economy. The city uses LOT money for city services and upkeep of infrastructure, such as streets, that see more use because of visitors.
The city collected $187,600 in LOT for business done in August, $16,000 more than it did in August 2009.
Liquor sales saw the largest leap, up 36 percent compared to last year. It was also the second-most productive LOT category, bringing in $24,500. Retail was the largest economic sector, bringing in about $130,000, a 10 percent increase over August 2009.
Hotel rooms and condo rentals were the only sectors to see less business, and totaled a 13 percent decline. But the lodging industry accounts for only $16,800 of the month's $187,600 in LOT.
Building material sales saw no change compared to August 2009.
The fact that August achieved year-over-year economic growth seen only one other time in the last four years is good news, but not great news.
The month's LOT collections were 22 percent short of the city's 11-year average for August.
Trevon Milliard: tmilliard@mtexpress.com
