Ketchum's local-option tax, a source of funding for marketing, transportation and emergency dispatch, as well as a barometer of the city's economic activity, is set to expire at the end of next year. Voters will decide whether to continue the tax or get rid of it, likely in November.
The Ketchum City Council discussed the LOT ordinance at its meeting Monday, with all members indicating a preference for putting the issue to voters during the Nov. 8 election.
Other options are the May 2012 or November 2012 election dates.
If the issue is not approved, the city has to wait one year before putting it on the ballot again. So, if the issue were put to voters in May but not passed, the city could not try again until May 2013, more than five months after the current LOT ordinance expires.
The council also is considering raising portions of the LOT, but that question will be put off for another election.
City Administrator Gary Marks said 13 percent of every revenue dollar in the city's budget comes from the local-option tax.
"I wouldn't want to lose what we have now because we asked for more," he said.
The ordinance requires a 60 percent approval to pass.
The original ordinance was approved in November 1997 with 87 percent of people voting in favor of it, said City Attorney Stephanie Bonney. The tax went into effect Jan. 1, 1998.
Ketchum charges a 2 percent sales tax on lodging and by-the-glass liquor sales, and a 1 percent tax on retail sales and building materials.
LOT revenues may be used for municipal transportation; open space acquisition and recreation; capital improvements for roads, water, sewer, parking and the Ore Wagon Museum; emergency services; city promotion, visitor information and special events; property tax relief; and the administration of the tax.
Agencies benefiting from the tax include Mountain Rides, Fly Sun Valley Alliance, Ketchum Community Development Corporation and others.
The city attorney will draft a resolution placing the issue on the November ballot. The council will vote on that resolution at its Sept. 6 meeting.
Rebecca Meany: rmeany@mtexpress.com
