Resort tax plan heading to vote

SANDPOINT — When city voters go the polls on Nov. 6, they will be asked to approve renewing a 5 percent tax on hotel rooms and initiating a 2 percent tax on alcoholic drinks sold at the city's bars.

City council, which over the summer agreed to put the measure on the ballot, initially sought five-year approval on both taxes. On Wednesday, council voted to seek a measure that would be good for eight years.

The bed tax and liquor tax would require approval by 60 percent of the voters.

Idaho law allows resort cities with fewer than 10,000 to institute the hotel and alcohol tax as well as a sales tax.

Sandpoint's five-year-old bed tax has generated a total of $874,571 for the city, of which $76,044 went to property tax relief. Another $37,315 will be applied to the city's upcoming fiscal budget on Oct. 1.

The first year, the city budgeted $150,000 from the tax on roughly 350 rooms and collected $180,000. Last year, $250,000 was budgeted for the $270,000 collected.

About 70 to 80 percent of voters in 2002 supported the tax on hotel and motel rooms, bed and breakfasts, and vacation rentals. The measure expires this year and must be put up for a vote to continue.

So far the money has been used to support services related to tourism. It has included paying for the downtown renovation, the pedestrian bridge across Sand Creek and lifeguards at the City Beach.