Bed tax gets thumbs up

PONDERAY — The city of Ponderay gave a loud and pronounced “yes” to the bed tax Tuesday, passing the measure with a three to one majority.

With a final tally of 140 “yays” to 48 “nays,” the initiative overwhelmingly passed public scrutiny. This success is a major victory for Ponderay’s city officials, who were counting on the revenue to finance a variety of projects.

“The people have spoken,” Ponderay Mayor Carol Kunzeman said. “We’re just jumping for joy over here.”

The eight-year bed tax will place a 5-percent tax on short term stays in hotels. Idaho Code necessitates that the city use such resort taxes to fund tourism encouraging programs. 

A bus system routed through Dover, Sandpoint, Ponderay and Kootenai is one such program. With the money acquired from the bed tax, the cities will now qualify for additional grants, transforming the fare-free, half-million dollar bus system from a proposal to a reality.

Now that the funds are secured, Bonner County residents could be hitting the road on the public transportation system before the year’s end. Dover has already ordered a bus, and all that remains is to set up final routes and staff for the program. According to the projections made by District 1 mobility manager Cliff Warren, the first bus should be up and running in December. In January, Dover will order a second bus that should be ready to roll by April.

“The success of this tax is a wonderful result for the metropolitan area,” Warren said.

“We’re thrilled to be able to move forward on the project.”

A large chuck of the funds from the first year of the bed tax will help finance the bus system, officials said.

Subsequent years will see the majority of funds directs toward improving parks, streets and projects like the field of dreams and the Pend d’Oreille Bay Trail.