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Ketchum City Council Votes To End Relationship With State Tax Commission
Ketchum, Idaho ( KMVT-TV / KSVT-TV ) - The Ketchum City Council has given thumbs up to end their relationship with the State Tax Commission when it comes to overseeing the local option tax.
According to Ray Silver the city administrator, businesses in Ketchum gather an additional 2-percent on room, food and alcohol sales. That adds up to about $3-million a year but due to the forest fire last year and the low snow pack over the past two years, revenue was down about a half a million dollars. In addition, the community paid the tax commission $192,800 a year to collect the money and then transfer that to the city. The city uses the money on tourist related activity and infrastructure such as street and sidewalk repairs. The community also offers free bus system rides. They also conduct major marketing programs that target certain groups of people who would be attracted to travel to Ketchum and purchase goods and services.
Before May of 2013, Silver said they collected the money from the businesses. When they turned it over to the state, they were hoping the state would find more money that would offset the cost they were spending, but reportedly that wasn’t the case. So on September 1, 2014, the city will again do it themselves.
Every year the Council and the mayor look at the recommendations presented by the city administrator to either accept or deny the requests.