Boundary News
Resort Tax Headed for November Ballot
Jun 18, 2008, 09:49

Along with voting for a Presidential candidate in the general election, Bonners Ferry residents will also weigh in on whether they want the city to impose a resort tax on motels when they head to the polls Nov. 6.

Earlier this month, City Council approved a measure that would levy either a bed tax on motel rooms in the city of Bonners Ferry. The levy, which requires 60-percent voter approval, will be placed on a ballot in the general election.

Originally, council members had considered a 3- percent bed tax, but councilman David Gray said many communities in the region, including Grangeville, have implemented a 5-percent resort tax.

In July, council members will decide what amount they want the local option tax - which cities can use for infrastructure improvements and property tax relief for a five-year period - to levy.

Council will also decide how the funds will be utilized. The Visitor Center and downtown decorations have been suggested as priorities.

Approximately $500,000 in taxable sales for motel rooms per year are derived from lodging in the city limits, according to the Idaho Tax Commission. If voters approve the proposed measure, about $15,000 per year would be generated to the city. Lodging facilities already pay a 2-percent statewide tax earmarked for Idaho tourism.

Currently, there are only two motels and a bed and breakfast within the city limits that would be subject to a local option tax. If the city annexes property to the south - which it is considering - a third motel would be included.

The Best Western Kootenai River Inn, a 65-room motel with four casino rooms, luxury spa, restaurant and lounge, is exempt from both state and city taxes. A local option tax would also not apply to the Inn.

Idaho law allows any resort city with less than 10,000 residents to implement a hotel, alcohol and sales tax after the measure is approved by a 60-percent margin.