Local Option Resort Tax

There is a strong push in my district for a local option non-property tax, commonly referred to as the resort tax, with the “bed” tax being the most frequently mentioned variant.

So, what exactly is a local option non-property tax, and why can’t my community leverage it as it is currently structured?

Idaho Code 50-1043 to 50-1049 outlines the local option non-property tax, detailing the types and sizes of cities eligible to implement it, the items that can be taxed, and the requirements for passing the tax. This tax is intended for resort cities that derive the major portion of its economic well-being from businesses catering to travelers visiting for extended stays. However, cities with populations exceeding 10,000, such as the district I represent, are excluded from this provision.

Through my research, I’ve discovered that Coeur d’Alene has been specifically exempted since the inception of this law. Conversations with locals and articles I’ve read indicate that various groups have opposed this initiative over the years. Since 1995, Coeur d’Alene leaders, with support from lobbyists, have sought to amend this legislation. Initially, in 1995, the Revenue and Taxation Committee didn’t even allow the bill to be heard, as they were attempting to utilize the sales tax option of this law. Attempts were made again in 1996 and 2011. Many constituents and candidates for local and county offices have echoed the sentiment that implementing this tax could address our budget shortfalls.

Although I have considered this idea and even drafted legislation aimed at bringing about change, my research prompts me to question why this has remained unresolved for over 30 years. Given the substantial opposition this legislation faces, what are the factors necessary for its passage? Or is it genuinely a flawed idea that should remain unchanged?

By Representative Elaine Price, District 4 Kootenai County