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The Star News; McCall, Idaho
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McCall News Archives: 2004     2005     2006     2007     2008

Local option tax almost $18,000 in first month
Panel appointed to advise on which projects should get revenues
BEN SALMON  | March 3, 2005
THE STAR NEWS

The city of McCall collected nearly $18,000 in the first month of the new local-option tax that imposes a 3 percent tax on overnight lodging within city limits.

The tax was approved by city voters last November and is allowed by state law so towns that rely on tourism can charge visitors for their overnight stays and use the money for local projects.

The city projected annual revenue of about $80,000 in the weeks leading up to the election. However, a total of $215,000 would be raised this year if receipts from every month match January.

The $17,913.46 was received from 18 businesses that paid the tax on their sales in January.

Four of the businesses reported no sales and paid no tax, and two others had not turned in their payment as of Wednesday, McCall City Clerk Dan Irwin said.

Three businesses that paid taxes paid more than $3,000, including the highest payment of $3,993.67. Three other businesses paid between $1,000 and $2,000 in taxes. Smaller tax payments ranged from about $110 to about $600.

One other business should be paying the tax and has been contacted about applying for a permit, Irwin said. The tax ordinance does not allow the names of the businesses to be released.

At last Thursday's McCall City Council meeting, council members were surprised by the revenue collected in January.

Council members differed on whether January is a strong or weak month in terms of overnight visitors, but all were excited about the amount of money collected.

Elizabeth Richman, general manager of The Holiday Inn Express - The Hunt Lodge, said January was a "very strong" month.

"We were busier than we expected," Richman said. "We had a lot of conferences and large groups, and the first weekend of Winter Carnival and Martin Luther King Jr.'s birthday helped."

Richman said January is normally a "typical winter month," during which The Hunt Lodge is full on the weekends and has vacancies on weekdays. During the summer, the motel is full seven days a week, she said.

Also last Thursday, the council appointed an advisory committee to hear requests for the revenue and make recommendations to the council on how it should be spent. That group will hold its first meeting on March 14.

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