Hailey LOT Tax Fact Sheet – 1% for Air/Housing

Hailey Local Option Tax Fact Sheet

Local Option Tax is a tax allowed in Idaho for resort cities. It is not a property tax, but a type of sales tax, on tourist retail transactions. The cities of Hailey, Ketchum and Sun Valley each have two Local Option Taxes: the “Original LOT”, described in Question #2 of the Hailey Local Option Tax Fact Sheet and the 1% for Air LOT.

The cities of Hailey, Ketchum and Sun Valley voters passed ballot measures in 2014 (Sun Valley 2013) which added a second local option tax, generally referred to as “1% for Air”, which, in Hailey, taxes only rental cars and short-term/hotel room rentals. (Ketchum and Sun Valley tax additional items). All three cities renewed the ballot measure in 2017. (83% in Sun Valley; 74% in Ketchum and 76% in Hailey).

The Hailey City Council has prepared a ballot measure that will ask voters if they wish to split the existing “1% for Air” tax, with 0.5% of the tax dedicated to housing for Hailey citizens and workers who are housing-burdened and 0.5% of the tax dedicated to maintaining and increasing commercial air service and related marketing. No new tax would be imposed.

Click here to read the full Hailey Local Option Tax Fact Sheet