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.