“1% for Air” Local Option Tax as “Housing/Air”

Hailey is joining north valley cities in bringing a ballot measure to voters in May asking if they would like to reallocate the existing “1% for Air” Local Option Tax.  Hailey voters passed this dedicated 1% Local Option for Air tax in 2014 and again in 2020.  In Hailey, the 1% for Air tax applies only to hotels, motels, short term rentals and rental cars.  As such, it is considered a “tourist tax”.

Hailey voters have also approved a “Base Local Option Tax”, which is used for emergency services; maintenance, improvement and acquisition of parks; road repair, transportation enhancements and snow removal; city promotion, visitor information, special events and economic development; city improvements (library modernization, sidewalks, town square, etc.; public transit and related improvements; and administration costs of collecting the tax. Hailey’s “Base Local Option Tax” is taxed on hotels, motels, short term rentals, rental cars, restaurant food and liquor-by-the-drink.

While Hailey’s “1% for Air” tax does not expire until 2050, voters will be asked if they wish to re-apportion this tax.  There will be NO NEW TAX imposed.  The current 1% tax would be split 50/50, with 0.50% of the tax used for Hailey housing projects, and 0.50% of the tax remaining in preservation and support of air service.  This would create the first dedicated revenue stream in Hailey for local housing projects serving Hailey residents and workers.

• A strong, stable economy is maintained by investing in workforce housing/air/tourism
• NO NEW TAXES – 1% for Air reallocated to community needs = .5 for Housing, .5 for Air
• LOT is mainly a tourist tax: in Hailey, the majority of the “1% for Air LOT” is paid by visitors
• SUN Air Program has been successful and has provided more flight options/routes for locals/visitors, more year-round service
• If passed by the voters, Hailey will develop a specific plan for the housing funds that focus on providing long-term housing for Hailey residents and employees.
• If the ballot measure does not pass, the “1% for Air” tax in Hailey will remain in place until 2050.