City invites public feedback on draft Original Local Option Tax ballot language

Ketchum voters will consider renewing the city's Original Local Option Tax (LOT) during the Nov. 3 General Election after the Ketchum City Council approved proposed ballot language at its June 25 meeting. 

The Original LOT was first approved by Ketchum voters in 1978, is authorized under Idaho law for resort communities, and is set to expire Dec. 31, 2027. The tax is currently assessed at 2% on lodging, 2% on liquor-by-the-drink, and 1% on most retail sales, including building materials. Groceries and motor vehicle sales are exempt.  

Draft language that could appear on the November ballot, pending Council approval during three public hearings this summer: 

l the City of Ketchum, Idaho adopt Ordinance No. XXXX providing for renewal of the collection of a Local Option Tax for a period of fifteen years from its effective date with an increase of two (2) percent on all “short-term lodging” (30 days or less); one-half percent (.5) increase in “building materials”; and one-half percent (.5) increase in “retail goods” (not groceries)?   

The proposed increases outlined above will be solely dedicated to construction/repair/maintenance of streets, sidewalks, and pathways.   

The proposed measure asks voters whether to renew the city's existing Original LOT under the terms outlined in the draft ballot language. 

The result of the June 25 meeting marks the beginning of the city's public information efforts related to the measure. Over the coming months, the city will provide factual information about the Original LOT to answer frequently asked questions and host opportunities for residents to learn more before Election Day. 

"Our responsibility is to ensure residents have access to clear, factual information about the ballot measure so they can make informed decisions," Mayor Pete Prekeges said. "We encourage the community to review the ballot language, attend upcoming conversations, and ask questions throughout the process." 

Residents are invited to participate in several upcoming community engagement opportunities: 

• June 29: Community survey launches to gather residents' questions and identify topics for future educational materials. To take the survey, residents should click here. 
• July 7: Coffee Talk, 9:00 a.m. at Capstone Accounting & Tax 
• July 13: Community Conversation, 5:30 p.m. at City Hall 

The city will use feedback gathered through the survey and community events to help shape final ballot language and future educational resources throughout the election period. 

Residents can review the draft ballot language, learn how the Original LOT works, explore frequently asked questions, and stay informed about upcoming engagement opportunities at ketchumidaho.org/LOT. 

Original Local Option Tax at a glance 

• First approved by Ketchum voters in 1978 
• Applies to lodging, liquor-by-the-drink and most retail sales 
• Groceries and motor vehicles sales are exempt 
• General Election: Nov. 3, 2026 

Disclaimer 

This information is provided by the City of Ketchum to educate the public about the proposed ballot measure and election process. It is intended to provide factual information only and is not intended to advocate for or against the measure.