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Council considers sales tax vote in November
Idaho

Council considers sales tax vote in November


SANDPOINT – When Mayor Jeremy Grimm ran for Sandpoint’s top leadership position last year, one of his core priorities was simple: fixing Sandpoint’s streets.

Now he is just one step away from presenting a solution to voters in November.

“Local authorities need basic infrastructure,” Grimm said in an interview with the Daily Bee on August 22. “The ongoing costs of turning a blind eye to it only exacerbate the problem. We cannot put off the problem.”

Grimm’s proposed measure to improve the condition of Sandpoint’s roads – a local sales tax with a 25-year term – surfaced before a council meeting in early August. For the measure to take effect, council members must agree before Sept. 6 to put it on the November ballot, where it will need the support of 60% of voters.

In recent weeks, the initiative has split into two main variants. One option is a year-round 1% tax on local retail sales; the other is a 2% tax from June to September, targeting tourists from other cities during Sandpoint’s peak season.

Both will bring the city “about the same amount,” said Grimm.

To emphasize the importance of road maintenance, Grimm cited a pavement analysis conducted by the city in August 2020.

The analysis found that Sandpoint’s roads scored 61 on the Pavement Condition Index, at the lower end of the national average of 60-65.

Importantly, the report also found that 21% of Sandpoint’s roads were rated poor or very poor. According to Holly Ellis, the city’s public works director, “that’s double the national average.”

While several city councilors expressed support for putting a possible street maintenance solution before voters in November, some also expressed concerns about the feasibility of the measure.

“I think we really run the risk of it not being approved if we make it too complex,” said City Councilman Kyle Schreiber.

City Councilor Joel Aispuro cited the rising costs of food and other consumer goods as another problem.

“I think we all know that life with inflation is hard,” Aispuro said. “I know that with four children, it’s very expensive to go to the supermarket.”

“What I like about it is that people have a choice,” Aispuro added of the tax option.

According to Grimm, grocery sales are the largest contributor to retail sales tax in Sandpoint.

A tax on food and other essential goods such as clothing would place an additional burden on low-income citizens – an unfortunate truth that has not escaped the mayor.

“It disproportionately affects lower-income households,” Grimm said of the tax at a council meeting on August 21.

Grimm said there are few other ways for Sandpoint to raise the funds needed for a large-scale road construction project. He believes a sales tax is the only way to achieve that goal.

“I’m not saying I’m in favor of this tax,” he told city councilors on August 7. “Unless there’s a solution like this, I don’t see a way to fix our streets.”

Council President Deb Ruehle expressed concern about the tax burden on low-income residents and its potential long-term impact on Sandpoint’s demographics.

“I think 25 years is an awfully long time,” Ruehle said at the Aug. 7 meeting. “I want us to look at the bigger picture of all the city’s problems, not just one problem.”

Ruehle added that a funding initiative could be better targeted at measures to curb rising living costs, such as creating incentives for developers to create affordable housing, “so that in 25 years we don’t turn into a city that has great streets for a lot of telecommuters and a lot of rich retirees.”

If the initiative is to bear fruit, time is of the essence.

The deadline to submit a measure to appear on the Nov. 5 ballot is Sept. 6. The upcoming Sept. 4 meeting will be the city councilors’ last regular meeting before the deadline and possibly their last chance to vote on a sales tax on the ballot.

In addition, Idaho Code dictates that Sandpoint can only levy a local option tax due to its status as a “resort town” with fewer than 10,000 residents. That status will almost certainly expire by the 2030 census, eliminating the possibility of a long-term tax unless it is codified before the population threshold is reached.

However, that six-year window is not guaranteed. According to Grimm, local option tax laws are constantly changing.

“Every year, the state legislature discusses legislation on holiday resorts,” Grimm told the Daily Bee. “Basically, it is uncertain what effect this legislation will have in the future.”

“We know that this option is available to us right now,” Grimm added. “I want to offer voters this option as a solution to the problem we are facing.”

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