Thursday, July 12, 2012

Report: New Sun Valley Local-Option Tax Being Proposed For Airline Payola

Posted By on Thu, Jul 12, 2012 at 9:15 AM

A Wood River Valley coalition is considering a new tax to grow and maintain air service to Sun Valley, Kethcum and Hailey.

The Idaho Mountain Express reports that Fly Sun Valley Alliance is mulling a 1 percent local-option tax "to ensure continued and expanded commercial air service." According to alliance president Eric Seder, the LOT would be in effect for approximately five years and would be used to fund minimum revenue guarantees to airlines to mitigate the carriers' losses when business is slow.

Seder told the Mountain Express that "cities and other stakeholders are in the process of hashing out a joint powers agreement" for administering the tax.

Seder said he expects to make a formal presentation to each of the Wood River's city councils, beginning Monday, July 16.

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