Local Option Tax (LOT)

Pursuant to Chapter 10 of Title 50 of the Idaho Statutes, the City of Ketchum imposes a local option tax (LOT) on retail sales within the City of Ketchum. The LOT is applicable to sales of tangible personal property where delivery takes place within the City of Ketchum. The LOT excludes sales of groceries and motor vehicles.  The LOT is in addition to the Idaho state sales tax of 6%. 

The LOT money remains in Ketchum and is invested in a wide range of City services and economic development initiatives that benefit local residents and businesses in accordance with the allowable uses approved by voters. Those uses include: municipal transportation, open space acquisition and recreation, capital improvements, emergency services, city promotion, visitor information and special events, property tax relief, and direct costs to collect or enforce the tax.  

• The current City of Ketchum Local Option Tax Ordinance No. 712 was passed by 87% voter approval on November 20, 1997, authorizing the collection of local option taxes as provided for under Title 50, Chapter 10, Idaho Code.
• On November 8, 2011, Ordinance No. 1090 was passed by 73% voter approval, amending Ordinance 712, to provide for an additional fifteen (15) years through December 31, 2027. 
• Separately, on November 5, 2013, the voters approved Ordinance No. 1108 to provide the imposition and collection of a supplemental 1%, for the period of five (5) years, to January 1, 2019, to support air service development and marketing efforts.
• On May 16, 2017, Ordinance No. 1166 was passed to provide an additional five (5) years of the supplemental 1% LOT to January 1, 2023. The funds generated from this additional 1% are transferred to the Sun Valley Air Service Board. 
• On May 16, 2023, voters approved Ordinance No. 1244 amending Ordinance No. 1166 resulting in:
  • The extension of the existing 1% local option non-property tax for a period of five years from its effective date of July 1, 2023.
  • Half of the one percent to be allocated for the ongoing purpose of preservation and support of air service.
  • Half of the one percent to be allocated solely for the purpose of preservation and creation of community housing.

Effective January 1, 2014 the City of Ketchum tax rates are as follows:

3% (0.03) on room sales (including short-term rentals of less than 30 days)
3% (0.03) on liquor-by-the drink sales
2% (0.02) on other retail sales, including building materials (groceries and motor vehicles are exempt)

If you have questions about applying for a City Sales Tax Permit, payments or amounts owed on your tax account or reports of any account changes and/or closures, including filing frequency, send an email to taxes@ketchumidaho.org or give us a call.

If you'd like to apply for a City Sales Tax Permit, please click here. 

Please Note: Property owners renting short-term rentals through on-line marketplaces do not need to remit taxes to the City of Ketchum. Those platforms have an obligation to collect, report and remit LOT for such rentals to the City. If you have questions concerning your specific situation, please call or email the City.