The housing situation we grapple with is not just a Wood River Valley problem. Many resort communities across the US are dealing with the high cost of workforce housing. Local businesses and services will continue to struggle if we don't begin to address the problem. Our collective quality of life that we all enjoy will decline over time. There is no easy solution. It will take the community, local government and businesses all working together to make an impact. Thankfully all parties in the valley are showing a willingness to come together. 

The current proposal is to address these issues is a suite of ballot measures in Hailey, Ketchum and Sun Valley. These measures will ask voters to reallocate the existing 1% for AIR to 1% for Housing and Air.

It is a tax reallocation, not a tax increase. 

Please vote YES for Housing and Air.

1%

Balancing

for a stronger
Wood River Valley

Overview

  • The Yes for Housing and Air campaign encourages voters in Sun Valley, Ketchum, and Hailey to approve ballot measures that will renew the existing 1% Local Option Tax (LOT) for Air.

  • The ballot measures will split the tax revenue between workforce housing initiatives (0.5%) and air service support (0.5%).

  • In Sun Valley and Ketchum, this LOT will renew for another five years. If approved in Hailey, it will replace the existing LOT for Air, which runs until 2050.

  • These ballot measures require 60% approval to be enacted.

Ketchum

Ballot sample and city ordinance

Sun Valley

Ballot sample and city ordinance

Hailey

Ballot sample and city ordinance

The 1% LOT for AIR is a tourist tax.

  • Visitors account for over 75% of the revenue generated by the 1% LOT for AIR.

  • In Ketchum and Sun Valley, the 1% LOT for AIR is levied on all taxable items including lodging, restaurants, retail, recreation/lift tickets, liquor by the drink, and building materials.

  • In Hailey, the 1% LOT for AIR is levied only on lodging and rental cars. 

  • Groceries and gas are exempt.

Reallocating half the proceeds from the 1% LOT for AIR will result in NO NEW TAX burden.

  • If the ballot measures are approved, the same LOT revenue will be collected by the cities—it will just be allocated differently than before. 

Reallocating half of the proceeds from the 1% LOT for AIR will free up funds to address the local workforce housing crisis.

  • If approved, the proposed ballot measures will redirect half of the tax revenue from the 1% LOT for AIR to workforce housing initiatives across the Wood River Valley, effective July 1, 2023.

  • This is not a new tax; it is simply a reallocation of revenues from the existing 1% tax. No tax increases will result from the passage of these ballot measures.

  • Based on revenues from the current 1% LOT for AIR, it is projected that a 0.5% reallocation of funds could generate the following amounts annually for workforce housing:

    • Ketchum: $1,480,485

    • Sun Valley: $541,306

    • Hailey: $78,578 

  • These funds will be managed individually by the cities to support workforce housing projects and/or partnerships within their purview. 

    • Ketchum:

      • Leverage publicly-owned land and partnerships to develop community housing

      • Preserve existing housing for locals, modeled after peer resort efforts

      • Maximize LOT funds with other private and state/federal resources 

    • Sun Valley: support affordable housing purposes (Ordinances 572 [Air] and 573 [Housing])

    • Hailey: 2023 Housing Action Plan will guide next steps, including the creation of a robust process with the community to determine direction

The 1% LOT for AIR program has been successful for our community.

  • Since 2014, the 1% LOT for AIR has provided the resources to expand air service and improve flight reliability at Friedman Memorial Airport. It has had a significant positive impact on our economy and the quality of life for local residents. 

  • Our community now enjoys improved convenience with more flights to more destinations – from three to six nonstop routes – and more year-round air service.

  • Although we still need funds to preserve air service at Friedman Memorial Airport (SUN), we can renew the 1% LOT for AIR and reduce it to 0.5% without compromising air service support for our community or visitors.

  • At 0.5% renewal rate in Ketchum, Sun Valley, and Hailey, the tax will generate a projected $2 million for air service support annually. These funds are allocated by the Sun Valley Air Service Board and are dedicated to: 

Key Dates

  • Early Voting – May 1 to 12 at the Blaine County Courthouse in Hailey. M-F from 8am to 5pm

  • Election Day – May 16 at your regular polling location

  • Absentee voting (vote by mail) is available. However you must be registered to vote at least 30 days before the election (April 19), and you must request your mail-in ballot at least 11 days prior to the election (May 5) and return the ballot by May 16.
    For more information, go here.