2025 Local Option Tax Ballot Measure

On November 4, 2025, Victor voters will decide whether to approve an 8% Local Option Sales Tax on room occupancy charge on lodging stays thirty days or less for the next 25 years. The ballot initiative would add 2% to the existing Local Option Tax of 6%, which is currently set to expire on July 1, 2036. If approved, the measure would extend the sunset date to July 1, 2050, maintaining the tax for an additional 14 years beyond its current expiration.

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What is a Local Option Sales Tax?

In Idaho, with a 60% majority vote, citizens in resort cities (population no greater than 10,000) may implement local option taxes, with revenue to be spent on a particular purpose or purposes. These types of taxes are labeled as non-property taxes, as revenue is not derived from the taxing of property. Victor’s current lodging tax is one example of a local option or “resort city” tax, and Victor voters have approved a 6% lodging tax in the past.

Where would the money go?

Revenue from the proposed 8% Lodging tax can be used for:

• Capital projects;
• Improvement, maintenance, and beautification of public infrastructure
• Streets and associated infrastructure, and transportation
• Pathways, parks,
• Water, and sewer;
• Snow removal for streets, downtown sidewalks, pathways, and safe routes to school;
• Associated land acquisition; associated equipment;
• Visitor services and promotion;
• Law enforcement and public safety;
• Affordable and work force housing;
• To implement the goals and objectives of the City’s Comprehensive Plan and Transportation Plan as adopted by the City Council;
• and the Property Tax Relief Fund

How has Victor used the LOT in the past five years?

Victor has leveraged LOT dollars to initiate projects that otherwise would not be possible for the city to undertake. Additionally, Victor has been able to fund the street department at the necessary level to ensure adequate street maintenance and enhanced snow removal. The LOT pays nearly half the costs associated with maintenance of city streets every year. Since 2020, Victor’s Local Option Tax (LOT) has generated funds that stay local and directly benefit our community. Here’s where those dollars have gone:

• Streets & Equipment – $1.76 million
  LOT has been the backbone of Victor’s Street maintenance, helping to fund snow plows, sweepers, dump trucks, and crosswalk safety signs. These investments keep our roads safer and better maintained year-round, even during the toughest winters.
• Facilities & Administration – $717,000
  LOT revenues have supported major community infrastructure, including the City Hall buildout and a new Public Works Facility. Administrative support ensures projects are well managed and that Victor can plan for the future.
• Affordable Housing – $436,000
  LOT funds have been used to support housing affordability by offsetting fees, funding Teton County Joint Housing Authority, and investing in workforce housing projects in Victor.
• Parks & Recreation – $321,000
  From maintaining beloved parks to adding new signage, equipment, and event support, LOT helps make sure Victor’s outdoor spaces remain safe, welcoming, and vibrant.
• Law Enforcement – $238,000
  A portion of LOT funds goes to public safety by supporting contracted law enforcement services, helping to keep Victor a safe place to live, work, and visit.

Victor implemented its Local Option Tax (LOT) in 2018 after a successful voter initiative. This measure introduced a 3% occupancy tax on lodging and short-term rentals, along with a 1% sales tax on liquor by the drink and all other sales. The initiative required a 60% majority to pass, and Victor voters approved the ballot question.

In 2021, Victor proposed an amendment to the Local Option Tax to increase the occupancy tax (lodging tax) to 6%. This initiative also required a 60% majority to pass. This measure extended the duration to July 1, 2036, and added language to allow for expenditures related to affordable and workforce housing and to implement the goals and objectives of the City's Comprehensive and Transportation Plans.

The LOT is designed to generate revenue primarily from visitors, with an estimated $6 paid by visitors for every $1 paid by a Victor resident. The funds are allocated to essential programs such as law enforcement, snow removal, streets and parks maintenance, capital projects, public infrastructure improvement and beautification, transportation, visitor services and promotion, and a property tax relief fund.

Idaho statute allows for certain cities with a population of less than 10,000 to implement a sales and/or lodging tax on purchases within the city limits.

This tax is sometimes called "Local Option Tax" because it must be approved by the cities' voters with a 60% approval rating for the tax to be implemented. The voters also determine what the funds can be used for. Any unallocated funds are placed in a property tax relief fund.

Other cities in Idaho with a lodging Local Option Tax:

Sandpoint: 14%

McCall: 7%

Hailey***: 4%

Ketchum: 3%

Sunvalley: 3%

Ponderay: 7%

Donnelly: 3%

Driggs: 6%

Salmon: 4%

Stanley**: 4%

Riggins: 2%

Kellog: 3.5%

Lava Hot Springs: 2%

**Plus $5/night

***On Ballot for Fall 2025 to increase to 6%