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Monday, August 27, 2007

Idaho City Looks to Drink Tax to Get Tourists to Pay for Community Projects

The city of Sandpoint, Idaho, is considering a 2 percent tax on all alcohol sold by the drink so that tourists visiting the community help pay for projects.

Under Idaho law, resort communities with less than 10,000 residents can authorize local hotel, alcohol and sales taxes. Sandpoint has a 5 percent bed tax, which has generated $874,571 for the city in five years.

Local politicians are pushing the drink tax as a method of tax relief for local residents. However, both tourists and locals will pay the drink tax. A renewal of the hotel tax and the new drink tax will be on the ballot during elections on Nov. 6.

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