City to add staff member to collect tax and assist businesses

BONNERS FERRY — The City Council has approved hiring a business and tax support clerk to help businesses and to collect a local option tax that goes into effect next month. The position was approved at the June 6 meeting.

The LOT, which goes into effect July 1, adds a 1% tax on all sales in the city up to $1,000 for 10 years. The money collected will go to funding the city’s police, streets and fire departments as well as property tax relief while covering the general budget’s shortfall. The shortfall stems from an Idaho Supreme Court decision that states cities must fund the general department from revenue and taxpayers.

The proposal was criticized by Chris Clark, a resident and small business owner, who spoke against hiring someone to enforce the tax. He said the hiring added to the city’s bureaucracy and that he was against the growing government.

Clark told the council that many community members wanted the city to eliminate positions with the shortfall in mind, rather than add employees. Clark also expressed concern about the added work the tax could put onto local businesses and small vendors.

City administrator Lisa Ailport said that with her time at the city, local government hasn’t grown even as the area of service has expanded due to the staff’s efficiency.

“There comes a time when you really start looking at the number of hours your salaried staff is working and if it’s not reasonably equated to a 40-hour work week, you need to be thinking of adding staff,” she said.

She said in regards to Clark's statement of businesses needing assistance and guidance to make sure they are in compliance that is what the new staff position aims to do.

She added the tax dollars collected would be due monthly to the city unless the Idaho Tax Commission allows the business to pay the tax quarterly at another interval.

If the city receives extra revenue than predicted, the extra monies will go to keep the levy rate low, she said.

The new clerk position is uncharted territory since the city is not sure how much time it will take to collect the local option tax and how much assistance city businesses would need in order to be in compliance, Ailport said. The new employee would assist businesses with paying the tax and any paperwork necessary for collecting it.

From talking with other Idaho cities that have passed a local option tax, it was suggested that one clerk be assigned the duty of collecting the tax since there are a lot of unknowns and work upfront, Ailport said.

The council unanimously approved the new clerk position and for the job to expire when the tax does in December 2033. The job would pay between $18-$22 and include benefits.

Ailport said the city would likely hire an existing employee, which would open a regular clerk position. When not assisting with business and tax support, the new clerk position will assist with answering phones and other duties for that office.

Also at the June 6 meeting, the council held a public hearing to allow testimony for the sale of Eileen Road property as the property is underutilized or not used for public purposes. The council ruled to sell the property in order to cover a part of this year’s general budget shortfall.

No member of the public spoke during this time and the city council set the date for public auction of the property.

The property includes 12.69 acres and will go to public auction. The live-action bids will open Wednesday, Aug. 23, with a minimum bid of $250,000 at the Bonners Ferry City Hall.

The LOT will cover the annual shortfall, but it is not known how much will be collected for the current fiscal year.