Lodging Local Option Tax

General Information
Location
216 E Park Street
McCall,
ID
83638

Hours
Office Hours Monday - Friday
8 am to 5 pm
National Holidays Observed
City Clerk
BessieJo Wagner
Deputy Clerk & Administrative Assistant
Shay Tyler
Local Option Tax Administrator
Amanda Payne
City Receptionist & Customer Service
Sarah Edson

The Fiscal Year 2022 Local Option Tax Funding Application Window Is Now Closed. 

Money collected from 3% of the Lodging tax is available each year for public purposes. Applications for the following fiscal year are available the first of March each year and are due by April 30th. To be approved, your application must meet one or more of the following public purposes:

      A.  Streets, sidewalks and pathways, public transit, pedestrian crosswalks, and public transportation

      B.  Construction and maintenance of cultural and recreational facilities

      C.  Services for community recreational and cultural activities

      D.  Public parks maintenance, development, and beautification

      E.  Shelter and/or spay and/or neuter of stray animals found in the City

      F.  Local housing program as recommended in the McCall Housing Strategy

      G.  Services for McCall marketing, advertising, tourism development, and event promotion

      H.  Mitigate the effects of tourism on the city that the general fund cannot accommodate       

If your application meets the above criteria, it will be presented before the 7 member Local Option Tax Commission who will consider all requests, determine funding amounts, and present an annual budget recommendation to the McCall City Council. Click here for frequently asked questions about the Local Option Tax grant funding. 

If you would like to see past projects that have been funded and funding amounts, take a look at our Funding Totals by Recipient data for 2005-2020.

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Click here to view the 2020 Lodging LOT Annual Report       

Click here to view the FY21 Lodging LOT Revenue Budget and Actuals

Lodging Local Option Tax Requirements

Description and Purpose/Use: In addition to the 3% Lodging Local Option Tax, all lodging within the McCall City limits is subject to the 1% sales tax and additional 3% streets tax (effective January 1, 2016 through December 31, 2026) for a total 7% sales tax. This includes all hotels, motels, bed and breakfasts and short-term rentals of homes, condos, etc. The money from the 3% Lodging Local Option Tax is received and then distributed to winning grant applicants for projects directly benefiting the quality of life and/or tourism in McCall. The 3% Lodging Local Option Tax went into effect January 1, 2019 and will remain in effect until December 31, 2028. 

Business License Requirements: By City Code Title 4.1.1, an active business license is required to operate a lodging establishment. Some property management companies qualify to hold the business license on behalf of the rental units they manage so your rental business may be covered by that property management company's business license. Any rental units managed by a management company that does not collect the taxes, it is the responsibility of the homeowner to hold the business license as well as collect and remit the taxes. Airbnb and VRBO do not qualify as a management company, so the homeowner is responsible for maintaining the business license. If there is uncertainty about who holds the business license, please contact the Clerk's office for verification.

Tax Collection: All lodging establishments must display a tax permit in each rental unit in view of their customers showing authorization to collect the Local Option Taxes. It is the responsibility of the owner of the lodging establishment to ensure the tax is being collected and remitted to the City of McCall. The tax can be paid either monthly, quarterly, or annually (fiscal year end September 30). Airbnb or VRBO and some property management/vacation rental companies collect and remit the taxes for the owner of the lodging establishment. It is up to the owner to make sure those taxes are being collected and remitted on their behalf otherwise it is the owner’s responsibility to remit. This includes taxes for renting outside of a listing or management company.

Land Use Code Requirements for Short-Term Rental Units: City Code Title 3.13.036 specifies additional requirements of short-term rentals and a posting of those rules is required at each unit in view of the renters. A sample Short-Term Rental Guidelines Form for posting in each unit is available for use. Any short-term rental unit with occupancy less than 20 persons, must provide the Declaration of Compliance form for Short Term Rentals for each unit with the business license application. If the short-term rental unit’s maximum occupancy is 20 or more persons, a Conditional Use Permit is required prior to obtaining a business license and tax permit. For questions regarding the land use requirements, contact the City Planner.

Local Option Tax Commission 

The Local Option Tax Commission is responsible for making recommendations to the City Council for the use of the revenues collected under the Local Option Tax. The Commission has the responsibility of considering all requests made for the use of such funds and presents an annual budget recommendation to the McCall City Council.