Idaho State Tax Commission

Idaho State Tax Commission

City of Ketchum Local Option Sales Tax

What is the City of Ketchum local option sales tax?

It’s a sales tax that is charged only on sales within the City of Ketchum or on sales where delivery takes place within the City of Ketchum. The tax is authorized by Ketchum Ordinance No. 712.

How much is the City of Ketchum local option sales tax?

The local option tax is:

  • 3% (0.03) on room sales
  • 3% (0.03) on liquor by-the-drink sales
  • 2% (0.02) on other retail sales, including building materials (this doesn’t include groceries or motor vehicles registered in Idaho)

Does the City of Ketchum local option sales tax take the place of the state sales tax?

No. It doesn’t take the place of the state sales tax. It’s in addition to the 6% state sales tax.

When is the tax in effect?

The City of Ketchum local option tax went into effect in 1985, and the current Ordinance No. 712 was passed in 1997.

Who administers the tax?

The City of Ketchum has contracted with the Idaho State Tax Commission to administer and enforce the tax for filing periods beginning January 1, 2014. The December 2013 tax return will be the last return filed with the City of Ketchum clerk’s office.

What businesses must register to collect the City of Ketchum local option sales tax?

All businesses with a retail location within the Ketchum city limits must register and collect the tax. Other retailers who must collect the tax include those who own property or a stock of goods in the City of Ketchum, businesses that have in-city agents or employees who take orders and make sales, and those who make deliveries into the city with their vehicles or staff.

If my business needs to collect the tax, how do I register?

The Idaho State Tax Commission will automatically register any retailer who is currently registered with the City to collect the tax and will send the retailer a permit for each business location. The Tax Commission also sent registration materials to retailers with out-of-city and out-of-state mailing addresses so they can register if they determine they’re required to collect the tax.

If you need to register, complete this application and mail it in. If you have any questions, please contact us.

How do I pay the tax I collect?

After you’re registered, you’ll receive the tax returns required for reporting and paying the tax. The returns will correspond with the filing cycle of your current Idaho sales tax returns. You can send one payment by check to the Tax Commission for both taxes and include both returns in the same envelope. You can also e-pay at tax.idaho.gov/epay.

Will I be able to e-file my City of Ketchum return?

You won’t have the option of e-filing at this time.

What is a temporary seller’s permit?

Temporary sales tax permits are a type of seller’s permit that allows an individual or business to make infrequent retail sales in the City of Ketchum. You can get a temporary seller’s permit online at tax.idaho.gov/tsp1. These permits include a simple form to report sales and submit the sales tax you collect from your customers. They are designed for one-time events such as concerts, fund-raisers, and bazaars. You can send the Tax Commission one payment check for sales tax collected under both your City of Ketchum and state temporary seller’s permits.

How does the City of Ketchum local option sales tax apply to contractors?

See our Contractors and Ketchum Sales Tax page.

Whom do I contact if I have questions?

If you have questions about registration, payments, or amounts owed on your tax account, call the Idaho State Tax Commission at 334-7660 in the Boise area or toll free at (800) 972-7660 beginning January 1, 2014. For questions before that date, contact Kathleen Schwartzenberger with the City of Ketchum at (208) 726-3841.

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Last updated Jan. 14, 2014