Lodging Local Option Tax
The Fiscal Year 2025 Local Option Tax Funding Application is now available. Applications are due by 5:00pm, April 30, 2024. You can complete the application by clicking here.
Thank you for your interest in Local Option Tax funding. Please note that in order to complete the application you will need copies of your W-9, last year's profit and loss statement, and your state of Idaho Business Entity Registration. All Applications must meet one or more of the categories listed below to be eligible for funding. If eligible, you will have an opportunity in May (date to be determined) to present your project to the Local Option Tax Commission before they make funding recommendations.
There will be a minor change this year to how grant money is recommended for funding. Due to the shortfall in revenue collected in FY2023 and the anticipated shortfall for FY2024, City Council, with the help of the LOT Commission, have decided on the following budget and funding matrix. The budget is set at $900,000. 65%, or $585,000 will go toward city projects, to be distributed by City Council. The remaining 35%, or $315,000, will be allotted to community projects based on eligibility of the applicant's request and award amounts determined by the LOT Commission. This will ensure that everyone who is awarded grant funds will receive them.
Money collected from 3% of the Lodging tax is available yearly for public purposes. Applications for the following fiscal year are available on 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 2005-2021.
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Click Here to view the FY24 Lodging LOT Revenue Budget and Actuals | .jpg) Click the Fiscal Year to view project funding recommendations that year: FY2023 - Click Here FY2022 - Click Here FY2021 - Click Here FY2020 - Click Here FY2019 - Click Here |
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 (Click Here to view code), an active business license (Click Here for 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 (Click Here to view code) 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 (click here) 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 (Click Here) 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 (Click Here) 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 (Click Here for commission information) 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.
