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City of Ponderay proposes hotel tax

Residents in the northern Idaho town of Ponderay are set to vote on a proposed 5-percent bed tax for short-term motel and hotel visits.

The Bonner County Daily Bee reports that if it’s approved on Nov. 2, the tax would raise an estimated $170,000 in its first year. Mayor Carol Kunzeman says the money would be used to repair roads and make other improvements to transportation infrastructure and recreational amenities.

Local merchants have opposed the bed tax proposal, saying it would drive away customers and create an impression that goods and services cost more in the city.

Voters in the nearby city of Sandpoint approved a similar 5% bed tax in 2002.

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