Sun Valley Co. v. City of Sun Valley

DONALDSON, Chief Justice.

In 1978, the Idaho legislature enacted the “City Property Tax Alternatives Act of 1978” I.C. § 50-1043 et seq.1 (the Act). The purpose of the Act, set out in the original legislation, was to remove from property owners the burden of providing tax dollars for those non-resident services provided by resort communities.

Pursuant to the Act, the City of Sun Valley (the City) passed Ordinance # 123. This ordinance imposed a 5% tax on hotel and motel rooms and liquor by the drink and was approved by the City voters on December 15, 1978. Since the tax was limited to a…