When a possible Resort Tax was announced that would raise upward of $100,000 for Kellogg to pave their streets, residents rejoiced when they found out it wouldn't cost them anything straight out of pocket.

While those residents were rejoicing, the handful of resort owners in Kellogg were seething at the thought of being the only ones responsible for raising the capital to increase the street maintenance budget.

Resort owners believe the steep 7 percent tax on out-of-towners who come to Kellogg for recreation or a vacation will simply take their business down the freeway to Wallace or Coeur d'Alene, where they can stay without the Resort Tax.

"Our biggest concern is job loss. If our business is being taken to Coeur d'Alene or Wallace because it's cheaper to stay there without the tax, then it's going to force us to let some of our employees go because we won't be as busy," said Alex Hart, the general manager at the GuestHouse. "If we don't have as many guests, it affects all of the surrounding businesses. We try to buy locally, but we'll have to cut back on our expenses with this.

"It's going to have an economic impact on the entire Silver Valley if every hotel in Kellogg suddenly loses its tourism."

Francine Bartley, of Kellogg Vacation Homes, agreed that the 7 percent tax - which combined with state and federal taxes makes for a 15 percent tax on all stays in Kellogg - is going to be prohibitive toward business.

"Everyone is just waiting for us to pass this tax so they can advertise their 7 percent savings. There isn't a very long drive for people to go to save 7 percent," she said.

"I don't know any business that wouldn't fight like mad if you would levy this much of a tax against them. We're not making a huge profit as it is, and now we need to find 7 percent to send to the city?"

Resort owners are extremely dissatisfied with the way they were told about the possible Resort Tax. They were given one month of notice, and were told that the tax is going to be exorbitantly high when compared to the other nine Resort Taxes in the state. The highest current Resort Tax is in Sandpoint at 5 percent. The nine current Resort Taxes average just 2.6 percent, or nearly one-third of what Kellogg has proposed.

"They gave us a 30-day notice that our businesses were under attack. I think the whole thing is absurd," Bartley said. "This is 40 percent higher than any other tax in the state of Idaho."

Another concern of the resort managers is that Kellogg isn't a prototypical "destination city," and that most of the tourism and vacation traffic is generated locally on day trips, rather than longer vacations. Of the 10 cities that can pass this ordinance, which is for cities that rely on tourism for their revenue and have a population of less than 10,000 people, Kellogg is the only one that is connected to an interstate highway.

Stan Edwards, who runs the Silverhorn Motor Inn, said that the bulk of his guests stay for just a night, and are passing through en route to a larger destination.

"I can tell you for a fact - we only had two rooms in the last three years that were rented for an extended period of time while people were here. The rest of our business comes from off of the freeway or people who are staying here for work. But if they're here for work, they'll just stay somewhere without the tax," he said.

"We're trying to get people to come here, and now we are going to keep them away. Fifteen percent might work in a real resort town, but half the time people who sign in ask what town they are in. Our ski area is a day-ski resort. People come from Coeur d'Alene or Spokane for the day and go home."

Hart also believed that Kellogg didn't fit the definition of a resort city, and should not be subject to the increased taxes.

"A lot of tourists just bypass us," he said. "We're not really a destination, we're a freeway passerby, and we're afraid they'll just pass Kellogg right on by because they'll have that option.

"It's interesting to note that this tax has never been passed by a city on the freeway. It was only passed by real destinations. Places people need to know about before they wind up there for the night," he added.

With the economy continuing to flounder, and the country in a perilous state financially, many believe it is poor timing for the City Council to spring a tax on businesses that are already struggling. By implementing the tax, Kellogg has essentially put the onus of fixing the city's roads on the tourism industry, specifically the lodging industry.

Jeff Colburn, the GM of Silver Mountain Resort, said now is not the time to be increasing taxes in the Silver Valley.

"If we have a drop in occupancy, we'll have to adjust our business model and there could be cutbacks," he said. "Now is not the time to add a tax. The economy is tough and everyone is struggling - including the lodging owners in the Valley. They are struggling just like everyone else and now they're getting a tax thrown on top of them."

The resort owners will also be at the City Council meeting at 6 p.m. Thursday voicing their opinions, and are encouraging residents to vote against the Resort Tax on Nov. 8. They fear that if the tax is passed, Kellogg will become just another town that is passed by on the interstate, and that it will economically cripple the city.

"We just don't want people to vote for the tax without realizing the bigger picture that this could hurt a lot of people," Hart said. "This will have an economic impact not only on our employees, but in the Valley. The Valley is already shrinking; is it really right to put a bunch of businesses out of business?"