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Ponderay 1% Local Option Tax

JACK FREEMAN | Hagadone News Network | UPDATED 1 month, 2 weeks AGO
by JACK FREEMAN
| October 18, 2025 1:00 AM

The city of Ponderay is pursuing a 1% local option sales tax that would be in effect for the next 10 years. The city said that the revenue generated from the sales tax would be used to fund numerous city projects. 

Those projects include continued development of the lakeshore access and railroad underpass project, the Field of Dreams, designating an additional $500,000 to maintain and improve streets and covering administrative costs. 

In addition to supporting the continued construction of the Field of Dreams project, the local option tax revenue would also go toward an endowment fund for maintenance of the facility. The city would designate $1 million to the endowment and allow interest to accrue until it reached a $2 million value. 

Thie city said that this would allow the facility to be maintained for years to come and alleviate the taxpayer burden for the facility. 

The local option tax would exclude lodging after a local option tax on lodging was passed in the May 20 election. Ponderay residents voted in favor of an option tax in 2019, which expired in 2024. The city said that option tax generated $15.6 million over the 5-year period that it was in effect. Any sales greater than $999 would be exempt from the local option tax. 

Ponderay had a local option tax on the ballot in November 2024, which voters rejected. This initiative needs a 60% majority to pass.

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