County commissioners narrowly passed a resolution Monday to send a proposal to raise the sales tax an additional 1 percent to November’s general election ballot.

In a 3-2 vote, the Teton County Board of Commissioners passed the resolution, with Andy Schwartz, Ben Ellis and Hank Phibbs in favor and Leland Christensen and Paul Vogelheim opposed. It was Vogelheim’s first vote as a county commissioner.

To make it on the ballot, the measure must also be approved by the Town Council.

The resolution was sent to the Jackson Town Council for a vote during its Monday night meeting, but that board was not scheduled to decide until late.

The commission had approved the resolution earlier this month, but it failed to make it to the ballot because of a 2-2 vote with the Town Council.

The three commissioners in favor of the resolution said an additional 1 percent could fund operations and infrastructure for START, fire and emergency medical services, affordable housing and capital projects. If approved, collection would begin April 1.

Teton County shoppers are charged 6 cents on every dollar spent on goods other than groceries and exempt items such as ski lift tickets and newspapers. The first, state-mandated 4 cents of tax generates about $13 million for local coffers, after the state takes a cut. The fifth cent, an optional tax voters approved years ago for general fund expenditures, is projected to generate $10.5 million this fiscal year. The sixth cent also is voter-imposed and funds projects approved during the specific purpose excise tax election, held every few years.

In Teton Village, voters approved an additional cent earlier this year to fund a parking lot project to bring that total to 8 cents.

Commissioners said they wanted at least to put the measure on the ballot and let voters decide.

“The only reason to do it right now is because of the incredible revenue shortfalls that we have in those specific programs,” Ellis said.

People are left behind at stops because START bus routes are full and volunteers are responding slower to fire and emergency situations, he said.

Phibbs said the money could provide an income stream to build affordable housing, particularly for “critical” workers such as law-enforcement employees and emergency responders.

If the town approves, the two boards would sign a memorandum of understanding to earmark the revenues for the four uses.

Otherwise, the tax can be used just as general revenues are allowed to be used.

Christensen said he thinks there are better options, such as creating a fire district or another penny of specific purpose excise tax.
“We’ve not maximized the ability of SPET,” he said.

That would let voters pick what to spend money on and set their own priorities, he said. A memorandum of understanding does not contain such specifics, he said.

Further, Christensen said the amount of revenue for the county — about $6 million annually — is not that significant.

“It’s just too wide open,” he said.

Schwartz said a controversial lodging tax is an option, but the only other viable source is a real estate transfer tax, which needs approval from the state Legislature first.

Schwartz said the difference between this tax and utilizing another penny of specific purpose excise tax is that SPET money can fund only infrastructure and not operations.

The county cannot continue funding increased operational costs with its current revenues, he said.

“SPET won’t help us,” Schwartz said.

Ellis said increasing revenues from sales tax may enable commissioners to lower property taxes.

A fire district would only increase the property tax burden, Phibbs said.