Sandpoint residents will vote on a proposed local option sales tax during the November 3, 2026, general election. The ballot measure asks voters whether the city should adopt a 1 percent tax dedicated to repairing streets and improving transportation infrastructure.
Tax Structure and Timeline
If approved by the electorate, the new tax would take effect on January 1, 2027, and remain in place through December 31, 2036. The measure establishes a specific allocation for the revenue generated after collection and administrative costs are deducted.
Seventy-five percent of the net proceeds would be directed toward street maintenance and reconstruction. The remaining 25 percent would fund sidewalks, pedestrian crossings, bicycle facilities, pathways, trails, and other transportation connections within the city limits.
Ponderay, a neighboring community in Bonner County, currently operates a similar 1 percent local option sales tax. According to data from the Idaho State Tax Commission, 22 other communities across Idaho have also secured voter approval for local option taxes.
Infrastructure Needs and Funding Gaps
City officials point to significant infrastructure deficits as the primary driver for the ballot question. A Pavement Condition Study conducted in 2020 examined approximately 51 miles of Sandpoint streets. That assessment yielded an average condition score of 61 out of 100.
The study found that 21 percent of the city’s street network was rated as “poor” or “very poor.” Those figures are now six years old, suggesting conditions may have deteriorated further since the last comprehensive evaluation.
Sandpoint’s Multimodal Transportation Master Plan identified more than $100 million in transportation needs over a 20-year period. Under current funding levels, the city can rebuild roughly one or two blocks of roadway each year. Officials note that existing revenue streams are legally restricted or already committed to other essential services.
Water and sewer payments must support those specific utility systems. Other municipal funds are designated for police protection, fire services, and park maintenance. The proposed tax would create a dedicated revenue stream separate from these constrained budgets.
Previous Ballot Effort
This is not the first time Sandpoint voters have considered this measure. A similar question appeared on the ballot in November 2024. That proposal received support from more than half of those who voted but failed to reach the 60 percent threshold required for passage under Idaho law.
The higher approval bar means the city must secure a supermajority to implement the tax, even if a simple majority favors the measure. City leaders are hoping that updated data and continued infrastructure challenges will drive stronger support this cycle.
Project Selection Process
Approval of the tax does not guarantee repairs to any specific street or neighborhood. Project selection would be based on multiple factors, including pavement condition, safety concerns, drainage issues, utility work coordination, project readiness, and available funding.
Taxable sales records indicate that revenue tends to increase during busier tourist months, which could provide a buffer against seasonal fluctuations in spending needs. However, the long-term sustainability of the tax depends on continued economic activity in the region.
What Happens If Voters Reject the Measure
If voters decline to approve the local option tax, road work would continue using existing funds, available grants, and future budget decisions. The city would not face an immediate halt to maintenance activities, but the pace of reconstruction would likely remain limited to one or two blocks annually.
Sandpoint Mayor Jeremy Grimm has served in that role since 2024. Prior to his mayoral tenure, Grimm worked as Sandpoint’s city planner from 2007 to 2015. He currently owns and operates Whiskey Rock Planning + Consulting, a land use planning firm.
The mayor authored an article explaining the ballot question ahead of the election, outlining the revenue structure, infrastructure needs, and funding constraints that prompted the measure. Voters will have the final say on whether Sandpoint joins the growing list of Idaho communities using local option taxes to address transportation deficits.