Resort-tax collections on upward spiral
LYNNETTE HINTZE | Hagadone News Network | UPDATED 13 years, 6 months AGO
Massive street reconstruction projects in Whitefish during September and October didn't hamper resort-tax collections.
For the month of September, resort-tax collections were up 10 percent over last year, and October figures show only a 1 percent decrease from 2010, according to city records.
During that time the city was in the throes of two major street projects: the Second Street (U.S. 93) rebuild through downtown and the next phase of reconstruction on Central Avenue. In addition, the demolition of Casey's Bar and construction of a new bar compounded street congestion.
Money collected from Whitefish's 2 percent tax on lodging, restaurants/bars and luxury retail items has been on an upward track over the past year. For the first four months of the city's fiscal year - July through October - collections were up 10.4 percent across the board from the same period last year.
The city also recently surpassed the $1 billion mark in total taxable goods and services since the tax began in February 1996.
To date Whitefish has collected $20.6 million, 65 percent of which has been used for street reconstruction such as the multiphase rebuild of Central Avenue. Twenty-five percent of resort-tax revenue goes to property-tax rebates for city residents; 5 percent is used for parks and the remaining 5 percent for administration.
If collections continue on an upward path, November and December also should be strong months. In November 2010 collections were up 20 percent and in December they jumped 22 percent.
Retail goods continue to bring in the most resort tax revenue.
For example, in August this year - one of the busiest months in the resort town - $106,860 was collected from the sale of retail goods while lodging facilities brought in $85,621 and restaurants/bars brought in $91,408. It was best August for collections since the tax began.
Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.
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