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Resort tax collections soar

LYNNETTE HINTZE | Hagadone News Network | UPDATED 12 years, 2 months AGO
by LYNNETTE HINTZE
Daily Inter Lake | September 15, 2012 9:30 PM

Whitefish resort tax collections in July were up 14 percent over last July, another indication of a rebounding local economy.

The month’s collection of $281,807 was the city’s second-largest ever. The monthly record of $293,814 was set in July 2008.

“July is historically our second-largest month of collections, so this increase for a large month is even better news,” Whitefish City Manager Chuck Stearns said in his latest report to the City Council. “Lodging itself was up 27 percent.”

Collections also were up significantly in May this year. May collections of $147,194 were 40 percent more than last May’s $104,788.

Collections were down in June, though, when the Flathead Valley endured the wettest June on record. For June 2012 the city collected $176,460, down 5 percent from June 2011 when $185,838 was collected.

City records show a very good 2012 overall. Resort tax collections were up 3 percent in January, 8 percent in February, 7 percent in March and an impressive 21 percent in April, typically one of the slowest months of the shoulder season.

August numbers won’t be out for another couple of weeks.

Since the 2 percent tax began in 1996, Whitefish has collected nearly $21 million to use for street and park projects and property tax relief.

Retail goods have produced the biggest share of tax revenue, bringing in $9.4 million, while bars and restaurants have contributed more than $7.7 million and the tax on lodging facilities has totaled close to $3.7 million.

Sixty-five percent of resort tax revenue is used for street reconstruction such as the recently completed multiphase rebuild of Central Avenue. Twenty-five percent of resort-tax revenue goes to property-tax rebates for city residents.

Five percent is used for parks and the remaining 5 percent for administration.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.

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