Whitefish is examining whether to shift the tax relief that is distributed from the resort tax it collects on certain goods and services purchased in the city.  

City Council has held discussions about changing the structure of the relief that goes to property owners and will continue during a work session on Monday at 5:30 p.m. at City Hall, 418 E. Second St. Previous talks were put on hold until changes to the state’s property tax system were realized following the 2025 Montana Legislature.  

Council meets for the regular meeting at 7:10 p.m., which includes two public hearings and a vote on purchasing an aerial ladder fire truck.  

Whitefish provides 25% of resort tax collections to property tax relief for residential and commercial properties. State law requires a minimum of 5%. 

All property owners receive the same percentage, but previous discussions by Council have centered on whether there is a more equitable way to provide relief to full-time residents. The system has been in place since the tax was approved in 1995, and at the time was a selling point leading to the tax’s approval.   

“Circumstances in Whitefish have changed since 1995, such as increased development and growth, more second homeowners, and significant increases in property values,” City Manager Dana Smith said in a memo. 

Several options are up for consideration.  

One option would be to provide the minimum 5% of relief to all property owners and then take the 20% and refund it to taxpayers whose primary residence is within the city limits in an equal amount for all properties regardless of value. 

A second option would be to direct a percentage to primary residence property taxpayers and a percentage to the community housing fund to assist with the workforce rental assistance program.    

A third option would be to allocate the 20% of property tax relief on a flat rate basis to all property taxpayers, both residential and commercial.    

A fourth option would be to reduce the 25% to a lower percentage and allocate funds to other categories where tax funds are spent, since all residents receive the value through usage of those services.    

The resort tax is a 3% tax collected on “luxury” retail sales, lodging, at restaurants and for prepared food and alcoholic beverages.   

Any changes would require voter approval. Unless a special election is held, the next opportunity to put an item on the ballot is November 2026.  

FOLLOWING A public hearing at the regular meeting, a resolution establishing a new fee schedule for public records requests is set for a vote. The Montana Legislature in 2025 passed a bill that limits the city to only charging $25 per hour for gathering, reviewing, processing and providing information in response to a public records request.  

An update to Whitefish’s impact fees is set for a public hearing and subsequent vote by Council to incorporate changes to state law. Impact fees for parks, paved trails and City Hall will be eliminated, as will a 5% administrative fee.  

On Monday, Fire Chief Cole Hadley will present a request to proceed with the purchase of an aerial ladder truck from Pierce Manufacturing. The cost for the truck is $1.8 million with a delivery timeline of about three years.  

Whitefish does not have a ladder truck, which limits aerial firefighting and rescue capabilities, according to Hadley. The purchase of such a truck has become a critical infrastructure priority for the department.   

“As multi-story commercial and residential development increases, this capability gap poses a growing risk to life safety and property protection,” Hadley says in a memo. “Aerial apparatus also provides significant advantages for ventilation, elevated master streams and rescue operations that engines cannot provide.” 

Deputy Editor Heidi Desch may be reached at 758-4421 or [email protected].