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Committee looks for business owners to oversee voluntary tourism contribution

by Jasmine LINABARYBigfork Eagle
| October 15, 2009 11:00 PM

Those that spearheaded the voluntary tourism tax in Bigfork are looking to hand off their efforts to a group of business owners.

The Bigfork Enhancement Contribution had its trial run this summer, as many local merchants and businesses opted to either pay a flat fee of $250 for the year or add on a 1 percent voluntary tax on bills to their customers. The money raised goes to promote Bigfork as a whole.

This program went into place after efforts to pursue a resort tax in Bigfork were unsuccessful. A subcommittee of the Bigfork Steering Committee had been tasked at looking into resort taxes.

They discovered that because Bigfork is not incorporated as a city, it would become impractical to do so, said Cheryl Richmond, chair of the subcommittee and owner of the Sleeping Bear Lodge.

The problem with the resort tax is that only the people within the boundaries of a created tax district can vote on the tax and the amount of money brought in by tourists has to exceed the amount of money the people in that district's boundaries make.

Creating a fair district that the state would accept became a problem, Richmond said.

If Bigfork was incorporated, it would not have to income match.

The subcommittee started exploring other ways to raise money to better Bigfork.

At a May meeting, local merchants and businesses decided to give a voluntary tourism charge, currently called the Bigfork Enhancement Contribution, a chance.

Richmond is the only business owner on the committee now, but the group is looking to turn over the work to a committee of business owners which they will provide support for.

That new committee or board may eventually separate from the Bigfork Steering Committee and become its own non-profit.

The subcommittee is currently looking for members for that group.

The summer trial period demonstrated the system could work, Richmond said, and that history will give the program momentum.

The Sleeping Bear Lodge and Bridge Street Cottages both collected the 1 percent over the summer.

Both put a sign up about the contribution at their front desks.

"We didn't have anybody ask to have it removed," Richmond said. "Most people were supportive and had a very positive attitude."

Bridge Street Cottages has had only one person ask for the 1 percent voluntary contribution to be removed, Richmond said.

The amount collected by individual businesses who do the 1 percent tax is kept confidential as it also reflects the business' total earnings, Richmond said.

The number of businesses that contributed the flat fee is yet to be determined, as many fees are still coming in or being followed up on, Richmond said.

This means the subcommittee is still working to determine the year's preliminary numbers, but Richmond could confirm that they have more than enough money to follow their contribution plan. This includes giving $1,000 to promote Tamarack Time!, a few thousand dollars for Christmas and Valentine's Day, and $1,000 for Mother's Day.

The group is working on a draft letter to Bigfork Area Chamber of Commerce members and the Bigfork Retail Merchants Association to explain the money's use and the program itself.

Other merchants have already been asking their customers what effect it would have on them if they were to add a 1 percent voluntary contribution, Richmond said. Overwhelmingly, customers have said it wouldn't change their spending habits, she said.

For more information or to get involved in the new committee, contact Richmond at montana.cheryl@gmail.com.