2017 a record year for Whitefish resort tax

Resort-tax revenue in Whitefish increased by more than a quarter-million dollars for the 2017 calendar year, with a whopping 22.6 percent increase in August collections leading a banner year for the 3 percent tax.

Tax collections on lodging, bar and restaurant food and drinks and “luxury” retail items totaled $3.86 million last year, compared to just over $3.6 million in 2016.

Since the resort tax began in February 1996, the tax has been collected on a staggering $1.745 billion in total taxable sales through December 2017, according to data provided by Whitefish Finance Director Dana Smith.

Voters overwhelmingly approved a 1 percent increase to the 2 percent tax in 2015 to help purchase a permanent conservation easement on 3,000 acres in the Haskill Basin to protect the city’s water supply. Whitefish began collecting a 3 percent tax on July 1, 2015.

The additional 1 percent has generated roughly $3.5 million, of which 70 percent is earmarked for the easement purchase and 20 percent to property tax rebates. Five percent is kept by business owners to cover the costs of administering the tax.

June through September — the summer visitor season — are the biggest months for resort-tax collections.

In August 2017 the city collected $671,711, up from $547,516 in 2016.

July 2017 collections were down 4 percent, however, posting at $478,399 last July compared to $498,610 in 2016.

April, the shoulder season month when the ski season is over and summer is still a ways away, is the slowest month for resort tax collections. April 2017 yielded $177,087 in collections, while April 2016 brought in $171,643.

Through the years, the sales of retail items have brought in the most revenue — 44 percent of the total tax collections, with bars and restaurants at 38 percent and lodging at 19 percent.

The cumulative total of tax collections now stands at $38.2 million, which includes the 5 percent administration allocation.

Revenue from the original 2 percent resort tax is split four ways, with 65 percent going to street reconstruction, 25 percent to property tax relief for city residents, 5 percent for park improvements and 5 percent to administer the tax.

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