Resort Tax Increases One Percent in Whitefish – Looks to Protect Watershed and Relieve Property Taxes
Visitors to a northern Montana ski destination are going to be paying a little more for lodging and other items today as its resort tax increases.
"Whitefish years ago adopted a local option sales tax. By state law, that tax can go up to three percent. We adopted a two percent resort tax approximately 20 years ago," Whitefish Mayor John Muhlfeld said. "We went to a ballot measure this past fall for an increase to three percent to help fund a conservation easement to permanently protect our water supply in the Haskill Basin Watershed. That special ballot initiative was overwhelming approved by voters by an 84 percent margin."
As a return, Mayor Muhlfeld is expecting to see $10 million back.
"A portion of that will be used to pay for the conservation easement. About 25 percent of the revenue will also go back for property tax relief to keep taxes down in Whitefish, similar to the current two percent that also sets aside 25 percent of the gross revenues to property tax relief," Muhlfeld said. "And then five percent is retained with [other] administrative services."
Muhlfeld sayid Whitefish is now at a three percent tax cap wherein this one percentage point will carry the city through 2025, when the resort tax will go back for voter approval.