Starting July 1, Whitefish's resort tax will increase 1 percent as a result of a vote of city taxpayers last April. Corin Cates-Carney spoke with the town’s Mayor about the need for the tax bump.The estimated $10 million generated by raising the resort tax from 2 to 3 percent will fund the city’s continued access to its municipal water supply in the Haskill Basin.
Whitefish Mayor John Muhlfeld says after looking at different ways to pay for the water supply, this was the city's best option.
"The city council ultimately decided that the most equitable option was an increase in the resort tax. Because we felt that the 500,000 visitors that come to whitefish annually should help pitch in for the protection of our water supply and that burden shouldn’t be placed solely on the taxpayers in Whitefish."
Muhlfeld says the tax is small enough not to discourage tourists from choosing Whitefish as a destination and is still effective in bringing revenue for city improvement.
“One can just drive through town to see how we have reaped the benefits of this tax over the years.”
Muhlfeld says some of the $10 million will go back to Whitefish taxpayers by way of property tax relief.
The resort tax is not likely to get any higher because Muhlfeld says Montana law caps local option taxes at 3 percent.