Voters OK resort tax hike to fund Haskill deal

Whitefish voters were resounding in their approval of a resort tax hike to help fund a conservation easement in Haskill Basin.

About 84 percent of ballots cast in the special election were in favor of increasing the resort tax from 2 to 3 percent to back the $20.6 million land deal with F.H. Stoltze Land and Lumber Co.

There were 1,718 votes in support of the tax increase, and 334 votes against. Voter turnout was about 49 percent.

The 3,000 acre easement is aimed at protecting the Haskill watershed, which is the primary source of Whitefish’s drinking water.

City Manager Chuck Stearns said the city was confident the tax increase would pass, but didn’t expect it to do so by such a wide margin.

“It was pretty phenomenal,” he said. “I don’t know of any tax increase, that I’ve been involved with in 30 years, that has passed with over 80 percent support.”

Mayor John Muhlfeld said the landslide result is indicative of Whitefish’s values.

“Voters affirmed their commitment to clean water, open space and recreation,” Muhlfeld said. “I’m thrilled the voters supported the measure.”

“No one ever questioned the importance of the project or protecting our water supply. Those opposed only questioned how to pay for it. Overwhelmingly, most felt the resort tax increase was most equitable.”

The 1 percent increase is expected to raise nearly $8 million toward the total cost of the deal.

The Trust for Public Land has secured an option to purchase the development rights for the property from the Stoltze. The overall purchase was expected to cost $20.6 million, but Stoltze agreed to contribute $4 million to the project, while the Forest Service is expected to provide a $7 million grant, and a $2 million grant from the U.S. Fish and Wildlife Service also is expected.

“The work on the conservation easement is on-going and we hope it will be consummated in the next six to eight months,” Stearns said.

The tax increase will begin July 1 and sunset with the resort tax in 2025 unless extended. The tax is collected at restaurants and bars, retail and lodging in Whitefish.

Stearns has estimated the 1 percent increase to bring in about $1 million per year in additional funds.

“Each month we will look to see what we’re collecting, but we do that anyway,” Stearns said.

The city will obtain a general obligation bond from the Montana State Revolving Fund program to pay for its portion of the easement. Stearns said the loan will be tailored with a repayment schedule that will match the revenue being collected from the resort tax.