Wildfires burn resort tax collections in August

Resort tax collections were down in the month of August for the city compared with August 2014.

Collects were down 11 percent compared with August of 2014. That’s works out to almost $36,000.

City Manager Chuck Stearns attributes the drop to a decrease in lodging collections, which were down 25 percent or $24,000.

“It would appear that the partial closure of the Going-to-the-Sun Road for two and a half weeks in late July and early August may have caused some lodging cancellations and affected other resort tax collections,” he said.

During the month of August, resort tax collections totaled $428,000. Because of the 1 percent increase in the resort tax that went into effect in July, the city actually took in more in resort tax dollars this August than the previous year. The city took in an additional $143,000 as a result of the increase.

For the fiscal year to date, which includes July and August, collections were down by 5.86 percent or $36,000 compared to last year at the same time. July collections were down about $900 when compared with the previous year.

The 3 percent tax is collected at restaurants and bars, retail shops and lodging establishments. Collections from the tax are used for street reconstruction, property-tax rebates for city property owners, for city parks and to fund the city’s contribution for a conservation easement in Haskill Basin.