Local retailers feel pinch of fewer Canadians

Whitefish’s resort tax collections were down by about $18,400 in December.

City Manager Chuck Stearns attributes the drop of about 9 percent to fewer Canadians visiting Whitefish during the month.

“I think U.S. summer tourism will be good with low gas prices, but it may be a tight winter, especially for retail vendors,” he said.

Retail collections were especially down in December, making up most of the decrease in collections when compared with last year. They saw 15 percent decrease or about $16,000 less in collections.

Canada’s dollar, the loonie, is currently worth 72 cents against the U.S. dollar, the lowest it’s been in 10 years. That combined with a drop in the Canadian oil market likely is having an impact on the businesses south of the border.

Fewer people came into Montana through the Port of Rooseville north of Eureka in December, at about 18,626 people. This compares with December 2014 when 25,549 people passed through the border.

The city’s 3 percent tax is collected at restaurants and bars, retail shops and lodging establishments. The tax increased from 2 to 3 percent in July to back the Haskill Basin Conservation easement.

The total dollar amount collected in December, which includes the additional 1 percent, increased by $73,483.

Since July the resort tax collections have fluctuated when compared with 2014. Collections were almost even in July, then dropped in August only to rebound with increased collections in September, October and November, before dipping again in December.

Subtracting out the increase in the dollar amount from the additional 1 percent, from July to December overall collections were down by $4,500.

The total dollar amount collected from July to December, which includes the additional 1 percent, was $1.9 million. For the same period in 2014 when the tax was just 2 percent, the city collected a total of $1.29 million.

Collections from the tax, in addition to the conservation easement, are used for street reconstruction, property-tax rebates for city property owners and for city parks.