Resort tax surges in August
Resort tax collections for the month of August took a huge jump this summer.
Collections were up 27.7 percent, which amounted to an increase of $118,794. The total amount collected for the month of August was $547,000.
“August is our second largest resort tax collection month of the year, so a 27.7 percent increase is incredible,” City Manager Chuck Stearns said.
Lodging increases made up $78,000 of that increase.
The 3 percent tax is collected at restaurants and bars, retail shops and lodging establishments.
Stearns attributed the increase in lodging collections to the two new hotels and other vacation rentals in Whitefish. The Hampton Inn opened this spring on Highway 93 South and the Firebrand Hotel opened in August in downtown.
“All three categories saw increases indicating increases in the derivative spending from people staying in the lodging,” Stearns said. “The 100 year anniversary of the National Park Service and Glacier National Park setting visitation records would also have a big effect on our increased collections.”
In August, 736,868 people came to Glacier, making it the second-busiest month in park history.
However, while there was an increase for August 2016, collections in August 2015 were actually down compared to the previous year as the result of area wildfires and the partial closure of the Going-to-the-Sun Road in Glacier in late July and early August. August 2015 collections were down 11 percent compared with August 2014.
For August this year, resort tax collections for bars and restaurants for the month of August were up $16,000 and retail collections were up $24,000.
For the year-to-date after two months of collections for fiscal year 2017, collections are up 17.66 percent or $157,021 ahead of last year’s collections.
Collections from the tax are used for street reconstruction, property-tax rebates for city property owners, for city parks and a conservation easement in Haskill Basin.
Since the tax began in 1996, the city has collected almost $33 million.