Adjustments made to resort tax and sign ordinances

The Whitefish City Council last week approved changes to the resort tax administrative ordinance, updating taxable items and establishing penalties for late fees.

Whitefish City Manager Dana Smith said the resort tax ordinance needed to be amended after voters in August approved extending the tax for 25 years, as well as changes in its allocation. The list of items subject to the tax and exempt from the tax was updated and revisions were made to the ordinance regarding penalties for failure to report resort taxes. 

The voter-approved uses of resort tax revenue include 25% for property tax relief and 48% for the repair, maintenance and improvement of streets, including underground utilities, sidewalks, curbs and gutters. 

Ten percent is for community housing initiatives, 10% for upkeep of bike and pedestrian paths, 2% will go to the Whitefish Trail and 5% to merchants’ administration. 

Smith said goods and services that are subject to or exempt from the resort tax have been based on interpretations by the city manager since July 2011.  

“The Resort Tax Monitoring Committee has reviewed this ordinance and there was some discussion about boats but they were supportive of keeping it as a taxable item,” Smith said. “We already have for taxability jet skis (and) snowmobiles. It would fall under that same type of use.” 

Revisions were made to the penalties for failure to remit or report resort taxes. The city will now give a 30-day grace period. A $50 late fee will be assessed if payment is not received in 30 days. The late fee will increase to $100, with continued failure to pay. 

“Staff ... researched what other penalties and late fees communities [with a resort tax] have ... and we are the only community that I found that has no penalty or late fee,” Smith said. “We have an interest rate, if you haven’t paid your taxes, which is very low and doesn’t encourage individuals to pay timely.” 

Other communities charge late fees anywhere from $30 to $500 per month. 

“It’s very important to know that this resort tax is collected from the customers and we are letting the merchants keep 5% to administer this," Smith said. “So we’re expecting that they remit the 95% of what they collected timely to the city.” 

The council voted unanimously to approve the amendments after agreeing to make pet food exempt from resort tax. 

WHITEFISH CITY PLANNER David Taylor presented some changes to city code regarding bulletin boards, flag clearances, A-frame sign standards downtown and park monument signs. 

One change allows 12-square-foot bulletin boards outside restaurants, bars and lounges, and grocery stores to help advertise upcoming events. The height of allowable flags over streets and sidewalks was clarified in the code so the clearance height is measured from the lowest point of a slack hanging flag to the ground surface.  

“Currently, we don't allow A-frame signs with individually changeable letters.” Taylor said. “Magnetic letters are much better than the kind that are plastic and slide in that the wind tends to blow away.” 

One A-frame sign per storefront street-level entrance is allowed. There must be 4 feet of clearance around the sign for people to pass, and the sign must be placed within 15 feet of the entrance.  

The maximum size of park monument signs was increased.  

The Community Development Board heard the sign ordinance item last month, there was no public comment and the board voted unanimously to recommend the amendments.  

“To me, it just seems like an aesthetic thing,” Councilor Steve Qunell said during a discussion of magnetic lettering. “Interchangeable is fine as long as they’re secured.” 

The council voted to allow magnetic lettering and approved the other changes unanimously. 

THE CITY and the Department of Natural Resources and Conservation came to a supplemental agreement for the license between the City and Burlington Northern Santa Fe and for a permanent easement.  

The agreement makes the proposed bridge over the Whiteish River possible and the subsequent connection of the bicycle and pedestrian trail to the BNSF loop trail. 

“This amendment does include about a 40- or 50-foot piece on Miles Avenue that will connect the sidewalk along Miles Avenue to the GNSF Loop Trail,” Workman said. 

The original license for a bicycle/pedestrian walkway, or the BNSF Loop Trail, was made in 2005 and had a 25-year term. The new agreement comes with a new annual rent which is almost $9,000 more than the old rent. 

"Again, this was originally negotiated ... almost 20 years ago,” Whitefish City Attorney Angela Jacobs said. “I don’t know that it’s a substantial increase, given what we’re actually getting, which is a trail connection ... and a bridge.” 

The council voted unanimously to approve the agreement. 

Deputy Mayor Frank Sweeney sat in for the absent Mayor John Muhlfeld. Councilor Andy Feury was also absent.