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Plans for creation of a resort tax put on hold

by Alex Strickland
| March 18, 2009 11:00 PM

It appears any possibility of instituting a resort tax in Bigfork is off the table for the time being, while a few community members investigate the possibility of changes to state law concerning creation of tax districts.

Cheryl Richmond, head of the Resort Tax Committee and owner of the Sleeping Bear Lodge in Bigfork, told the Bigfork Steering Committee last Thursday that because of state statute governing the creation of a tax district in unincorporated areas, Bigfork was currently not much of a candidate.

"(The boundary) ended up looking like a snake," she said. "Which is ridiculous because you can't vote on it unless you live inside the boundaries."

There is a requirement related to the ratio of residents' income versus the amount a tax would generate, which seriously crimps attempts to draw a map in largely well-to-do Bigfork.

A similar regulation existed for incorporated towns, Richmond said, until a bill passed on behalf of Whitefish did away with it a few years ago.

But Richmond did present one possible alternative, which is used in Whitefish in addition to the town's 2 percent resort tax. It is called a Tourism Promotion Assessment, and is a voluntary 1 percent assessment that would be pooled in a fund for improvements and marketing to bring tourists to Bigfork.

Richmond said that in Whitefish it only applies to food and lodging, while other businesses can pay a yearly fee to be part of the group and included in promotions and advertising, but wouldn't be limited to those commodities.

"You can pretty much do whatever you want with it because it's not a tax, it's voluntary," she said.

A small paid staff could oversee the collection and bookkeeping and a committee could be formed to decide how to spend the money, Richmond said. Both of those ideas were also culled from Whitefish.

Some ideas for spending the cash — estimates show that Bigfork could raise about $100,000 a year if all retailers participated — also came from Whitefish. Richmond said money there has been spent on advertising and the hiring of a professional public relations firm, which has helped get the town publicity in national outlets.

Richmond presented the idea to the Bigfork Connection, a group of downtown merchants who hold weekly meetings, and said she got an overwhelmingly positive response.

Customers would also have the option to decline paying the 1 percent addition, since it is voluntary.

Doug Averill proposed a more immediate infusion of cash into Bigfork's tourism infrastructure, saying business owners and other prominent, generous citizens should be invited to a cocktail party and implore them to cough up a few bucks to help polish the Village before the busy season.

"Basically a call to Bigfork to say, 'Hey folks, it's time to help your town,'" he said. "I'm concerned a voluntary assessment would narrow down to just six or eight properties participating and it would just fade away."

A single event would also end with "cash in hand" instead of a long lead-in time, and Averill contended that Bigfork needs its own stimulus package to spruce up signs and other projects.

"When you go through it, Bigfork doesn't grab you that this is a special place anymore," he said. "We need a stimulus plan for Bigfork."