Columbia Falls approves 3% resort tax

Columbia Falls voters on Tuesday said yes to a 3% resort tax for their city. Final Flathead County primary election results from June 2 show 768 (53.41%) votes in favor of the tax and 670 (46.59%) against.

The Columbia Falls City Council recently decided that if the resort tax is approved, it would go into effect in October 2021 to provide a full year of economic recovery from the COVID-19 pandemic. The final effective date would be adopted by ordinance after the primary election, city officials said.

The city sees the resort tax as a way to pay for critical emergency services, such as fire and police, which have seen the volume of calls increase exponentially as more people visit Glacier National Park in the summer. Columbia Falls’ population has increased 28 percent since 2000.

Twenty-five percent of the new tax revenue would go back to city property owners in the form of a property tax rebate, similar to how the city of Whitefish handles its rebate to property owners within city limits.

According to city officials, “the resort tax option requires visitors to help pay for services and facilities they use, provides funding without increasing residents’ property taxes and provides property tax relief to city taxpayers.”

Based on an estimated $450,000 in annual resort tax collections, a property tax reduction of $51 would be applied to the property taxes on a $250,000 home. The $51 property tax reduction is the equivalent of spending $1,700 on items subject to the resort tax, according to a letter sent by the city to city residents.