Resolution #3 Accommodations Tax Distribution

Each year, about 12 million tourists and other travelers come to Montana. These visitors spend nearly $1.5 billion annually. They exert heavy pressure on local governments, and with the exception of fuel tax distributions, they pay nothing for police, fire, emergency medical, streets, roads and other services and facilities they use in Montana.

The state imposes a 7% tax on accommodations, but the money goes to the general fund or for travel promotion. The League has argued for many years that cities should receive a fair distribution of bed tax revenues to cover the cost of services provided to nonresident visitors.

Be it resolved that the League will arrange for the introduction of Legislation to distribute 3% of the accommodations tax to the local governments where it is collected to cover the cost of the services and facilities that make Montana an attractive destination for tourists.

Be it further resolved that the League will support a voter approved local option lodging tax not to exceed 3%.

Montana League of Cities and Towns   *  208 N. Montana Avenue - Suite 201 Helena, Montana 59601  *  406 442-8768
P.O. Box 1704 *  Helena, Montana 59624-1704   E-mail: mlct@mt.net