More than 10 million tourists visit Montana each year. They exert heavy pressure on the local services and facilities that are financed primarily by property taxes and assessments. These travelers spend nearly $2-billion annually in Montana, but not one drop of this flood of money ends up in the treasury of most cities and towns in Montana.
The League of Cities and Towns has supported option tax authority for more than 20 years because the members believe that local voters are qualified to decide the type and amount of taxes they will pay. Cities have also seen the remarkable and measurable benefits of local tourist taxes in West Yellowstone, Whitefish and other selected cities and towns.
Be it resolved that the League of Cities and Towns will support legislation to allow cities, towns and counties to enact local tourist taxes through initiative or referendum.
Be it further resolved the League recommends that the bill include the following provisions:
a. mandatory voter approval
b. enactment by cities, towns, counties and consolidated governments
c. local discretion of the rate of the tax up to 4%
d. an amount not to exceed 20% distributed on a per capita basis in five regions of the state
e. not less than 30% of the amount remaining with the enacting jurisdiction for property tax reduction
f. list of taxable items includes lodging facilities and campgrounds, prepared meals, alcoholic beverages sold by the drink and rentals of automobiles, boats, snowmobiles, off- highway and other vehicles used for travel and recreation g. collection by local government
h. up to 2% for vendor allowances
i. mandatory sunset after 10 years.
