Resolution #2009-3 Distribution of Lodging Tax Proceeds to Local Governments

The state will end the current biennium on June 30, 2009 with a General Fund surplus estimated at $240 million. At the same time, cities, towns and counties across Montana are cutting services and programs, depleting reserves and running special levy elections to balance their budgets.

More than 70% of the Accommodations Tax revenue is collected from nonresident travelers who rely on local services during their time in Montana. This money, more than $12- million in FY-07, should be sent back to where it is collected to help pay for city services and to address the radical imbalance between state and local revenues.

Be it resolved that the League of Cities and Towns will arrange for the introduction of Legislation to allocate the revenue generated by the 3% added to the Accommodations Tax in 2003 to the cities, towns and counties where the money is collected.