Local Option Sales Tax, a new iteration of an old story came before the House Government Committee. Resort communities, including Whitefish and Columbia Falls have found this tax to be very helpful in securing their infrastructure needs. Soon, the Big Mountain area will have their own 3% Resort Tax. Kalispell can’t even consider it with the population restrictions.
Now comes House Bill 489, carried by Rep. Greg Oblander, a Republican from Billings. This is different in that the sales tax could only be applied to tourism-focused items, such as outfitting, guide services, bar and restaurant purchases. Oblander argues that a solution to affordability won’t be coming from internal mechanics…
“ We all know that property tax-wise, as that teeter-totter gets shifted, we give a benefit to one taxpayer, it shuffles to the other side and those taxpayers end up paying more,” Oblander said. “This is designed to not do that.”
Last time this idea hit the Legislature, Sen. Christopher Pope of Bozeman couldn’t even get it out of committee. This time, with property taxes climbing, the idea’s time may have finally come.
Critics, however, say if this bill is passed, the door would be closed to all future attempts at a general state sales tax. Brad Griffin, president of the Montana Retail Association, used a similar situation in Alaska as an example.
“Alaska allowed their local communities to pass local option taxes,” Griffin said. “And then when the legislature wanted to adopt a statewide sales tax, those cities were the number one opponents to a statewide sales tax because it would mess up their revenue stream.”
Several outfitters indicate they don’t like the idea of placing sales taxes on their operations.
