Revise definition of infrastructure for resort tax
Summary
HB 162 revises Montana law governing resort tax districts by expanding the definition of “infrastructure” to include workforce and community housing projects. Under current resort tax law, resort communities and resort area districts may levy a resort tax for infrastructure-related purposes; this bill makes clear that certain housing projects can qualify as infrastructure and therefore be funded with those revenues. The bill also adds a new provision allowing an additional resort tax levy of up to 1% for infrastructure funding, subject to voter approval through the existing election petition or resolution process.
The bill further limits use of the new additional levy in one respect: a resort community that exceeds the population cap for a resort community may not impose the extra levy unless it was established before January 1, 2025. It also includes coordination language with Senate Bill No. 172, specifying that if both bills pass, certain overlapping amendments in SB 172 are void and HB 162’s version of the affected statutes controls. The act takes effect immediately upon passage and approval.
Impact
HB 162 amends section 7-6-1501, MCA, and conditionally affects section 7-6-1503, MCA, changing how resort tax revenues may be used in resort communities and resort area districts. The practical effect is to authorize local resort-tax-funded support for workforce and community housing projects, alongside traditional infrastructure such as water, sewer, roads, public safety, and utilities. It also creates a new optional 1% resort tax levy dedicated to infrastructure, while preserving existing resort tax collection rules for lodging, food service, bars, and certain recreational facilities.
Sentiment
The bill appears to have broad support overall, passing committee and floor votes in both chambers with comfortable margins, though not unanimously. House and Senate votes show some opposition at each stage, indicating that while the concept of expanding resort-tax uses to housing and infrastructure was generally accepted, it was not entirely without concern. The final concurrence votes suggest the Legislature ultimately favored the measure and its immediate implementation.
Contention
The main point of contention is the expansion of “infrastructure” to include workforce and community housing projects, which broadens the uses of resort tax revenue beyond traditional physical infrastructure. Another likely issue is the new additional 1% resort tax levy, especially the population-based limitation that excludes some larger resort communities unless they were established before January 1, 2025. The bill’s coordination clause with Senate Bill No. 172 also suggests legislative concern about overlapping amendments and which version of the law should control if both measures became law.