Revise lodging tax allocation related to property tax relief
HB 916 revises how Montana lodging tax revenue is distributed, with the stated purpose of funding property tax assistance for primary residences. The bill amends several statutes governing the lodging facility use tax and the accommodations/campgrounds tax to redirect a portion of those receipts into a new state property tax assistance account, while also preserving or adjusting existing allocations for tourism promotion, the Montana Heritage Center, historic preservation grants, state parks, invasive species, tribal economic development, historical interpretation, and domestic violence/human trafficking emergency lodging.
The bill also updates the allocation formulas in 15-65-121 and 15-68-820 to reflect the new property tax assistance set-aside and to modify percentages flowing to the general fund, the Department of Commerce, regional tourism corporations, and other recipients. It amends the statutes governing the Montana Heritage Center construction and operations accounts and the historic preservation grant program account to align them with the revised revenue streams. The bill includes a $50,000 general fund appropriation to the Department of Revenue to implement Senate Bill No. 90, and it is contingent on SB 90 becoming law. The act would take effect July 1, 2025, and apply to accommodations and campground sales on or after that date.
The overall sentiment in the available record appears neutral to mildly supportive of the bill’s policy goal, but the bill did not advance. The only recorded vote was a 21-0 House Taxation motion to table the bill, indicating unanimous committee agreement to set it aside rather than move it forward. The final status shows it died in process.
The main point of contention appears to have been the reallocation of lodging tax revenue away from existing uses and toward property tax relief. Because the bill shifts money among multiple beneficiaries—tourism entities, heritage and preservation programs, state parks, and other accounts—interests tied to those programs could view the proposal as reducing or destabilizing their funding. At the same time, supporters likely viewed the measure as a way to use tourism-related tax revenue to provide broad-based property tax assistance for homeowners, especially primary residences.
HB 916 would amend Montana’s lodging tax distribution statutes, primarily 15-65-121 and 15-68-820, to create or fund a state property tax assistance account using a share of lodging tax receipts. It would also revise the statutory percentages and destinations for lodging tax revenue, affecting the general fund, tourism promotion, historic preservation, the Montana Heritage Center, state parks, invasive species funding, tribal economic development, and emergency lodging assistance. The bill further updates related account statutes in 22-3-1303, 22-3-1304, and 22-3-1307 to conform to the new revenue allocations, and it includes a contingent appropriation for implementation tied to Senate Bill No. 90.
The bill’s stated purpose suggests a pro-tax-relief sentiment, but the legislative record shows no momentum toward enactment. The House Taxation Committee voted 21-0 to table the bill, and the bill ultimately died in process. That vote pattern suggests the committee was not prepared to advance the proposal, even though there is no recorded opposition testimony in the materials provided.
The likely contention centered on whether lodging tax revenue should be redirected from existing tourism, heritage, and cultural programs to property tax assistance. Entities that currently receive lodging tax allocations—such as the Department of Commerce tourism programs, regional nonprofit tourism corporations, the Montana Heritage Center, historic preservation grant recipients, state parks, and related accounts—would be affected by the proposed redistribution. Supporters would likely emphasize homeowner property tax relief funded by visitors, while opponents or skeptics would be concerned about reducing stable funding for tourism promotion and other established uses.