Will This Resort Tax Backfire on Popular Small Montana Town?

This topic has been an ongoing debate in Montana for years, and we have seen more towns adopt this initiative.

Isn't it annoying to go to a place to eat, stay, or shop and find out when you are about to pay there are additional fees or taxes you didn't know about? You don't usually have to worry about things like in Montana because we don't have a sales tax.

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It's nice. If something is labeled $1, it's a $1. You don't have to worry about doing mental math to try and calculate how much your groceries or meals could be after tax has been added to the bill. It eases the mind.

Well, Montana might see some changes soon.

If you don't know, a few places in Montana have adopted a resort tax. This 2-3% tax is established in several places, including Big Sky, Whitefish, and others.

Why? These places see tourists yearly, and adding this tax helps fund infrastructure, local initiatives, and more in the towns. It's a relief for citizens who don't want to pass levies yearly for schools or other public problems.

Another Montana town that might adopt a resort tax is the popular destination Philipsburg.

NBC Montana reports that in 2024, residents will decide whether to add a 3 to 4% resort tax to certain goods and services in their area. Philipsburg has finally qualified to add a resort tax, and the money from it would help update the aging water and sewer systems.

Resort taxes can be tricky because they catch locals off guard and upset many tourists who weren't expecting additional costs. The upside is a lot of this money can help smaller communities that depend on tourism dollars every year, and the funds from the tax can help update towns for the better.

Montana has gone back and forth on whether or not we should add a sales tax, but there has always been significant pushback. If more towns or cities decide to adopt a resort tax, then Montana might have to make a hard decision.

For more details, check out NBC Montana.