Montana House Bill HB370

Montana 2023 Regular Session

• Introduced: 1/31/23
• Refer: 1/31/23

Caption

Revise resort tax eligibility and allow use for workforce housing

Impact

If passed, HB 370 would revise the tax code related to resort taxes, particularly sections defining the parameters under which these taxes are imposed and the types of projects that may be funded. The modification to allow the use of tax revenue for workforce housing is seen as crucial in addressing housing shortages that affect the availability of labor in these regions. Local governments in resort districts would have greater flexibility in how they utilize tax revenues to address pressing community needs.

Summary

House Bill 370 aims to amend existing resort tax laws to allow the utilization of additional resort tax revenue for workforce housing projects. Specifically, the bill proposes that an additional resort tax levy of up to 1% can be imposed, which would need to be approved by voters in the respective resort communities or areas. This change is motivated by a growing need for affordable workforce housing in resort areas that rely heavily on the tourism and hospitality sectors.

Contention

While the bill is expected to garner support from those advocating for affordable housing solutions, it may face opposition based on concerns regarding the imposition of additional taxes and the potential burden on local businesses. Critics may argue that raising the tax rate even marginally could deter tourism or impact the financial viability of small businesses in resort areas. The requirement for a public vote on the tax increase adds another layer of complexity, as it may lead to significant political debate within the communities affected.