The Resort Tax, Title 7, chapter 6, part 15, MCA, has been an economic blessing for those resort areas that qualify under the limited definitions. The reality is all cities and towns would equally benefit from having a similar type of local sales tax on defined goods and services. Many cities and towns are being burdened with impacts from growth and economic development.
Municipalities, especially those with robust tourist industry or those impacted by natural resource development, need the option to have an additional revenue source that targets the activity causing the impact. A local impact tax, imposed optionally by local government, would meet this need and ease the burden on local property taxpayers. A local impact tax could easily be based upon the models of the Resort Tax and the state sales tax (Title 15, chapter 68, part 1, MCA) on accommodations and rental cars.
MLCT will sponsor creation of a local impact tax option that is available to all municipalities.