Montana's House Bill 916, introduced on March 28, 2025, aims to reshape the state's tourism funding landscape by reallocating tax proceeds to bolster regional tourism initiatives and support the Montana Heritage Center. The bill proposes a new distribution model for tax revenues generated from tourism, with a significant 68.5% earmarked for the Department of Commerce to enhance tourism efforts statewide.

Key provisions include a 24% allocation to regional nonprofit tourism corporations, distributed based on the proportion of proceeds collected in each region. Notably, if a region's annual proceeds exceed $35,000, half of the excess will be directed to local convention and visitors bureaus, ensuring that communities directly benefit from increased tourism revenue.

The bill also establishes dedicated accounts for the construction and operation of the Montana Heritage Center, emphasizing the state's commitment to preserving its cultural heritage while promoting tourism. This dual focus on heritage and tourism is expected to stimulate local economies and enhance visitor experiences.

However, the bill has sparked debates among lawmakers and stakeholders. Critics argue that the reallocation could divert essential funds from other public services, while supporters highlight the potential for job creation and economic growth through enhanced tourism initiatives. Experts suggest that if passed, HB 916 could significantly impact Montana's tourism sector, potentially increasing visitor numbers and revenue.

As the legislative session progresses, the bill's future remains uncertain, with discussions likely to continue around its implications for both tourism and local funding priorities. The outcome of HB 916 could set a precedent for how Montana manages its tourism resources and supports regional development in the years to come.