Montana's House Bill 887, introduced on March 28, 2025, aims to bolster the state's tourism and heritage sectors through a strategic allocation of tax proceeds. The bill proposes that 30% of the tax collected—after accounting for federal contributions—be directed to the state general fund, with a guaranteed annual deposit of $400,000 into the Montana Heritage Preservation and Development Account.

The bill outlines a detailed distribution plan for the remaining tax proceeds, targeting various state agencies and initiatives. Notably, it allocates funds to the Montana Historical Society for roadside historical signs, the university system for a travel research program, and the Department of Fish, Wildlife, and Parks for state park maintenance. A significant 63% of the proceeds will support the Department of Commerce, while 22.5% will be distributed to regional nonprofit tourism corporations, ensuring that local tourism efforts receive a fair share of the funding.

Debate surrounding HB 887 has centered on its potential economic impact, with proponents arguing that enhanced funding for tourism and heritage will stimulate local economies and preserve Montana's cultural assets. Critics, however, express concerns about the reliance on tax proceeds and the effectiveness of the proposed allocations.

As Montana continues to navigate its post-pandemic recovery, the implications of HB 887 could be substantial. Experts suggest that if passed, the bill could not only revitalize tourism but also strengthen community ties through heritage initiatives. The next steps for the bill include further discussions in the legislature, where its fate will be determined amid ongoing debates about fiscal responsibility and economic growth.