Department of Commerce outlines tourism, housing and business programs; warns of bed‑tax redistribution impact

Deputy Director Mandy Rambo and Department of Commerce Director Scott Green told the House Business and Labor Committee Wednesday that Commerce is implementing new tourism and economic development programs created by the 2023 Legislature and warned lawmakers that proposals to reallocate lodging‑related taxes could sharply reduce Commerce programs.

Rambo provided an overview of BrandMT and BusinessMT work, listing seven new tourism‑related programs launched under Senate Bill 540 (pilot communities, regional assistance, emergency tourism assistance, tourism events grants, agritourism grants, a tourism revolving loan fund and film grants). She said the tourism revolving loan fund allocated $24,000,000 to local economic‑development organizations to loan to tourism‑impact businesses, and the pilot communities program awarded $750,000 per pilot community in its first round.

Rambo said HousingMT manages federal and state housing programs and continues to spend remaining ARPA housing funds; HousingMT administered a mortgage servicing vendor change and runs several federal programs. She gave a high‑level staffing figure for Commerce and attached boards: Commerce proper has about 217 FTE and with attached agencies about 240 FTE; the department’s total budget for the next biennium was described as roughly $190,000,000 per year, funded largely by statutory appropriations such as bed taxes and federal grants.

Director Scott Green emphasized the department’s aim to make programs equitably accessible statewide and said Commerce is shifting some tourism marketing to spotlight less‑visited communities and activities. Rambo and Green said they would provide detailed visitation and ITRR (Institute for Tourism and Recreation Research) statistics to committee staff on request.

On pending proposals, Rambo said she had received a fiscal‑note request for a bill that would reallocate a substantial share of the lodging facility use tax toward property‑tax relief rather than tourism. She explained the likely consequences if that bill advanced: loss of the approximately 60% share of lodging facility use tax that funds Department of Commerce programs, closure of trade offices and major staffing reductions in bed‑tax funded positions. “Those seven grant programs that I discussed that are bed tax funded would likely cease to exist at that point in time,” she told members. Director Green said Commerce seeks to ensure programs remain available to communities across the state.

Rambo and Green asked legislators to engage with Commerce staff and noted the department will provide requested data to assist policy decisions this session.