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Missoula council approves TBID hotel fee increase to $4 per night, effective July 1
Summary
The Missoula City Council voted 8–1 to raise the Tourism Business Improvement District nightly hotel fee from $2 to $4, with supporters saying the revenue will support tourism promotion and events and opponents warning of higher local costs for residents.
The Missoula City Council approved a resolution to increase the Tourism Business Improvement District (TBID) nightly hotel fee to $4 per night, effective July 1, 2025, on an 8–1 vote.
The increase was moved by Council member Nugent during the council’s regular business agenda and drew both business and civic support. The TBID board’s president, Dan Monahan, said the board conducted research, held public sessions and voted unanimously to recommend the change.
Why it matters: The TBID fee is charged to guests who stay in hotels inside the district and is used to fund visitor attraction, advertising and event support. Council members supporting the change said the modest per-night increase will generate additional revenue to recruit events and support the local hospitality economy without directly raising property taxes.
Council debate and public input Council member Sandra cast the lone vote against the resolution, saying the increase could make lodging less affordable for in-state visitors and local families who use hotels. “I think it’s just making Missoula, I guess, overly priced,” she said.
Council member Nugent and others defended the proposal as a targeted way to raise revenue from visitors rather than general taxpayers. “It’s very rare when there’s any ability to collect revenue that isn’t straight from taxpayers,” Nugent said during deliberations, noting statutory authority for TBIDs to levy such fees.
Dan Monahan, who identified himself as president of the TBID board and general manager of the DoubleTree Hotel, spoke in favor of the increase. “We ended up getting unanimous approval on our seven‑member board for this increase,” he said, adding that the board reviewed costs and held several public comment opportunities before voting.
Council member Campbell said the board and staff have been “good stewards” of TBID funds and described the increase as “a modest increase” that will pay for marketing and event support; he cited a figure around $450 million as the broader annual tourism economic impact to the area.
What passed and next steps The resolution increases the nightly TBID fee to $4 per night beginning July 1, 2025. The council record shows the vote as eight in favor and one opposed. The TBID board will continue to manage allocations for marketing, events and other tourism‑related activities under existing reporting arrangements.
Provenance: Council discussion introducing the TBID increase appears in the meeting record beginning with the regular business item on the TBID (topic introduced at 1084.33 in the transcript) and concludes with the roll call and vote (topic finish at 1523.845).
