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Senate hearing on SB 90 exposes broad opposition as sponsor seeks to divert bed and rental car taxes to property tax credits
Summary
Senate Local Government heard hours of testimony on SB 90, which would divert lodging and rental-car tax revenue to create a statewide property tax credit (estimated $436.97 per primary residence from a projected $90M pool). Department of Commerce, tourism regions, chambers, outfitters, heritage and Main Street advocates warned the diversion would decimate marketing, grant programs and research (ITRR), with widespread rural impacts. Committee deferred executive action.
Senator Carl Glim presented Senate Bill 90, a proposal to redirect portions of the lodging sales tax, lodging facility use tax and rental vehicle tax into a state special revenue account to fund a residential property tax credit. Glim said the fiscal note estimated roughly $90,000,000 would be available and that the estimated average credit per primary residence would be about $436.97. "What we're gonna pull out of that tax is about $90,000,000 in total," the sponsor said.
The Montana Department of Commerce (Deputy Director Mandy Rambo) testified in opposition and detailed widespread programmatic impacts if those revenues were diverted. Rambo said SB 90 "is not the answer," warning the bill would end statewide tourism…
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