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Committee weighs redirecting lodging-tax growth to property tax relief; amendment clears committee but bill later tabled
Summary
Representative Jane Gillette proposed using surplus lodging-tax growth to reduce residential property taxes while preserving the Department of Commerce's baseline funding; tourism industry groups and Commerce warned the bill risks cutting grants and pilot programs. Committee adopted the sponsor's amendment but later tabled the bill in executive action.
Representative Jane Gillette (sponsor) opened the hearing on House Bill 887, saying the bill would treat part of growth in Montana’s lodging facility taxes as a source for residential property tax relief while keeping the Department of Commerce’s base funding intact. “We don’t remove anything from their budget,” Gillette said, describing a formula that preserves Commerce’s baseline (an average of three years’ inflation plus a 0.5 percentage-point adjustment) and diverts revenue above that level to a state special revenue account earmarked for property tax reduction. She circulated an amendment that would place 75% of that surplus into a state account for property tax relief and distribute the remaining 25% to counties based on the state gas-tax…
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