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Montana committee hears fierce opposition to plan to divert lodging-tax growth for property-tax relief; amendment passes but bill fails
Summary
Rep. Jane Gillette’s bill would shift growth from the lodging-facility tax into a state account for property-tax relief while keeping Commerce’s baseline whole. Commerce and tourism groups say it would cut grants and rural programs; the committee approved an amendment but voted down the bill.
Representative Jane Gillette, sponsor of House Bill 887, told the House Local Government Committee the bill would steer lodging-facility tax growth beyond a 3-year inflation average plus 0.5 percentage point into a state special revenue account dedicated to reducing residential property taxes, while preserving Commerce’s baseline funding and adding an amendment to send 25% to counties for roads.
The bill’s sponsor, Representative Jane Gillette, said the design protects the Department of Commerce’s expected base funding and gives communities a way to offset local burdens tied to tourism growth. “We don’t remove anything from their budget,” Gillette said, describing the proposal as a way to smooth spikes in lodging-tax revenue and dedicate incremental…
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