MontanaSB 17269th Legislature, Regular Session (2025)SenateWALLET

Revise resort tax eligibility and allow use for workforce housing

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Resort areas can add 1% for housing

The law lets resort areas ask voters for an extra 1% resort tax. Money must go to infrastructure or workforce housing. The ballot must list the specific projects or uses. Boards can put the question on the ballot, and voters must approve. A resort community over the legal population limit cannot use the extra 1% unless it was created before January 1, 2025. The law also raises the resort‑area cutoff to under 3,500 people, letting more unincorporated areas qualify.

Tighter guardrails on resort tax debt

The law sets guardrails on bonds repaid with resort taxes. Annual principal and interest cannot be more than 25% of the district’s average resort tax revenue over the last five years. This cap does not apply to bonds backed by the extra 1% levy. Debt paid from the extra 1% levy cannot use more than 70% of that levy’s revenue each year. Bonds must end before the district ends, and pledged tax money must cover each year’s payments. The board needs four of five votes to issue bonds. For a single‑purpose project over $500,000, voters must approve, unless it is paid with the extra 1% levy. Collection of the extra 1% stops when the tied bond is paid off unless voters approve it again. Bonds backed by resort taxes do not count against other statutory debt limits.

Sponsors & Cosponsors

Sponsor

Dave Fern
Democrat • Senate

Cosponsors

Mark Thane
Democrat • House
Pat Flowers
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 231 • No: 162

Senate vote • 3/21/2025

Do Concur

Yes: 57 • No: 40

Senate vote • 3/20/2025

AMD-SB0172.002.001 Mercer DO PASS

Yes: 38 • No: 60

Senate vote • 3/20/2025

Do Concur

Yes: 56 • No: 42

Senate vote • 2/12/2025

Do Pass

Yes: 38 • No: 12

Senate vote • 2/11/2025