Montana SB 551: Provide for local option tax

Bill Text

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68th Legislature 2023 SB 551.1

- 1 - Authorized Print Version – SB 551

SENATE BILL NO. 551 1
INTRODUCED BY C. POPE 2
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A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING FOR A LOCAL OPTION SALES TAX; PROVIDING 4
FOR THE "MAKE CENTS MONTANA ACT"; AUTHORIZING CERTAIN LOCAL GOVERNMENTS BY VOTE 5
OF THE ELECTORATE TO ADOPT A LOCAL OPTION SALES TAX; PROVIDING THAT THE REVENUE BE 6
USED FOR PROPERTY TAX RELIEF, DISTRIBUTIONS TO COUNTIES, NONREIMBURSED TOURIST 7
IMPACTS, AND CRITICAL INFRASTRUCTURE PROJECTS; PROVIDING THAT CERTAIN COUNTIES 8
IMPACTED BY TOURISM MAY ENACT A LOCAL OPTION SALES TAX; PROVIDING FOR THE ISSUANCE 9
OF REVENUE BONDS; PROVIDING DEFINITIONS; AMENDING SECTIONS 7-7-4424 AND 7-7-4428, MCA; 10
AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.” 11
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA: 13
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NEW SECTION. Section 1. Short title. [Sections 1 through 10] may be cited as the "Make Cents 15
Montana Act". 16
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NEW SECTION. Section 2. Purpose -- legislative findings. (1) Local government and local school 18
district property tax levies constitute 75% to 80% of property taxes levied on Montana property taxpayers in 19
most jurisdictions. Increasingly, property taxes are insufficient to meet the needs of the state's heavily touristed, 20
growing communities. 21
(2) In many communities, escalating property taxes are directly correlated to an alarming shortage 22
of affordable housing for working Montana families. 23
(3) It is the intent of the Montana legislature to provide Montana taxpayers within municipalities 24
and consolidated city-county governments the option to impose a limited local option sales tax on tourist-25
oriented goods and services to offset increasingly onerous property taxes caused by impacts on local 26
government services from tourism and to fund essential community improvements in actively visited or 27
otherwise quickly growing Montana locations. 28

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68th Legislature 2023 SB 551.1

- 2 - Authorized Print Version – SB 551

1
NEW SECTION. Section 3. Definitions. As used in [sections 1 through 10], the following definitions 2
apply: 3
(1) "Critical infrastructure projects" means the construction, improvement, maintenance, or 4
operation of streets, roads, sidewalks, water supply, wastewater treatment, sewer, and renovation of central 5
public amenities identified in a petition provided for in [section 6(3)]. 6
(2) "Department" means the department of commerce. 7
(3) "Governing body" means the governing body of a municipality, consolidated city-county 8
government, or qualifying county. 9
(4) "Medical supplies" means items that are sold to be used for curative, prosthetic, or medical 10
maintenance purposes, whether or not prescribed by a physician. 11
(5) "Medicine" means substances sold for curative or remedial properties, including both physician-12
prescribed and over-the-counter medications. 13
(6) "Metropolitan tourism and trade district" means a municipality or consolidated city-county 14
government that is certified by the department as: 15
(a) having a population of 20,000 or more; and 16
(b) that is served by one of the state's six largest international airports. 17
(7) "Motor vehicle" means a self-propelled or towed vehicle designed for personal or commercial 18
use, including but not limited to an automobile, truck, motorcycle, recreational vehicle, all-terrain vehicle, 19
snowmobile, camper, boat, or personal watercraft or a trailer used to transport a motorcycle, camper, boat, or 20
personal watercraft. 21
(8) "Qualifying county" means a county that: 22
(a) contains a metropolitan tourism and trade district with a local option sales tax provided for in 23
[sections 1 through 10]; or 24
(b) is immediately adjacent and contiguous to a metropolitan tourism and trade district with a local 25
option sales tax provided for in [sections 1 through 10]. 26
(9) "Rental motor vehicle" means the rental of a motor vehicle. 27
(10) (a) "Tourist-oriented goods or services" means goods or services normally sold to transient 28

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68th Legislature 2023 SB 551.1

- 3 - Authorized Print Version – SB 551

visitors or tourists, including: 1
(i) a rental motor vehicle; 2
(ii) services sold by hotels, motels, or other lodging or camping facilities; 3
(iii) food served or prepared by a restaurant, fast food store, or other food service establishment; 4
(iv) food and drinks served by taverns, bars, nightclubs, lounges, or other public establishments 5
that serve beer, wine, liquor, or other alcoholic beverages by the drink; 6
(v) services provided by a destination ski resort or other destination recreational services and 7
facilities; 8
(vi) events such as college or professional sporting games, movies, concerts, and performances; 9
and 10
(vii) guided services such as whitewater rafting, fishing, and hunting trips. 11
(b) The term does not include: 12
(i) food purchased unprepared, unserved, and primarily for off-premises consumption; 13
(ii) medicine or medical suppli