HELENA — Montana towns and cities could have the option of a local, tourism-economy-based sales tax if a bill in the Legislature can gain traction. It’s a different and at times unpopular angle of attack against rising property taxes — a departure from other proposed fixes like tax credits and property tax restructuring.
Rep. Greg Oblander, R-Billings is carrying House Bill 489. An optional sales tax is not a new idea. Sen. Christopher Pope, D-Bozeman, tried it in 2023. His bill didn’t even make it out of committee.
Oblander’s bill hit the House Local Government Committee on Feb. 20. He argued a solution to affordability won’t come from internal mechanics.
“ We all know that property tax-wise, as that teeter-totter gets shifted, we give a benefit to one taxpayer, it shuffles to the other side and those taxpayers end up paying more,” Oblander said. “This is designed to not do that.”
The tax could only be applied to tourism-focused items like outfitting and guiding services and bar or restaurant purchases.
Critics argued the bill would close the door to all future attempts at a general state sales tax. Brad Griffin, president of the Montana Retail Association, used a similar situation in Alaska as an example.
“Alaska allowed their local communities to pass local option taxes,” Griffin said. “And then when the legislature wanted to adopt a statewide sales tax, those cities were the number one opponents to a statewide sales tax because it would mess up their revenue stream.”
Several outfitters also testified against HB 489, saying they worried the bill places an unfair burden on their industry.
Clayton Murphy is a reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. Murphy can be reached at clayton.murphy@umconnect.umt.edu.
