SB 172: Revise resort tax eligibility and allow use for workforce housing - Montana

SB0172_1(10).pdf → SB0172_X(12).pdf · 6 edits

MODERATE

This bill revises Montana's resort tax laws to allow an additional 1% tax levy specifically for workforce housing and infrastructure, provided the community meets certain population and establishment date criteria. It also reorganizes the statutory definitions and clarifies the election procedures required to implement these taxes.

Scope change

The bill expands the scope of the resort tax by introducing a new optional 1% levy for workforce housing and infrastructure, while simultaneously tightening the definition of eligible 'resort communities' to exclude those with populations exceeding 3,500.

FISCAL

Added a provision allowing an additional 1% resort tax levy, with the revenue strictly designated for workforce housing or infrastructure projects.

ELIGIBILITY

Modified the population limit for a 'resort community' from 2,500 to 3,500, allowing larger towns to qualify for the base tax.

Added a new restriction preventing communities with populations over the limit from levying the additional 1% tax unless they were established before January 1, 2025.

DEFINITION

Reorganized and renumbered the definitions section (formerly 7-6-1501 is now 7-6-1503) to clarify terms like 'resort community' and 'workforce housing'.

REQUIREMENT

Added specific requirements for election notices, mandating two separate notices with specific timing relative to the election date.

Modified the petition requirements to explicitly state that revenue from the additional tax must be designated for infrastructure or workforce housing.

SB0172_X(11).pdf → SB0172_1(10).pdf · 4 edits

MODERATE

This bill revises Montana's resort tax laws to allow an additional 1% tax levy specifically for workforce housing, while updating definitions and population thresholds to align with current census data. The changes clarify that the new housing-focused tax can only be levied by resort communities with populations under 3,500, whereas the general resort tax applies to communities under 5,500.

Scope change

The bill expands the scope of the additional 1% resort tax to explicitly include workforce housing as a funding category and adjusts the population limit for resort communities from 2,500 to 3,500 to reflect updated census figures.

DEFINITION

Updated the population limit for a 'resort community' from 2,500 to 5,500 and for a 'resort area' from 2,500 to 3,500 to match the most recent federal census data.

FISCAL

Added a new definition for 'workforce housing' as rental units where at least 20% are rent-restricted for households earning 60% to 120% of the area median income.

ELIGIBILITY

Modified the eligibility criteria for the additional 1% resort tax, restricting it to resort communities with populations under 3,500 instead of the previous 2,500 limit.

REQUIREMENT

Revised the list of amended MCA sections to include 7-6-1501 (Definitions) and removed the incorrect reference to 7-6-1541 in the act title.

SB0172_X(9).pdf → SB0172_X(10).pdf · 2 edits

MINOR

The bill text has been updated to reflect its final enrolled status, including the addition of a space in the bill number (SB 172) and the removal of redundant header information. These are technical formatting changes that confirm the bill has passed all legislative stages and is ready for execution.

TECHNICAL

The bill number format was standardized to include a space between 'SB' and '172'.

Redundant header text indicating the legislature year and bill number was deleted to clean up the enrolled version.

SB0172_X(4).pdf → SB0172_X(5).pdf · 5 edits

MODERATE

This bill amends the Montana resort tax laws to clarify that the base tax rate cannot exceed 3% and introduces a new optional 1% additional tax. This additional tax can only be levied by communities established before January 1, 2025, and the revenue must be strictly used for infrastructure or workforce housing. The bill also updates the definition of a 'resort community' to increase the population threshold from 2,500 to 3,500.

Scope change

The bill expands the definition of eligible resort communities by raising the population limit and adds a specific funding mandate for workforce housing, but restricts the new additional tax option to pre-existing communities.

ELIGIBILITY

Increased the maximum population limit for a 'resort community' from 2,500 to 3,500 people.

Restricted the new additional 1% tax to resort communities that were established before January 1, 2025.

FISCAL

Created a new optional 1% additional resort tax that revenue must be used exclusively for infrastructure or workforce housing.

DEFINITION

Clarified that the base resort tax rate must not exceed 3% and updated the definition of 'resort area' to reflect the new population limit.

REQUIREMENT

Added a requirement for petitions or resolutions to explicitly identify specific uses for the additional tax revenue.

SB0172_2(11).pdf → SB0172_X.pdf · 4 edits

MODERATE

This bill updates the Montana resort tax law to clarify how the additional 1% tax can be used for workforce housing and infrastructure. It reorganizes definitions to better distinguish between small 'resort areas' and larger 'resort communities,' and it adds a grandfather clause allowing larger communities to levy the new tax only if they were established before January 1, 2025.

Scope change

The bill refines the applicability of the tax by adding a specific population-based exception for larger resort communities and clarifying the tax base for luxury items.

DEFINITION

Reordered and renumbered definitions in Section 7-6-1501 to improve clarity and added a new definition for 'rent-restricted' housing.

Modified the definition of 'resort community' to include a new criterion requiring that more than 50% of the economy derives from tourism-related businesses.

ELIGIBILITY

Added a grandfather clause in Section 7-6-1503 allowing resort communities that exceed the population limit to levy the additional 1% tax only if they were established before January 1, 2025.

FISCAL

Clarified that revenue from the additional 1% tax must be used specifically for infrastructure or workforce housing.

SB0172_2(10).pdf → SB0172_2(11).pdf · 5 edits

MODERATE

This bill updates the Montana Resort Tax Act to allow the additional 1% resort tax revenue to fund workforce housing alongside infrastructure. It introduces new definitions for 'workforce housing' and 'gross household income' to support this funding. The bill also clarifies rules for larger resort communities regarding when they can levy this additional tax.

Scope change

The bill expands the allowable uses of resort tax revenue to include workforce housing and adds specific eligibility criteria for housing to qualify for these funds.

FISCAL

Added a new definition for 'workforce housing' and clarified that the optional 1% resort tax can be used to fund it, in addition to infrastructure.

DEFINITION

Added new definitions for 'gross household income,' 'household,' and 'income' by referencing existing state statutes to ensure consistency.

ELIGIBILITY

Updated the definition of 'resort area' to increase the population limit from 2,500 to 3,500 residents.

Updated the definition of 'resort community' to increase the population limit from 2,500 to 5,500 residents and added a classification for second and third-class cities.

REQUIREMENT

Added a specific exception allowing larger resort communities to levy the additional tax only if they were established before January 1, 2025.

SB0172_2(9).pdf → SB0172_2(10).pdf · 4 edits

MODERATE

This bill updates the Montana resort tax law to allow an additional 1% tax levy specifically for funding workforce housing and infrastructure. It reorganizes the definitions to clarify who qualifies for the tax and adds a new exception preventing newer, larger resort communities from imposing this additional tax unless they were established before January 1, 2025.

Scope change

The bill expands the potential revenue sources for resort areas by authorizing an extra 1% tax, but restricts its application to smaller or pre-existing resort communities to prevent larger municipalities from using it.

FISCAL

Added a specific provision allowing an additional 1% resort tax levy, with revenue restricted to infrastructure or workforce housing projects.

DEFINITION

Reordered and clarified definitions for 'Resort community' and 'Resort area' to better distinguish between incorporated municipalities and unincorporated areas.

ELIGIBILITY

Added a new eligibility rule stating that resort communities exceeding the population limit for a 'resort community' cannot levy the additional 1% tax unless they were established before January 1, 2025.

TECHNICAL

Removed redundant or conflicting text regarding the tax rate limits and election procedures to streamline the statute.

SB0172_2(3).pdf → SB0172_2(4).pdf · 1 edit

MINOR

The document shows minor formatting adjustments to the header, including a slight spacing change in the version number and a correction to the legislature year display. No substantive policy changes, such as new definitions, funding amounts, eligibility criteria, or enforcement mechanisms, were identified in this diff.

TECHNICAL

Minor formatting adjustment to the header spacing and version number display.

SB0172_1(9).pdf → SB0172_2.pdf · 4 edits

MODERATE

The bill updates the definition of 'household' and related income terms to align with existing state statutes. It clarifies the population threshold for cities eligible to levy additional resort taxes by rephrasing the population limit. Most significantly, it introduces a new exception allowing resort communities with populations exceeding the standard limit to levy additional taxes, provided they were established before January 1, 2025, and the text is reformatted for consistency.

Scope change

The bill expands the scope of eligibility for levying additional resort taxes to include larger resort communities that meet a specific historical establishment date, whereas previously only communities under a certain population limit could levy such taxes.

DEFINITION

Added indentation to the definitions of 'gross household income', 'household', and 'income' to ensure consistency with the definition of 'board of directors'.

ELIGIBILITY

Rephrased the population limit for cities eligible to levy additional resort taxes to clarify that the limit applies to cities with a population of less than 5,500.

Added a new exception allowing resort communities with populations exceeding the standard limit to levy additional taxes if they were established before January 1, 2025.

TECHNICAL

Corrected a sentence fragment regarding election petitions and resolved formatting inconsistencies in the bill text.

LC4314.pdf → SB0172_1.pdf · 3 edits

MINOR

The bill has been renumbered from LC 4314 to SB 172, indicating a procedural update from a committee draft to a Senate bill. The sponsor's name was added to the header, and the document was marked as an 'Authorized Print Version,' confirming its official status. These are primarily technical and formatting changes rather than substantive policy alterations.

TECHNICAL

Bill number changed from LC 4314 to SB 172.1 to reflect its progression in the legislative process.

Sponsor name 'D. FERN' was added to the bill header.

Page headers were updated to include 'Authorized Print Version' and the new bill number.

Revise resort tax eligibility and allow use for workforce housing

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