October 29, 2009
Decision day nears for Polson's proposed resort tax
Berl Tiskus/Valley Journal
Montana has designated Polson a resort community. That designation means Polson residents can decide if they wish to implement a resort tax, which will be on the Nov. 3 ballot.
Valley Journal
POLSON — City residents will vote on the proposed resort tax on Election Day, Nov. 3.
The proposed resort tax, according to a presentation by Polson City Manager Todd Crossett on Oct. 14, is one of the limited local funding options allowed by the state. The resort tax, if approved by voters, would be three percent on sales of some products and services, and the term would be 10 years. The tax would be collected year-round. From the money raised, 20 percent would go to tax relief. Five percent of gross revenues would go specifically to administrative compensation for collecting businesses. Luxuries, such as lodging, dinners out, alcohol and gifts, etc., would be taxed. Life necessities would be exempt. Tourists and city and county residents who use taxable goods and services would all pay the 3 percent tax except for federally exempt persons.
List of the goods and services that would be taxed or exempted are available on the City of Polson’s Web site at www.cityofpolson.com or at Polson City Hall, 106 1 St. E.
The resort tax would be collected by businesses, due monthly, and would be administered by the city of Polson administration under the supervision of the Polson City Commissioners.
A seven-member oversight committee with representatives from the business community, citizens, the Tribes and the Polson City Commission would deal with issues.
A retired couple in Polson said they were not in favor of the resort tax. The husband said it didn’t seem to him to be appropriate to make a comparison between Whitefish and Polson since Whitefish has more of a year-round tourist base. St. Regis has the advantage of being on the interstate so he said that might not be a legitimate comparison either.
The lady of the house used an example of a special section in a Missoula newspaper about winter activities in Montana to make her point. She said nothing was listed for Polson in the publication.
They agreed the proposed resort tax would be disproportionately hard on residents of the area.
Another issue mentioned was businesses owned by the tribes or tribal members who may not collect the tax, if the issue passed. This would put other businesses at a disadvantage.
Another person noted restaurants located outside the city limits would not have to collect the three percent tax, making it difficult for eateries in Polson to compete.
A working woman with kids in college said she hated the idea of the resort tax. Her job involves frequent visits to local stores, and she said tourists tell her they come to Montana because there is no sales tax.
Polson residents can vote from 7 a.m. to 8 p.m. at Linderman gym on Nov. 3. |
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