Click to share thisClick to share thisWhat is Resort Tax?
BY AMY SMITAside from being a Rocky Mountain Eden, Big Sky is a bustling tourist destination. It is also an unincorporated remote community that straddles the Gallatin/Madison county line. In the past, the high number of visitors put signifi cant strain on Big Sky’s infrastructure. So, in 1992, the community’s voters created the Big Sky Resort Area and implemented a 3 percent sales tax.
While Montana does not collect sales tax, the state created the resort tax option to aid small communities with a high rate of tourism. The idea is to use revenue from visitors to develop and maintain adequate infrastructure and services. By defi nition, a Mon- tana “resort area” must be unincorporated, with a population of less than 2,500.
In 1998, local voters created the Big Sky Resort Area District. The resulting district unifi ed Big Sky, and put control of the resort tax into the hands of a local Board. The members of this grassroots Board serve on a volunteer basis and are directly elected by Big Sky voters. The Board appropriates millions of dollars to improve the quality of life in Big Sky. They oversee and advise one resort tax district employee.
Last year, the district distributed over 2.3 million dollars to local organizations who applied for funding. The money went to a wide variety of organizations that promote tourism and improve the quality of life in this mountain hideaway—recreation and events that entertain both visitors and locals alike.
The Arts Council of Big Sky, for example, uses resort tax funding to sponsor several big events, including the Music in the Mountains free concert series in the summer. Resort tax helps build and maintain the Community Park, which is currently undergoing a complete redesign and expansion. The Big Sky Community Corporation has used resort tax money to maintain over 12 miles of local trails./ Resort tax also funds important infra- structure. It allows the Sheriff’s of- fi ce to station a deputy in the canyon and contributes to the Big Sky Search and Rescue. It supports the Commu- nity Library, Fire Department, the Post Offi ce and Skyline bus routes. The Board helps grow tourism through programs like the Biggest Skiing in America marketing campaign and snowmobile trail grooming. Locals and homeowners benefit from the funds appropriated for watershed assessment, forest health, wildfi re fuel reduction, noxious weed control and distance learning. The Big Sky Resort Area District also supports childcare and counseling scholarship programs.
Resort tax is Big Sky’s most basic form of government, and registered local voters have tremendous amount of infl uence as to who is on the Board. It is important the community understands it.
QUESTIONS?
If you have a resort tax issue that you would like to learn about, please email Amy Smit at resorttax@gmail. com. Stay tuned for more information about resort tax and its positive infl u- ence on our community.
Born in upstate New York, Amy Smit has studied writing, communications and accounting. In 2001, Smit stumbled upon Big Sky during a move to the West coast. Enchanted, she came for one ski season—and stayed. The ex-ski bum, mother of two, is currently the Administrative Officer for Big Sky Resort Tax. She loves to be in the mountains with her boys.
