1% FOR INFRASTRUCTURE

The Ballot measure for the 1% for Infrastructure was seeking to increase the rate of Resort Tax by 1% to fund 60% (not to exceed $27 million) of the much-needed upgrade to the Big Sky County Water & Sewer District No. 363 (BSCWSD) Water Resource Recovery Facility (WRRF), increasing average day rated treatment capacity from 600,000 gallons to 910,000 gallons, to support the growing population. and to fund 100% (not to exceed $12 million) of constructing a Lift Station near the Highway 191/64 intersection to convey wastewater from the Canyon Area to the WRRF. This includes a force main paralleling 64 and connecting the Lift Station to the WRRF. In addition, a second main will take highly treated effluent from the WRRF to dispose of groundwater infiltration galleries.
The results are that the 1% for Infrastructure vote has passed. The 1% rate increase will be effective on Wednesday, July 1st, 2020.

1% For Infrastructure Tax Increase FAQ

When is the 1% increase effective?

July 1, 2020

How long will the 1% increase be in effect?

The duration of the 1% is as long as the financial commitment for each project, or the expiration of the Big Sky Resort Area District in 2032, whichever comes first.

Who approved the increase in Resort Tax?

Registered voters within the boundaries of the Big Sky Resort Area District voted to increase the rate of the Resort Tax by 1% on May 5, 2020.

What goods & services is the 1% taxing?

All goods & services that are currently taxed at the 3% rate per Ordinance 98-01.

The rate of Resort Tax has been the same since 1992, why is the rate changing now?

In May of 2019, Montana Senate Bill 241 (SB241) passed allowing the 10 designated resort tax communities to levy a vote on an additional 1% tax for voter approved critical infrastructure projects. Through a unanimous vote, the Board of Directors of the Big Sky Resort Area District (District) approved a resolution bringing projects to the Big Sky ballot.

What is the 1% funding?
  • The 1% is designated to fund specific infrastructure projects as designated by Montana Senate Bill 241.
  • In Big Sky the 1% is planned to fund 60% of project costs for the Big Sky County Water & Sewer District’s Water Resource Recovery Facility (WRRF), along with setting aside 500 Single Family Equivalents (SFE’s) dedicated to deed restricted workforce housing projects. Additionally, it will fund the construction of a Lift Station near the Highway 191/64 intersection to convey wastewater from the Canyon Area to the WRRF. This includes a force main paralleling 64 and connecting the Lift Station to the WRRF.
What is the maximum tax rate the District can impose?

With the additional 1% a maximum of 4% can be imposed within the Big Sky Resort Area District.

What is the 1% funding?
  • The 1% is designated to fund specific infrastructure projects as designated by Montana Senate Bill 241 (SB241)
  • In Big Sky the 1% is planned to fund 60% of project costs for the Big Sky County Water & Sewer District’s Water Resource Recovery Facility (WRRF), along with setting aside 500 Single Family Equivalents (SFE’s) dedicated to deed restricted workforce housing projects. Additionally, it will fund the construction of a Lift Station near the Highway 191/64 intersection to convey wastewater from the Canyon Area to the WRRF. This includes a force main paralleling 64 and connecting the Lift Station to the WRRF.
What is the difference between the Montana Lodging Tax and Resort Tax?

 

If I own a short-term rental or hotel when do I change the rate of Resort Tax?

You must collect 4% on all reservations placed on or after July 1, 2020

Do POS (Point of Sale Systems) need to be updated, and by what date?

Yes, all POS’s or other bookkeeping systems need to be updated to reflect the 4% Resort Tax rate beginning on July 1, 2020.

As a business owner/operator how do I remit the additional 1%?

You will remit your taxes using MUNIRevs, the same process currently used to remit Resort Taxes.

Do I need to remit my 1% tax collections separate from my 3% collections?

No, all collections will be submitted together.

When is the first time I will remit Resort Tax at the new 4% rate?
  • If you remit Resort Tax monthly the first day is August 31, 2020.
  • If you remit Resort Tax Quarterly the first day is October 31, 2020.