Oppose HB 914 – Protect Montana’s Local Tourism Organizations and the Visitor Economy

Sponsor: Representative Scott Rosenzweig, Bozeman (Park and Gallatin counties)

Montana’s lodging facility use tax is a critical reinvestment tool that supports tourism promotion, destination development, and small business success across the state. HB 914 threatens to dismantle this proven model by cutting over $33 million from the Department of Commerce’s lodging tax budget in the 2027 biennium and over $35 million in the 2029 biennium—a 42% reduction.

HB 914 also eliminates ALL funding for local convention and visitor bureaus (CVBs) and reduces regional tourism funding to a flat amount, representing an overall 42% decrease from current regional and CVB allocations. To preserve essential statewide marketing efforts, grant programs like Main Street Montana, tribal tourism grants, and other community development initiatives would likely face cuts of 60% or more.

While infrastructure investment is important, HB 914 does so at the direct expense of Montana’s thriving visitor economy and the local organizations that power it.

Local Destination Organizations Are Essential to Montana’s Economy

Montana’s six regional tourism offices and 21 recognized Convention and Visitor Bureaus (CVBs) are the boots on the ground in every corner of the state. These organizations:

• Promote local businesses and experiences—from Main Street shops to outfitters and lodging.
• Attract visitors through strategic marketing, events, and storytelling.
• Support visitor services, manage travel information centers, and develop tourism infrastructure.
• Work with local governments, chambers, and economic developers to grow year-round visitation and improve quality of life for residents.
• Balance resident quality of life with visitor experience, tailoring strategies to seasonal demands and unique community capacities—because what works in one town may not work in another. These organizations are key to managing that nuance.

HB 914 not only reduces and/or eliminates the amount of funding these organizations receive, but it also caps it, preventing any growth or flexibility to respond to increasing demand, shifting market trends, or unexpected challenges.

What These Funds Support

The lodging tax does more than fund tourism promotion. It supports statewide and community-level initiatives that include:

• Rural tourism development and infrastructure enhancements.
• The Made in Montana and Indian Country tourism programs.
• Pilot Community Tourism Grant program investing in rural Montana to build capacity.
• Montana’s film and media office to attract production jobs and spending.
• Agritourism and outdoor recreation promotion to diversify rural economies.

These programs were intentionally created to ensure all regions—urban and rural—benefit from tourism’s impact. HB 914 would undermine that mission.

Undermines Progress Made in 2023

Just last session, SB 540 was a significant investment in rural Montana, recognizing the value of tourism as an economic driver. HB 914 threatens to undo that progress, especially in communities just beginning to see the benefits of tourism investment.

Montana’s Visitor Economy Needs Stability to Thrive

Tourism is Montana’s second-largest industry, generating over $5.45 billion annually in nonresident spending. It’s a self-funded model that works—paid by visitors and reinvested in local communities.

We agree infrastructure funding must be addressed, but not by destabilizing the very industry helping to sustain those communities.

Urge lawmakers to vote NO on HB 914 and protect the vital role that local and regional tourism organizations play in supporting Montana’s economy, small businesses, and quality of life.