Oppose HB 916 – Honor Montana’s Lodging Sales Tax Agreement and Invest in Our Communities

Sponsor: Representative Mike Vinton, Billings

In 2019, Montana’s tourism and hospitality industry came together in support of a 1% increase to the Lodging Facility Sales Tax to fund the construction of the Montana Heritage Center—an investment in honoring, preserving, and sharing the state’s rich cultural history. As part of that agreement, once construction was completed, the revenue generated by that 1% increase would be reinvested into tourism-related programs across the state. That included dedicated funding for the Department of Commerce, Montana State Parks, regional tourism offices, convention and visitor bureaus (CVBs), and support for tribal tourism development.

HB 916 seeks to break that agreement.

The bill would cut over $5.3 million from the Department of Commerce’s lodging tax budget in the 2027 biennium—jeopardizing critical programs like Main Street Montana and the Pilot Communities tourism grants, which help rural towns and tribal communities invest in tourism as a tool for economic development.

It would also strip more than $1.3 million from the Montana Historic Preservation Grant (MHPG) program in the 2025 biennium—despite widespread support for these grants, which protect and restore Montana’s irreplaceable historic assets. Because the state’s HB 12 funding recommendations were made assuming full receipt of the 1% revenue, this change could leave the program with a negative balance and just $1–2 million in funding for the entire state in 2027.

HB 916 proposes to divert funds intended for reinvestment in community development, heritage preservation, and tourism infrastructure—undermining the programs that support small towns, protect our culture, and strengthen Montana’s economy from the ground up.

Why This Funding Matters

These dollars were meant to strengthen Montana’s tourism infrastructure long-term, ensuring that:

• The Department of Commerce can continue statewide promotion and economic development efforts critical to maintaining Montana’s competitiveness.
• Regions and CVBs can deliver targeted marketing, visitor services, and support to local businesses, especially in rural and under-visited areas.
• Tribal tourism efforts are supported, helping to preserve cultural heritage and grow economic opportunity in Indian Country.
• State Parks can meet growing demand, maintain infrastructure, and deliver high-quality experiences for residents and visitors alike.
• Historic Preservation Grants continue to support local revitalization projects, community pride, and heritage tourism.

A Broken Promise with Long-Term Consequences

HB 916 would undo the good-faith agreement made with the industry and undermine a long-term vision for reinvestment in Montana’s visitor economy.

It would:

• Strip away a future source of resilient, sustainable funding tied directly to the tourism economy.
• Weaken the state’s ability to respond to changing visitor trends, economic challenges, and increased demand on outdoor infrastructure.
• Undercut critical efforts to support rural development and community-based tourism—goals championed in recent legislative sessions.

Now Is the Time to Invest, Not Retreat

Montana’s visitor economy is navigating increased uncertainty—from federal land use policy shifts to rising operational costs in rural communities. This funding was designed to provide long-term stability and opportunity, ensuring that tourism continues to benefit all corners of the state.

Urge lawmakers to oppose HB 916 and uphold the agreement made in 2019—protecting investments that support Montana’s heritage, economy, and future.