Big Mountain Resort Area District Voters to Decide on Resort Tax
The mail election is the culmination of a multi-year process undertaken by county residents on the mountain primarily to increase the revenue available for funding its fire district
By Mike Kordenbrock
Ballots are due next week for a mail-in vote involving the nearly 200 registered voters in the Big Mountain Resort Area District (BMRAD) to determine if a 3% resort tax will go into effect for the sale of certain goods, services and luxury items sold in the area, including at Whitefish Mountain Resort.
The mail election is the culmination of a multi-year process undertaken by county residents on the mountain primarily to increase the revenue available for funding its fire district. Ballots are due at the Flathead County Elections Office on Jan. 21, and unofficial results could be available by Jan. 22.
Ron Benton, the board chair for the Big Mountain Resort Area District Board of Directors, said that several years ago the Big Mountain Fire District determined that staffing shortages caused in part by a dwindling volunteer program, could lead to a downgrade in the fire department’s service level rating from the Insurance Services Organization, an entity which insurers turn to when assessing whether or not to offer policies to property owners. The district lacked funding to make up for the staffing shortages long-term through the hiring process, and so stakeholders began exploring ideas on how to better fund the fire district.
If the fire department’s rating were to drop, it could mean higher insurance rates for property owners, and in some cases owners could be refused fire insurance policies by insurers. The drop in staffing levels at the fire department also creates practical issues when it comes to wildland fire, structure fires, and medical responses. The area in question starts around the Big Mountain Nordic Trails trailhead on the east side of Big Mountain Road, and on the west side of the road it starts with the Elk Highlands neighborhood, and includes some properties below that, according to Benton. The area includes Whitefish Mountain Resort property, but does not include national forest land.
“It’s a very big deal. It affects everybody. It affects the mountain, it affects every business, every resident owner, every non-resident owner and renter of property,” Benton said.
There was some discussion in early 2022 about trying to enact a mill levy increase and impact fees, but a district task force concluded that it was not practical or realistic to go that route. Benton said that right now, the fire district needs roughly between $300,000 and $400,000 more annually to maintain adequate staffing levels. Eventually it was decided to utilize a state policy that allows for the formation of a special resort area district, and to then further explore a resort tax. Last summer, the district was approved by the state, and the upcoming vote will determine the near future possibility of a resort tax for the BMRAD.
Whether or not the vote passes, it’s possible that a resort tax could be coming to the area in the future anyway. The City of Whitefish, which is a resort community that already imposes a resort tax, is continuing to evaluate annexing portions of the Big Mountain area, but Benton said it’s unclear when and how exactly the process would play out.
“Let’s just say there’s a fair number of uncertainties here and in the meantime we wanted to be able to look after everybody,” Benton said.
The ordinance that would go into effect, should voters approve it, would enact the 3% resort tax on a wide range of goods, services and luxuries, including the rentals of recreational equipment, lift tickets for activities like skiing and snowboarding, prepared or served food, alcoholic and non-alcoholic beverages, rental agreements except for those longer than 30 days, and services for private events.
Based on the language in the ordinance, the resort tax would be approved for a 20-year period, meaning it would sunset in 2045. If the resort tax passes, it will not go into effect until this summer on June 1, and the district doesn’t think it will have significant funding from the resort tax until 2026.
While Benton said it’s hard to say exactly how much revenue could be produced by a resort tax on the mountain until the district actually begins to collect the tax, the expectation is that it will cover the fire department’s costs, and that there could be additional revenue available. Benton said that when this plan was initially pitched to property owners, there was mention of property tax relief, and while no final decisions have been made about what that relief will look like, Benton said the board will follow through on it should the tax be approved by voters. He emphasized that it’s not intended to be a wealth transfer for the rich, characterizing it instead as a means to offset some of the costs that people have incurred over the years to pay for infrastructure in the district. The community has its own private water district, and Benton said the only service the city provides is the receipt of the district’s effluent. He also noted that residents of nearby Whitefish and Columbia Falls already receive property tax relief through their resort taxes.
The priority will be to fund the fire district’s needs, but Benton said that workforce housing and transportation were also identified as priorities among community members and stakeholders during a series of public meetings to discuss how the district could use the resort tax revenue.
Kate Andrews, the vice chair for the BMRAD, said that the resort tax revenue may be able to go towards increase Snow Bus service. Noting that DREAM Adaptive, which works with people who have disabilities, is in the midst of constructing a new facility on the mountain, Andrews said the resort tax revenue might also be able to help finance a bus that meets the Americans with Disabilities Act (ADA) guidelines.