Resort tax rebate for homeowners continues to grow
Vaqueros restaurant in Columbia Falls on Nucleus Avenue. The resort tax places a 3% tax on restaurant meals and alcohol. It also taxes recreational marijuana, like what is sold at Ember, which is to the left.
Hungry Horse News
Columbia Falls property owners should see a significant property tax reduction in upcoming bills as a windfall from the 3% resort tax.
The city projected the resort tax would bring in about $780,000 this year.
It actually brought in $1.364 million since July 1, 2022. Under state law, the difference between the projection and the actual has to be returned to the property taxpayers.
That means total tax relief of $775,663 to city taxpayers, or about 86.4 mills.
Last year the city levied about 180 mills, city manager Susan Nicosia told council last week.
The resort tax revenue came from lodging, $165,030.39 (12%), bars and restaurants, $620,915.53(46%) and retail sales $578,144.62 (42%).
In a related matter, the city will receive resort taxes from Burger King, she noted. The fast food restaurant owners recently went bankrupt and the store has closed. But part of the bankruptcy settlement required that back taxes be paid, Nicosia noted.
Fast food is one of items taxed under the resort tax.
Recreational marijuana sales are also subject to the tax. The state charges 20% on recreational pot sales, the county 3% and the city 3%.
All told, that’s a 26% tax on recreational marijuana.
The resort tax also provides for significant city operational funding, including:
• Fifty-five percent for public safety — $460,764 (Fire - $294,889, Police - $165,875)
• Fourteen percent for infrastructure, such as streets — $117,000.
• Twenty five percent for tax relief — $209,00.
One percent goes toward administration.