City hopes to gain public, tribal support for local option tax

Members of the Polson economic development council are hoping to gain support from the Salish Kootenai tribes to implement the city’s proposed resort tax. As of now, the proposed vote tentatively scheduled to go on a ballot in February 2016.

The economic development council has been studying the role of a resort, or luxury goods, tax in Polson.

After several weekly meetings, a consensus has been agreed upon – at least, initially – as to how the tax will be distributed among the incoming revenue, with a 3 percent return to merchants.

The tax will be divided as such: 15 percent for property tax relief, 80 percent for the construction and upkeep of streets, 3 percent for city administrative costs, and 2 percent for marketing Polson as a resort destination.

City manager Mark Shrives said the 3 percent return to the merchants would be colleted during the initial implementation of the tax.

Shrives said it’s difficult to know exactly how much the city will collect because they don’t have an estimate of the total projected revenue.

The economic development council is working on a figure to present to the public.

Committee chairperson Rick LaPiana said the group has been meeting every Wednesday since the formation to debate and discuss the resort tax. “I think it’s going really well,” he said. “We hold open meetings where we let the merchants speak and voice their concerns.”

Most of the merchants who speak are concerned how the tax will comply with the tribes and whether the tribes will recognize the tax as part of their economic system. That’s not singular to what they are voicing, but LaPiana said it’s an important part of their concern. Other areas of concern range from population to value of the tax.

“The whole project is really for roads maintenance,” LaPiana said. “The citizens and the tribes use the roads, too.”

According to Shrives and Polson Mayor Heather Knutson, they visited the Confederated Salish and Kootenai Tribal Council last month to discuss the proposed tax. 

Knutson hopes the tribes and the city of Polson can come to an agreement. “We’re working together,” she said. “We’re hoping to have a working discussion. There are a lot of factors.” “This will not pass without tribal support,” LaPiana said. “We’re all U.S. citizens. Hopefully the tribe will buy into it.”

The cost of the roads is a major concern for LaPiana and the committee, which is why he hopes the public presentation, will be important to selling it to the community as a valuable tax. LaPiana wants the community to understand that tourists should help foot the bill during the season. The tax would be in effect April 1 to Sept. 30. Since the ballot would be in February, the initial collection of the tax would only be in effect for three months. Subsequent years would see revenue collected during the entire six-month period the following year.

If the tax passes a public vote, it would be in effect for 20 years.