State senator works to establish Calgary trade center
Heidi Desch / Whitefish Pilot | Hagadone News Network | UPDATED 9 years, 8 months AGO
Republican Sen. Dee Brown is pushing for a bill in the state Legislature that would create a Montana trade center in Calgary.
The bill, which would use state bed tax revenue to fund the center, passed the Senate by 29-21 last month and was transmitted to the House where it was tabled in the House Business and Labor Committee.
“I’m fairly optimistic it will make it to the full floor of the House,” Brown said last week.
Brown represents Senate District 2, which includes Whitefish and Columbia Falls. Democrat Rep. Ed Lieser is one of the co-sponsors of the bill.
She said she expects that Republican Rep. Mike Cuffe of Eureka will carry the bill in the House, noting he has worked on transborder economic issues in the past.
Under the bill, the Montana Department of Commerce would establish a trade center in Calgary with at least one staff member to promote trade and tourism in Montana.
“We want to encourage Canadians to come down here and spend more money,” Brown said. “There are more than 4 million in Alberta with an annual family income of about $85,000.”
The bill is co-sponsored by eight Northwest Montana legislators. In addition to Brown, Lieser, and Cuffe, Republican Reps. Steve Lavin, Frank Garner, Keith Regier, Mark Noland and Albert Olszewski and Republican Sen. Mark Blasdel are co-sponors.
Brown, along with her husband Steve, operated Canyon RV in Coram for 24 years. She said when they first started the campground she didn’t have much Canadian business, but as the Canada and U.S. dollar became more equal she saw the impact those visitors could have on business.
The bill says the goal of the trade center is “to promote trade and tourism between the residents of Canada and the residents of Montana.” It says the trade center is for promotional purposes only and is not intended to regulate or impede interstate commerce or commerce with foreign nations.
The state collected $21.6 million in bed tax revenue in 2014. About 65 percent of the tax goes to the Commerce Department for tourism promotion. The bill aims to use some of that money for establishing the trade center.
A fiscal note for the bill estimates that about $306,3000 in bed tax revenue would be used to pay for the trade center. Brown questions the cost estimate.
“The price tag is a moving target since we haven’t put out a prospectus nor hired a person to staff the center,” she said.
Brown said projected bed taxes show a $1 million yearly increase for the next four years and that the cost for the trade center office and staff member would not redirect funds being spent elsewhere, but be put to use in the trade center as a marketing tool.
Another tourism-related bill introduced by Brown, seeks to create a public listing of accommodation facilities and include vacation homes in those facilities that are required to collect the state bed tax.
Brown describes it as a “carrot” bill. Only homes rented for periods of less than 30 days would be included.
“They are already benefiting from the marketing that comes from the state bed tax,” she said. “They all should be paying the bed tax.”
The Senate taxation committee last week held a hearing on the bill.
Brown told the committee she expects an increase in bed tax collections and increased compliance with the law as a result of the bill.
Stuart Doggett, with the Montana Lodging and Hospitality Association, said there is a growing number of short-term rentals across the state and those should be required to collect the tax.
“We like this bill and we support it,” Doggett said. “Bills like this are being considered across the country.”
Lee Baerlocher, business and income tax division administrator for the Montana Department of Revenue, said more than 80 percent of the 2,300 vacation rentals in the state are already collecting the tax.
The bill aims to create a free internet data base of the accommodations organized by county and type of lodging facility, and include those that are in compliance with bed tax collection rules.
“Chamber of commences get questions about these rentals and this gives them the ability to see if they’re valid rentals,” she said. “This will bring those into compliance that aren’t already.”