Resort tax will boost property tax rebate this year

The city of Columbia Falls continues to reap the rewards of its 3% resort tax, with revenue increasing again for the 2026 fiscal year.

The resort tax brought in a total of $1.65 million in revenue in 2025, an increase of about $82,000, or 5% over the previous year.

Of that $1.65 million, $441,141 will be used for property tax relief. Subtracting a 5% business administration fee that goes back to businesses for administering the tax, the city nets about $1.619 million for its coffers.

That amounts to $889,630 for public safety, 14% for infrastructure and 1% to administer the tax.

The tax this year will fund three police officers, 2.25 firefighters, a new $90,000 police vehicle, $20,000 in debt payment toward a new fire truck and about $200,000 in cash reserves.

The 2.25 firefighters is because the city will hire another firefighter halfway through the fiscal year and the rural district will pay half the salary.

The hire will boost the department to five paid firefighters.

From an infrastructure standpoint, options include improvements to parks, the pool, sidewalks, roads and other facilities.

Adding last year’s $302,000 in cash reserves for infrastructure, the city will have about $528,633 in cash reserves for fiscal year 2026.

The city projects continued growth in the resort tax this year, with revenues expected to be about $1.7 million, as the biggest businesses that pay the tax continue to see gains.

In other budgeting news, the city will look to keep the rate for the special lighting district, which pays for street lights, unchanged. It brings in about $30,049 a year. The electric bill runs slightly higher than that at $31,000 a year.

The city’s street maintenance district will increase about 5% to $363,825. The city’s street maintenance costs, however, run about $600,000 annually. The city offsets the difference with state gas tax revenues and its general fund.

The city projects it will get about $230,000 in gas tax revenue in fiscal year 2026.