Town Council Meeting
Draft Ordinance
4/12/24 at 9:00 am Townhall
Council in attendance: Carl Sundstrom, Jason White, Gary Fujinami, Mayor Daniel Reddish, Scott Lyons, Lorraine Dell-Bishop, and John Laigaie. Others in attendance: Clerk Rachel Parret, Special Projects Maureen Connor, Shirley Beck, Dale Siegford, Penny Murray (online), and Jack Foster.
Call to Order: Mayor Reddish called the meeting to order at 9:00 am.
Shirley Beck stated that launching the Resort Tax is in disregard to the businesses in Town. If the tax doesn’t pass the businesses are prepared to pay $12,500 per year to start an infrastructure fund. Shirley Beck also stated that she would challenge Rotary and Masons to match the funds. Shirley Beck said that businesses in Town will close. Mayor Reddish stated that there will be two public hearings at night to address questions from the public.
Attorney Memorandum 4/5/24
-
Can the Town Impose Penalties for Non-Compliance? Yes
Councilwoman Dell-Bishop made a motion to adopt the MCA 7-6-1505(3) except for (i) penalty of 6 months imprisonment, Councilman Sundstrom seconded the motion …
Mayor Reddish advised the council to consider pursuing criminal charges along with civil charges. Councilman White stated that all penalties should be included. Councilman Fujinami stated that people could push it to the limit so all penalties should be kept.
Roll Call – Councilwoman Dell-Bishop Aye, Councilman Laigaie Aye, Councilman Sundstrom Aye, Councilman Lyons Aye, Councilman White Nay, Councilman Fujinami Nay. Public Comment – Jack Foster stated that MCA 7-6-1503(3)(ii) is confusing and should be reworded. Councilman Lyons stated that this is the way the law is written and cannot be reworded.
-
Must the Resort Tax Be Imposed Year-Round? No.
Councilman Sundstrom made a motion to impose the Resort Tax year-round, Councilman White seconded the motion… Councilwoman Dell-Bishop stated that the Resort Tax should only be seasonal, and this would be a good way to not upset the business owners. Mayor Reddish stated that the Council can alter the period, however, stopping and starting the Tax would bring another problem for the administration. Councilman Sundstrom stated that the Town needs the revenue, and the Tax needs to be year-round. Councilman Fujinami stated that running the Tax on a seasonal basis would be cause administrative problems for the Town and business owners. Councilman Laigaie stated that the Tax needs to be year-round. Councilman Lyons stated this is not going to drive tourism away and that people in to get invested in their Town. Roll Call – Councilman Sundstrom Aye, Councilman White Aye, Councilman Fujinami Aye, Councilman Lyons Aye, Councilman Laigaie Aye, Councilwoman Dell-Bishop Nay.
Public Comment – Penny Murray stated our tourist season is becoming more year-round with ski season, bike season, spring break.We see tourists on the streets every month. Some businesses make a large percentage of their money at Christmas or in winter. Amenities should be open, and taxes should be active. Bookkeeping might be harder with a seasonal Tax. Councilman Lyons stated that the Town would release annually how much revenue the Resort Tax brings in.
Attorney Memorandum 4/8/24
-
Can ATV’s and ATV Accessories Be Subject to the Resort Tax? No
Councilman White made a motion to not include ATV’s and ATV accessories in Resort Tax, Councilman Laigaie seconded the motion…
Public Comment – Penny Murray asked if ATV rentals would be included in the Tax? Councilman Lyons replied that ATV rentals are included in the Tax, however, currently no one is renting ATV’s.
Roll Call – Councilman White Aye, Councilman Sundstrom Aye, Councilman Fujinami Aye, Councilman Laigaie Aye, Councilman Lyons Aye, Councilwoman Dell-Bishop Nay.
-
Does the 5% for Property Taxes Apply to Both the 3% Portion and the 1% Portion of the Resort Tax? Yes.
Draft Ordinance
-
Ordinance 11.410(B) Penalties
The Town may revoke the business (license) of the business failing to pay it(s) resort taxes.
-
Ordinance 11.1.210(D) Period of Tax
The resort (tax) shall be imposed on sales of taxable items sold (for the entire year).
-
Ordinance 11.1.210(A) Resort Tax Imposed
Councilman Sundstrom made a motion to add a reference to 11.1.210(A) listing items that are taxed, Councilman Lyons seconded the motion, and the motion passed unanimously.
-
Ordinance 11.1.210(B) Resort Tax Imposed
Councilwoman Dell-Bishop made a motion that the 4% Resort Tax be used towards the Town’s infrastructure, Councilman Fujinami seconded the motion, and the motion passed unanimously.
-
Ordinance 11.1.310(A) Exemptions
Councilwoman Dell-Bishop made a motion to add except for alcohol sales by the drink, Councilman Lyons seconded the motion…. Roll Call Councilwoman Dell-Bishop Aye, Councilman Lyons Aye, Councilman Laigaie Aye, Councilman Fujinami Aye, Councilman White Aye, Councilman Sundstrom Nay.
-
Ordinance 11.1.210(A)(3) Resort Tax Imposed
Councilman Lyons made a motion to add except for non-profits to 11.1.210(A)(3), Councilman Fujinami seconded the motion, and the motion passed unanimously.
-
Ordinance 11.1.510(A)(2) Payment of Tax
Councilwoman Dell-Bishop made a motion to strike 11.1.510(A)(2), Councilman Laigaie seconded the motion, and the motion passed unanimously.
-
Ordinance 11.1.810 Use of Tax Monies
Councilman Lyons made a motion to match the wording with 11.1.810(A)(1) to 11.1.810(B)(1), Councilman Laigaie seconded the motion, and the motion passed unanimously.
Mayor Reddish asked Councilman Lyons to contact Town Attorney with the Council’s changes to the Ordinance.
For the Record
The Town Council understands that any votes taken at this meeting are for purposes of developing a draft ordinance for the public prior to election. The Town Council understands the final ordinance will come after a positive vote from the public, and the required hearings.
Adjourn
Councilman Lyons made a motion adjourn the meeting at 10:30 am, Councilman Laigaie seconded the motion, and the motion passed unanimously